INTRODUCTION Contributed by: James Palmer, Gareth Sykes and Isobel Hoyle, Herbert Smith Freehills Kramer
Herbert Smith Freehills Kramer Exchange House Primrose Street London EC2A 2EG United Kingdom
Tel: +44 207 374 8000 Fax: +44 207 374 0888 Email: gareth.sykes@hsfkramer.com Web: www.hsfkramer.com
Governance in 2025 – Time for a Radical Rethink? As we set out in our introduction to this Guide last year, 2024 was the year of the election. Accord - ing to Time Magazine, almost two billion people headed to the polls in 2024, with elections held in over 60 countries (and the EU). By the end of 2024, many incumbent governments had been replaced and many of those which remained in power did so with significantly reduced majori - ties. The political upheaval of 2024 was there - fore a continuation of the volatility we have seen so far this decade arising from the COVID-19 global pandemic, multiple conflicts and global energy crisis. Now that the dust has settled after the elections and the new administrations have taken up office, it seems an appropriate time to consider whether this volatility, and its impact in the world of governance, will continue into 2025. It is obviously still early days but there are signs that a number of administrations are, at vary- ing speeds and to varying degrees, taking the opportunity to shake up the system. Some are engaged in discussions about how to reshape radically the regulatory landscape in a bid to drive growth, increase productivity and harness the possibilities offered by emerging technology. To respond to this, companies need good lead -
ership and robust governance structures and procedures. Reducing Regulation to Boost Growth The COVID-19 pandemic and the measures introduced to try and contain its transmission, had a profound impact on the global economy. Entire industries were shut down or had to adopt new practices, resulting in significant sectors of the global workforce that were unable to per - form their jobs in the usual way, or even at all. Supply chains were thrown into chaos as trans - port routes were disrupted and consumer habits changed overnight. And governments deployed huge sums of money in efforts to protect their cit - izens’ economic livelihoods and health (through containment and immunisation initiatives). In the aftermath of the pandemic, governments are now facing the dual challenge of regener - ating their economies, and servicing the debt accumulated in their COVID-19 response. In a bid to boost growth, governments are explor - ing how regulation, in governance and other aspects, may be adding to the cost of running businesses and stifling innovation. In the UK for example, the new Labour government is working with regulators to identify areas where regulation can support its growth mission, both through
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