10 Biggest Economic Threats to the World in 2014

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10 Biggest Economic Threats to the World in 2014
Daniel Brooks

Glopinion by

Daniel Brooks

Jan 21, 2014

The World Economic Forum (WEF) has compiled a list of risks that have the potential to negatively affect many countries and economies in the world.

These risks are classified as economic, environmental, geopolitical, societal and technological.

 1. The fiscal crisis in the major economies

Fiscal crisis is considered to be have the highest risk. Developed economies are still at risk, and numerous emerging markets in recent years have recorded credit growth, which could boost the financial crisis in these countries

2. Structurally high unemployment

Unemployment is on the second place on the list of risks, as there are many people, both in developed and in emerging economies, who have no job. Particularly affected are the young, of which, in some countries, 50 percent is without job. http://economictimes.indiatimes.com/news/international/business/promote-sustainable-growth-to-create-more-jobssays-wef-report/articleshow/29122223.cms

3. Shortage of water

Many environmental problems are found on the list too, and water crisis is the result of mismanagement of the already rare stocks and too much competition in the market.

4. Serious disparities in the incomes

Concerns about differences in the incomes are driven by the impact of the financial crisis on the middle class in developed countries. Globalization has led to a gap between incomes in developing countries and emerging ones. http://www.latimes.com/business/money/la-fi-mo-world-economic-forum-income-inequality-20140117,0,5617460.story#axzz2qyzThtKS

5. Failure in adapting to climate changes

While governments and corporations have been calling for accelerated reduction of greenhouse gas emissions for long time, now it is clear that it is necessary not only to mitigate climate changes, but also to adapt to them.

6. Increasingly extreme weather phenomena

Extreme weather phenomena such as droughts and floods are the result of climate change, and such occurrences give rise to a number of risks, such as lack of food in the world, and political and social instability.

7. Poor global governance

Weak or inadequate global institutions, agreements and networks, combined with national and political interests, hamper efforts of cooperation in the fight against global risks.

8. Food shortages

The food crisis is closely linked to climate changes and occurs when food of adequate quality or quantity becomes unavailable.

9. The collapse of major financial institutions or mechanisms

Five years after the collapse of the bank "Lehman Brothers", the collapse of some large institution is still problem of which many scientists are concerned, because the quality of assets in numerous banks is still debatable.

10. Serious political and social instability

The erosion of trust between states and citizens threatens to lead to the collapse of the state and widespread internal violence, regional or even global instability, including the military conflict, according to the WEF.

 

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