Just Thought You Should Know

I am making the assumption that many of us were aware that a World Economic Forum (WEF) was recently held in Davos, Switzerland.

Davos is a municipality in the district of Prättigau/Davos in the canton of Graubünden, Switzerland. It has a permanent population of 11,211. Davos is located on the Landwasser River, in the Swiss Alps, between the Plessur and Albula Range.

The World Economic Forum is an international institution committed to improving the state of the world through public-private cooperation.

The World Economic Forum was founded in January 1971 when a group of European business leaders met under the patronage of the European Commission and European industrial associations. German-born Klaus Schwab, then Professor of Business Policy at the University of Geneva, chaired the gathering, which took place in Davos, Switzerland. The organization was subsequently incorporated as a not-for-profit Foundation.

The Forum was called the European Management Forum until 1987, when it was renamed the World Economic Forum to reflect its expanding scope and transformation from a European to truly global organization.

From the beginning, the Forum had considerable impact in improving political, economic and social awareness, acting as a catalyst for major bridge-building efforts. The Forum has provided a critical platform for furthering peace and reconciliation in many parts of the world, promoting understanding between East and West before and after the fall of the Berlin Wall, introducing emerging economies such as China and India to the international community, and bringing to the fore the latest trends and developments in many fields.

In 2015, the WEF pinpointed 10 global trends about which they were concerned.

In short, these were the:

1. Middle East tensions
2. Income disparities
3. Structural unemployment
4. Cyber threats
5. Climate change
6. lack of confidence in economic policies
7. lack of values in leadership
8. expanding asian middle class
9. megacities
10. misinformation online

Middle East Tensions

While these tensions may currently be localized, they will not stay that way for long. Terrorist group have the financial muscle to expand pretty much wherever they want to as they “blend in” with the inhabitants of various countries, including the US. Discontent nationals will join these groups without the slightest awareness of the unintended consequences of their actions.

Income disparities

From time immemorial, there have always been the “haves” and the “have-nots.” And, I doubt that will ever change regardless of what form of government a country incorporates. However, if this trend continues (and it will) then the world runs the risk of internal conflicts between the rich and the poor. While that may seem preposterous, imagine having a family of 4 that you cannot feed or provide shelter and healthcare. In essence, you have backed a wild animal into a corner.

Structural Unemployment

Simply put, there is a fundamental mismatch between the amount of labor provided and the quantity of available jobs at that wage and/or knowledge level. So, either more jobs need to be created or more education has to take place. We all know that STEM is the future but our students are not interested in those areas and our workforce is not trained in those areas. At least, not in the US.

NOTE: This cause an every increasing gap between the rich and the poor which manifests itself in a shrinking middle class. This also puts people into a situation where joining a terrorist group makes sense so that things will change.

Cyber Threats

Industrial espionage has been going on ever since (and probably before) Adam Smith wrote The Wealth of Nations and will continue to prevail until businesses no longer exist. It is here to stay like inlaws. Can we stop them? Probably not, but we can learn and develop ways that will prevent them from gaining access to our data.

NOTE: Should we limit Governments from spying and/or collecting data on other Governments? In order for that to take place, we must presuppose that we can trust each other to tell the truth. If you believe that, I have some “swamp land” in Florida I want to sell you.

Climate Change

We are past the point of no return on this one and I suggest that we put our head between our legs and kiss our butt goodbye. The entire world needs to go on gastrointestinal surgery from the standpoint of ALL that cause climate change (global warming) to take place; and, that will never happen. I know one should never say never but it certainly would be an overwhelming task to accomplish.

Confidence in Economic Policies

This is really a simply one to explain. Government and Business have lied to us so many times before, it is simply difficult for any of us to believe that they finally want to tell us the truth. Plus, our economic modeling is based upon assumptions that may/may not be accurate and may not reliably predict or forecast the future because the original data collected is not accurate. In short, predictions come from wealthy people saying that they know what poor people and the middle class will do when they know nothing about it at all, except for historical data.

Values in Leadership

WOW!!! I would submit to you that we have no leaders at all in this country... so, maybe they are all living in other countries. We have MANAGERS and very good ones at that who focus on and are obsessed with the “bottom line.” Decisions are not based upon what is good for the employee or what is good for the customer or even what is good for America; decisions are based upon how much money will we make or loose if we do this or that. If we have any leaders, let them work for FREE for the next 5-10 years.

Expanding Asian Middle Class

This one should have been seen by business, industry, and government when we first started outsourcing to the rest of the world who had nothing for all intents and purposes. We gave them something which caused them to want more and more and more. BRAIN SURGERY... Once you let the genie out of the GREED box, there is no stopping that desire. And, we ain't seen nothing yet.

Megacities

It amazes me what we did not see this coming either. By the year 2050 (a mere 35 years away), 90% of the top 75 cities will be located in Asian. The US only has NYC and LA included in that list. Those population centers will draw HUGE RESOURCES away from the rest of the world. This is not science fiction, this is fact. Food, water, utilities, law enforcement, fire protection, EMS, education, leisure, recreation, entertainment, healthcare, fitness, etc. Structures will need to be built and maintained.

Misinformation Online

The World Wide Web is an endless source of information to which the world has access through PCs, laptops, tablets/iPads, cell phones, and other hand held devices. Never before in our history has this been the case. But, how do we know the information is reliable or credible? We don't actually. How many of us search Google for information and think what we have found is accurate simply because it was the first data to arrive on the screen? Do we ever take the time to check its accuracy or authenticity?

NOTE: When I first started my business career, one might say that I was... or could have been... a little paranoid. As I am sure you are well aware... every organization in existence has a “grapevine” inside its operations. Grapevines usually take place within the ranks of the blue collar worker and management does not always know who is on the grapevine nor do they know how fast information on the grapevine is disseminated.

So, I simply told half a dozen people 6 different pieces of wrong information and simply waited to see which one surfaced on the floor. Once I knew that I had one person then I could pass correct or incorrect information to the workforce depending upon whatever scenario I wanted to create.

In case you were not aware, this is what is going on around you... and, I just thought you should know.