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GISPRI No. 18, 2000

Opinion

Intensifying our intelligence and
creativity for the new century

Shinji Fukukawa
Senior Adviser
, GISPRI


Looking back the passing 20th century, we have witnessed a momentous transition from the stage of confrontation and stagnancy to the one of coexistence and growth.

Countries in Asia and Africa, which had been the colonies of Europe and America at the beginning of 20th Century, started to win their independence by the middle of the century. After two world wars in the first half of the century, the world successfully avoided the third war in the second half through the bi-polar framework between USA and USSR. Then, the Cold War between the East and West ended with the break-up of the Berlin Wall, in October, 1989.

In the first half of the century, world economy saw the growth of industrial civilization supported by petroleum supply at the beginning, but was followed by the overall stagnancy as a result of the Great Depression, the rise of protectionism and the chaos caused by wars and battlements. In the second half of the century, however, the world economy striven with free trade and technological innovation under GATT and IMF, recorded around 4% average in annual growth. At the same time, we saw a tremendous rise of a new automobile industry, while a large fleet of jet airplanes opened the age of mass transportation in the aviation sector. Today, the revolutionary telecommunication technologies are the most blossoming.

Now, what we should expect for the 21st century?

First of all, the trend is to value the telecommunication technology revolution and to focus on the market-oriented methodologies, which will eventually lead us to the globalization of our economy. Economic globalization will certainly vitalize economic activities and the development of information technologies will stimulate the expansion of intellectual activities. On the other hand, these changes may generate contradictions and confrontations. In a highly developed information society, information will link to more information, so the information-literate people will get even more information-literate, which may eventually lead to the adversity of information monopolization.
Our recent experiences already taught us how the speculation activities have been intensified by the free movement of goods, money and information in the world economy. As the world economy will expand, concerns over destruction of global environment, and the instability of foods and energy supply will expand. These developing countries with less readiness for future economic development will likely suffer from the economic gap with other countries widening further.

Further, economic globalization will likely to bring the equalizing effects on economic powers among developed countries and developing countries closing into the developed countries. As a result, the world begins to take a multi-polar structure. Probably, Japan and Europe will have stagnant economy, while China and the rest of Asia will increase their economic powers. Even in the United States, which is showing the unprecedented growth today, how its society retains a binding power will significantly affect its national power. Multi-polarization of the world structure will make it more difficult to build international consensus in any matters. The failure of WTO in Seattle last December clearly demonstrated such difficulty.

In view that economic globalization will be necessary for the development of world economy, it is essential to maintain free trade, conserve global environment, stabilize currency exchange rate, and provide financial assistance and technological cooperation. The key is whether major developed countries can maintain the trust and undertake policy coordination.
International politics will enter the age of Pax Consortis(the world peace maintained by concerted efforts). This will be another consequence of world's multi-polarization. If economic globalization progresses, it will likely to instigate the heightened identity with religions and ethnic groups, igniting regional confrontation and the increased tensions between ethnic groups. In some cases, it may lead to the rearrangement of nations, with crisis and threats more diversified and augmented.

Moreover, while the 20th century world order relied largely upon the decision-making of national governments and international institutions, the model for the 21st century will likely find international corporations and NGOs taking bigger roles. It is clearly indicated in the international corporations having greater voices in the standardization of e-commerce, and international NGOs actively influencing the formulation of global environmental policies.

As a major trend, the world governance needs to be built within the framework of joint operation system led by international organizations. In such governance system, however, consensus building will be extremely complicated and difficult. It will be essential to develop a new scheme that can bind together the trust and coordination efforts in an international community.

Furthermore, the changes in population profile will alter the world power structure and exert considerable effects on the world governance framework.

The population explosion in the developing world, which is the major source of global population increase, will lead to the destruction of global environment, damages to the human health, and severity in poverty. In the process, the developing country world will likely to be divided into two extremes.

On the other hand, the population decline and the aging society in the developed countries especially notable in Japan and Europe, will bring down the rate of savings, increase the burden of social welfare cost, aggravate the fiscal structure, raise interest rates, restrain technological innovation, deteriorate the quality of education, restrain aid capacity, and provoke the resurgence of protectionism. These factors will certainly afflict significant influences over the economic globalization and international governance.

In addition, people will likely to encounter various problems including the relationship between technological development and humanity, and the management of friction between different cultures.

I have a strong concern in finding the 21st century a century of instability, unthinkable for the continuation of 20th century. In order to overcome such instability, the mankind must intensify the intelligence and creativity, and strengthen their mutual trust. We have to seriously consider how Japan can contribute for a human society in the 21st century.