The World Economic Forum (WEF) has released a new report that puts on stark display the tough job ahead for Nigeria’s next president.
Based on responses from 1,200 private-sector risk managers, public policy-makers, academics and industry leaders across the world, WEF’s 2023 report highlights terrorist attacks, debt crises, cost of living, severe commodity supply crises, rapid or sustained inflation, and employment or livelihood crises as the most immediate risks facing the country’s economy.
“2023 is set to be marked by increased risks related to food, energy, raw materials and cyber security, causing further disruption to global supply chains and impacting investment decisions,” Carolina Klint, risk management leader, Continental Europe, Marsh, said on Wednesday.
She advised companies to focus not just on navigating near-term concerns but also on developing strategies that will position them well for longer-term risks and structural change.
WEF said globally, the coming years will present tough trade-offs for governments facing competing concerns for society, the environment and security.
It uses data from the Global Risks Perception Survey 2022-2023 to understand the risks the world is likely to face over the coming 10 years.
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It identifies the cost-of-living crisis as the most severe threat facing developed and developing countries over the next two years.
“Next is natural disasters and extreme weather events while geoeconomic confrontation also features in the top 3 most severe risks in our most immediate future,” the report said.
Contrast this to a 10-year view, WEF said the long-term risk of failure to tackle climate change emerged as the biggest set of risks.
From failure to mitigate climate change to biodiversity loss and ecosystem collapse, findings showed the top four most severe risks over the next 10 years are all environmental.
“Already, short-term geo-economic risks are putting net-zero commitments to the test and have exposed a gap between what is scientifically necessary and politically palatable,” WEF said in the report titled ‘The Global Risks Report 2023’.
It called on leaders to act collectively and decisively, balancing short- and long-term views.
“The short-term risk landscape is dominated by energy, food, debt and disasters,’ said Saadia Zahidi, managing director of WEF.
The conclusions of the report, prepared ahead of the annual WEF talks in the Swiss resort of Davos due next week, come after a year in which many commitments to act on climate change have been set aside in the energy crunch following the Ukraine war.