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Category: Geopolitics

Cold War policy makers versus young Arabs

Monday, 14 February 2011 11:14 Written by Eric Garland 0 Comments

When writing scenarios, you must come to terms with the fact that the people in your scenarios will not think like you. Their assumptions on society, technology, economics and politics will come from a completely different set of data than your own. The only way to understand how the future might go, then, is to put yourself in their shoes. This is not easy, but it is the only way.

That said, this is what I heard on TV and in meetings over the last week on the subject of the future of Egyptian democracy:

Sixty-something Cold War-era Policy Guy:

Well, the “fun days” of this so-called revolution are, I’m afraid to say, now over. Now comes the real work, which the people of Egypt are scarcely accustomed to. The Muslim Brotherhood looms in the background, and who knows what the eventual policy toward Israel will be. You know, if you remember the last fifty years, these “democratic revolutions” are usually dangerous and can lead to even worse despotism. And what about regional stability? And what about the Domino Effect?

Yes, the United States has a lot to think about in the coming days.

Thirty-something Egyptian:

I was born in 1980, the year before Mubarak came to power. I have never known any other ruler but he and his secret police. My parents were always in favor of his stability and the initial promise of economic opportunity, but over time things never got any better. My parents generation, if they were lucky, had the opportunity to study in London or Paris, but we seem to be stuck with our lot here.

The only people who have opportunity are those with family connections. Between the police and the bureaucrats, nobody can afford the “baksheesh” require to start a business or find a job. We’re stuck with catering to tourists.

And if you want to speak up? My cousin spent a very, very bad weekend in the basement of the police station for daring to hand out pamphlets about a meeting where they were going to discuss a new political opposition party. He never walked the same again. And you know, he got off relatively light.

Now, fuel and food prices are increasing. The only people who don’t feel it are behind locked gates in million-dollar houses. We had very little, and now we’re losing it.

The only common denominator is Mubarak. He has to go if we are to have a future. I don’t know what lay on the other side, but I know it is time for him to go. We need to a future to live.

The kids in Egypt were not alive for the war in ’67. They weren’t present when the allegiances of Egypt went from Russia to the United States during the Cold War. They know what they know, what they have experienced, and will act from that.

Those making strategic scenarios about what happens next in the geopolitical balance would do well to ask what their assumptions would be if they were born in 1982.

Long-term strategies: China dominating innovation while U.S. fields armies

Thursday, 03 February 2011 11:02 Written by Eric Garland 0 Comments

Mish’s Global Economic Analysis has a wonderfully-juxtaposed view of two countries’ long-term economic strategies. He lays in stark terms, the implications of China’s current drive toward “indigenous innovation” as the next wave of its development strategy, versus the United States’ long-term obligations to the two nation-states currently occupied by its military.

Indigenous innovation is a massive and complicated plan to turn the Chinese economy into a technology powerhouse by 2020 and a global leader by 2050. The landmark document that launched the campaign carries the bureaucratic title “The National Medium- and Long-Term Plan for the Development of Science and Technology (2006-2020)” (now known in the West as the MLP). Bland as the title may be, the MLP describes itself as the “grand blueprint of science and technology development” to bring about the “great renaissance of the Chinese nation.”

If you care about the global economic future whatsoever and if you only read one document this year, this one should be it.

Meanwhile, where is the United States’ attention going? Barack Obama’s speech the other night said we are going to win the future through all pulling together and using all kinds of clean energy and competing. But while all that great stuff comes to pass, Mish points out that the United States is still stuck fielding armies in 140 countries. This isn’t a condemnation of such a military strategy, it’s just a question: Since China isn’t stuck doing things like this, are they free to pursue other strategy and execute them well?

Egypt’s revolution is economic, not ideological

Wednesday, 02 February 2011 12:22 Written by Eric Garland 0 Comments

Name that country:

It was a society in stagnation, if not decline. Despite ostensible stability, its people — especially its young people — faced a future bleaker than the dark side of Pluto. For decades, the richest grew even richer, as national debt mounted, middle-class people tried to make ends meet, and upward mobility fell. Government failed to address these problems, and the governed felt increasingly disenfranchised — and partisan. Mass unemployment metastasized from a temporary illness to a chronic condition. One of its major cities decided to erect a permanent tent city, for a permanently excluded, marginalized underclass.

You guessed it: AMERICA. Or so says Umair Haque.

What we’re watching is a massive malfunctioning of the global economy. At the root of the problem: dumb growth. Dumb growth is, in many ways, bogus — rather than reflecting enduring wealth creation, it largely reflects the transfer of wealth: from the poor to the rich, the young to the old, tomorrow to today, and human beings to corporate “people.” Dumb growth is growth without prosperity. And it’s far from an Egyptian problem.

Oh, and did you know that Egypt just hit peak oil?

The Middle East, Latin America, and Central Asia will only have more protests

Tuesday, 01 February 2011 10:08 Written by Eric Garland 3 Comments

We are watching with great interest the revolutionary impulses sweeping Tunisia, Egypt, Yemen and perhaps more nation-states to come. This is a major development, though not unpredictable. There is much to be said, so we’ll take it in chunks.

First, the megatrend view: This is a story of aging populations and their bureaucracies versus swelling youth populations. China, Japan, Korea, the United States, Australia and most of Europe feature the largest populations of senior citizens in history. Moreover, their children’s generation, especially Gen X (born 1965 – 1980) is not sufficiently big enough to counterbalance their representation in government and business. The demographic counterbalance of youth exists, not in their industrialized countries, but in Latin America, Africa, the Middle East and Central Asia. Old versus young, 20th century versus 21st, Cold War versus Assymetrical War, Core versus Gap, North versus south.

All of these tensions are at play in the countries where all the young people of the planet reside. The old are saddling the young with debt and stifling bureaucracies. The regimes critical to geopolitical balance in the Cold War still remain in power. Their benefactors were the northern industrial countries selling arms to the global south.

Old men and women don’t revolt. Young men and women with college educations do.

Whatever comes to pass in the Middle East this month, whether Mubarak goes swiftly or takes the Iranian stance, these tensions will only get more intense.

What do you think it means?

The yuan moves to become a global currency

Wednesday, 12 January 2011 09:59 Written by Eric Garland 2 Comments

This is a big deal.

China has launched trading in its currency in the U.S. for the first time, an explicit endorsement by Beijing of the fast-growing market in the yuan and a significant step in the country’s plan to foster global trading in its currency.

Repeat this scenario after me: RUSSIA SELLING OIL TO CHINA IN YUAN INSTEAD OF DOLLARS.

And right there, it’s going to be a brand new world.

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This is the official trend blog of Competitive Futures, a management consultancy that provides trend research and analysis for business and government around the world. Here, we update you on interesting trends we see as part of our work for our clients.


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