5 Global Forces that will Change Charitable Sector
Posted August 1st, 2010 by Gena Rotstein
In a recent article published by McKinsey and Company, "Global Forces: An Introduction," five trends were identified as the new directions for business. These same five trends can be applied to global charity and philanthropy.
The trends are (quoted from article):
- The great rebalancing. The coming decade will be the first in 200 years when emerging-market countries contribute more growth than the developed ones. This growth will not only create a wave of new middle-class consumers but also drive profound innovations in product design, market infrastructure, and value chains.
- The productivity imperative. Developed-world economies will need to generate pronounced gains in productivity to power continued economic growth. The most dramatic innovations in the Western world are likely to be those that accelerate economic productivity.
- The global grid. The global economy is growing ever more connected. Complex flows of capital, goods, information, and people are creating an interlinked network that spans geographies, social groups, and economies in ways that permit large-scale interactions at any moment. This expanding grid is seeding new business models and accelerating the pace of innovation. It also makes destabilizing cycles of volatility more likely.
- Pricing the planet. A collision is shaping up among the rising demand for resources, constrained supplies, and changing social attitudes toward environmental protection. The next decade will see an increased focus on resource productivity, the emergence of substantial clean-tech industries, and regulatory initiatives.
- The market state. The often contradictory demands of driving economic growth and providing the necessary safety nets to maintain social stability have put governments under extraordinary pressure. Globalization applies additional heat: how will distinctly national entities govern in an increasingly globalized world?
From a charitable perspective here is what I think we will see:
- Developing countries will take a more active roll in supporting their own needs and international aid will move from a sustaining model to a preventative model.
- There will be a shift from exporting solutions from the developed world to importing ideas around community building from the developing world.
- Creation of government and tax policies around social enterprise and ultimately developing a new category of business that will marry the trends around technology and social innovation.
- A morphing of the charitable sector into new business models from the current siloed approach of charity, government and private sectors to a cross pollination between the sectors.
- Donors will no longer just donate to a cause or an organization; they will be investing in issues and projects that will directly correlate to their personal definition of community (local, national, international, family, neighbourhood, school, etc...)
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