The challenges before humanity seem so insuperable and there is such a lack of confidence in our political leaders that the world seems to have encountered a dead end.
We are experiencing serious socioeconomic problems (see my post "our society needs more entrepreneurs"). There is a live debate about the need for a new economic model and even about the failure of capitalism.
Governments have been unable to resolve such issues. Instead, they are co-responsible for the recent crises. Political interests seem to be above social demands, and popular manifestations arise in the four corners of the world. There are no leaders with relevant support and there seems to be no political will to implement the due reforms.
Developed countries are in a period of stagnation in the midst of unsustainable debts carried by government and by individuals. There is no consensus on whether the solution is stimulating consumption to generate growth or promoting austerity to reduce debt.
There is still a lack of transparency and a systemic risk in the financial markets. So far the response has been to "provide banks with unlimited access to credit", without seriously addressing required regulations and restrictions.
Our societies are
still disregarding the lack of resources to pay for health and social security costs
of a growing elderly majority, a certain future crisis for several countries,
even some with lower debt.
The growing consumption from the emerging societies, added to the major economies’, pushes our planet to its ecological and energy limits, causing pollution, global warming, shortages of water and other natural resources, negative economic consequences and danger for our lives and health.
Energy is competing with food, causing cost increase and contributing to world hunger. Or leading to unacceptable environmental risks to extract oil and generate nuclear power, with potential damage costs not accounted for nor charged to producers and consumers (the economic impact of the Gulf oil spill was estimated at US$15 billion, according to a Canadian Journal of Aquatic Sciences study).
The growing concentration of wealth in the big Western economies and the resulting social unrest – in the 2008 crisis, financial executives were still getting their high salaries and bonuses, while the middle class were losing their homes, jobs and even pension funds.
In our democracies, the population is upset with the corruption in the developing countries’ governments or with the action of lobbies in the Congress - oligopolies, oil companies, big banks and other corporations influencing law makers and making the political system inefficient even in the most stable democracies.
In the Middle East and North Africa some dictatorships were overthrown, but uncertainty and political tensions are accentuated. The risk of a nuclear bomb is back to the headlines.
"Where are our governments? We want change!" - Protests, such as "Occupy Wall Street" or the so-called Arab Spring are becoming frequent.
How to overcome this dead end? As previously stated, there are no clear solutions or political system with credibility and popular support to define and implement the effective and imperative changes.
But this is not Apocalypse. Economic crises, social differences, wars and bad governments are constant throughout our history. Sometimes fatigue and rupture are necessary for breakthroughs to occur. And there is much value being generated in the current model.
I will return to these topics in upcoming posts.
The growing consumption from the emerging societies, added to the major economies’, pushes our planet to its ecological and energy limits, causing pollution, global warming, shortages of water and other natural resources, negative economic consequences and danger for our lives and health.
Energy is competing with food, causing cost increase and contributing to world hunger. Or leading to unacceptable environmental risks to extract oil and generate nuclear power, with potential damage costs not accounted for nor charged to producers and consumers (the economic impact of the Gulf oil spill was estimated at US$15 billion, according to a Canadian Journal of Aquatic Sciences study).
The growing concentration of wealth in the big Western economies and the resulting social unrest – in the 2008 crisis, financial executives were still getting their high salaries and bonuses, while the middle class were losing their homes, jobs and even pension funds.
In our democracies, the population is upset with the corruption in the developing countries’ governments or with the action of lobbies in the Congress - oligopolies, oil companies, big banks and other corporations influencing law makers and making the political system inefficient even in the most stable democracies.
In the Middle East and North Africa some dictatorships were overthrown, but uncertainty and political tensions are accentuated. The risk of a nuclear bomb is back to the headlines.
"Where are our governments? We want change!" - Protests, such as "Occupy Wall Street" or the so-called Arab Spring are becoming frequent.
How to overcome this dead end? As previously stated, there are no clear solutions or political system with credibility and popular support to define and implement the effective and imperative changes.
But this is not Apocalypse. Economic crises, social differences, wars and bad governments are constant throughout our history. Sometimes fatigue and rupture are necessary for breakthroughs to occur. And there is much value being generated in the current model.
I will return to these topics in upcoming posts.
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