DAVOS, Switzerland; Jan. 29, 2009 – The rise of the multi-polar world is challenging governments to think and operate in new ways to protect, maintain, and enhance national and individual citizen economic conditions and opportunities, according to a The Challenges to Government from the Multi-Polar World, a new report from Accenture (NYSE: ACN). The report lays out five challenges governments must address to succeed in the multi-polar world: developing national talent; managing the movement of people and money; enhancing social infrastructure; protecting national security; and ensuring environmental sustainability.
Accenture’s 2007 report The Rise of the Multi-Polar World identified three mutually reinforcing trends that are driving the diffusion of economic power and activity from the triad economies—the United States, Europe and Japan—to those of the developing world:
- The increasing power of information and communications technology
- Government policies to increase economic openness
- The increasing size and geographical reach of multinational enterprise
In The Challenges to Government from the Multi-Polar World, Accenture’s Institute for Public Service Value builds on analysis of these trends, examining three further collateral trends arising from the new patterns of globalization that specifically affect governments’ ability to protect and improve national well-being:
- Global political realignment
- Environmental degradation
- Movement of people and demographic shifts
Accenture’s report, based on desk research, discussions with Accenture’s industry and policy experts, and the company’s broad experience developing and delivering solutions to governments around the world, assesses how governments are being challenged to develop effective policies, services and support systems in order to manage new risks and take advantage of emerging opportunities.
“In this rapidly changing world governments shoulder the same fundamental responsibility as always – to protect and improve the welfare of their citizens and residents – but the multi-polar shift is really forcing governments to get more strategic, creative, and decisive to improve social and economic conditions,” said Juan Domenech, chief executive of Accenture’s Public Service operating group.
Accenture’s new report highlights governments’ opportunity to understand how global trends and patterns are affecting citizens’ lives and to address these issues internationally, nationally, and at the local level. The research parallels Accenture’s newly-released report, Achieving High Performance In A Multi-Polar World and Accenture’s ongoing Global Cities Forum, which brings together representative groups of citizens in major cities around the world to deliberate on what they believe government should be doing to improve their quality of life.
The Challenges to Government from the Multi-Polar World identifies and examines five strategic challenges that governments must address to succeed in the multi-polar world:
· Developing national talent. Governments need to develop coordinated and flexible talent-management strategies to compete effectively in the global economy.
· Managing the movement of people and money. Governments need well-planned and coordinated social, economic and immigration policies to meet the needs of workers and industry and enable the mobility of people, capital and goods.
· Enhancing social infrastructure. Education, health, and social benefit policies and programs are crucial aspects of attracting investment and enabling citizens and businesses to compete and prosper.
· Protecting national security. The growth of international trade and migration, alongside new threats to security, is forcing governments to improve their approaches to customs, transit and immigration security systems.
· Ensuring environmental sustainability. Addressing environmental degradation while ensuring economic competitiveness is a major issue for all governments, driving the need for country-by-country action plans and stronger efforts at cross-border and international collaboration.
“Governments need to understand the new dynamics of globalization around them – both its current impacts and its continuing evolution – and respond positively, in both domestic and international arenas. Our research suggests that governments will succeed in the multi-polar world if they focus their own agencies’ performances on the creation of public value and if they develop new co-productive relationships with governments of other countries, with businesses and with their citizens,” added Domenech.
More information about The Challenges to Government from the Multi-Polar World report can be found at www.accenture.com/mpw.
Accenture is a global management consulting, technology services and outsourcing company. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. With more than 186,000 people serving clients in over 120 countries, the company generated net revenues of US$23.39 billion for the fiscal year ended Aug. 31, 2008. Its home page is www.accenture.com.
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