Global cooperation declining after resilience through 2012-2020: WEF study

After trending positively for much of the past decade, global cooperation has started to decline after 2020 due to weakened cooperation in peace and security as well as health and wellness, a new study showed on Monday. Launching a Global Cooperation Barometer, the World Economic Forum said cooperation is possible even in the midst of competition and there are signs of strength, particularly in cooperation on climate and natural capital, trade and capital flows, and innovation and technology. “The barometer indicates that global cooperation was resilient in multiple dimensions from 2012 until 2020 but overall cooperation declined by 2 per cent from 2020 to 2022,” the WEF said in the report released days before its annual meeting of world leaders in the Swiss ski resort town Davos. The barometer, developed in collaboration with McKinsey & Company, used 42 indicators to measure five pillars of global cooperation between 2012 and 2022. These indicators included trade and capital; innovation and technology; climate and natural capital; health and wellness; and peace and security. According to the barometer, global cooperation showed signs of strength during the years measured in pillars such as trade and capital, innovation and technology, and climate and natural capital. However, it also reflected the significant challenges the world has faced in the past three years, including reversals in global health cooperation and sharp increases in violent conflict, shown through declines in the barometer’s health and wellness and peace and security pillars. The barometer release follows a year that was the hottest on record and saw escalating levels of conflict worldwide, but that also brought progress on climate action, trade agreements and innovation. “The greatest challenges – and the most promising opportunities – for our planet, societies and economies are not bound by borders, which means the only way to address them is through cooperation,” WEF’s President Borge Brende said. “What the barometer shows is that cooperation on many issues is possible, even in the midst of competition and confrontation. In other words, leaders can work together despite not seeing eye-to-eye on everything,” he added. McKinsey & Company Global Managing Partner Bob Sternfels said it is clear that on some dimensions the world has become increasingly divided, yet the barometer shows that when you look at the full picture, global cooperation has remained surprisingly robust over the last decade. The report also made a series of recommendations for business and government leaders, including identifying opportunities to deepen public-private partnerships in areas where they have critical operations and shared interests, such as harmonised regulation of AI and emerging technology. In addition, leaders should reimagine cooperation and practice ‘coopetition’ or finding opportunities for cooperation despite broader competitive positions. They also need to use cooperation to beget cooperation, using instances of cooperation to not only advance interests in a specific area but also as an opportunity to deepen trust and explore where other alignment may exist. Companies and countries that identify robust cooperative arrangements are more likely to be more resilient – not only able to absorb a supply disruption but also to bounce back better, the WEF said. The findings and recommendations from the report are likely to be discussed in detail during the five-day WEF Annual Meeting.