Released by the World Economic Forum (WEF), the report identifies geoeconomic confrontation as the most significant global risk.
Key Highlights of the Report
- In the current and immediate term (2026) and the short-to-medium term (up to 2028), the report highlights major risks such as geoeconomic confrontation, state-based armed conflicts, extreme weather events, rising societal polarisation, etc.
- In the long term (up to 2036), the most significant risks identified include extreme weather events, biodiversity loss and ecosystem collapse, etc.
- Major Risk faced by India: Cyber insecurity, Inequality (wealth, income), Insufficient public services and social protections (incl. education, infrastructure, pensions), etc.
What is Geoeconomic Confrontation?
- Refers to strategic use of economic instruments by global or regional powers to reshape cross-border economic relations by restricting trade, technology, services, capital, or knowledge flows aimed at promoting self-reliance, constraining geopolitical rivals, and consolidating spheres of influence.
- Tools include sanctions, trade controls, investment restrictions, subsidies, state aid and currency measures.
- Recent Examples: Tariff imposition by the US, Ban on the export of critical minerals by China, etc.
- Potential Consequences: Erosion of multilateralism, Disruptions to a systemically important supply chain, Concentration of strategic resources and technologies, Economic downturn, State-based armed conflict, etc.
Actions Recommended: Economic inducements that foster mutual gains should be prioritized, Reinforce existing multilateral institutions, Invest in local resilience, etc.
