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The novel coronavirus crisis has revealed the "catastrophic effects "of ignoring long-term risks such as pandemics, and the knock-on effect could be felt economically and politically for years to come, according to the World Economic Forum's latest risk report.
The Global Risks Report 2021, released on Tuesday, noted that the COVID-19 pandemic has not only claimed millions of lives, but has also widened long-standing health, economic and digital disparities.
The 16th edition of the report focuses on a year marked by a global pandemic, economic downturn, political turmoil and the ever-worsening climate crisis, while looking at the disruptive implications of major risks that may reshape the world in 2021 and over the next decade.
The report studied the opinions of some 700 global leaders from business, academia and government who were asked about their concerns for the next decade.
One of the big changes in terms of risk between this year and last has been brought about by the novel coronavirus pandemic, the study said. The risk posed by infectious diseases is now ranked at number one, while in 2020 it came in 10th place.
Other highest-impact risks of the next decade are climate action failure and other environmental risks, as well as weapons of mass destruction, livelihood crises, debt crises and IT infrastructure breakdown.
"The immediate human and economic costs of COVID-19 are severe," the report pointed out. "They threaten to scale back years of progress on reducing global poverty and inequality and further damage social cohesion and global cooperation."
COVID-19 has led to losses of life, held back economic development in some of the poorest parts of the world, and amplified wealth inequalities across the globe, the report said.
The report also measured the highest likelihood risks of the next decade. The top concerns are extreme weather, climate action failure and human-led environmental damage, as well as digital power concentration, digital inequality and cybersecurity failure.
"In 2020, the risk of a global pandemic became reality, something this report has been highlighting since 2006. We know how difficult it is for governments, business and other stakeholders to address such long-term risks, but the lesson here is for all of us to recognize that ignoring them doesn't make them less likely to happen," said Saadia Zahidi, managing director at the World Economic Forum.
"As governments, businesses and societies begin to emerge from the pandemic, they must now urgently shape new economic and social systems that improve our collective resilience and capacity to respond to shocks while reducing inequality," Zahidi added.