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KelPowe 07-11-117 Powerful Times Rising to
the Challenge of Our Uncertain World Eamonn Kelly Wharton
School Publishing, 2006, 342 pp., ISBN 9-780131-855205-4 |
Kelly is the CEO
of Global Business Network, a futures and scenario strategy consultancy. He weaves together seven "dynamic
tensions" that will reshape life on the planet in the coming
decades. In addition to describing
conflicting forces, he describes three potential scenarios. The book is dense with information, much of
it apparently gleaned from a broad assortment of very interesting looking
books. Powerful Times was written to help more people understand
the present and better anticipate the future, to make better sense of our
times. His analyses seem plausible and
the scenarios possible. However there
is little evidence that sufficient strength of will and character exists to
overcome the most difficult issues facing mankind. Ch 1.
History Unleashed "Much of
what we take for granted today, based on centuries of experience and history,
might be in the process of unraveling." (2) The Western sense of entitlement, that our
models should prevail in the world is in for a harsh reality check as
non-Western nations emerge as true powers.
(3) We live in a
connected and interdependent world.
"Our greatest challenges--terrorism, environmental problems,
infectious diseases--observe no borders.
"The concept and importance of the nation state will be
challenged. (3) New powers are
emerging who may refuse to play by our rules.
Some of the rules of the global economics will come under attack, for
example in the arena of intellectual property rights. (5) Science is now
confronting us with moral dilemmas that will require global dialogue and
systemic thinking. (6) Our mental maps
affect both our judgments and even what we see in our accelerating
world. Our maps act as filters that
help us make sense but also inhibit our ability to perceive and understand
what is happening. They are highly
resistant to change. And wherever our
maps are wrong, our judgments will be wrong.
(9) One aspect of our modern
maps is either/or thinking and increasingly we will need both/and
thinking. (10) Convictions
underlying the book: 1) The world has never been certain but it
has never been more uncertain. 2) Much of the uncertainty is visible but
there are also less apparent fundamental dynamics at work. 3) The changes are both complex and
contradictory. 4) We are at a threshold. 5) No one entity can solve our
problems. Every decision and action
taken everywhere will, in accumulation, shape our future. (13-14) The four
sections of the book are £
What's
Happening? £
What
If?: Challenges and Changes Ahead £
What's
Next?: Scenarios for the Next Decade £
So
What?" Acting in an Age of
Transformation We must look
beyond the "right way of thinking" and the easy certainties, from
"either/or" to "both/and" thinking, and see that the
world is moving toward both poles of dynamic tensions. (17-20) The seven
dynamics: Clarity and
Craziness; Secular and Sacred; Power and Vulnerability; Technology
Acceleration and Pushback; Intangible and Physical; Prosperity and Decline,
People and Planet Chap 2.
Clarity and Craziness We will be more
knowledgeable, and have more insight, about the world, institutions, and
global issues. We will also experience
growing fear and confusion fueled by the tools of connectivity. (21) Everything that
provides clarity creates craziness - profound misinterpretation and
misjudgment. Information overload
makes it difficult to discern the nuggets within the noise. (35) Massive information creates
"compelling evidence" for every possible interpretation and
perspective. Conspiracy theories
thrive. Devastating rumors persist.
(36-9) Especially in politics,
sophisticated techniques for shaping opinion abound. (39) Events are subject to interpretation or
subversion to support a particular view. (41)
Website scams proliferate. We
can expect a radical increase in "suspicion, misinformation,
disinformation, misinterpretation, conspiracy theories, and fraud." In addition, companies will have to pay
much greater attention to trust because anything they do may become open for
public scrutiny. (42) Trust has never
been more critical -- or more threatened.
(43) Chap 3.
