Role business leaders can play in a fast-changing global economy

Jubilee Group CEO Dr Julius Kipng'etich at a past event in Nairobi. [Edward Kiplimo, Standard] You don't need to be told that it has been a deafening few years. To me, the defining word for the 2020s is "fast". We watched as a virus spread throughout the world and shut down global economies. We watched with great admiration as scientists developed vaccines in record time and we benefited from quickly enacted monetary and fiscal policy giving a much-needed lifeline to its citizens and economies. Russia's invasion of Ukraine in February 2022 marked the reversal of the decades of global economic interdependence that was presumed to preserve peace and once again policy and decision-makers acted with incredible speed. Sanctions were passed and many companies exited Russian operations. Central Banks hiked rates to combat high inflation and for the first time, we saw monetary tightening at a pace and scale never seen before. Difficult times With this backdrop, 2022 was a difficult year for global economies and for investors equally both in the developed world and in emerging markets such as ours. Between the pandemic, the first land war in Europe in generations, and higher-than-ever tensions between the US and China - any one of these events would have shaken the foundations of the globalised world economy. Together, they've introduced cracks that have led some to believe the era of prosperous globalisation is coming to end. Not so fast, In 2023, the World Economic Forum's annual meeting held at Davos has been the largest in its history with more than 2,500 leaders from government, business and civil society under the theme "Cooperation in a fragmented world" which might surprise many sceptics who have written about the end of globalisation. No region is an island I interpret this to mean that leaders around the world recognise that globalisation needs reimagining, not junking, for two reasons. First, the global economy-the interregional flows of raw materials and manufactured goods, and the people, data and capital, that this trade requires-is highly unlikely to come undone. No region is an island; every regional economy depends on the others for vital goods and services. The McKinsey Global Institute's recent report finds that the economic ties that bind us are strong and may be impossible to unwind. Second, today's biggest challenges don't respect borders. They're global in nature. Countries and economies everywhere are troubled by the challenges of building resilience in the face of massive disruption (including anticipating future pandemics), affordably weaning our societies from fossil fuels, and building a system in which everyone prospers. What business leaders can do There are no solutions to the world's largest problems that don't involve the leaders of the world's largest companies and national and international policymakers. That's why, 52 years after the first meeting, the 2023 meeting at Davos convened a record number of leaders from governments, businesses, and civil society to address the state of the world and discuss priorities for the year ahead. Once a year, these leaders and thinkers meet up to rediscover the joys of debate and serendipitous connection, in a spirit of openness and inquiry. The ideas and relationships forged this past week may well be the seeds of new collaborations that put a dent in otherwise intractable problems. For starters, it's time to galvanise the conversation on reinventing globalisation. That's one of five themes that was discussed at this year's meeting: Resilience Building new muscles for tomorrow. Global disruption isn't slowing down. In every arena, from geopolitics to food and energy, technology, business as usual is proving inadequate. Sustained collective action by the public and private sectors is one way forward. Firms can play both offence and defence, with different moves for US firms and those in Europe. Sustainability Balancing the energy transition and energy resilience for a net-zero future. Are you ready for the biggest capital reallocation of our (or anybody's) lifetime? It is estimated that to reach net-zero emissions, the world must invest $3.5 trillion (Sh440 trillion) more each year than it currently invests. Great companies and leaders won't let today's challenges deter them from making the big decisions and investments needed to accelerate the transition. We should therefore focus on reimagining globalisation: diversification rather than decoupling. We live in a highly interconnected world. No region is close to being self-sufficient. And about 40 per cent of global trade is highly concentrated, with just a few nations supplying all the others with some vital product. As tensions mount, those who manage trade relationships can find ways to diversify. Inclusion: making inclusion a competitive edge. At the current rate of progress, it is estimated to take 151 years to close the global economic gender gaps, 29 years for executive teams to reach gender parity, and 24 years to reach ethnic diversity. That's why what we do today is so important. Further, global companies are finding that inclusion is helping them tap underserved markets. Diversity, Equity and Inclusivity (DEI) The interaction between diversity, equity, and inclusivity (DEI) and globalization can be complex and multi-faceted. Globalisation has the potential to increase DEI by breaking down cultural and national barriers, promoting cross-cultural exchange and understanding and allowing for representation and visibility for historically marginalised groups. The space economy: capturing innovation across sectors We're also watching the future as it hurtles toward us, faster all the time. The budding space economy has vast potential to change the world. Cheaper launches, smaller satellites, and more investment are ushering in an age when companies in many sectors can conduct research and developments in space, doing things that aren't possible on earth, and even inventing new businesses. -The writer is the Group CEO, Jubilee Insurance.

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