International cooperation flatlined, some hope in climate finance: WEF

It also said that AI and other emerging technologies are reshaping the global landscape and driving upheaval, making concerted cooperation critical to harness benefits and minimising risks

Amid heightened geopolitical tensions and instability, international cooperation has 'flatlined', but positive momentum in climate finance, trade and innovation offers some hope, a Global Cooperation Barometer showed on Tuesday.

Releasing the annual barometer ahead of its Annual Meeting in the Swiss ski resort town Davos, the World Economic Forum said the world leaders need to embrace 'disordered' cooperation and dynamic solutions-driven decision-making to deliver tangible results and build trust.

It also said that artificial intelligence and other emerging technologies are reshaping the global landscape and driving upheaval, making concerted cooperation critical to harness benefits and minimise risks.

The WEF's Global Cooperation Barometer offers a critical assessment of the state of global cooperation, showing a world grappling with heightened competition and conflict while also identifying various areas where leaders can drive progress through innovative collaboration.

 

Released amid geopolitical, technological, and sociopolitical upheaval, the WEF's flagship annual report underscored the urgency of addressing shared challenges and offers leaders guidance on what cooperation can look like in a shifting world.

Developed in collaboration with McKinsey & Company, the barometer uses 41 indicators to measure the current state of global cooperation along five pillars trade and capital flows, innovation and technology, climate and natural capital, health and wellness, and peace and security.

"The Barometer is being released at a moment of great global instability and at a time when many new governments are developing agendas for the year and their terms ahead," WEF President and CEO Borge Brende said.

"What the Barometer shows is that cooperation is not only essential to address crucial economic, environmental and technological challenges, it is possible within today's more turbulent context," he added.

The latest edition of the barometer highlighted that global cooperation is at a critical juncture, and after trending positively for a decade and surpassing pre-pandemic levels, overall cooperation has stagnated.

This has been driven by a sharp decline of the peace and security pillar of the barometer over the past seven years, caused by mounting geopolitical tensions and competition, which have significantly eroded global collective security. Levels of conflict and attendant humanitarian crises have increased in the past year to record levels, driven by crises, including, but not limited to, the Middle East, Ukraine and Sudan.

While peace and security have declined sharply in recent years, the other four pillars of the barometer have remained resilient and reveal emerging opportunities for international cooperation.

Though geopolitical competition is rising in regard to certain frontier technologies like semiconductors, overall global cooperation on technology and innovation advanced in 2023, in part due to the digitisation of the global economy.

For example, the report cited India's plans to develop a 'national AI innovation ecosystem'.

Cooperation on climate goals improved over the past year, with increased finance flows and higher trade in low-carbon technologies, such as solar, wind and electric vehicles. Yet, urgent action is required to meet net-zero targets as global emissions continue to rise. Greater global cooperation will be essential to scale up technologies and secure the financing needed to meet climate goals by 2030.

Some health outcomes, including life expectancy, continued to improve post-pandemic, but overall progress is slowing compared to pre-2020.

While cross-border assistance and pharmaceutical R&D have declined, and cooperation on trade in health goods and international regulations stalled, various health metrics, including child and maternal mortality, remain strong.

Given rising health risks and ageing populations, leaders should invest in global cooperation to bolster public health and sustainable health systems, the WEF said.

Metrics related to the flow of goods and services, trade, capital and people had mixed outcomes in 2023. Goods trade declined by 5 per cent, driven largely by slower growth in China and other developing economies, while global fragmentation continued to reduce trade between Western and Eastern-aligned blocs.

Despite this, global flows of services, capital and people showed resilience. Foreign direct investment surged, particularly in strategic sectors like semiconductors and green energy, while labour migration and remittances rebounded strongly, surpassing pre-pandemic levels.

Looking ahead, leaders will need to find ways to work together, even as competition increases, as tangible results will be crucial to maintaining public trust and support, the WEF said.

The report underscored the urgent need for adaptive, solutions-driven leadership to navigate a turbulent global landscape.

By pivoting towards cooperative solutions, leaders can rebuild trust, drive meaningful change and unlock new opportunities for shared progress and resilience in the complex years ahead, the WEF noted.

The barometer is likely to be debated thoroughly during the five-day annual meeting of WEF in Davos, beginning January 20, which will be attended by thousands of world leaders, including heads of state and government.