The risks in 2021 were off the scales due to the pandemic, climate change, geopolitics, and much more. These event in combination tested the strength of the global community and the individual. It is safe to say that every one and every system, economic or social was put through the works in one way or another.
In this blog, Global risks will be analyzed alongside the global efforts to join combat these issues. Global repercussions will also be discussed.
Global risks in 2021
1. The COVID-19 Pandemic
The vaccination of millions across America should have been the lit the light at the end of the tunnel, but in reality, the COVID-19 pandemic still had quite a powerful pull. The new variants alongside the lack of access to boosters meant that, both, the American Health system and their economy was put under immense duress.
2. Economic Growth Stagnation
The pandemic fueled tremors left behind took their toll on the world economy. The effects were made even worse by the fact that no measures were taken to effectively turn the economy around.
In 2021, fatalities from the COVID-19 pandemic and the subsequent governmental measures resulted in economic challenges including increase in public debt, shift within the job market, and existance of straining supply chains.
Reduction of economic activity shifted income and wealth patterns to a concentrated model termed the “K-shaped Recovery” where both poor and rich people have either increased poverty or wealth. Global inequality further heightened and brought greater social unrest in different nations.
As an example, oil-based economies such as Algeria and Iraq confronted additional obstacles amid the social and political tension due to pandemic-fueled low demand coupled with low energy prices.
3. Risks of Climate Change and The Environment
Climate change has transformed from being addressed as a shared international issue to being a competitive field between blocs. Superpowers such as USA, China, and states in the EU have accelerated their claim to being the best in sustainability while at the same time driving a wedge in the collaboration at the global level.
Natural calamities in the form of wildfires, floods, and severe heatwaves have accentuated the lack of effort towards the climate change initiatives. In contrast, the necessity of tackling these issues is juxtaposed to economic recovery in a pandemic devastated world.
4. Global Tensions
In 2021, Geopolitical tensions heightened, primarily between USA and China. The situation continues to be straining for both the world powers even under the latest administration headed by President Biden.
Trade policies and technological competition caused changes that affected the world economy and politics.
The COVID-19 pandemic also worsened the political and economic situations in Turkey, which escalated the dangers of regional chaos. Some regions even began experiencing armed conflicts, which increased the threat of war.
5. Technology and Cybersecurity Threats
Every new technological advancement comes with its own benefits and risks. The global pandemic accelerated digitization in every business which was an opportunity, but also a challenge as it increased the risk of cyber crime.
Cybercrime increased way too much, and it didn’t spare anyone, not even the government. The Colonial Pipeline incident was one of the most talked about national ransomware attacks, and it highlighted the shortcomings in the country’s infrastructure. Now, as the world continues to embrace AI, it is imperative to remain cautious of cyber dangers and build defenses.
Contributing Factors
The global risks of 2021 did not come out of thin air. They stemmed from a series of interconnected events and were systemic in nature.
• Tightly Knit World: The rise of digital technologies, supply chains, and interconnected economies meant that risks were not localized anymore. But global.
• Missed Opportunities: People’s disregard for climate issues, inequality, and poverty made systems very fragile; this proved to be dangerous when the world was struck with multiple crises.
• Polarization: Even in times of pandemics, world powers could not unite to share vaccines with developing countries. This division posed a huge set back in addressing climate change challenges too.
Implications of These Global Risks
The risks of 2021 had far- reaching effects that touched every region of the globe, including economies, societies and people at an individual level.
• Economic Inequality got worse as the few people who were wealthy became even richer while economically disadvantaged communities suffered during the recession and the climate disasters.
• With the increased levels of unemployment, poor healthcare services, and few opportunities for recovery in select regions, Social Discontent got worse as well.
• The internl issues shifted focus for different countries which lead to stronger Global Collaboration deterioration. Progress on issues such as combating the climate change and pandemics suffered as a result.
Stakeholder Responses
Everyone from proceeds to citizens globally suffered these challenges but did something in their power to aid these issues which included government bodies and private businesses alike multi tiered.
Government Actions
• Carbon neutrality was set as a goal by mided 21st century which led the US and EU to launch climate projects.
• Vaccine rollouts gained uneven momentum with the help of divided initiatives like COVAX.
International Organizations
• Global issues such as access to vaccines and fighting climate change called for the United Nations to focus on cross border colaboration.
• The supporting initiatives for economic recovery in developing regions were launched by The World Bank.
Businesses and Communities
• Fighting Cybersecurity issues was furthered by tech companies who devised newer protocols and encryption methods.
• Stronger social safety nets along with better disaster preparedness programs were advocated for by the local communities.
The Path Forward
In the case that no one remember, The year 2021 served as foremost reminder of how vital resilience is in sustaining a world flooded with immense compound risks. Preparing for and mitigating a crisis is a critical step that has to be taken on a forward facing, multi-stakeholder approach.
• Foster Global Collaboration: For public health and climate change, along with other interlinked issues, international cooperation is a must.
• Design Systems with Redundancy: Resist shocks, these systems are essential and from strengthened digital networks to diversified supply chains, everything must be done in a way to create a failsafe.
• Local Issues Must Be Handled: From the bottom up, communities need to be given the power and the essentials needed to handle risks on the ground.
Adopting a Resilient Future
The issues that the globe faced during 2021 seem seem perplexing but through careful study it is obvious that these global threats are acts that extend opportunities to adapt and learn. As we move towards a future which is equitable in nature, it is imperative that systemic vulnerabilities alongside collaboration be addressed to foster resilience.
The highlight? The focus shouldn’t just be towards responding to risks but developing ways to anticipate and adapt to them.
