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The main global risks 2014
Material posted: Publication date: 22-01-2014

The burden of unsustainable debt, soaring youth unemployment and water crisis are the main causes of concern of international experts.

“Powder keg”: the financial crisis and youth unemployment

Interviewing seven people, including leading business leaders, world economic forum released a report titled "Global risks 2014". The report highlights the risk of 31, each of which represents a serious threat to many people around the world in 2014.

The financial crisis in key economies

Advanced economies remain in danger of fiscal crises due to extremely high external debts, rising interest rate and inflationary pressure.

Based on the official national debt of America, amounting to over one hundred per cent of the country's GDP, and Japan's debt is more than 230 percent of GDP, investors can draw a conclusion about the non-viability of such levels of debt.

Council on the global agenda for Financial stability said that in the short-term risks is more exposed to Eurozone countries who are not able to devaluate their currencies.

Emerging markets overall are in a better position, having recovered from the global financial meltdown, however, in recent years, a disturbing credit bubbles, which may develop into financial crises.

The report warns that a financial crisis in any major economy could have cascading consequences for the entire world.

Large-scale youth unemployment

From the legacy of the financial crisis, the most affected are young people, because since its commencement rapidly increasing levels of youth unemployment. A vivid example of extremely disturbing youth unemployment is South Africa. It has been hard well as a large number of young people in the middle East and in countries such as Greece and Spain.

In developing countries about two thirds of youth do not realize their economic potential.

According to the world Bank, nearly three hundred million young people – over 25 per cent of young people of the Earth – have no productive work. If we add to this the number of rural and urban low-wage workers with self-employment, the figure will double to six million.

The report warns that the growing number of unemployed young people threatens to stop economic progress. It can also develop into social unrest, and some representatives of the "lost generation" may be drawn into criminal or extremist movements.

Water wars and extreme weather conditions

In recent years this risk increased maximally.

Water crisis and extreme weather conditions are called community the world economic forum from two of top ten global risks.

The fear factor increased severe weather shocks observed in recent years. Among them, the flooding in Pakistan in 2010 that took the lives of thousands of people.

The influence of weather on the economy is seen as a big risk. May the tsunami of 2011 hit Japan's GDP and global industrial production, while flooding in Thailand that occurred in 2011 have slowed production of cars worldwide due to termination of the supply of parts; reduced production of hard disk drives for computers around the world.

Drought in Russia in 2011 led to restrictions on agricultural exports.

Water scarcity is becoming an increasing burden. While in the twentieth century the world population has quadrupled, the supply of fresh water has been depleted.

Water quality is also an issue. Pollution has paralyzed economic activity in some parts of China and in other countries.

In the future, geopolitical tensions over access to water resources may increase. The report says that any mistake in planning, management or use of water resources of the country can have a ripple effect around the world.

The widening gap in wealth

The eternal gap between the incomes of the richest and poorest citizens is seen as a risk in the next decade are likely to entail consequences on a global scale. According to the report, the gap between rich and poor threatens social and political stability, and economic development.

Frequent cyber-attacks

The growing dependence on the Internet to perform important tasks, as well as the increasing number of connected devices increased the risk of system failures, making it in 2014 is higher than ever before. The report States that this could lead to the collapse of the systems and even societies.

Revelations about surveillance by the government has discouraged the international community's desire to work together to build governance models. This threatens the movement towards Balkanization of the Internet.

The report warns of "cybergeddon" when will hackers enjoy overwhelming superiority and massive destabilization will become commonplace.

According to the Director of risk management insurance company Zurich Insurance Group Alex P. Lehmann, "the credibility of the Internet falls because of the misuse of data, hacking and invasion of privacy."

The world economic forum called for creative thinking on all levels about how to save a protected cyberspace.

Evaluation

Compared with men, women respondents perceived global risks as more likely and can have serious consequences, especially in the environmental category.

Young people valued the impact of almost all risks, particularly environmental, such as water crisis and the increased frequency of extreme weather conditions and natural disasters.

The main idea of the report is that global risks are interrelated. As a country, we rely on each other more than ever before and should come out of their shelters and start looking for a way to minimize all risks as a whole.

Source translation for MixedNews -


Source: http://mixednews.ru/archives/46650

 


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