Secular and Sacred Tension will grow
between the secular models of society, governance, business and economics of
modernity and the increasingly sacred worldviews of billions of people across
the plant. Fundamentalist movements
are gaining muscle on most continents. (45)
Science is driven
by quantification and measurement but not everything that counts can be
counted. (51) Materialism is growing
but not making people happier. (52) Religion is growing in American public
and civic life. (53) Pentecostalism in
growing. Fundamentalism is growing in
all three monotheistic religions as well as Hinduism, Buddhism, and the Sikh
religion. (55) Fundamentalism is a fear response to a sense of threat against
the survival of a religious belief system, for example in response to
modernity and a coercive secularism. (56)
It is very easy to imagine Islamic fundamentalism, one of the most
significant challenges, getting worse before it gets better. (57) Neo-spirituality, embracing inclusiveness,
holism, and tolerance are growing.
(62) The sacred-secular tension
seems set to be am important source of political and social strife in the
coming decade. (64) Chap 4.
Power and Vulnerability The U.S. will
have to balance its military supremacy (hard power) with diplomacy (soft
power). The world will be increasingly
vulnerable to terrorism, organized crime, diseases, and other global threats.
(65) After the cold
war, market economics seemed to be the winner, but there is increasing
reliance on military power to shape the future. It is the "American empire" in
all but name. The challenge to deploy
strength wisely without sowing seeds of its own defeat is today's great
question. (67) Future wars will
feature unconventional weapons used by networks against targets and ideologies. How well can the military adapt and how
useful will conventional military dominance become? (71) Can the U.S. maintain domestic support for
military intervention in zones of chaos?
Will other nations support it?
Will diplomacy be effective as Europe believes? Will more muscle be needed as the U.S.
believes? Will they be able to work
together? (72-4) U.S. power is
also a source of vulnerability.
Powerful systems have weak spots and little figures with powerful
technologies can exploit them. We also
feel more vulnerable because of our perception of risk and because we spend
much effort on past problems and not enough imagination on future
possibilities. (76-79) Lawlessness --
illegal drug trade, arms trafficking, intellectual piracy, money laundering,
human traffic -- is increasing in scale and complexity. (79-80) New diseases continue to arise and they can
spread rapidly. Likewise computer
viruses are likely to continue to proliferate and cause more damage, becoming
a tool for crime. (81-83) Chap 5.
Technology Acceleration and Pushback We can expect
advances in computing, biotechnology and nanotechnology and the synergism
among them. Progress will be challenged
by those who fear ultimate and perhaps unintended consequences. (85) Biotechnology is
poised to transform medical science and our future, but not without
significant ethical dilemmas.
Biomimicry, technology that apes biology, holds great promise. Human enhancement is coming rapidly. Research is well underway in the
military. And there is enormous demand
for everything from sports to cosmetics.
Resistance will continue to grow from anxieties about our safety and
humanity, about unknown risks, the possibility of technologies falling into
irresponsible hands, and whole new categories of accidents and abuses. With knowledge so broadly and rapidly
available, we can imagine genetic backyard experiments! Global regulation of these issues will be
more problematic. Chap 6.
Intangible and Physical Economies Services,
experiences, and relationships are becoming more valuable. At the same time, the physical
infrastructure in many parts of the world is increasingly stressed and must
be rebuilt. We must avoid catastrophic
consequences associated with infrastructure failures, most importantly,
water. (105) Value is
increasingly found in services, knowledge, and experience, and rather than
durable goods. Tourism is the world's
largest employer. Increasingly, every
piece of work observed by a customer is an act of theatre. Information "feeds and speeds
competitive pressures, forces up the pace of innovation cycles, forces down
the half-life of many goods and services, and leads to rapid commoditization
of even the most intelligent products."
Businesses must continually become more nimble. (119)
Infrastructure
poses serious problems in regard to basic physical systems such as roads, air
traffic, and power grids. Maintenance
of aging structures is an ongoing challenge.
In many parts of the world the infrastructure must be built almost
from scratch. Beijing hosts 1.3
million migrant construction workers. China
faces an energy shortfall. Water is
the biggest challenge. Chap 7.
