The World Economic Forum's annual Davos summit is underway and speaking to CNBC-TV18’s Shereen Bhan, Saadia Zahid, managing director of the World Economic Forum said the world is currently in the midst of a "polycrisis," with resilience being very low.

She said, "Right now, energy crisis, food crisis, top of the list. Two years out, still the cost of living, that is the combination of these things, in addition to natural disasters, and then all the way out in 10 years, there is the risk that we don't manage to mitigate climate change, and we don't manage to adapt. So all of these things are playing out at the same time but right now, we are in the midst of a polycrisis and resilience is so low, that if there were to be yet another shock, in this particular situation, it might be very unmanageable.”

She also notes that the energy crisis has led to an increase in green investment, but stresses that we are not out of the woods yet. Zahid said, “We are in the midst of an energy crisis. But what that has created is much more momentum investment incentives, where governments are essentially trying to put in place the green energy transition much faster than what they were planning before.”

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She added, "Now, of course, we are not out of the woods yet and there's much more to be done and this transition will take time."

Zahid remains optimistic about India's outlook, "India is one of the few areas where the world can look to find a source of optimism, investment, innovation, energy, and the right kinds of future investment when it comes to human capital as well. I think the broad scale digital investment and the broad scale investment in education and skills will be critical for India’s future growth and becoming, the largest country in the world this year, it is critical that that happens.”

On widening the gender gap she believes that gender equality has taken a hit in the last 3 years, and emphasizes that it is crucial for macroeconomic recovery.

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Zahid also talks about the issue of de-globalization and notes that it will do long-term damage to the global economy. She also adds that we can't go back to the globalization of the past, and we need to find a new way forward that is inclusive and sustainable.

Watch the video for more.

First Published:Jan 16, 2023 8:31 PM IST