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Updated :September16,2006
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36. South Asia
Regional Trends. The widening strategic and economic gaps between the two principal powers, India and Pakistan - and the dynamic interplay between their mutual hostility and the instability in Central Asia - will define the South Asia region in 2015.
India will be the unrivaled regional power with a large military - including naval and nuclear capabilities - and a dynamic and growing economy. The widening India-Pakistan gap - destabilizing in its own right - will be accompanied by deep political, economic, and social disparities within both states. Pakistan will be more fractious, isolated, and dependent on international financial assistance.
Other South Asian states - Bangladesh, Sri Lanka, and Nepal - will be drawn closer to and more dependent on India and its economy. Afghanistan will likely remain weak and a destabilizing force in the region and the world.
Wary of China, India will look increasingly to the West, but its need for oil and desire to balance Arab ties to Pakistan will lead to strengthened ties to Persian Gulf states as well.
Source:The
2015 world, according to the CIA
The
2015 world, according to the CIA
Global Trends 2015:
A dialogue about the future with nongovernment experts
"This paper was prepared under the direction of the National
Intelligence Council (NIC). In undertaking this comprehensive analysis,
the NIC worked actively with a range of nongovernmental institutions and
experts. We began the analysis with two workshops focusing on drivers
and alternative futures, as the appendix describes. Subsequently,
numerous specialists from academia and the private sector contributed to
every aspect of the study, from demographics to developments in science
and technology, from the global arms market to implications for the
United States. Many of the judgments in this paper derive from our
efforts to distill the diverse views expressed at these conferences or
related workshops."
Contents
1.
Overview
Over the past 15 months, the National Intelligence Council (NIC), in
close collaboration with US government specialists and a wide range of
experts outside the government, has worked to identify major drivers and
trends that will shape the world of 2015. The key drivers identified
are:
(l) Demographics
(2) Natural resources and environment
(3) Science and technology
(4) The global economy and globalization
(5) National and international governance
(6) Future conflict
(7) The role of the United States.
In examining these drivers, several points should be kept in mind: No
single driver or trend will dominate the global future in 2015; each
driver will have varying impacts in different regions and countries; the
drivers are not necessarily mutually reinforcing; in some cases, they
will work at cross-purposes.
Taken together, these drivers and trends intersect to create an
integrated picture of the world of 2015, about which we can make
projections with varying degrees of confidence and identify some
troubling uncertainties of strategic importance to the United States.
The Methodology: Global Trends 2015 provides a flexible framework
to discuss and debate the future. The methodology is useful for our
purposes, although admittedly inexact for the social scientist. Our
purpose is to rise above short-term, tactical considerations and provide
a longer-term, strategic perspective. Judgments about demographic and
natural resource trends are based primarily on informed extrapolation of
existing trends. In contrast, many judgments about science and
technology, economic growth, globalization, governance, and the nature
of conflict represent a distillation of views of experts inside and
outside the United States Government. The former are projections about
natural phenomena, about which we can have fairly high confidence; the
latter are more speculative because they are contingent upon the
decisions that societies and governments will make.
The drivers we emphasize will have staying power. Some of the trends
will persist; others will be less enduring and may change course over
the time frame we consider. The major contribution of the National
Intelligence Council (NIC), assisted by experts from the Intelligence
Community, has been to harness US Government and nongovernmental
specialists to identify drivers, to determine which ones matter most, to
highlight key uncertainties, and to integrate analysis of these trends
into a national security context. The result identifies issues for more
rigorous analysis and quantification.
Revisiting Global Trends 2010: How Our Assessments Have Changed: Over
the past four years, we have tested the judgments made in the
predecessor, Global Trends 2010, published in 1997. Global Trends 2010
was the centerpiece of numerous briefings, conferences, and public
addresses. Various audiences were energetic in challenging, modifying or
confirming our judgments. The lively debate that ensued has expanded our
treatment of drivers, altered some projections we made in 1997, and
matured our thinking overall--which was the essential purpose of this
exercise.
