International investments and businesses as enablers of globalization of local risks: A case for risk communication and climate fragility reduction

Abstract

The phenomenon of regional and global integration has resulted in the natural hazards and climate change impacts in one country affecting people and countries far away. This phenomenon of globalization of local risks has long been known but has not received much attention. With greater regional integration and greater impacts of climate change, these considerations are more important today and in the future. This paper presents results from a regional survey conducted on globalization of local risks through investments in the vulnerable regions of Asia. The study indicated that countries that have been successful in attracting global investments in manufacturing and service industries are highly vulnerable to natural hazard risks raising an important issue of globalization of local risks. The paper reviews the current understanding on the globalization of local risks and presents the statistically analysed survey findings. The paper also presents a climate fragility risk index developed using multiple indicators that helps to identify countries predisposition to the globalization of local risks. The paper concludes by stating that the risk communication plays an important role in mitigating the globalization of local risks.

Keywords

• Globalization of local risks
• Trans-boundary climate risks
• Risk communication