A politically charged environment
Over the past half century, increased international competition and economic integration have led to some tangible positives: more efficient markets and an unprecedented period of global economic growth and prosperity, with millions of people around the world escaping poverty and earning a living wage. However, while the benefits of globalization have been shared broadly, there have also been costs, often concentrated, leading the world into a climate of increased nationalism and protectionism, particularly in the US and Europe.
Trade wars loom. The UK grapples with Brexit. In Italy, the populist Five Star Movement and League parties have formed a coalition government, leaving many to wonder what would happen if the Eurozone’s third largest economy was to leave the EU. Elsewhere – in Germany, Austria, Poland, and Hungary, for example – far-right parties have gained momentum. Nearly everywhere, the conversation around nationalism and globalization has become highly politicized and emotionally charged. Business and industry will need to find ways to navigate this new environment.
Whether it’s reevaluating the value chain or advocating for policies that ensure a competitive environment, companies will need to pay close attention to survive emerging shifts in a new world architecture.