May 21, 2025 l Business Mirror
“The greatest danger in times of turbulence is not the turbulence. It is to act with yesterday’s logic.”—Peter Drucker
Our country was busy with the mid-term elections last week. And now that the proclamations of the elected officials are done, it will be good to take a step back, take a breath and appreciate how the rest of the world has changed and what are the trends and the consequences.
The European Union
In January 2025, a simplification agenda to reduce bureaucracy and promoting innovation was launched (to include green technologies, AI, quantum computing, with regulatory flexibilities for certain industries like automotive manufacturing.
The following month, the European Commission (EC) issued the first Omnibus Package aimed to simplify the European Union (EU) rules, promote competitiveness and expand additional investment capacity. To encourage AI investments, the tech regulations were scaled back.
The United States
The unprecedented increase in tariff among trading partners has wide-ranging impact to those countries with large net trade balance with the largest economy.
Efficiency initiatives have been carried out by a new unit of the government (DOGE) that led to down-sizing offices, eliminating aids, and more. With the speed and volume of executive orders, there seems to have an increase in uncertainty.
Elsewhere in the world
In India, significant deregulation in the telecommunications sector, reduction in licensing requirements and promotion of more competition are felt. The same is true in Brazil where to attract international capital, the restrictions on foreign investments in the energy sector have eased.
Labor laws are being simplified and deregulations are adopted in countries like South Africa and India.
Other countries have started to position for “deals” with the biggest world economy.
Meantime, pockets of wars are happening or under truce negotiations—Russia vs Ukraine, Israel vs Hamas, and India vs Pakistan.
Quo Vadis?
One can only ask our country leaders, what’s ahead?
***The views expressed herein are her own and do not necessarily reflect the opinion of her office as well as FINEX. For comments, email clmanabat@gmail.com. Photo is from Pinterest.