Over the last five years, the world has experienced a seismic financial shift that will be looked upon by historians and economists as the start of God's Global Governance. In late 2007, we witnessed the beginning of a cycle of economic catastrophes, driven by the implosion of the American housing market and financial liquidity-the ability of banks to lend money and provide credit. A combination of greed, mismanagement and the lack of transparency and adequate regulations to protect consumers and investors have brought us to the credit crunch that we are still reeling under and will take a long time to recover from. Every fall has a rise but the gravity and depth of the fall makes the rise tougher as the world gets going. This crisis has resulted in advanced economies struggling for revival of growth with the leading powers of the Western world failing to develop a strategy to restart liquidity and drive economic growth. As we have waited for the clouds of uncertainty to clear, a fundamental shift has taken place. In today's global economy, growth now depends on Asia and the Middle East as never before. The new world order is now in place, and we looked on in awe as known principles have shattered and new frameworks evolved.
This is not to say that the United States and Europe have lost their economic influence or their power to prevail. The US and the Europe will remain at the threshold of all activities in the global economy. However, I believe that the developed world will come out of recession only when the mighty engine of finance embarks on the seemingly impossible task of developing a sustainable future, which is bound to happen. Despite deep differences in their political systems over how to respond -an argument over whether to stimulate the economy through greater spending versus a policy of managing debt load - and in spite of Economics and Politics failing to converge, the American and European leaders are driven and will find a way forward.
In my opinion, Global GOP growth over the next decade will be divided equally between developed and developing nations, with the western world providing a steady engine of stability, and the developing countries the acceleration for reforms and the opportunity for change. The world has the potential to add US$30 trillion in GOP over the next 10 years, driven by a growing middle class in developing countries; in-depth and extensive investments in infrastructure and human capital development; and the increased provision of security for the aging and dependent population.
In addition, there exists new opportunities in the developing world for producing consumer goods, financial services, construction and defense products. As countries throughout the Middle East, Asia, and Africa lay the foundation for future generations of prosperity and wealth, developed countries should not view this as a zero-sum game. As more people increase their demand for services, consumer goods, and higher standards of living, Western companies should partake in the opportunities that will abound. It is an inclusive world order that has come into existence and nations all over the world will be a part of the growth engine that will drive the economy forward.
In 2009 while a G-20 meeting was being held in London, the world had started to realise and advocate the principles of inclusive growth. From the G7 to G8 and G20, all of the coalitions were focusing on resolving the crisis as a whole. The focus was on financial stability being restored and set in clear and precise frameworks for Sustainable Global Governance. I have always maintained that the future is where politics and economics converge, and this is exactly the principle that was being instituted.
In 2009, global banks were put through stress tests, which was essential to keep the markets in check and control the hyper fluctuations. A well-balanced, inclusive approach is essential for the proper governance of any organisation. The feel and experience of governance and transparency is something that has to be instilled in all of us as thorough professionals.
The world that we knew ceased to exist, and the crisis threw open an opportunity to build the world we want: a global economy based on transparency and ethics.