Trends In Political,Economic Philosophies And Outlook

TRENDS IN POLITICAL/ECONOMIC PHILOSOPHIES AND OUTLOOK There are major differences in political parties' philosophies in some countries, while not in others. Many rapidly developing, business-friendly countries have non-democratic systems - simpler procedures and quicker decisions compared to some democracies. Until the late 1980s-early 1990s changes in Eastern Europe and the USSR, these countries formed a separate bloc with many common characteristics:  Very limited private enterprises  State trading, especially counter trade, was the norm  Many import and business restrictions  Winning over top party/government officials was a business strategy foreign Even non-communist developing countries assigned an important public sector role earlier, limiting private and foreign business scope. For instance, India's industrial policy wanted public sector dominance in strategic industries and had ceilings on foreign equity. Foreign firms also feared nationalization. But now most countries have extensively privatized, rapidly moving from Marx to markets, including former communist nations and even China. So while government policy convergence is a global trend, major differences persist in business restrictions, regulations, procedures, incentives etc. Coalition governments of ideologically diverse parties are rising, sometimes causing uncertainty. Powerful individual leaders with huge influence on their parties and the economy are not uncommon. Changes in the state's economic role or involvement affect business - for instance, India's reduced public sector role and delicensing have empowered state governments more than before. There is a universal trend toward political decentralization, shifting power centers firms deal with. More politically independent nations keep emerging as ethnic groups seek self-determination a trend called tribalism. Repression suppresses while democracy enables assertiveness. There could be 1000 countries by mid-century. Hostilities between nations affect business, like Arab nations insisting on Israel boycott certificates from foreign firms. Economic sanctions also occur. Many nations now have stronger regulations to protect consumer and ecological interests. Product/promotion controls are extensive - standards, prohibitions, mandatory warnings, substantiation of claims etc. Statutory controls remain substantial in India post-liberalization too. Competition laws curb unfair practices and monopoly. Policy changes like in industrial, fiscal, tariff policies profoundly impact business, creating opportunities and threats. For instance, India's industrial policy liberalization opened up diversification opportunities while also increasing competition in existing products. Political trends significantly reshape the landscape for business. Firms must closely track relevant changes in political philosophies, parties, leaders, economic ideologies, decentralized power structures, policies and regulations. Opportunities and threats abound along with the risks.