Saturday, June 26, 2010

World Order 2.0

A year ago the emergence of a New World Order was a relatively simple outcome of the political process- both to understand and predict. The prognosis primarily involved the rise of Asia in economic terms followed by a relatively orderly transference of political and financial power from the West to the East, resulting in the emergence of a more multi-polar globalised world over the next 30 years.

The signals for such a shift were clear then and still are- up to a point.

Following a rapid period of industrial development, as occurred in Europe after its industrial revolution, Asian nations are now playing social and technological catch up.

The speed of Asia's advance has been breathtaking, Before the West's industrial revolution, Asia accounted for almost 60% of the world's economy. By WW2 this had slipped to 20%. It is now projected to rise back to 60% by 2020. Asia is in the middle of a long-term growth phase, even accounting for the current financial meltdown, that extends back to the Meiji Restoration period in Japan in the 19th century and the end of Imperial rule in China at the beginning of the 20th century. By 2040 it is predicted that China will be the world’s leading economy, followed by the US and India.

In India and China the middle class now accounts for over ten percent of the population. It is also upwardly mobile in terms of its consumer and knowledge culture. Combined with improved access to education, science and technology, this means the push for political pluralism is now inevitable. It is also inevitable that a regional Asian grouping- East Asia will emerge over the next 5 years, extending the present ASEAN forum to include over 2 billion people in a model similar to that of the EU.

This transition to equalization of opportunity in the east was always a given. Then along came the greatest financial catastrophe of the modern era, even including the Great Depression.

The US is US$10.6 trillion in debt and counting and the main lender is Asia. China has a US$2 trillion surplus in currency reserves. In another decade, economic power will have passed to Asia and a newly invigorated Europe, with the US no longer in the drivers seat of the world’s capital markets. Its banking structure is already emasculated and unlikely to ever recover its former glory.

China is now banker to the world.

But creating a new multi-polar and globalised world order has only just begun. It is about much more than Asia’s rise to power. The current economic and political architecture is totally bankrupt and will have to be rewritten in a radical new language- a hybrid of socialism and capitalism with various other ethical and green sustainable strands woven in. And this new architecture will need to have the flexibility to continue to evolve and adapt as the cultural, social and technological landscape around it changes at breathtaking speed.

Tinkering around the edges with an infusion of Government backed liquidity and greater regulation isn’t going to cut it this time around After all what we are witnessing is at least a 50% write down of the world’s wealth, which among other downsides is going to force a return to poverty for tens of millions in the developing nations.

The US has been living with serious structural deterioration for more than a decade- negligible levels of private savings, chronic balance of payment s deficits and domestic budget shortfalls. Foreign savers have funded these gaps. Half the US treasury bills on issue are now foreign owned, while sovereign wealth funds are diversifying out of US debt and taking influential positions in some of America’s iconic companies. While China’s growth rate has retreated below 7 percent, the West’s growth rate is negative.

And still at Davos no-one- not world leaders, bankers, economists or investors have a real solution to this cataclysmic disaster, let alone a real willingness to take responsibility for it. It’s as if after a few years and an infusion of a few tens of trillions of dollars the bad news will go away and life will return to ‘normal’ - business as usual again.

When you’ve got the current level of uncertainty in the collective economic and political mind- basically flying blind- you know there is zero probability that this will happen.

But this is just the beginning of a great unwinding of current civilization. The sudden shock to the world’s traditional order will create many unforeseen ramifications- some chaotic and violent. We already see social unrest in China, Russia, Iran, the Middle East and Africa despite weathering the immediate crisis. Combined with worldwide food, water and energy shortages in a time of global climate change, this shock has the potential to put immense pressure on social norms.

We’ve arrived suddenly and unexpectedly at the beginning of the 21st century at a great impasse, a great disjunction in human affairs.

But there is also a great opportunity to fast track reform of a flawed system from the ground up. This crisis can be turned to huge advantage for all humanity, providing the solutions are applied with great creativity, courage and cooperation.

It’s not a time for more of the same- for more great leaders and hubris. Instead it requires the harnessing of collective wisdom, knowledge and responsibility - extending beyond the false pride and patriotism of the national political process, tangled in its debilitating web of self-interest and corruption.