Prosperity and Decline Millions will
have opportunity for new prosperity but absolute decline may be expected in
areas of the world blighted by conflict, corruption, disease, and environmental
catastrophe. Many in developing
countries will be much more aware of their relative poverty. (131) Five hundred
years ago wealth was much more evenly distributed. The wealth gap between rich
and poor countries was 72:1 by 1973.
Nevertheless, many of the poorer parts of the world have been
progressing, some quite rapidly. Those
that integrate into the global economy more slowly fare worse. The most significant growth rates include
China and India. We can expect the
large low-income countries (like Brazil) to have as much economic clout as
the U.S., Japan, and Europe in a few decades.
China may become the world's largest economy by 2040. A number of
countries may invent their own rules.
Brazil broke the patents on HIV/AIDS drugs and made their own cheaper
versions, cutting the AIDS death rate half.
China may choose to ignore international models and develop its own
rules. With China's increasing economy, some of their standards could become
global. There are 4 billion people at
the bottom of the pyramid and businesses may become sensitive to their market
for lost cost goods A quarter of the
world's people live on less than a dollar a day. Decline in these areas is often due to poverty,
disease, drought, famine, ethnic rivalry, ongoing conflict, and poor
governance. The AIDS crisis now
exceeds the worst-case scenarios of a decade ago. Systemic effects will last for
generations. Half of all developing
countries score less than 3 out of a 'clean' score of 10 on the corruption
scale. Countries like Nigeria,
Bangladesh, and Haiti are among the worst.
Human misery and chronic economic underperformance will continue. Traditionally
powerful European economies may weaken due to demographic shifts and
immigration. German may have on worker
for every pensioner by 2020. Painful declines in the U.S. economy are
likely. Areas of extreme poverty can't
be ignored. Global poverty is more and
more in line with self-interest. Chap 8.
People and Planet "The planet
does not belong to us but we belong to it, and it will survive and change no
matter what we do, while the opposite may not be true." (153) The planet is under considerable stress
because of our numbers and economic growth.
The rate of population growth will slow down and perhaps even
reverse. The birth rate is falling
globally. Four trends will
drive change: 1) the growing imbalance between the number
and age of people in the developing and developed world 2) a shift in the direction (from south to
north) and growth of human migration 3) the worldwide migration to urban areas 4) the possibility of the planet reaching a
tipping point. (156) Falling birth
rates and extended lives are increasing the elderly in developed countries. 99% of all population growth in the next 40
years will be in developing nations, predominantly in the poorest
nations. Energy consumption is now
accelerating in the developing world.
Massive resource usage and environmental damage will accompany rapid
development. The need to conserve
resources and maintain the environment grows more difficult and puts more
pressure on governments and corporations to change energy sources and
patterns. Nuclear power is again
becoming more attractive. Some
scientists think that "climate change is the most severe problem that we
are facing today, more serious even than the threat of terrorism."
(173) "But while
climate change is largely the result of human handiwork, it is not entirely
so. The planet is also an actor in
this play, reading its own script. Big
temperature swings are not new to the planet.
In fact, scientists are now learning that they happen more frequently
(and suddenly) than previously suspected." (174) "Looking forward, it is very likely
that parts of the Earth will undergo periods of very abrupt climate
change." (175) Section 2.
What If?: Changing for the
Challenges Ahead "All the
dynamic tensions will combine in myriad ways to generate increasing
geopolitical tensions, security challenges, and new risks." (183) In
particular we will see significant new developments in the realm of governance
and the realm of innovation. Two
chapters deal with these issues. Chap 9.
Governance "The
current world order cannot take us through these powerful times and will
undoubtedly evolve considerably in the decade ahead." Global governance is gaining increased
attention -- not a centralized world government, but changing organization of
life on the planet. (191) We are too dependent on the nation-state concept. And global issues do not conform to
national boundaries. They cannot be
solved by national governments which are primarily focused on protecting the
power of the nation-state. Possible future
models may include "empowered networks that include nongovernmental
actors; the use of electronic forums to reach out to many thousands of people
globally; the gradual evolution, by stakeholders, of new, shared standards;
and the use of connective and transparent technologies to encourage changes
in the behavior of important contributors to complex problems."
