core sector communique

New Report Warns Current Global Governance Systems Lack Capacity to Deal with Global Risks

London, United Kingdom, 12 January 2011 – The financial crisis has drained the world’s capacity for dealing with shocks. The frequency and severity of risks to global stability have amplified, while the ability of global governance systems to deal with them has not. These are the conclusions of the World Economic Forum’s Global Risks 2011, Sixth Edition, launched today.

• The World Economic Forum’s Global Risks 2011, Sixth Editionhas identified economic disparity and global governance failures as central risks in the global risk landscape, exacerbating and driving a range of other risks.
• The report identifies economic imbalances and unfunded liabilities as containing the seeds of potential future fiscal and financial crises and urges concerted coordinated action to manage them.
• Global Risks 2011 highlights three risk clusters of particular concern: the relationship between illicit trade, crime, corruption and state fragility; a set of interconnected risks tied to water, food and energy; and risks related to global macroeconomic imbalances.