Top Business and Political Elite to Meet
Davos, Switzerland is the gathering place where the world’s top business and political elite will gather to have an economic forum regarding the world’s economies. You will hear them talk about the best way forward to solve the world’s economic problems, but not a lot of thought will go into how it will affect the individual.
Millions Still Dealing with Financial Crisis
Millions around the world are still dealing with the fallout from the financial crisis we are experiencing. Yet, many business heavyweights will think and say that they can now move their focus away from “crisis fighting” as it appears our economies are slowly recovering. In fact, Reuters reports that, “for only the third time since the Industrial Revolution, the world may be entering a long-term growth cycle that will lift all economies simultaneously, driving bond yields and commodity prices higher.”
This depth and this “expansion” will be a topic of the Davos, Switzerland meeting. I know that many people are hoping to get back to business as usual, however, without strong job creation globally, getting back to normal will not happen quickly. There are still millions of people, not just in America, but in Spain, the UK and around the world that have not recovered from the lost home, lost job, wage cuts, fewer hours and rising prices economic scenario.
“The How” of Economic Recovery is Crucial
I do believe that we will recover from this economic downturn. For me, it is about “the how” we recover that is important. According to many economists the growth in emerging markets will be strong enough to provide this for global recovery over time, not overnight, with Asian markets leading the way. I hope this is true. I think there are some factors to this new global boom that can slow growth down or turn our recovery into a mockery.
1. Inflation: This is a growing concern all around the world. China is not the only country looking at inflation. As we see demand for oil and gas rise, prices will be rising for almost everything. With an expectation of rising gas prices, food costs will eat away at this newfound global economic recovery.
2. Devaluation of the Dollar. With all the quantitative easing that we have going on right now, the value of the dollar will drop and its buying power with it. This is part of the house of cards for the U.S. The effect on the middle class will be less buying power and less spending, slowing the economic recovery down.
3. Global Food Crisis: There is a global food crisis that you may not yet be experiencing, however, around the world there are 50 countries that are at their lowest levels of food stores. This includes the U.S.; you can read that by clicking the link here http://bit.ly/gdMzE3. The world’s food chain is maxed out and many families are not able to feed their children. Prices for food are soaring due to food shortages. If what these economists are saying is accurate, then as these emerging markets become richer over time, the demand for food and energy will go up because they will be affordable for emerging markets.
4. Energy Demands: As emerging markets grow so do energy demands. Managing these energy demands over the next 20 years will be key. Sir John Beddington, the UK’s Chief Scientific Advisor, conducted a report that was commissioned by the UK government. He reported that over the next 20 years, the population would grow to some 8.3 billion. He warned that we have only some 20 years to deliver 40% more food, 30% more available fresh water and 50% more energy.
New Leadership and Mindset Required for Entrepreneurs
This is so important to understand as an entrepreneur because if you bring solutions to these global concerns then you will have a business that thrives for a long time. Solving these issues means looking at how they affect the individual and bringing the individual answers or choices that are a win/win/win. It requires a new leadership and mindset that will carry us forward with abundance vs. greed and dominance.
The future of our world is at the moment of great solution or great devastation. Looking only at how our economy will be growing without looking at the demands this growth will present could be careless. Our economic leaders must monitor this new growth vigilantly because we cannot turn our backs on the law of unintended consequences, such as weather, unethical businessmen and global unrest.
The new buzz words around the world are collaboration, reaching across the aisle and working together. I think we also need to reach across oceans and reach beyond ideologies and beliefs, building a new mindset and cooperation that will allow abundance for everyone…no exception.
May we direct our global destiny.
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