Runway to Growth

Government and the global CEO: Redefining success
 

As confidence collapsed in the wake of the global financial crisis, with CEOs somewhat or extremely concerned about economic downturn (85%) and the disruption of capital markets (72%), around the world governments have rushed to intervene in their economies. Indeed, this year’s survey revealed a startling statistic – 10% of the companies we surveyed had some form of government backing. And state ownership is spread globally across all industry groups in our survey – not just in financial services.
 

The implications of the current crisis are also clear. In our view there is a need for:

  • Early decisions on exit strategies for businesses backed by governments through the current crisis, but which ultimately must stand alone
  • Stronger, better and smarter regulation, including clear and stable tax rules 
  • More effective collaboration between business and government
  • Stronger mechanisms for the mitigating global systemic risks, including reform of institutions such as the International Monetary Fund (IMF) and the World Bank (WB) and a greater role for the G20 as a real-time decision-making forum 
  • Governments to chart a way ahead, investing in the future and creating a runway to growth