(198) Perhaps an apparently disorganized phenomenon will
emerge---a connected, active, global citizenry that will increasingly enforce
its will. (199) "The decline of
interest in national politics is paralleled by the rise of involvement in
movements that seek to mobilize opinion on a worldwide basis on issues that
nation-states have regarded as marginal to their own agendas." You might call it a worldwide civic
movement. (199) Chap 10.
Innovation Watch for
innovation "addressing the unmet needs of the 4 billion people still
ill-served by the global economy, creating more sustainable solutions, and
improving approaches and technologies for education and learning." (201) Innovations from
the developing world might soon enough not simply undercut Western technology
but transcend it, creating new benchmarks for the entire world."
(206) Section 3.
What's Next?: Scenarios for the Next Decade "The status
quo cannot deal adequately with these powerful times: we must not only
prepare for, but hope for, an imminent era of transformation in global
affairs." (220) There are two
critical uncertainties. 1) "Will the most effective sources of
leadership, innovation, and change be primarily centralized and 'top down' or
decentralized and 'bottom up?'"
First century Christianity was 'bottom up.' The Church of Rome is 'top down.' If the center holds, "Will the United States exert more or less
influence globally?" Chap 11.
Three Snapshots of the Future The author
describes three possible scenarios: £
Emergence
-- if the new leadership is bottom up, £
The
New American Century -- if the center holds and the U.S. grows in world
influence £
Patchwork
Powers --if the center holds but the U.S. declines in influence In The New
American Century, the U.S. employs diplomacy, might, and market-driven
incentives to transform the global order.
The downside is that issues that can't be resolved by military or
markets may be ignored and these include major issues such as equity, health,
water access, and environmental sustainability. Patchwork Powers
is a future in which "geopolitical and economic power and influence are
distributed and shared between many different international bodies,
geographical regions, and nation-states, where influence is projected through
a complex and sometimes confusing patchwork of alliances and treaties. It is a spaghetti-like world…."
(234) China, Europe, and the U.S. may
collaborate, compete, and align in different domains. The world may be increasingly vulnerable to
terrorism and crime, and problems associated with "failing
states." Emergence
represents a future wherein change and coherence (of a sort) come from the
bottom up. Influence moves toward
highly interconnected and nimble networks of focused, smaller-scale
players. "Entrepreneurs, small
businesses, and 'open-source' production networks prove more flexible--and
often more effective--than larger, conventional structured
corporations." The world is
increasingly being reshaped by People and Passion. (239) Lawlessness may reach unprecedented
levels. Terrorist attack, synthetic
viruses, and more failing states create greater danger. (A summary of these three scenarios is
given in a chart on p. 244.) Section 4.
So What?: Acting in an Era of Transformation Chap 12.
Creating Our Future We will have to
learn to adapt to radically different realities. Increased business scrutiny is inevitable
and it will put greater pressure on corporations to demonstrate
responsibility for social and moral concerns.
This may lead more of them to doing the 'right thing.' Global businesses will also need to forge
stronger links to local communities.
Businesses may recognize the real value of their personnel and provide
a little slack to provide social interaction, increase commitment, and
generate new ideas. The focus on
growth may be supplemented by a focus on long term survival. "The development of new, effective,
and creative approaches to attracting and instructing our people must move up
the business agenda from 'nice to have' to 'critical success factor.' Corporations will also acknowledge a
growing human hunger for meaning and fulfillment in their work. "We must
expand our sense of 'we' in our new global civilization. Of all the changes that we are experiencing
during this turbulent era, one of the most significant is certainly the
interconnectedness and interdependence of every part of the world."
(262) Two important
shifts must occur. We must believe the
scale of the issues confronting us before it is too late. We must match our new global reality with a
new global empathy. (263-64) The text is
followed by 30 pages of end notes, 35 pages of worksheets to reflect on how
the book relates to your organization, and an index. |
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