The scars of the COVID-19 pandemic will be visible for years with many of them manifesting into some of the most critical threats to the world, a new report by the World Economic Forum showed.

Mass unemployment, digital inequality and prolonged economic stagnation are some of the risks that could pose a danger in the next two years, a survey that forms the basis of this year's Global Risks Report has revealed.

The coronavirus pandemic, which has claimed more than 2 million lives globally, has pushed the global economy into its worst recession since World War II, rendering millions of people jobless and pushing many more into poverty.

"Job losses, a widening digital divide, disrupted social interactions, and abrupt shifts in markets could lead to dire consequences and lost opportunities for large parts of the global population," the authors of the report wrote.

"The ramifications — in the form of social unrest, political fragmentation and geopolitical tensions — will shape the effectiveness of our responses to the other key threats of the next decade: cyberattacks, weapons of mass destruction and, most notably, climate change," they said.

 

Rising disparities
The pandemic led to one of the swiftest organizational transformations in history as governments and businesses went digital to minimize the disruption caused by lockdowns. There was an unprecedented adoption of digital technologies with people being asked to work from home, schools and universities taking their classes online, doctors and patients turning to telemedicine and political leaders attending virtual summits. 

But the increasing reliance on the internet has exposed the deep divide between the technology haves and have-nots both within countries and between countries, with many children unable to attend online classes because of poor internet access and businesses being shuttered because of their inability to go digital.

"This will particularly affect young people worldwide, as this group faces its second global crisis in a generation and could miss out altogether on opportunities in the next decade," the report said.

The survey found that the risk of "youth disillusionment" was being largely neglected by the global community, but it would become a critical threat to the world in the short term.

"Hard-fought societal wins could be obliterated if the current generation lacks adequate pathways to future opportunities — and loses faith in today's economic and political institutions," the report warned.

 

Environmental risks dominate
Climate change once again emerged as a catastrophic risk in the annual report, with "climate action failure" and "extreme weather" identified as most likely long-term risks for the third straight year.  

Global lockdowns led to a drop in global emissions last year, but they could not prevent 2020 from going down as the hottest year on record. A sharp economic recovery and an easing of restrictions later this year could lead to emissions bouncing back.

"The biggest long-term risk remains a failure to act on climate change. There is no vaccine against climate risks, so post-pandemic recovery plans must focus on growth aligning with sustainability agendas to build back better," said Peter Giger from the Zurich Insurance Group.

The report flags that responses to the current pandemic, which have caused new "domestic and geopolitical tensions that threaten stability" could undermine the global fight against climate change.

The survey respondents rated "multilateralism collapse" as a critical long-term threat.