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18 November 2013 | ITSM
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Future State 2030
Global megatrends demand new strategies and skills from governments, according to a new report...

Government needs to plan, think and act differently, in some cases drastically, if they are to be prepared for the global megatrends increasingly straining the world’s resources and economic capacity, according to Future State 2030, a global report released by KPMG International.

The report, developed in partnership with The Mowat Centre at the School of Public Policy and Governance at the University of Toronto, details nine megatrends facing governments at all levels around the world and assesses policy and strategic actions governments need to take beginning today to be successful in the future.
The megatrends encompass some of the world’s most critical challenges, including:

  • Resource scarcity, with a 50 percent increase in global food supply, and a 40 percent increase in water needed to meet demand in 2030;
  • A tidal wave of young people entering the labor force in developing economies, with growing strain of rapidly aging populations in most developed countries;
  • An expanding and more technology adept and connected middle class exerting greater demands on government in the face of rising public debt;
  • Economies becoming increasingly interconnected and interdependent.

“Understandably, governments have been focused on the short-term due to multiple factors, including the global financial crisis and its aftermath,” said Nick Chism, Global Head of Government & Infrastructure, KPMG International. “But we are now at a critical juncture for governments to take a longer view of accelerating social and environmental challenges. Without significant changes, the impact of these nine megatrends will far outstrip governments’ ability to meet the needs and demands of stakeholders in the next 20 years.”
The megatrends are highly interconnected but will not impact every part of the world in the same way. This means governments will need to undertake a variety of responses, and consider the implications both within their own jurisdictions and more broadly. The report presents KPMG’s strategic review of the policy, regulatory and program changes governments will need to consider, as well as the strategies, structures and skills required to effectively implement these needed changes.
“The impact of the megatrends is not limited by borders,” Chism said.  “As a result, governments cannot respond effectively in isolation and will need to increasingly work collaboratively to find effective solutions. New regulatory approaches will be required that recognize the interconnected nature of the risks as well as the rebalancing of global economic power and influence that will increasingly favor developing economies.”
To deliver effective programs in a rapidly changing operating environment, governments will need to take a hard look at their own skills and capabilities, including risk assessment and change management, stakeholder engagement, and evolving their international awareness, all with a longer-term planning horizon.
For additional information or to view the “Future State 2030” report click on the link http://goo.gl/LvgC5O.

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