impediments to rapid progress. It depends on collaboration by citizens, governments, corporations, financial institutions, philanthropists, and the scientific community. Perhaps most important, it will require that world leaders expand their ambition and action, including mobilizing finance to help developing economies adapt to climate shocks. There is a path forward in what can become the inclusive growth story of the 21st century. If we rally to reverse the climate threat, then we may suddenly have a net zero world in reach. FD GITA BHATT , editor-in-chief ON
,000 denizens live along the coast—vulnerable to strong winds, high seas, and landslides. The situation has become increasingly volatile with the growing frequency and severity of extreme climate events. In 2017, Category 5 Hurricane Maria ripped a catastrophic path of destruction through the island. Whole communities, government buildings, roads and bridges, and power and water services were damaged or destroyed, resulting in the loss of lives and $1.2 billion in damage in just a few hours. With growing climate threats looming, Dominica knew it had to adapt. The
extent of the climate threat. Overcoming chimpanzee politics Good economic institutions and well-designed markets may help break free from the constraints that prevent human cooperation—including by identifying and maximizing correlated payoffs. In this view, the role of economic and financial institutions can be to imagine and design novel ways humans can enter into mutual obligations to cooperate and promote the greater good. Seven insights from evolutionary biology could inform the design of economic institutions and financial markets. The first four pertain
Resilience With climate threats escalating, digital transformations accelerating, and inequality and fragility rising, we need to act now to manage the risks and capitalize on opportunities . Climate change is compounding current challenges, including food insecurity. The ongoing digital revolution is unlocking new opportunities but also raising risks to financial stability. But policy action on both fronts is lagging. The longer we wait, the more costly it will become to act. Growing inequality, fragility, and risk of future pandemics add to the urgency for joint action
Vulnerability Source: Authors. Figure 2. Number of Countries with Above-Median Climate Risk, by Probability of Fiscal Crisis Risk Source: Authors. Note: Based on an overall sample of 128 low-and middle-income countries. Climate risk is measured using the IMF Climate-driven INFORM Risk Composite Index ( IMF, 2021a ). Fiscal risk is assessed using a machine learning model (see Hellwig 2021 ) supplemented by IMF desk economist judgment. Figure 2 focuses on 59 low- and middle-income countries that have climate threats at or above the median and divides those