The World Bank Might Be Wrong About Growth This Year

The World Bank projects that global growth will be around 2.4% while the IMF provided a higher prediction of 3.2%. Some important changes are occurring that could impact how much growth will be realized on the global economy this year. Those changes relate to relaxing of problems related to conflict, the long-tail of previous policies, and greater cooperation of economic actors.

It won't be a perfect economy and there will be lots of problems on the horizon. However, the policy changes implemented a few years ago in Europe and China will start making an impact. Slowly there will be greater growth as in Europe as cost cutting measures turn more into reinvestment approaches. China will stabilize its economic policy but may only experience mild growth.

International cooperation will have a greater impact as business speeds up through economic commitments and international expansion of business networks. Supply chain development may end up paying off this years as logistical improvements better ensure faster international product delivery times.

Conflict has also declined this year as nations are starting to rally around commitments to end conflicts in the Middle East. Major conflicts between Russia and the West have also declined leaving more room for growth. Russia can't afford to keep going with its policies over the past few years and will seek to bolster its economy through more economic cooperation.

Asian countries are going to to continue growing. They will be seeking opportunities to raise their positions in the market and are likely to start reinvesting in themselves. Asia is beginning to view themselves as an important economic bloc that has the capacity to challenge existing economic structures.

While it won't be a perfect year it is suspected that there are a few things that may change this year and a few conflicts will rectify themselves. Some places like Africa will continue to lose, emerging markets are moving into mature economies while existing powerhouse economies seen in Europe and the U.S. will better adapt to new economic threats and will push for growth. As a global economy we are emerging out of a slump and should realize something more substantial than a 2.4% growth rate.

Why is Corporate Change Stressful?

Change is a fundamental consistency of life. We can't escape it and we can't really fight it for very long. Eventually change sweeps us all up on one form or another. We can learn to ride change so that it is less stressful. In business, preparing employees for changes is an important part of strategic implementation.

New rules, expectations,work patterns and roles can be stressful even when they are beneficial. Companies often develop really excellent strategies and fail to implement those strategies well because they didn't consider the human element in their approach.

It is easy to consider the merits of allocating resources and the projected return on new production lines. What isn't easy is to predict the behavior of people who have all types of complex concerns and needs. They respond to situations how they see them.

How they view these situations will impact their stress levels. They will interpret change as helpful and stressful by their own personality characteristics as well as the information available to them. When implementing new plans it is helpful to open communication lines so they have appropriate information.

The stress that comes from change is also based in part on how their social network views such change. It is important to review the need for change at a group level but also on a supervisory level where greater meaning is created. Change is stressful but helping employees interpret better through appropriate communication as part of the strategic plan can encourage greater implementation.

Report Shows the Difficulties of Small Business

The report The State of Small Business in America by Babsom College provides some key insights into the nature of small business in the country and some of the difficulties they face. You might be surprised but small business seems to have a couple challenges despite their real contribution to growth. 

1.) Most rely on banks to receive financing but are limited by inflexible lending policies.
2.) Small business receives about half of the funding they need. 
3.) They have a hard time finding qualified labor. 
4.) They spend too much time and money on legislation/regulation.
5.) Technology is expensive. 

Succeeding in Business By Plotting a Course and Hiring the Crew

Success doesn't come from free flowing your business being blown by whatever popular wind prevails that day. Succeeding in business requires the plotting of a course and the hiring of the right crew to make your way to a destination. A worthwhile end point, the right equipment and knowledgeable people are a winning combination in almost any endeavor.

Plot Your Course. Make a strategy in your business and ensure that you know how to get there. It is important to have some way of approaching the market. Know what your product is, how you are going to market your product and how customers are going to receive your product.

Get Your Equipment. Equipment and resources are essential to success. If you don't have the right financial support, supplies, tools, and facilities it is doubtful you will go far. Make sure your business plan includes this information.

Hire Your Crew. Make sure you have the right people on board with the skills to complete the work. Knowledgeable people will make navigation to the goal easier. You don't want to get half way through your voyage and find out you don't have the right intellectual capital.

Saudi's Economic Diversity Program will Change the Political and Structural Foundations of the Nation

Saudi is implementing the National Transformation Program designed to reduce the countries dependency on fossil fuels and find other places were revenue can be found. They hope that through diversification they can ensure the nation stays strong into the future. This change will likely result in political and structural changes in the nation. 


Anytime you change a major revenue source the entire entity will adjust. The modern Kingdom was built off of oil wealth while using older tribal structures. As the government adjusts away from the easy income of oil and to other industries it will naturally need to let go of some control over their economy. 

Productive and innovative people need the space to accomplish their goals. Capitalism, and the market hand, will make its way through their economy pushing the government structure to change and adjust its laws to give their economy the best chance at competitive success. The very way people view their country and its values will change. 

A serious problem might result when the new changes that loosen control collide with the social elements that want more strictness. This can result in societal dishevel and challenge as new values seek to supplant older values based on the necessities of not having oil to maintain existing structures. If Saudi Arabia can successfully integrate these changes they will make a smoother transition in their political and structural foundations. 

The Problems with GRE Admissions Policies

Elite colleges often use GRE to admit students to their programs. The problems with the GRE is that the testing is geared around a certain demographic and may skew the results from minority candidates. Some colleges are debating getting rid of the GRE as a main tool for recruiting.

Much of this depends on the colleges themselves. It is difficult to deny that the GRE has advantages as a test metric that can make it easy to pick one student over another for admissions. This helps colleges appear to be fair in their admissions policy as they don't manage the test.

While most of the questions seek to be valid across different cultures and backgrounds this is inherently impossible. A small spread of 5 or 10% could make it difficult for one group to get in over another.

The reason why this occurs is because each culture assimilates and integrates an image of words. A cow to one culture might recall different features than another culture that has less exposure to cows. A cow could be one breed in one place and another breed somewhere else.

A simple question on a cow might have different recalls and different understandings of what a cow is used for. This might be an extreme example but variations in symbols and images that make their way into definitions are different and lead to different understandings of the questions themselves.

The GRE is still a valid tool but isn't the only tool. Other assessments can be used to determine a person's capacity to succeed in higher education. Success in college is more than grades alone but also the confidence and social abilities of the student. It takes the whole student to achieve not just a single facet of each student.

Empowering Your Employees Empowers Yourself

Employees are the elemental asset to the success of any organizations. Despite their amazing contributions and potential we often seek to micromanage them to the point where they are ineffective. This need for control zaps employee's potential and deflates their enthusiasm to accomplish great things.

Micromanagement is a type of control mechanism designed to reduces unknowns and limit the feeling of fear. The problem with micromanagement is that while one tries to control their environment to make themselves feel more secure they usually make their employees feel less secure resulting in the opposite impact.

Managers who are emotionally and mentally healthy can empower their employees to act and work at their own best judgement. The company hired them to use their brains and the more you can encourage them to do so the stronger motivation and performance that will result. Let your employees do what they know best.

Employees should be able to earn their freedom from micromanagement. As the employee becomes more knowledgeable and independent micromanagement will frustrate them. They already know what they are doing and don't need anyone telling them the details.

Good managers can empower their employees to improve on their own. They can help, guide, and encourage them without telling them each step. Micromanagers view others around them as incompetent but often fail to see how skewed this perception is as people become aware of inefficiency of managing every detail. Hire great talent and empower them to free you from worrying about the details.