Government - Written Thursday, February 4, 2010 by Don Tapscott - 1 Comment

My top ten themes from 2010 Davos, part 2

The World Economic Forum has wrapped up and the small town of Davos is being returned to the skiers. I’ve developed my top ten themes from the five-day event. I posted themes 1 – 5 yesterday. Here are themes 6 – 10.

6. The world needs better governments.

Some governments in Central America and Africa are just holding on and many are dysfunctional.  But governability is becoming an issue for G20 countries as well.  One leader said the US is on the brink of being “ungovernable.”  One Chinese executive responded thusly when asked to defend his country’s lack of democracy:  “So we should adopt the American system where lobbyists run everything and nothing happens?”

Democracy was still seen as an unstoppable force but in many regions of the world it is becoming stalled, and in some cases losing ground.  Basic democratic institutions are at risk and in danger of failing part due to the economic crisis in poor countries.  The best predictor of democratic survival is per capita income.  In some countries portions of the government have been captured by interest groups. Other non-democratic countries are proving competitively stable and economically healthy.  And the current economic crisis shows that national governments and domestic regulation are inadequate to deal with the challenges of the global economy.   There is also danger of protectionism and isolationism.

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