The Effects of Leadership in a Crisis

Introduction The current financial and economic crisis leaves deep traces within communities. It is not just a wave of economic downturn, as in previous economic crises. There is more to it; this crisis is accompanied by a loss of confidence in our financial systems and institutions. The financial base of U.S. and Western banks and pension funds is shaky. The United States and the countries of the European Union have huge state debts. Trust in government and public finances has decreased. Politicians are preoccupied with the question of how trust in government can be restored. Trust in custody bearers and custodians authority is under pressure and the confidence of people are mutually tested (Mitroff, 2004). There is political instability in Arab and African countries. Emerging economies in Asia and South America contribute to further insecurity and instability. The global competition between countries is increasing and is associated with an increasing demand for raw materials and energy. The demand for raw materials will create tensions on the commodities market and a struggle for energy resources. The current political and economic conditions of countries require new leadership models to manage the global crisis.

This crisis in the economy, the political authority and global relations has long been performed and will persist. There seems to be a permanent crisis with serious and unprecedented tensions and challenges. This contribution is organized as follows. First, describes why traditional forms of leadership do not meet in a crisis. Next, a model outlined for adaptive leadership that suits situations of instability and uncertainty (Mitroff, 2004). Then, some model concepts introduced suitable to the variety found in the contributions to organize. Thereafter,