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New ACCA report collates experts' predictions on the world in 2030

15 Jul 2010

A new report by ACCA predicts that the world in 2030 will be considerably different to now, with a 'flattening' of the economic landscape and a more genuinely global market place.

The report, entitled Where Next for the Global Economy? A View of the World in 2030 - and developed in collaboration with consulting group Lighthouse Global - collates the predictions of 15 global experts in business, economics, and accountancy. Covering areas such as the future global power, the future of the earth's resources and the corporate eco-system, the report sees the world turned completely on its head in 2030.

Among those giving their predictions are:

• Andrew Dilnot, economist and former director of the Institute of Fiscal Studies, and now principal of St Hugh's College Oxford
• Chin Kwai Fatt, the managing director of PwC Malaysia
• Loughlin Hickey, KPMG's global head of tax
• Tony Hegarty, chief financial management officer at the World Bank, and
• Professor Saul Estrin from the London School of Economics.

Expert panel forecasts for 2030

1. Some of today's biggest companies are likely to de-conglomerate by 2030, outsourcing almost all central functions to achieve efficiency. 'Federations of businesses' will be the corporations of tomorrow. Strong virtual ties will connect increasingly specialist and remote businesses, located in increasingly specialised regions and cities. Small businesses will act like shoals of fish, becoming a strong global force in the global environment.
2. With the world's population growing and with resources heading in the opposite direction, there could be severe pressure on access to oil, gas, or water. Food will be limited too, leading to increasing elements of nationalism in discussions about resources.
3. The world will be made 'flatter' as a result of globalisation. This could lead to a shift in global influence to the East. The East won't be the next big thing; it will be the big thing. One of the report's contributors, Nenad Pacek, the president of Global Success Advisors, says: 'The business world will be astonished by the rise of new companies from emerging markets. At how powerful they will become. They should not be underestimated in any way.'

'Distracted by the powerful effects of the global financial crisis, commentators, politicians, and economists have recently been focusing on the short term; it's important that the longer term isn't forgotten,' says Helen Brand, ACCA chief executive.

'In 2030, the world could be facing intense pressure on resources, a big shift in global poawer, and a completely different way of doing global business. These aren't things that we can just deal with when they crop up. We need to start thinking about tomorrow today.

'As a wide-ranging collection of insights, covering a wide array of scenarios and possibilities, the report is designed to encourage people to think about how their actions today will affect the world tomorrow. We're sharing our panel's ideas and perspectives to provide accountants and business with new thinking to help them make decisions based on the insights of those at the forefront of debate.'