Archive for the ‘Global Economy’ Category

3
Nov

As new technologies subject the world’s economies to massive structural change, wages are no longer playing the central redistributive role they once did. Unless the decoupling of productivity and wages is addressed, the political convulsions many countries are experiencing will only intensify.

MADRID – Macroeconomic data from the world’s advanced economies can be mystifying when viewed in isolation. But when analyzed collectively, the data reveal a troubling truth: without changes to how wealth is generated and distributed, the political convulsions that have swept the world in recent years will only intensify.

Consider, for example, wages and employment. In the United States and many European countries, average salaries have stagnated, despite most economies having recovered from the 2008 financial crisis in terms of GDP and job growth.

Moreover, increases in employment have not led to a slowdown or a reversal of the decline in the wage share of total national income. On the contrary, most of the wealth created since the 2008 crisis has gone to the rich. This might explain the low levels of consumption that characterize most advanced economies, and the failure of extremely lax monetary policy to produce an uptick in inflation.

Employment, too, seems to be performing in anomalous ways. Job creation, where it has taken place, has followed a different path than history suggests it should. For example, most employment growth has been in high-skill or low-skill occupations, hollowing out the middle. Many of the people who once comprised the Western middle class are now part of the middle-lower and lower classes, and live more economically precarious lives than ever before. Read more…
Published on Oct. 25, 2017 in https://www.project-syndicate.org

Manuel Muñiz
Manuel Muñiz is Dean of IE School of International Relations and Senior Associate at Harvard University’s Belfer Center for Science and International Affairs.

2
Nov

The Fourth Sector Is Here to Stay

By Alejandro Erquicia, MIR 2017/2018 Student

Organizations today are more aware than ever of society’s demands and are adapting, at different speeds, to the changing context of our time. The level of interconnectivity the world has reached is such that citizens demand change. Society wants progress and knows that to resolve these issues we need organizations to abide by social principles while doing business. In such an environment, the Fourth Sector, mission driven for profit organizations, is expanding its reach and establishing itself as the way to do business in the years to come.

A deep dive into the unstoppable growth of the Fourth Sector was presented to all of IE academia by the Center for the Governance of Change, a research institution aimed at deepening our understanding of change and developing strategies to anticipate, govern and promote progress. The School of International Relations at IE University was presenting the initiative as one of its core areas of work. In a roundtable entitled The Fourth Sector & the Future of Social Entrepreneurship panelists shared some practices and experiences on these types of businesses. The conversation was of great interest for students and professors of the Schools of Business, Law and International Relations.

The Fourth Sector, which has moved beyond the antiquated three sector system of government, private sector and non for profit, addresses societal challenges blending the three sectors. It is not driven by profit maximization but conducts business, in all types of industries, with a purpose to make the world a better place. The key factors are that like non-profits, their primary purpose is to advance societal benefit and, like for-profits, they generate a substantial portion of their income from business activities.

There are indications that it could account for as much as 10% of GDP as well as nearly twice the job growth rate as traditional for-profit businesses in the US and Europe, said Heerad Sabeti, head of the World Economic Forum’s Fourth Sector Development Initiative during his intervention. He defended the job creation implications the Fourth Sector could reach and encouraged the furthering of the new system of operating which lies at intersection of the three traditional sectors.
On his behalf Sebastián Gatica, professor in Social Innovation at the Universidad Católica de Chile spoke about the need to further develop a supportive and conductive ecosystem from which the fourth sector could exponentially increase its presence since it’s an approach to see the future, and the world for generations to come, in a positive way. Alejandro Pachecho, Strategic Adviser at the United Nations Development Programme and Antonio Vives, Adjunct Professor at Stanford University, also shared their insights and discussed the challenges and opportunities of this new sector.

The Fourth Sector is a new international project supported by the World Economic Forum (WEF), the Ibero-American General Secretariat (SEGIB), and the United Nations Development Programme (UNDP), that seeks to accelerate the establishment of a tailor-made ecosystem for social economy and for-benefit enterprises across borders. IE University will act as an academic partner in the project.

The Fourth Sector is here to stay. Businesses are transforming and can’t solely concentrate on Corporate Social Responsibility. More is needed and by focusing on the combination of doing good for the planet and having that approach to tackle the challenges we have, the social and economic returns will be noticed by all across the board.

