January 13, 2023
WEF: Cost-of-living Crisis Can Result in Hunger for Millions in Pakistan
By Abdus Sattar Ghazali
The World Economic Forum’s Global Risks Report 2023 says that a combination of extreme weather events and constrained supply could lead Pakistan’s current cost-of-living crisis into a catastrophic scenario of hunger and distress for millions.
The WEF report has identified the following top ten risks that pose the biggest threats to Pakistan: 1) Digital power concentration and monopolies, 2) Failure of cybersecurity measures (including loss of privacy, data fraud or theft, cyber espionage), 3) Rapid and/or sustained inflation 4) Debt crises 5) State collapse 6) Lack of widespread digital services and digital inequality 7) Interstate conflict 8) Terrestrial biodiversity loss and ecosystem collapse 9) Terrorist attacks and 10) Employment and livelihood crisis.
The report pointed out that the cost-of-living crisis is the biggest short-term risk while the failure of climate mitigation and climate adaptation is the largest long-term concerns. The geopolitical rivalries and inward-looking stances will heighten economic constraints and further exacerbate both short- and long-term risks.
The report said that over 800,000 hectares of farmland have been wiped out by 2022 floods in Pakistan. This has resulted in increasing commodity prices significantly in a country that is already grappling with a record 27 percent inflation.
Amir Jahangir, Chief Executive Officer Mishal Pakistan, the Partners Institute for New Economy and Societies Platforms of the World Economic Forum said, “the Global Risk Report 2023 identifies that for Pakistan, both the affordability and availability of basic necessities can stoke social and political instability”.
He further said, “Last year, the increase in fuel prices alone led to protests in an estimated 92 countries, some of which resulted in political upheaval and fatalities, alongside strikes and industrial shutdowns”. He said, “the impact of insecurity will continue to be felt in Pakistan and may also exacerbate instability due to simultaneous food and debt crises. Resulting in the emergence of a possible more technocracy-based decision-making leadership framework.
On the international front, the WEF report said that the global pandemic and war in Europe (read Ukrain) have brought energy, inflation, food, and security crises back to the fore. These create follow-on risks that will dominate the next two years: the risk of recession; growing debt distress; a continued cost of living crisis; polarized societies enabled by disinformation and misinformation; a hiatus on rapid climate action; and zero-sum geo-economic warfare.
“The short-term risk landscape is dominated by energy, food, debt, and disasters. Those that are already the most vulnerable are suffering – and in the face of multiple crises, those who qualify as vulnerable are rapidly expanding, in rich and poor countries alike. In this already toxic mix of known and rising global risks, a new shock event, from a new military conflict to a new virus, could become unmanageable. Climate and human development therefore must be at the core of concerns of global leaders to boost resilience against future shocks,” said Saadia Zahidi, Managing Director of World Economic Forum.
Unless the world starts to cooperate more effectively on climate mitigation and climate adaptation, over the next 10 years this will lead to continued global warming and ecological breakdown. Failure to mitigate and adapt to climate change, natural disasters, biodiversity loss and environmental degradation represent five of the top 10 risks – with biodiversity loss seen as one of the most rapidly deteriorating global risks over the next decade. In parallel, crises-driven leadership and geopolitical rivalries risk creating societal distress at an unprecedented level, as investments in health, education and economic development disappear, further eroding social cohesion. The Report also sheds light on the rising rivalries risk not only growing geo-economic weaponization but also remilitarization, especially through new technologies and rogue actors.
The coming years will present tough trade-offs for governments facing competing concerns for society, the environment and security. Already, short-term geo-economic risks are putting net-zero commitments to the test and have exposed a gap between what is scientifically necessary and politically palatable. Dramatically accelerated collective action on the climate crisis is needed to limit the consequences of a warming world. Meanwhile, security considerations and increasing military expenditure may leave less fiscal headroom to cushion the impacts of an elongated cost of living crisis. Without a change in trajectory, vulnerable countries could reach a perpetual state of crisis where they are unable to invest in future growth, human development, and green technologies.
The report calls on leaders to act collectively and decisively, balancing short- and long-term views. In addition to urgent and coordinated climate action, the report recommends joint efforts between countries as well as public-private cooperation to strengthen financial stability, technology governance, economic development and investment in research, science, education, and health.
The World Economic Forum (WEF) delivered its Global Risks Report for 2023 was released ahead of the WEF’s Davos, Switzerland, meeting from January 16 to 20.
Abdus Sattar Ghazali is the Editor -in-Chief of the Journal of America: www.journalofamerica.net. email: asghazali2011@gmail.com
|
Published since July 2008 |
Your donation
is tax deductable.
The Journal of America Team:
Editor in chief:
Abdus Sattar Ghazali
Senior Editor:
Prof. Arthur Scott
Special Correspondent
Maryam Turab
