World Economic Forum warns over international conflicts

AP News
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Posted: Jan 15, 2015 12:21 PM
World Economic Forum warns over international conflicts

LONDON (AP) — Following a year marked by the conflict in Ukraine and the rise of the Islamic State, geopolitical issues are considered to be the biggest threat to global stability over the coming decade, according to experts polled by the World Economic Forum.

In its 2015 Global Risks Report, published Thursday, the WEF found "interstate conflict with regional consequences" to be the top risk facing the world, ahead of extreme weather, the spread of infectious diseases, climate change and sky-high youth unemployment levels in some parts of the world.

"Twenty-five years after the fall of the Berlin Wall, the world again faces the risk of major conflict between states," said Margareta Drzeniek-Hanouz, WEF's lead economist.

She said the means to wage such conflict are broader than ever, whether through cyberattack, competition for resources or sanctions and other economic tools.

"Addressing all these possible triggers and seeking to return the world to a path of partnership, rather than competition, should be a priority for leaders as we enter 2015," she said.

The report, now in its 10th year, helps set the tone for discussions at the annual WEF gathering in the Swiss ski resort of Davos, which starts next week.

Its findings show a marked change from the recent past. Geopolitical concerns have been largely absent from the WEF's list of top risks for the past half-decade. A year ago, income inequality was considered to be the major concern. Now, that issue doesn't even make it into the top 5.

John Veihmeyer, global chairman of consulting firm KPMG International, was unsurprised by the findings of the WEF report. "If you look at the major change from a year ago, it is the rapid escalation of geopolitical risk on the agenda of CEOs," he said in an interview with The Associated Press.

Though economic matters didn't feature in the risk report as much as they have done in recent years, the WEF's Drzeniek-Hanouz said it would be complacent to think the economic risks have suddenly disappeared.

When asked to assess risks in terms of their potential impact, the nearly 900 experts surveyed by WEF found water crises as the greatest threat to the world. Another top risk identified was the spread of infectious diseases — unsurprising given the Ebola outbreak in West Africa.