What are megatrends?
When you see a news story about a new app sweeping the world, when the changing weather alters your insurance risk, or when you use your phone to do business in Southeast Asia – you are experiencing the impact of this century’s megatrends.
Megatrends are large, transformative processes with global reach, broad scope, and dramatic impact.
Companies, governments, and individuals use megatrends for long term planning, policy development, and even for making personal decisions.
The term megatrends was popularised by John Naisbitt, who in 1982 identified forces that were transitioning the world from an industrial society to an information society.
These are our six megatrends for the 21st Century:
- Impactful technology
- Accelerating individualisation
- Demographic change
- Rapid urbanisation
- Climate and resource security
- Economic power shift
Short-lived shocks like a pandemic or regional conflicts, while dramatic in nature, are not megatrends. Things like the metaverse, the gender pay gap, or even smart cities are not megatrends – although they may be part of a wider megatrend.
Nor are megatrends aspirational targets, like the UN’s Sustainable Development Goals. However, understanding the six megatrends is necessary to achieve the SDGs.
Megatrends are the fundamental forces shaping our world.
Understanding them can also inform long term strategic thinking, helping us to make better decisions for the future, today.
As individuals, megatrends can also help us to make better personal choices about where to live, how to invest, or even what career to pursue.
The six megatrends of the 21st Century are already underway.
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Megatrends watch
Archive
Making room for the rivers
When deciding if they should live with or fight the floods, Australia and many other countries can learn from the Netherlands.
The rise of the value destroyers – activist short sellers
Do activist short sellers actively destroy the value of firm investments, in addition to their role in ‘correcting mispricing / overvaluation’?
Running out of water on the blue planet
How do governments close the water management gap and improve universal access to water?
India’s population overtakes China
Two traditional societies must both confront the need to reformulate social norms as their populations change.
What this year’s El Niño means for wheat and global food supply
The new El Niño is unlikely to significantly increase global food prices, but some parts of the world will feel the pain.
Black mirror lawyering
Recent developments in AI have alerted lawyers that the environment in which they compete is changing.
The emerging untruths of a global economy
The developing economic arrangements will not be a return to last century’s certainties.
Replacing news editors with AI is a worry for misinformation, bias and accountability
Unlike a human editor, AI cannot explain their decisions or reasoning in a meaningful way. This can be a problem in a field where accountability and transparency are important.