Interview with the leading expert on Macroeconomics, David Roche
You recently released a new book called “Death of Democracy”, what is implied by this title?
Democracy, like any political system, has no God-given right to survive. It needs to justify its existence. Democracy provided the foundation for the capitalist system which has delivered higher and higher living standards over the past century or more.
But the global financial crisis demonstrated to everyone that there were failings within the system. And many of these failings were caused by the abuse of it. And the political classes had facilitated it. That placed democracy under the spotlight.
There have been other global trends that people have felt are working against them, like globalisation, technological change, and demographics. They have all fed into this desire for change. While democracy has historically proven good at absorbing shocks, it has failed to respond to these demands.
The gap has been filled by populists, who have a blunt message that appeals to people’s desire for simple solutions – someone else is to blame and they are the people to set things straight. The book addresses all of these issues.
How should companies prepare and respond to the hypothesis about new politico-economic models being formed?
Companies will find themselves in the crossfire far more. They provide fodder for the masses, whether it’s due to the profit motive or when companies find themselves accused of abusing their power and positions within the economy. They are vulnerable to rapid technological change – both from data and advances in computing power and the new technologies these facilitate. These combine with the need to rebalance the economy to counter environmental change, which applies to both climate change and broader ecological shifts that man-made activity has led to.
What actionable insights will the audience gain from your keynote?
Change is often violent and happens faster than people expect, so being able to adapt to the changing political and economic landscape will become increasingly challenging. Understanding these risks will be critical to adapting to the transition.
Where to look, what to watch, where the dangers lurk and the opportunities lie. They will leave far better prepared for an uncertain and more volatile future.