The World in 2030: pressure on resources and a completely new approach to global business

The World in 2030: pressure on resources and a
completely new approach to global business
New ACCA report collates expert opinion on what our world will look
like in 20 years time

The world in 2030 will be a startlingly different place, with a
'flattening' of the economic landscape and a more genuinely global
market place, according to a new report from ACCA (the Association of
Chartered Certified Accountants), in collaboration with the strategic
research and consulting group Lighthouse Global.

The report, Where next for the global economy? A view of the world in
2030, collates predictions from 15 global experts in business,
economics, and accountancy. Covering areas such as the future global
power, the future of the earth's resources, and the future of the
corporate eco-system, the paper sees the world turned completely on
its head in 2030.

"Distracted by the powerful effects of the global financial crisis,
commentators, politicians, and economists have recently been focusing
on the short term; it's important that the longer term isn't
forgotten", says Mr Arif Masud Mirza, Head of ACCA Pakistan.

Mr Mirza adds: "In 2030, the world could be facing intense pressure on
resources, a big shift in global power, and a completely different way
of doing global business. These aren't things that we can just deal
with when they crop up. We need to start thinking about tomorrow
today.

"As a wide-ranging collection of insights, covering a wide array of
scenarios and possibilities, the report is designed to encourage
people to think about how their actions today will affect the world
tomorrow. We're sharing our panel's ideas and perspectives to provide
accountants and business with new thinking to help them make decision
based on the insights of those at the forefront of debate."

The report looks at the future of: the distribution of global power;
the earth's resources; financial markets; the corporate world; and the
future of government. Among the predictions made by ACCA's panel are
the following:

1. Some of today's biggest companies are likely to de-conglomerate
by 2030, outsourcing almost all central functions to achieve
efficiency. 'Federations of businesses' will be the corporations of
tomorrow. Strong virtual ties will connect increasingly specialist and
remote businesses, located in increasingly specialised regions and
cities. Small businesses will act like shoals of fish, becoming a
strong global force in the global environment.
2. With the world's population growing and with resources heading
in the opposite direction, there could be severe pressure on access to
oil, gas, or water. Food will be limited too, leading to increasing
elements of nationalism in discussions about resources.
3. The world will be made 'flatter' as a result of globalisation.
This could lead to a shift in global influence to the East. The East
won't be the next big thing; it will be the big thing. One of the
report's contributors, Nenad Pacek, the president of Global Success
Advisors, says: "The business world will be astonished by the rise of
new companies from emerging markets. At how powerful they will become.
They should not be underestimated in any way."

The predictions made in the report come from experts including: the
economist Andrew Dilnot, former director of the Institute of Fiscal
Studies, now principal of St Hugh's College Oxford; Chin Kwai Fatt,
the managing director of PwC Malaysia; Loughlin Hickey, KPMG's global
head of tax; Tony Hegarty, chief financial management officer at the
World Bank; and Professor Saul Estrin from the London School of
Economics.