Disruptive shocks to the global economy are likely to become more frequent and cause greater economic and societal hardship. The economic spill-over effect of events like the financial crisis or a potential pandemic will grow due to the increasing interconnectivity of the global economy and speed with which people, goods and data travel, according to a new OECD report.
“Future Global Shocks” analyses five potential major risks in the years ahead: a pandemic, a cyber attack disrupting critical infrastructure, a financial crisis, socio-economic unrest and a geomagnetic storm. The interconnectedness of the global economy makes it more vulnerable to major shocks. In the wake of the 2008 financial meltdown, global leaders are acutely aware of the threats another such crisis would pose to economic recovery, social cohesion and political stability. How can governments and business prepare for and respond to such unanticipated events?
The OECD presented the findings of a two-year “Future Global Shocks” project on Monday 27 June 2011.