By Tom Turula (businessinsider.com)
Laszlo Szombatfalvy, one of Sweden’s most successful investors of all time, is urging on the younger generation to rethink global governance.
Now he has issued a large award for the best idea to replace the current global governance system, through a competition called ‘A New Shape’. This was reported by Jill Bederoff, who interviewed Szombatfalvy for Veckans Affärer.
Laszlo Szombatfalvy is something like the Warren Buffett of Sweden.
Like Buffett, he started life in very humble circumstances. He arrived to Sweden from Hungary in 1956 when his native country faced Soviet oppression.
The 88-year old finance sage has one of the world’s best investing track records. Over 45 years, he has achieved an average annual return of 30 per cent.
His philanthropy aims to solve global problems.
Szombatfalvy is donating more than half a billion Swedish krona ($50m USD) through his fund, Global Challenges Foundation.
He believes radical measures are required to tackle inequality, and that the world’s rich need to take more responsibility.
Szombatfalvy believes the global governance system is failing:
”The biggest threats to humanity stem from the global community’s inability to deal with them effectively” he told Veckans Affärer.
“[The Politicians] cannot agree on the necessary measures [for climate change]. Even less are they able to agree on how to divide the costs between countries; or the responsibilities for future generations. Now only short-term national interests dominate” he continued.
His fund’s Global Challenges Prize is awarding $5m USD “in prizes for the best ideas that re-envision global governance for the 21st century”.
The Foundation’s website explains further:
“Entrants should focus on designing a decision-making structure or framework that could galvanize effective international action to tackle these risks. The proposed model may encompass an entirely new global framework or a proposed reform for existing systems.”
The competition, called ‘A New Shape’, is open to any individual or organization, and at least $1 million will be awarded to the winner. The fund is accepting proposals until May 2017.
Here are Szombatfalvy’s 4 advice for young people:
- Be conscious of the fact that you are not only your own country’s citizen; you are a global citizen.
- Realize that your children’s and grandchildren’s living conditions to a growing extent will depend on other countries’ citizens, even more than on their compatriots.
- Understand, that without a global governance system that cantackle global risks, the likelihood of major catastrophes will become incomparably higher.
- Demand action from your elected politicans! Vote out the incompetent people – you cannot afford them!
In November 2016, the Global Challenges Foundation launches a new prize competition, a quest to find models of global cooperation capable of handling the most pressing threats to humanity. The New Shape Prize will offer US$5 million for the best ideas for a global governance frameworks to better manage the threats posed by four interlinked ‘mega-risks’: climate change, environmental damage, conflict (including nuclear and other weapons of mass destruction) and extreme poverty.