Readiness: a country’s ability to leverage investments and convert them to adaptation actions

Economic readiness: readiness of a country’s business environment to accept investment that could be applied to adaptation in the form of business formation and maintenance

Social readiness: captures the social factors that enhance the mobility of investment to be converted to adaptation actions

Governance readiness: captures the institutional factors that enhance application of investment for adaptation

Image: Getty Images (Cris Toala Olivares / Stringer)

Rising inequality will hamper societal resilience in the face of global challenges in the coming years. The Covid-19 pandemic and the uneven recovery from it laid bare many divisions and vulnerabilities in societies, and tested the resilience of what binds people together and to the state. In a disrupted world facing myriad pressures, rapid changes and uncertainties, there are legitimate questions about how resilient our societies are to the future and to compounding challenges often rooted in poor governance.

The question of societal resilience is likely to become an ever more urgent dimension of politics, security and stability. The risks we forecast throughout this Strategic Outlook all carry immense and complex implications at the most basic human and societal level, and often are made worse by governments failing to find sustainable solutions. From the accelerating effects of climate change and the rapid rise of generative artificial intelligence (Gen AI), to geopolitical crises and economic uncertainty, a growing number of people face change, displacement and inequalities.

Societal Resilience

Struggling to Keep Up

Image: Getty Images (Spencer Platt / Staff)

Image: Getty Images (Spencer Platt / Staff)

Short term decisions will continue to exacerbate inequalities by worsening food security, damaging public health, and pushing up poverty and displacement.

Average household earnings (USD)

Source: FrontierView
Impact of major shocks on average household earnings