Top 5 biggest threats to the world right now
Everyday we are faced with headlines containing the word ‘threat’ or ‘crisis’, but what actually are the biggest threats that today’s world is facing?
Prior to the World Economic Forum next week, results have been released following a review of the biggest issues that could affect the world over the next 10 years. The same analysis from last year’s survey listed state conflict and water security high up the list of global issues. However this year’s report, carried out by over 750 experts, identified all the significant environmental, geographical, political and economic threats that may worsen in the next decade.
Here is a list of the greatest risks found following the World Economic Forums research:
1. Unemployment
Although economic issues feature far less prominently, unemployment still remains an important issue. A slow but steady economic growth reduces the likelihood of another financial crisis happening any time soon, but the likelihood of unemployment still remains high. Consistent joblessness keeps inequality within society and causes a lot of social tension. Yet again, the opportunity for global prosperity remains out of reach. Vast technological advancements and a slow economic growth also mean that unemployment is set to be a long term issue.
2. Migration
Headlines of the large scale migration crisis reach us on a daily basis, but this issue will expand further over the next 18 months. This involuntary but necessary mass movement of people in the past year is set to continue, overtaking other potential global risks. Records show that over 60 million refugees fled from their homes in the previous 12 months. The government and policy makers have to prioritise this crisis and support those in need.
3. Climate change
Even though migration has the greatest likelihood of persisting, climate change looks to have the greatest overall impact on the world. The inability to confront the issue of the temperature rising means that climate change has now been classified as a Global Risk. This was outlined before the 2015 Climate Change conference in Paris. However, dealing with the effects of climate change can prove a much more complex task when compared to other issues,
4. State Conflict
The results from the survey also revealed that one of the biggest threats to affect the world in the next 10 years will be from political tensions. Such crises including that in Ukraine, Middle-East, Russia, China are all suffering from strained relations and strategic power struggles. Although these struggles are not directly violence related, these issues can cause global instability in both the present and the future.
5. Oil Prices
Oil prices have dropped to the lowest prices since 2004. This reduction in price has come as a positive shock for the global economy and has helped from consumer spending. The recent results shown that petrol may even become cheaper than bottled water in the UK. However, experts say that the quicker the price reduces the faster it will rebound. These potential higher prices could squeeze consumers and increase global inflation.
The Hidden Law That Could Be Undermining Your Business
Do you walk the walk, or talk the talk? You can’t do both, so which is the most effective for your business?
An interesting perspective from ‘Yes, Minister’ helps us to open our eyes to a hidden corporate culture. In the initial chapter, we are introduced to the Open Government white paper. This document provides proof that they intend to help the minister implement his stated policy goals. However, as times goes on it is revealed that this document is actually a prime example of the Law of Inverse Relevance.
“The less you intend to do about something,
the more you have to keep talking about it.”
Understanding the Law of Inverse Relevance, might seem far away from what you considered the business environment to be like. However, once you surpass the confusion, it all become clears.
For example, you are scouring through a global conglomerates website and come across their well scripted mission statement. In relation to the Law of Inverse Relevance, this statement is merely a piece of text that they want people to believe that represents their company and what they do. However this representation isn’t what they’re actually doing. Simply writing a good quality mission statement isn’t enough – don’t just talk the talk.
This law provides explanation of why you are more likely to get ripped off at “Honest Harry’s Hardware Store” than a basic hardware shop. Another good example is an MD stating that his workforce is “one big happy family” when the reality is it is a group of dissatisfied, unhappy workers. The Law of Inverse Relevance also explain why companies employ Ethics Officers, Diversity Policies, CSR and Environmental Standards departments. It is a purely for perception.
But don’t panic, all this talk is actually saving you money! Because it’s keeping you from getting things done.
This law has brought to light some interesting revelations, including:
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Some of the most successful businesses don’t have mission statements, because they know what they are aiming for.
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The top innovative businesses rely on their customers to decide whether their new products are good.
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Socially responsible businesses act responsibly from personal interest rather than for a good perceived reputation.
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The best leaders portray great leadership rather than spending time and effort claiming to be excellent leaders.
The principle is simple you either “talk the talk” or you “walk the walk.”
2016: An expensive year for employers
The government’s new national minimum wage rules look to set back employers over £1 billion in the year to come. The new £7.20 minimum wage, agreed by George Osborne, will start as of April 2016.
This change looks to affect around 1.7 million UK workers, totalling over £650 million of wages to be paid by private employers.
This increase in the national minimum wage has also forced employers to raise wages for those working over the NMW to create wage differentials between employees. This helps to sustain the hierarchy and offer the opportunity for a pay rise or promotion. This increase has been called the “wage spillover” costs and will create a further expense for employers. Research by the RPC suggest that this cost will total around £230 million.
These new government changes are eligible for employees over the age of 25 in which their employer must pay them at least £7.20 per hour. George Osborne aims that this hourly rate will eventually increase to £9 by 2020. So the costs for private companies is likely to keep increasing.
As with an governmental change, there has been a fair share of criticism. Large UK employers argued that this increase could lead to their stores closing down. Alongside this, research from 1000 employers shows that 15% of companies would have to make redundancies to cope with the NMW increase (Resolution Foundation). Many economists have suggested that substantial increases, even if pursued over a few years, would need to be made incrementally and with a great deal of caution if they were to be effective.
Overall, the consensus from the majority of UK employers seems to be positive and they are supportive of the new wage changes. A recent study has shown that 93% of companies think this increase in national minimum wage is a “good idea”.
In addition to this the government has also been criticised for not planning far enough into the future when it comes to calculating the national minimum wage. They have only set plans for the first year and have not calculated what the yearly increases could amount to by 2020.
