While unemployment is one of the most talked about Indian issues, the latest report by World Economic Forum states that it is a global menace.
Poor job creation is not just an issue facing the Narendra Modi government ahead of the 2019 election, unemployment is among the biggest risks and challenges causing sleepless nights for people across the globe, a recent survey showed.
For its latest global risk report, the World Economic Forum conducted a survey to assess people’s perception of global risk factors and challenges, and find out the issues that plague modern times. The survey found nine major economic risk factors that the global citizens are worried about.
Fiscal crises, failure of financial mechanism or institution, asset bubbles in major economies, unemployment or underemployment, failure of critical infrastructure, failure of national governance, energy price shock, unmanageable inflation and deflation, and illicit trade are the economic vulnerabilities people are afraid of. People who were surveyed feel that all of these possibilities are interconnected.
The global risk landscape is also driven by rising income, wealth disparity and economic inequality, the report said. Intra-Country inequality has risen even though the global inequality experienced a decline. According to new research published last year, the economic inequality can be largely attributed to “widening divergences between public and private levels of capital ownership over the past 40 years”, the report said.
Asset bubbles in a major economy are one of the top ten risks that can occur in terms of likelihood, the surveyees felt. Among other possibilities, extreme weather events, failure of climate-change mitigation and adaptation, natural disasters, data fraud or theft, cyber-attacks, man-made environmental disasters, large-scale involuntary migration, biodiversity loss and ecosystem collapse, water crises, also feature in the top 10 in terms of likelihood.
The international economic environment has been in the spotlight since 2018. International Monetary Fund (IMF) forecasts a slowdown in GDP growth in the major economies in a few years. With increasing financial market volatility, the report says that the global debt burden has also been on a high. However, the report added that the aggregate growth is expected to remain the same in the developing countries.
The 2019 risk report has highlighted five key areas that demand immediate intervention — economic vulnerabilities, geopolitical tensions, societal and political strains, environmental fragilities, and technological instabilities. Most of those surveyed were perplexed about the changing climate conditions and natural disasters.