Zeitenwende entered the English lexicon in 2022, a word used by German Chancellor Olaf Scholz on February 22, to describe the epochal change triggered by Vladimir Putin’s invasion of Ukraine. (Financial Times) In geopolitics and other ways, the year 2022 marked a sharp turn from the trends of the post-Cold War period. In this article, we examine some of the implications for business and strategy. We analyze the situation, assess impacts and recommended responses by business leaders to the following:
- Geopolitical realignments, that are bifurcating the world into competing camps.
- Resurgence of Western liberal democracies after a perceived steady decline.
- Assertion of extraterritorial technological and financial power of the US and the return of the American-led world order.
Geopolitical Realignments
In the decade after the financial crisis of 2008–10, it was fashionable to decry the decline of the democracies, the fecklessness with which they met challenges such as Brexit, the rise of populism, and the malaise of Western societies confronting drugs, crime, homelessness, and other social ills. Their decline increased the appeal of authoritarianism. (Freedom House) Authoritarian regimes were posited to be more efficient, deliver greater economic growth…