Dec 22, 2012

Futures studies work best when they're vague and build upon current trends to their logical (and often extreme) conclusion. Along the way, they usually play into their intended audience's hopes and fears: economic collapse, infinite growth for the middle class, Malthusian predictions of food crashes, and a belief in the fundamental know-ability of what is to come.

At the same time, any specific prediction in these texts will almost invariably be wrong. And that limits how useful they can ever be beyond a limited scope of activity. It is rare to see government officials or even corporate executives making long-term plans based on a vision of the future laid out in these studies. You just won't hear someone saying, "We should do this because of GT2030."

That doesn't mean this sort of study is useless. The GT2030 report is important for how it's changing the process and trying to encourage adaptive thinking about the future. It helps leaders understand not just the current trends (which can change on a moment's notice, in the way the 2008 recession undid all the previous predictions of forever-growth), but also how to be flexible enough to adapt to rapid change.

Leaders should look at reports like GT2030 and think about how they can evolve current institutions to be more adaptable and flexible in the future. It seems odd to think that the decentralized world GT2030 describes is going to be met with institutions that were designed in the 1940s.

In 1997, the U.S. intelligence outfit charged with long-term strategic thinking made some startling predictions: by 2010, North Korea would be transformed into a normal state and tensions on the peninsula would be eliminated; the western world would see unending 2-percent growth in personal income; and precision weapons would make conflicts smaller and less costly.

None of those things happened. North Korea remains mostly unchanged today -- except for its nuclear program, which perhaps poses more of a threat than ever. Not only did the 2008 financial crisis stall most economic growth in the Western world, but personal incomes have largelystagnated as well. Finally, while precision weapons did make the wars in Iraq and Afghanistan less costly in some respects, neither war could be considered small. Few would argue those were examples of a new, high-tech way of fighting.

Dec 19, 2012

According to the elite newspapers and journals of opinion, the future of foreign affairs mainly rests on ideas: the moral impetus for humanitarian intervention, the various theories governing exchange rates and debt rebalancing necessary to fix Europe, the rise of cosmopolitanism alongside the stubborn vibrancy of nationalism in East Asia and so on. In other words, the world of the future can be engineered and defined based on doctoral theses. And to a certain extent this may be true. As the 20th century showed us, ideologies -- whether communism, fascism or humanism -- matter and matter greatly. 

But there is another truth: The reality of large, impersonal forces like geography and the environment that also help to determine the future of human events. Africa has historically been poor largely because of few good natural harbors and few navigable rivers from the interior to the coast. Russia is paranoid because its land mass is exposed to invasion with few natural barriers. The Persian Gulf sheikhdoms are fabulously wealthy not because of ideas but because of large energy deposits underground. You get the point. Intellectuals concentrate on what they can change, but we are helpless to change much of what happens.

Dec 12, 2012

The National Intelligence Council has issued Global Trends 2030: Alternative Worlds, “intended to stimulate thinking about the rapid and vast geopolitical changes characterizing the world today and possible global trajectories during the next 15-20 years.”

The report sees four megatrends:

Individual empowerment will accelerate substantially during the next 15-20 years owing to poverty reduction and a huge growth of the global middle class, greater educational attainment, better health care, and widespread exploitation of new communications and manufacturing technologies.  Enabled by communications technologies, power will shift toward multifaceted and amorphous networks that will form to influence state and global actions.

Diffusion of power among countries will have a dramatic impact by 2030. Asia will have surpassed North America and Europe combined in terms of global power, based upon GDP, population size, military spending, and technological investment. China alone will probably have the largest economy, surpassing that of the United States a few years before 2030.

Demographic Patterns: in the world of 2030—a world in which a growing global population will have reached somewhere close to 8.3 billion people (up from 7.1 billion in 2012)—four key trends will be aging—a shrinking number of youthful societies and states; migration, which will increasingly be a cross-border issue; and growing urbanization, which will spur economic growth but could put new strains on food and water resources.

Growing Food, Water, and Energy Nexus: Demand for food, water, and energy will grow by approximately 35, 40, and 50 percent respectively owing to an increase in the global population and the consumption patterns of an expanding middle class. Climate change will worsen the outlook for the availability of these critical resources.