Rising inequality threatens world economy, says WEF

The Guardian

Rising income inequality and the polarisation of societies pose a risk to the global economy in 2017 and could result in the rolling back of globalisation unless urgent action is taken, according to the World Economic Forum.

Before its annual meeting in Davos next week, the WEF said the gap between rich and poor had been behind the UK’s Brexit vote and Donald Trump’s election victory in the US.

And it warned that there were new threats to social cohesion from the robotics and artificial intelligence revolution. The organisation said fundamental reform of capitalism may be needed to tackle public anger.

The WEF’s annual global risks report – culled from 700 experts – found that rising income and wealth disparity, and increasing polarisation of sectors of society, were ranked first and third among the underlying trends that will determine the shape of the world in the next decade.

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