Income Disparity is the World’s Greatest Risk, Says World Economic Forum Survey
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The World Economic Forum has released its latest Global Risks 2012 annual report and warned of severe income inequality as the biggest global risk. According to the panel of experts put together by the World Economic Forum, global warming and failure of regulation make up the other top three global risks.
The World Economic Forum has released its latest Global Risks 2012 annual report and warned of severe income inequality as the biggest global risk. According to the panel of experts put together by the World Economic Forum, global warming and failure of regulation make up the other top three global risks.
The 60-page report, published in the run-up to the World Economic Forum’s annual meeting in Davos in two-weeks, shows a breakaway from environmental concerns and addresses the challenges and risks of socio-economic inequality.
Related Story: Why inequality will only lead to our downfall: Nouriel Roubini
Related Story: Sorry “99%”, there are no quick fixes for inequality: Raghuram Rajan
Based on a survey of 469 experts and industry leaders, the problems of rising youth unemployment, the burden of pensions and heavily indebted government debts have already begun sowing the “seeds of dystopia”.
“It needs immediate political attention, otherwise the political rhetoric that responds to this social unease will involve nationalism, protectionism and rolling back the globalisation process,” said Lee Howell, the WEF managing director responsible for the report, with reference to chronic imbalances present in key industralised economies.
Related News: UK unemployment reaches 17-year high
Related News: The pension crisis: Raise the retirement age?
Calling the “severe income disparity” the biggest risk and “most prevalent over the next then years, the report said:
[quote] These risks in tandem threaten global growth as they are drivers of nationalism, populism and protectionism at a time when the world remains vulnerable to systemic financial shocks, as well as possible food and water crises. [/quote]“For the first time in generations many people no longer believe their children will grow up to enjoy a higher standard of living than theirs,” Howell said.
He continued:
[quote] This new malaise is particularly acute in the industrialised countries that historically have been a source of great confidence and bold ideas. [/quote]Related Story: Rich Nations, Poor People: The Causes For Rising Poverty In The Western World
Related News: Almost Half of the World’s 1 Percent Are Americans