We can already see the tentative beginnings of this New World Order- Mark 2-

Pressure to reform unrepresentative voting structures of the UN; moves to establish a more inclusive grouping of middle power decision-making nations- from the G8 to G20; initiatives to reform the IMF and World Bank; the rise of the NGO community as an ethical counterweight to political decision-making; the continued rise of democracy; greater national cooperation supporting global conventions on human rights, conflict mediation, global warming, the sea, trade, health, science, legal and financial protocols etc; and the rise of the Web with its promise of providing equal access for the developing world to the sum of human knowledge.

But time is short. The luxury of leisurely progress toward achieving these critical goals is past. All options must now be on the table and open to radical reform- ideological, economic and social.

After all, nothing less than the future of human civilisation and the well being of the planet’s seven billion inhabitants is at stake

Future Society

David Hunter Tow, Director of The Future Planet Research Centre,  predicts the emergence of a superorganism architecture for human society within the next thirty years.
Recent research by a team of scientists from the University of Florida, has shown that insect colonies follow the same evolutionary “rules” as individuals; a finding that suggests insect societies operate like a single “superorganism” in terms of their physiology and life.

The researchers believe that the rules that guide social insect species and group behaviour may also have applicability to other species, including humans and human society.

A process of evolutionary convergence is a major driver governing this process.

Evolutionary convergence occurs when many critical feedback loops allow key knowledge-based processes such as computation and communication, to be optimised or reach convergence very quickly - eventually almost instantaneously from local to global and back to local again. At the same time new knowledge is generated, which continuously triggers change, feedback and problem solving on a continuously accelerated cycle. This has the capacity to create social complexity on a grand scale.

On the business and scientific front, global collaboration is now the norm, encompassing international networks of researchers, project alliances and commercial consortiums and involving diverse countries and cultures. Pluralist political, economic, trade, educational, cultural and environmental systems are also developing on a global basis including institutions such as the UN, WHO, UNESCO, EU, APEC, WTO, NATO, G20 etc. With increasing coverage and frequency of communication mediated by the Web, explosive growth in such social systems is already occurring.

This enmeshment process is now leading to a new phase in life's development, the realisation of a global human entity or intelligence. In other words, the same type of social Superorganism as emerges for insect species. According to Tow, such a global entity will eventually encompass all forms of human existence- biological, artificial and virtual.

Virtual communities will manifest in the form of groups of intelligent software agents- programs which cooperate to perform specific tasks and achieve goals. These are already being deployed within the cyberspace of the Web to solve communication and knowledge-based problems. Their current service capability includes locating, categorising, assessing, computing and negotiating information. More importantly however, they now have the capacity to learn, adapt, mutate and replicate- that is, to evolve in a primitive way.

Intelligent agents are only one example of the prototypes of virtual societies, with the eventual potential to evolve to a level of complexity similar to and symbiotic with our own. Eventually all such communities will merge with biological life throughout the universe. The evolution of society and civilisation, from the emergence of homo sapiens 200,000 years ago, to the sophisticated global society that we experience today will continue to be guided by this accelerating process, leading inevitably to the emergence of a global superorganism structure and intelligence.

The overriding outcome of evolutionary convergence ensures the continuing realisation of individual and social potential through the accumulation of knowledge and complexity. Enhancing the potential at the individual level expands the potential of the group, which in turn enhances the potential of society at large. Benefits at the societal and group level in turn feed back to each individual, so that knowledge gained at all levels is constantly recycled through a diffusion process. And so the cycle repeats endlessly, allowing life to continuously leverage its opportunities and extend its horizons.

This leads to an accelerating convergent process, where each increment of information gained catalyses the generation of all other elements, producing new knowledge at an accelerating rate. Concurrent with this process is the generation of meta-knowledge; a set of guiding principles which are continuously extracted from the base lode of information; designed to ensure that all knowledge contributes to the survival and the realisation of benefits for society at large.

These principles may be termed ethical codes, morality, human rights or principles of social justice. They include the set of modern democratic principles that encode the rights and responsibilities of the individual in relation to the group, such as equality under the law and freedom of speech. These become the rules that set the social and behavioural boundaries of human evolution, formulated through trial and error over eons.

The forces governing such historical outcomes according to this thesis are manifestations of the flow, exchange and refinement of information within a social context. Only at the local level is history therefore contingent. At the global level it is convergent, with the deep undercurrents of evolution guiding its progress.