Climate adaptation is no longer just an environmental concern but a key factor in attracting investment and sustaining economic growth, global experts told the Philippines, warning that countries that fail to climate-proof their economies risk losing out in an increasingly competitive and uncertain world.
This message took center stage at the “Global Growth Opportunities in a Fragmented World” panel held on January 20 at the InvestPhilippines Business Pavilion, where World Trade Organization (WTO) Director-General Dr. Ngozi Okonjo-Iweala and Nobel laureate Professor Michael Spence discussed how economies can stay resilient as trade patterns, technology, and geopolitics reshape global integration.
In a news release from the Department of Foreign Affairs (DFA), the panel emphasized that climate resilience is now tied directly to fiscal stability, investor confidence, and long-term growth. As climate risks intensify — from extreme weather to supply chain disruptions — investors are increasingly factoring a country’s preparedness and adaptation capacity into their decisions.
Okonjo-Iweala underscored that for a highly climate-vulnerable country like the Philippines, resilience must be treated as part of core economic strategy:
“The Philippines must invest in climate-proofing and adaptation, and it can be done in a way that helps drive the economy. Resilience means hope because you can build on it to solve the problems that exist.”
Beyond climate, the discussion examined how developing economies face rising costs from global economic fragmentation, as trade and investment flows become less predictable and more concentrated. The speakers said the most practical response is building “resilient interdependence” — diversifying supply chains and economic partners while maintaining predictable, rules-based trade policies.
What about AI?
Another major theme was AI readiness and the future of work. The panel noted that countries that move early to develop strong skills pipelines, retraining systems, and the ability to spread new technologies across industries are more likely to capture productivity gains from artificial intelligence. Those that lag risk widening gaps in competitiveness and inclusion.
The growing role of services trade and digitally delivered services was also highlighted as a key opportunity area, especially for economies like the Philippines. Realizing this potential, however, will require improved digital infrastructure and efforts to reduce regulatory and trade frictions that increase the cost of cross-border transactions.
The panel pointed to several practical priorities for the Philippines:
The country must treat climate resilience as a competitiveness agenda, integrating adaptation and resilience into infrastructure and investment planning as climate impacts increasingly shape economic outcomes.
It must also build an AI-ready workforce at scale, investing in skills pathways, retraining, and labor mobility frameworks so that technology adoption leads to broad productivity gains rather than displacement.
At the same time, the Philippines should diversify its trade and investment links by widening its base of suppliers, investors, and export markets while keeping policies open and predictable.
Finally, the country can compete through services and digital trade, leveraging its strengths by improving digital connectivity, supporting micro, small, and medium enterprises (MSMEs), and lowering transaction costs for cross-border service delivery.
The InvestPhilippines Business Pavilion, held alongside the World Economic Forum Annual Meeting, brings together public and private sector leaders to showcase Philippine reform momentum, investment opportunities, and regional priorities, including its ASEAN chairship in 2026.
For more information, visit https://wtopm.dfa.gov.ph/