The old world order has changed and continues to change. Economic power is moving east from the USA and Europe to China and India. If the most startling evidence of this was the financial crisis of 2008 that plunged the mature Western economies into recession, the seeds of change were sown much earlier. So far the 21st century has seen enormous turbulence and disruption. There have been the unpredictable shocks caused by terrorist attacks around the world, followed by the wars in Afghanistan and Iraq. The upheavals caused by the so-called Arab Spring of 2011 continue to affect the Middle East, not least Syria. There have been natural disasters like the Icelandic volcano in 2010, the earthquake and tsunami in Japan in 2011 and the outbreak of Ebola in West Africa in 2014. There have been enormous shocks to the international monetary system precipitated by the banking crisis of 2008, which have particularly affected the Eurozone. There have also been some spectacular corporate failures, from Lehman Brothers in the USA to Royal Bank of Scotland (RBS) in the UK. Corporate integrity has come to be questioned. The unexpected failure of Enron in the USA in 2001, one of the most admired firms of the 1990s, became a benchmark for management greed and lack of integrity. But such scandals were not confined to the USA. Parmalat in Italy became the largest bankruptcy in Europe in 2003. The Olympus scandal of 2012 in Japan led to prosecutions. In addition, banks across the world have been rocked by a series of scandals that have led to fines and government intervention. Alongside this the 21st century has seen unprecedented volatility in just about every market, from commodities to exchange rates, from stock markets to bond markets. And behind this volatility is the uncertainty surrounding climate change and whether we have reached a ‘tipping point’ in global warming.
Swipe to navigate through the chapters of this book
Please log in to get access to this content
To get access to this content you need the following product:
- Entrepreneurship: The social and business revolution
- Macmillan Education UK
- Sequence number
- Chapter number