Last week’s contribution was about the theme of this year’s meeting of the World Economic Forum in Davos. The meeting is now over, and apart from the issues that were on the agenda, it is also worth looking into what the participants discussed. What were the most important issues that emerged from this meeting and which represent our future economic challenges?

One such issue was the impact of artificial intelligence (AI). Technological advancements continue to be made in this area and the perennial question keeps coming up. To what extent will AI replace the human person at work? How much of a threat is it?

We have grown accustomed to the fact that in the past, machines complemented the work of the human person, allowing workers to become more efficient and more productive. This would have, in turn, contributed to higher incomes.

Admittedly, some jobs did disappear as a result of technological improvements. To what extent will this continue to happen? And what sort of jobs will artificial intelligence replace? If AI will indeed make several tasks redundant, replacing the human person, what sort of jobs need to be created for redundant workers? Moreover, with the development if AI, will the risks related to cyber security increase? Will it make it easier to commit criminal action? Will it make tax evasion any easier?

After two years or so of the coronavirus, with a very loose monetary policy and not such a tight fiscal policy to stop the global economy from going into a recession, we now have very high inflation, an economic slowdown and increasing unemployment in a number of countries. The poorer countries are probably suffering more than the rest, as many of them are exposed to foreign borrowing.

We now have very high inflation, an economic slowdown and increasing unemployment in a number of countries

Will we have a sovereign debt crisis? If so, do the leaders of international institutions such as the World Bank, the International Monetary Fund, the United Nations and leaders of the key central banks (Federal Reserve of the US, the European Central Bank, the Bank of England and the Central Bank of China, to mention just a few), and national leaders (the president of the European Commission and the heads of government of the most important economies) have the wherewithal to manage such a crisis? How will creditors respond to such a sovereign debt crisis?

The third issue, which is equally important as the other two, is the fossil fuels industry. When we mention this industry, we think of the global companies that operate in it. However, we also have to think of all the economies that depend on this industry for their survival.

The point is not so much whether we can have a world without the likes of ExxonMobil or Shell or BP, but whether we can envisage a Saudi Arabia or an Abu Dhabi without the contribution of the revenues from the fossil fuels industry.

Will the efforts of such countries and others like them to restructure and modernise their economy succeed? The current sentiment among global companies is to move away from fossil fuels. Will these countries be able to manage such a change, even if they are trying to do so? If not, what happens next?

I know I have posed questions and provided no answers. I am not sure anyone has answers to these questions. The situation is constantly evolving on all these fronts and they represent more threats than opportunities for consumers, businesses, national economies and the global economy. They represent some of our future economic challenges.