Before closing the session Diego Rubio, Executive Director of the Center for the Governance of Change raised a question that surely left all thinking. If you were to receive two job offers, one working in the Amazon forest on tree preservation and the other working for a tobacco multinational in the US that paid five times more, which one would you take? Food for thought.

31
Dec

How to make sense of 2016

Written on December 31, 2016 by Waya Quiviger in Foreign Policy, Global Economy, Op Ed

FOR a certain kind of liberal, 2016 stands as a rebuke. If you believe, as The Economist does, in open economies and open societies, where the free exchange of goods, capital, people and ideas is encouraged and where universal freedoms are protected from state abuse by the rule of law, then this has been a year of setbacks. Not just over Brexit and the election of Donald Trump, but also the tragedy of Syria, abandoned to its suffering, and widespread support—in Hungary, Poland and beyond—for “illiberal democracy”. As globalisation has become a slur, nationalism, and even authoritarianism, have flourished. In Turkey relief at the failure of a coup was overtaken by savage (and popular) reprisals. In the Philippines voters chose a president who not only deployed death squads but bragged about pulling the trigger. All the while Russia, which hacked Western democracy, and China, which just last week set out to taunt America by seizing one of its maritime drones, insist liberalism is merely a cover for Western expansion.

Faced with this litany, many liberals (of the free-market sort) have lost their nerve. Some have written epitaphs for the liberal order and issued warnings about the threat to democracy. Others argue that, with a timid tweak to immigration law or an extra tariff, life will simply return to normal. That is not good enough. The bitter harvest of 2016 has not suddenly destroyed liberalism’s claim to be the best way to confer dignity and bring about prosperity and equity. Rather than ducking the struggle of ideas, liberals should relish it. Read more…

The Economist,

12
Dec

The long wave unfurled at last. Perhaps it is no surprise that the two societies that felt its furious force — the United States and Britain — are also the open societies at the hub of globalized turbo-capitalism and finance. For at least a decade, accelerating since the crash of 2008, fears and resentments had been building over the impunity of elites, the dizzying disruption of technology, the influx of migrants and the precariousness of modern existence.

In Western societies, for too long, there had been no victories, no glory and diminishing certainties. Wars were waged; nobody knew how they could be won. Their wounds festered. The distance between metropolis and periphery grew into a cultural chasm. Many things became unsayable; even gender became debatable. Truth blurred, then was sidelined, in an online tribal cacophony.

Jobs went. Inequality thrust itself in your face. What the powerful said and the lives people lived were so unrelated that politics looked increasingly like a big heist. Debacle followed debacle — the euro, the Iraq War, the Great Recession — and their architects never paid. Syria encapsulated the West’s newfound impotence, a kind of seeping amorality; and, in its bloody dismemberment, Syria sent into Europe a human tide that rabble-rousers seized upon. Read more…

www.nyt.com

23
Sep

Near the beginning of President Barack Obama’s final speech to the United Nations General Assembly on Tuesday morning, he pointed out something really important about the world today: We are living through the best time in human history, but it feels to a lot of us like anything but.

“This is the paradox that defines our world today: A quarter century after the end of the Cold War, the world is by many measures less violent and more prosperous than ever before. And yet our societies are filled with uncertainty and unease and strife,” Obama said.

This isn’t just a one-off observation on his part. It actually speaks to something very fundamental, and underappreciated, about the nature of the world we live in. We have set up a series of institutions that order the world — ranging from NATO to the global free trade regime to the UN itself — and have helped make the world better for most people.

But not everyone. Some people have suffered tremendously from the way the world is ordered — and it’s helped create a broader sense of social and global crisis.

 Obama’s speech, then, is an implicit recognition that how this paradox gets resolved — if the real suffering of the few can be alleviated without sacrificing the gains of the many — will play a major role in shaping his how tenure in office is perceived. Read more…
 
1 2 3 5

We use both our own and third-party cookies to enhance our services and to offer you the content that most suits your preferences by analysing your browsing habits. Your continued use of the site means that you accept these cookies. You may change your settings and obtain more information here. Accept