2024: Unprecedented Global Elections and Their Implications for Democracy, Economy and Corporate Compliance

As the world braces for the geopolitical vicissitudes of 2024, the global election calendar emerges as a key axis around which much of the year's instability will revolve. With more than 2 billion people represented and ready to vote in more than 70 countries, the stage is set for a year that could significantly reshape the international landscape. From the corridors of power in Washington to the bustling streets of India, the results of these elections have the potential to not only redefine domestic policies but also reshape the dynamics of global markets.

The global electoral landscape of 2024

2024 is a monumental time in the history of global democracy, with an unprecedented number of countries – more than 70 – scheduled to hold elections. This vast electoral exercise spanned continents, covering countries as diverse as Britain, Bangladesh, India and Indonesia, thereby covering a significant portion of the world's population. However, this democratic scene is overshadowed by concerns that these elections do not represent a strengthening of many democratic ideals. Instead, there are fears that they could further entrench liberal rulers, reward the corrupt and exacerbate political polarization. The US presidential election, arguably the most consequential of these, is predicted to be particularly divisive, casting a long shadow over international relations and the global order. Amid ongoing conflicts and geopolitical tensions, the results of these elections are poised to have a profound influence on the economic and political trajectory of the world.

Economic Implications of 2024 Elections

The 2024 elections will have profound economic implications, with the potential to significantly alter the global economic landscape. Goldman Sachs Asset Management highlighted that elections in major economies such as the US, UK, South Africa, India, Taiwan and Russia could diverge the global economy from its current path. This divergence is expected to drive higher spreads across asset classes and sectors, reflecting the uncertainty and varying outcomes these elections can create. A world already struggling after pandemics, wars and economic shocks faces another layer of complexity as these election results lead to shifts in the balance of power, major policy changes and increased geopolitical friction. Such developments could exacerbate trade conflicts and political fragmentation, further destabilize an already precarious global economic order, and challenge financiers and investors to navigate an uncertain landscape.

Regulatory changes and organizational compliance

The landscape of regulatory changes is rapidly evolving, with significant implications for corporate compliance. In the United States and the European Union, regulatory activity is intensifying, particularly in response to advances in artificial intelligence (AI), data access, privacy and competition. The EU's AI law, billed as the world's first comprehensive AI law, aims to regulate AI development and use based on risk levels. This, along with the Digital Markets Act (DMA) and Digital Services Act (DSA), will be fully implemented in 2024, underscoring the growing regulatory scrutiny that will profoundly affect the internet market, especially for large companies. In the US, an executive order focusing on the safe development of AI technologies presents both risks and opportunities for companies. As these regulatory changes necessitate increased investments in cybersecurity, data privacy and compliance technologies, corporate treasury and compliance teams are urged to adapt quickly to mitigate potential risks and protect the reputation of their organizations.

Strategies for navigating the uncertainties of 2024

Faced with the geopolitical and economic uncertainties of 2024, treasurers and corporate leaders must adopt robust strategies to navigate the turbulent landscape. With this being the biggest election year in history, with important elections in the EU, Ukraine, India, Mexico, South Africa, UK, US, Russia and Taiwan, it is crucial to prepare for a wide range of possibilities. This necessitates a vigilant approach to regulatory changes, particularly in relation to artificial intelligence (AI), data privacy and competition laws. Organizations should prioritize investments in cyber security, data analytics, process automation and AI to improve their compliance architectures. Additionally, risk assessments, monitoring, testing, third-party risk management and governance procedures will be critical to maintaining operational integrity. By focusing on these strategies, corporations can turn climate risk and compliance challenges into competitive advantages, ensuring resilience in an increasingly unpredictable global environment.

Conclusion

As 2024 unfolds, the global community stands at a crossroads facing unprecedented electoral, economic and regulatory challenges. Navigating this complex landscape requires foresight, adaptability and strategic planning. By staying informed and proactive, treasurers and corporate leaders can lead their organizations through these turbulent times with resilience and vision.