Globalisation now comprehends the movement not just of physical goods, but also services, finance, people, information and ideas. As a result the world is becoming ever more interlinked putting pressure on global, national and local governance systems designed in a previous era by those with power and influence at the time. At one and the same time, we are seeing the move to larger, and even global, groups covered by the same regulations as well as to the creation of smaller entities with niche interests.

In the sections below, we list some of the key statistics and developments for the two years prior to December 2007. To see how this fits into our global outlook, we refer you to our World overview. For more recent information, we suggest you refer to the MBendi Blog: Signposts to 2020.

A report endorsed by NGOs at the Singapore IMF meeting suggests that the IMF could experience cash flow problems as debtor nations repay early and developing states cease to borrow.

The Independent Evaluation Group of the World Bank listed 26 countries, including Angola and Nigeria, as being at risk of collapse.

According to Ipsos, in the 2007 French presidential elections, 18 to 59 year olds who work and pay taxes voted overwhelmingly for Segolene Royal, while the over 60s overwhelmingly voted for Nicholas Sarkozy.

In December 2007, the EU announced support for the coming independence of Kosovo. Also in December 2007, Pakistan opposition party leader Benazir Bhutto was assassinated and Kenya erupted in violence following a disputed presidential election.

A new method of analysing the world suggest overlaying maps showing countries which have lost the monopoly of force needed to sustain order and the rule of law; places where disease and poverty are endemic; centres of extremism, insurgency and political violence; countries with young and mobile populations; places with rich concentrations of natural resources. The result will illustrate the dramatic shift in the geopolitical centre of gravity.

Colombia's vice president warned that violent crime is the greatest threat to democracy in South America.

Between 2000 and 2003, OECD tax ratios fell from 36.6% to 35.8% of GDP, before rising slightly in 2004. Personal income tax fell from 30% of total tax to 25%. Corporate tax rose marginally to 10%. Social welfare contributions account for 26%. The contribution from VAT increased.

Russian environmental regulators attempted to halt the Sakhalin-2 project alleging abuses of environmental law.

The UK high court ruled that agents and distributors in the EU own the databases of customer information collected on behalf of a principal in the absence of an agreement to the contrary.

Directors of non-US Internet gambling companies were arrested in the USA on charges of violating US law.

DRC state mining company Gecamines, claiming First Quantum and Kumba have no rights to the Kipushi Mine, advertised for companies to partner them in developing the deposit.

In April 2007, Danone became involved in licensing rights disagreements with partners in China (partner marketing competing products) and India (Danone using partner brandname in other markets). In May 2007, the EU expressed concern that the Tour de France banned a team sponsored by Maltese gaming company Unibet citing French gambling laws, yet the main sponsor of the tour is PMU, the French horseracing monopoly.

The UK Treasury has ring-fenced the London Stock Exchange from Sarbanes-Oxley type legislation in other countries.

In October 2006, US inspectors raided the London offices of Ernst and Young as part of a requirement under the Sarbanes-Oxley Act.

Also in October 2006, the head of the NYSE blamed Sarbanes-Oxley Section 104 compliance and audit rules; tort reform; regulatory overlap between US regulators; and lack of convergence between US and European accounting standards for loss of business to LSE and other exchanges.

In November 2006, the Big Six accounting firms called for real time reporting.

In May 2007, the leaders of the USA, Germany and the European Commission agreed companies can use either GAAP or IFRS without having to reconcile the two.

Governance Metrics International found South African companies had better governance records on average than those in Germany, Singapore, Spain or Sweden.

Transparency International research in 2006 shows African citizens believe their governments are less corrupt than North American or European governments believe their governments to be.

An April 2007 Deloitte's report shows 30% of US companies do not always do background checks on overseas investments and 70% of those that do, do not check for bribery.

In 2005, US military communications company paid record US$ 28.5 fine for paying bribes in Benin. In October 2006, Norway's Statoil admitted paying bribes to an Iranian official in exchange for lucrative oil and gas rights. In October 2006, Global Witness slated Mittal for the one sided iron ore contract negotiated with interim Liberian government.

In December 2006, the British government squashed the BAE bribery probe involving a Saudi arms deal. The OECD expressed serious concerns about the UK plan to drop Saudi bribery enquiry. In June 2007, the US Department of Justice launched a corruption probe into a BAE Systems contract to supply weaponry to Saudi Arabia.

In December 2006, Nokia delayed a deal with Siemens in the light of a bribery scandal and German prosecutors raided the offices of Linde to investigate allegations of bribery involving Iraq under Saddam Hussain. In 2007, Vetco International, the UK oil and natural gas services company, was fined US$ 26 million for paying US$ 2.1 million in bribes in Nigeria.

At the end of 2006, it was estimated VAT fraud costs Germany Euro 17 billion per annum. In June 2007, Luxembourg vetoed attempts to reform Internet VAT in the EU. In February 2007, WIPO estimated that counterfeiting and piracy cost the global economy more than US$ 100 billion per year. In May 2007, the OECD estimated that international trade losses due to product counterfeiting and piracy were up to US$ 200 billion, rather than the US$ 600 billion estimated by business.

Footnote: If you are aware of any highlights we have missed, please contact us with details.