WEF launches Resilience Consortium to develop strategies to deal with global crises

The World Economic Forum (WEF) on Friday launched the Resilience Consortium with the aim of building global resilience to crises. The WEF is collaborating with McKinsey & Company for the same.

The Resilience Consortium will bring together ministers, chief executives and heads of international organizations, to accelerate collective action on key drivers of resilience for the global economy and develop a common resilience framework.

The Resilience Consortium will work to unlock synergies, accelerate collective action and enable a more systemic approach to investing in resilient economies and societies. The consortium will be led by a Steering Committee, comprised of a dedicated group of public and private sector leaders from all sectors and geographies

The WEF launched it in light of recent events such as climate change, COVID-19 and the war in Ukraine which are accelerating crises ranging from growing hunger, refugee flows and inequality to shocks in the chains. supply, energy prices and global growth. The WEF said companies and countries need to move quickly from reactive risk management to strategic recovery to be better prepared for the next crisis.

New research from the WEF suggests that the cost of failing to build resilience to crises is between 1% and 5% of annual global GDP growth. For example, labor attrition during COVID-19 has reduced growth by 3.6% in some countries, while disruptions to energy and supply chains caused by current crises erase around 1 2.5% of global GDP.

The WEF, in an official statement, explained that resilience comprises a set of strategic capacities to achieve long-term, sustainable and inclusive growth. He added that a shared framework is a prerequisite for a coordinated and systematic approach to resilience. It would provide organizations with a common language, structure and goals for resilience, as well as guidance on how to protect and enhance sustainability and inclusion in an environment of more frequent crises and disruptions.

Børge Brende, President of the WEF, said: “Building greater resilience has become a defining mandate for this generation. The war in Ukraine is having a devastating impact not only on the people of the region, but also ripple effects on global commodity prices that can cause political and humanitarian crises in other parts of the world.”

“There is an urgent need for more collective public and private sector action and coordination to mitigate risk and support growth against disruptive shocks, especially among the most vulnerable populations. Financial commitments made today will determine the future of the planet, economies and societies. Now is the time to act,” he added.

Also read: Drones can save lives providing healthcare in rural India: WEF report

Also read: WEF Davos scheduled for May 22-26; more than 50 heads of government will attend the annual meeting

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