(MENAFN- Live Mint) New Delhi: The World Economic Forum says rising powers like India and the Gulf countries can offer multilateral alternatives as the US-China geoeconomic rivalry deepens. These countries can act as“bridges between the West and East”, but will also face challenges in a fragmented world.
The WEF, in its Global Risks Report 2025 released on Wednesday, painted a bleak picture of the global landscape, with heightened geopolitical tensions, environmental crises, and the proliferation of disinformation posing significant challenges.
The report, now in its 20th edition, warned that state-based armed conflict is the most immediate risk for 2025, reflecting deepening geopolitical fragmentation. As a significant global player, India faces potential disruptions to its trade routes and energy security from ongoing instability in regions critical to its interests.
“Misinformation and disinformation lead short-term risks, posing threats to stability and eroding trust in governance, which complicates the need for cooperation in addressing global crises,” the World Economic Forum said.
This is second consecutive year when misinformation and disinformation have dominated short-term risks.
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Over the next decade, environmental risks, particularly extreme weather events, biodiversity loss, and ecosystem collapse, are expected to dominate the global risk landscape, it said.
As per the findings of the report, the top five risks identified for India by an Executive Opinion Survey are water supply shortage, misinformation and disinformation, erosion of human rights and civic freedoms, pollution (air, water, soil), and labour and talent shortages.
Research published in November 2024 assessed the vulnerability of 173 countries to restrictive US trade measures, with South Korea deemed the most at risk, followed by China, Japan, Canada and India, due to factors like trade surpluses, market access restrictions, and existing tariffs.
Industrial policy, beyond tariffs, is a key driver of trade-related protectionism, with non-tariff barriers, such as subsidies, rising in prominence. Legislation like America's Inflation Reduction Act and initiatives like Make in India reflect countries' inward focus, which could accelerate in a fragmented trade environment, it added.
The top risks in the Global Risks Report include state-based armed conflict, extreme weather events, geoeconomic confrontation, and misinformation, which destabilize global systems. Societal polarization and economic downturns exacerbate tensions, while biodiversity loss, human rights erosion, and inequality present long-term challenges. Migration and resource shortages further disrupt societies and economies.
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“Rising geopolitical tensions, a fracturing of global trust, and the climate crisis are straining the global system like never before,” said Mirek Dušek, managing director of the World Economic Forum.“In a world marked by deepening divides and cascading risks, collaboration and resilience are critical. The stakes have never been higher.”
The report's findings are based on a survey of over 900 global risk experts, policymakers, and industry leaders conducted in late 2024.
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