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Democratic politics are in a state of shock. At the same time, many of the world’s more illiberal regimes are on high alert. Political leaders believed they had helped their economies weather the great recession and that their citizens had accepted the need to swallow the bitter pill of austerity, with the promise of better times to come. But in many countries, people have simply had enough, and their demands are beginning to reshape both the political and the economic landscape. A new political logic is in motion, and companies need to think hard about the volatility, surprises, and structural shifts that may confront them.

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