World Economic Forum:Â The Global Risks Report 2020
Article published:Â Jan, 2020
IB Economics syllabus:Â Microeconomics, Macroeconomics, International Economics, Development Economics (market failure, negative externalities of production, sustainability, equity in the income distribution, economic development)
One week before the World Economic Forum in Davos, the Organization published their Annual Risk Report, in which experts analyze the threats facing our world. The current one is the 15th edition, but this is the first time that
all of the 5 most likely threats have to do with climate change, and out of the 5 most impactful risks, 4 is also connected to climate change.
Risks that matter
As the report summary states: “The global economy is facing an increased risk of stagnation, climate change is striking harder and more rapidly than expected, and fragmented cyberspace threatens the full potential of next-generation technologies — all while citizens worldwide protest political and economic conditions and voice concerns about systems that exacerbate inequality.” While this is not an article and hence not suitable fot an Economics IA, it’s important to learn about interesting facts about our future. For example, “Today’s emerging economies are expected to comprise six of the world’s seven largest economies by 2050” and for instance, that “Countries will face more potential points of contention as climate change reshapes the security of and access to historic common property resources, such as fishing waters” among others.
Moreover, it also talks about the importance of a “Green New Deal” as international cooperation is crucial to reduce the largest risks that threaten our world today. Therefore, this is in line with what the IB Economics guide says in the syllabus:Â “threats to sustainability are limited by the global nature of the problems […], and that effective responses require international cooperation” (p26. of the guide).
Source of image: World Economic Forum weforum.org
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