The Global Risks Report 2024

Localized strategies 3.1 Localized strategies that address global risks at a local level require little or no cross-border coordination. They are concerned mainly with increasing a community's preparedness to bear the effects of inevitable global risks, but do not significantly mitigate their impact beyond national borders. With looming urgency to adapt to avoid the worst impacts of a changing climate, local measures present a relatively agile response to risk, unencumbered by lengthy processes that are common to global agreements. Measures range from instigating more resilient building codes to making investments in wildfire management, flood defenses and heatwave mitigation. Infrastructure investment can also enhance a country’s preparedness to tackle pandemics. When COVID-19 hit, it was the capacity of national health systems – i.e., availability of hospital beds, intensive care units and medical personnel – that largely dictated its local impact. While localized strategies are generally associated with boosting preparedness, there are some cases where they prevent global risks from materializing altogether. Local compliance with vaccine guidance, for example, can eliminate diseases such as polio. There are several global risk governance approaches highlighted within the GRPS that would fall under local measures: Public awareness and education, Financial instruments and National and local regulations. Public awareness and education initiatives can be effective in reducing the impact of AI-enabled misinformation on local media environments. While it is difficult for single countries to control the diffusion of AI-generated content, it is in their power to include AI-literacy in public education systems and to prioritize the issues of understanding AI’s capabilities and identifying trustworthy sources of information. Financial instruments – including insurance, catastrophe bonds or public-risk pools – can alleviate the effects of natural disasters and geoeconomic shocks, while social safety nets and pensions represent important tools in managing longer-term risks associated with demographic trends and societal polarization. National and local regulations are identified by the majority of GRPS respondents as key for driving action on a number of economic risks (Figure 3.1). Appropriate fiscal and monetary National and local regulations (e.g. environmental, operational, financial regulations and incentives) 25 0 50 75 100 Share of respondents (%)Censorship and surveillance Biodiversity loss and ecosystem collapseIllicit economic activity Inflation Insufficient public infrastructure and services Pollution Asset bubble bursts Adverse outcomes of AI technologies Disruptions to critical infrastructureAdverse outcomes of frontier technologies64% 61% 61% 60% 59% 57% 56% 54% 53% 53%Top global risks addressed by National and local regulations FIGURE 3.1 Source World Economic Forum Global Risks Perception Survey 2023-2024."Which approach(es) do you expect to have the most potential for driving action on risk reduction and preparedness over the next 10 years?" Risk categories Economic Environmental Geopolitical Societal Technological NoteRespondents could select up to three responses from the following nine options: Financial instruments, National and local regulations, Minilateral treaties and agreements, Global treaties and agreements, Development assistance, corporate strategies, Research & development, Public awareness and education, Multi-stakeholder engagement. Global Risks Report 2024 86