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Examples of where and how democracy is under pressure and why that matters for companies

Threat Assessment

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Russia’s aggressive imperialism 

Russia’s invasion of Ukraine has disrupted the rules-based multilateral order and global supply chains. Democracies must grapple with the economic fallout and internal debates about geopolitical responsibility. 

Challenges within the EU 

Some EU countries, chief among which Hungary, violate the bloc’s regulations with regards to democratic rights and the rule of law. Their veto power disrupts collective decision-making processes. 

China’s hegemonic ambition 

An increasingly nationalist China is asserting itself on the world stage and threatens the sovereignty of Taiwan. Democracies face the challenge of balancing human rights, security and economic interests in their dealings with China. 

Global migration crisis

Armed conflicts and economic hardship in large parts of the world have caused renewed waves of migration. These continue to challenge border management, labor markets and social integration in European democracies. 

Rise of populism 

Over the last decade, populist movements have contributed to increased polarization and weakened trust in democratic institutions in the United States and large parts of Europe. 

Climate Change

Global warming is causing extreme weather and compromises numerous ecosystems.  Political systems are already feeling financial and social strain and need to decarbonize their economies. 

Social Inequality

Advanced economies need to tackle rising social inequality to sustain the democratic promise of equal participation and upward mobility.

What’s your take on these challenges? Do you have further suggestions? We highly welcome your feedback!

Our democracies are challenged by a variety of developments

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