We have all been witness to the tremendous contributions that business and markets have made in creating wealth over the last few decades, raising the standard of living for millions. This can be seen in the development of medicines, enhanced food production techniques, broad proliferation of communication technologies, and a host of other life-affirming advances. Yet, in the face of these accomplishments and a dramatic economic downturn, we are also keenly aware of inequities and promises that remain unmet.

In the wake of the financial crisis we are now confronted with evidence that confidence in business and markets has been profoundly shaken. This is seen in the tremendous destruction of wealth, a surge in government and regulatory activities, and heightened social and environmental challenges that are now in stark relief from Columbus to Copenhagen. Add to these developments those trends have been gaining momentum well before crisis—a growing talent shortage, the rise of Asia, climate change, demographic shifts, and others that I and my colleagues at the McKinsey Global Institute have been studying and you have the makings of a perfect storm.

This storm is the coming together of many events, and portends...