As if the economic shocks weren’t enough, Argentina is threatened by other social and environmental risks that condition its development and business climate.
Consulting firm Marsh McLennan conducts an annual global survey of global business executives to define the challenges facing the world economy. And along with this measurement he identified the five biggest risks to the local economy.
“For Argentina the panorama is complex, among the main risks encountered for the country we find the 3 main ones due to economic reasons: sustained rise in inflation, debt crisis and proliferation of legal businesses; then geopolitical issues: state collapse; and finally environmental issues: serious raw material supply crisis”, says the report.
In presenting the study, Sebastián Tobio, leader of Marsh Advisory Argentina and Uruguay, focused on the three final risks. As for the proliferation of illicit activities, he makes it clear “the concern is linked to the growth of the underground economy, which deprives the state of tax revenues“, but also to the increase in crimes such as drug trafficking.
Referring to the “collapse of the state”, Tobio highlighted that the risk is linked to the difficulties encountered by the public administration for resolve the tension between social needs and lack of resources.
And in the third point, the serious crisis in the supply of raw materials, he mentioned the impact of drought and problems in supply chains.
The details of the Global Risks Report in the 2023 edition the challenges that have triggered geo-economic conflicts and tensions, such as those unleashed after the Russian invasion of Ukraine. Among these he cites “the scarcity of energy and food supplies, which will probably persist for the next two years, as well as the high increases in the cost of living and debt service”.
They also warn that “these crises could undermine efforts to address long-term risks, especially those related to climate change, biodiversity and investment in human capital.”
Alongside the Marsh report, Mercer’s “Global Talent Trends 2023” study was presented, describing how Latin American companies are responding to this new market reality.
There they mention it the future of work depends on more interconnected and flexible models of talent. “Organizations are developing a one-of-a-kind mindset across their ecosystem. They are building business resilience by instilling equity and inclusion in their talent models, tapping into larger and more diverse talent pools, and building stronger supplier and partner networks,” said Ivana Thornton, Mercer Career Director for Argentina, Uruguay and Paraguay.
The study shows that to be successful, companies must promote total employee well-being, focus on the development of organizational culture, enable new ways of working (remote, hybrid and independent), develop a skills-based organization and support diversity, equity and inclusion.
AQ
Source: Clarin
