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Emotional Disruption

As the intertwining of technology with human life deepens, “affective computing”—the use of algorithms that can read human emotions or predict our emotional responses— is likely to become increasingly prevalent. In time, the advent of artificial intelligence (AI) “woebots” and similar tools could transform the delivery of emotional and psychological care—analogous to heart monitors and step counters. But the adverse consequences, either accidental or intentional, of emotionally “intelligent” code could be profound. Consider the various disruptions the digital revolution has already triggered—what would be the affective-computing equivalent of echo chambers or fake news? Of electoral interference or the micro-targeting of advertisements? New possibilities for radicalization would also open up, with machine learning used to identify emotionally receptive individuals and the specific triggers that might push them toward violence. Oppressive governments could deploy affective computing to exert control or whip up angry divisions. To help mitigate these risks, research into potential direct and indirect impacts of these technologies could be encouraged. Mandatory standards could be introduced, placing ethical limits on research and development. Developers could be required to provide individuals with “opt-out” rights. And greater education about potential risks—both for people working in this field and for the general population—would also help.

2019

The Global Risks Report 2019 14th Edition

World Economic Forum (WEF)

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No Rights Left

Amid a new phase of strong-state politics and deepening domestic polarization, it becomes easier for governments to sacrifice individual protections to collective stability. This already happens widely: lip service is paid to human rights that are breached at home or abroad when it suits states’ interests. What if even lip service goes by the wayside, and human rights are dismissed as anachronisms that weaken the state at a time of growing threats? In authoritarian countries with weak human rights records, the impact of such a tipping point might be one of degree—more rights breached. In some democratic countries, qualitative change would be more likely—a jolt towards an illiberalism in which power-holders determine whose rights get protected, and in which individuals on the losing side of elections risk censorship, detention or violence as “enemies of the people”. Battles are already under way among major powers at the UN over the future of the human rights system. In a multipolar world of divergent fundamental values, building far-reaching consensus in this area may be close to impossible. “Universal” rights are likely to be interpreted locally, and those interpretations then fought over globally. Even superficial changes might be of modest help, such as new language that is less politicized than “human rights”.

2019

The Global Risks Report 2019 14th Edition

World Economic Forum (WEF)

view report

Monetary Populism

What if the protectionist wave expanded to engulf the central banks at the heart of the global financial system? Against a backdrop of geo-economic escalation, calls could rise to “take back control” of independent monetary policy and to use it as a weapon in tit-for-tat confrontations between the world’s economies. Prudent and coordinated central bank policies might be attacked by populist politicians as a globalist affront to national democracy. A direct political challenge to the independence of major central banks would unsettle financial markets. Investors might question the solidity of the global financial system’s institutional foundations. As unease deepened, markets might start to tremble, currencies to swing. Uncertainty would spread to the real economy. Polarization would hamper domestic political response, with mounting problems blamed on enemies within and without. Internationally, there might be no actors with the legitimacy to force a coordinated de-escalation. The risk of a populist attack on the world’s financial architecture could be mitigated by deepened efforts to maximize the popular legitimacy of central bank independence. This could be done by bringing the public in—perhaps through formal consultative assemblies— to decisions on independence, accountability and stability. The greater the public understanding of and support for monetary policy mandates and tools, the less vulnerable they will be in times of crisis.

2019

The Global Risks Report 2019 14th Edition

World Economic Forum (WEF)

view report

The next billion consumers

The rising wealth of emerging economies will continue to bring a broader range of consumption goods to huge numbers of new consumers. More of them will cross the critical annual household income threshold of $5,000, planting them in the ranks of the “global middle class” and enabling more discretionary spending. Although still considerably poorer than the middle-class consumers in the advanced economies, their vast numbers and increasing ability to devote more income to a broader range of goods and services will create an enormous new market. Estimated contribution to global GDP by 2020: $10 trillion.

2011