Rapid Download Squad

This year will be no different. Uncertainty about the short- and medium-term future is as high as it has been for a decade. Economically, the uncertainty centres on how the global economy will respond to the spreading liquidity crunch of 2007. The mispricing of financial risk, a central theme of Global Risks 2007, may have further to unwind.

Geopolitically, uncertainty is focused on the possibility of an escalation in tensions with Iran and concerns over the long-term integrity of the states of Iraq and Afghanistan.

The result of uncertainty could be inaction in dealing with other, less immediate, global risks. Action to mitigate climate change, for example, may be put in danger should the global economy weaken substantially – even though many of the political, economic and investment decisions which will shape the future path of global climate will need to be made in the next five years. Proactive management of globalization to ensure its long-term sustainability may be derailed by the prevailing currents of uncertainty. But inaction on long-term risks will only weaken the global capacity to manage future challenges.