Global Trends 2015 amplifies several drivers identified previously, and
links them more closely to the trends we now project over the next 15
years. Some of the key changes include:
-
Globalization
has emerged as a more powerful driver. GT 2015 sees international
economic dynamics--including developments in the World Trade
Organization--and the spread of information technology as having
much greater influence than portrayed in GT 2010.
-
GT 2015
assigns more significance to the importance of governance, notably
the ability of states to deal with nonstate actors, both good and
bad. GT 2015 pays attention both to the opportunities for
cooperation between governments and private organizations and to the
growing reach of international criminal and terrorist networks.
-
GT 2015
includes a more careful examination of the likely role of science
and technology as a driver of global developments. In addition to
the growing significance of information technology, biotechnology
and other technologies carry much more weight in the present
assessment.
-
The
effect of the United States as the preponderant power is introduced
in GT 2015. The US role as a global driver has emerged more clearly
over the past four years, particularly as many countries debate the
impact of "US hegemony" on their domestic and foreign
policies.
-
GT 2015
provides a more complete discussion of natural resources including
food, water, energy, and the environment. It discusses, for example,
the over three billion individuals who will be living in
water-stressed regions from North China to Africa and the
implications for conflict. The linkage between energy availability,
price, and distribution is more thoroughly explored.
-
GT 2015
emphasizes interactions among the drivers. For example, we discuss
the relationship between S&T, military developments, and the
potential for conflict.
-
In the
regional sections, GT 2015 makes projections about the impact of the
spread of information, the growing power of China, and the declining
power of Russia.
Events and
trends in key states and regions over the last four years have led us to
revise some projections substantially in GT 2015.
-
GT 2010
did not foresee the global financial crisis of 1997-98; GT 2015
takes account of obstacles to economic development in East Asia,
though the overall projections remain fairly optimistic.
-
As
described in GT 2010, there is still substantial uncertainty
regarding whether China can cope with internal political and
economic trends. GT 2015 highlights even greater uncertainty over
the direction of Beijing's regional policies.
-
Many of
the global trends continue to remain negative for the societies and
regimes in the Middle East. GT 2015 projects at best a "cold
peace" between Israel and its adversaries and sees prospects
for potentially destabilizing social changes due to adverse effects
of globalization and insufficient attention to reform. The spike in
oil revenues reinforces the assessment of GT 2010 about the rising
demand for OPEC oil; these revenues are not likely to be directed
primarily at core human resources and social needs.
-
Projections
for Sub-Saharan Africa are even more dire than in GT 2010 because of
the spread of AIDS and the continuing prospects for humanitarian
crises, political instability, and military conflicts.
2.
The Drivers and Trends
Demographics: World population in 2015 will be 7.2 billion, up
from 6.1 billion in the year 2000, and in most countries, people will
live longer. Ninety-five percent of the increase will be in developing
countries, nearly all in rapidly expanding urban areas. Where political
systems are brittle, the combination of population growth and
urbanization will foster instability. Increasing lifespans will have
significantly divergent impacts.
In the advanced economies - and a growing number of emerging market
countries - declining birthrates and aging will combine to increase
health care and pension costs while reducing the relative size of the
working population, straining the social contract, and leaving
significant shortfalls in the size and capacity of the work force.
In some developing countries, these same trends will combine to expand
the size of the working population and reduce the youth bulge -
increasing the potential for economic growth and political stability.
Natural Resources and Environment: Overall food production will
be adequate to feed the world's growing population, but poor
infrastructure and distribution, political instability, and chronic
poverty will lead to malnourishment in parts of Sub-Saharan Africa. The
potential for famine will persist in countries with repressive
government policies or internal conflicts. Despite a 50 percent increase
in global energy demand, energy resources will be sufficient to meet
demand; the latest estimates suggest that 80 percent of the world's
available oil and 95 percent of its gas remain underground.
Although the Persian Gulf region will remain the world's largest single
source of oil, the global energy market is likely to encompass two
relatively distinct patterns of regional distribution: one serving
consumers (including the United States) from Atlantic Basin reserves;
and the other meeting the needs of primarily Asian customers
(increasingly China and India) from Persian Gulf supplies and, to a
lesser extent, the Caspian region and Central Asia.
In contrast to food and energy, water scarcities and allocation will
pose significant challenges to governments in the Middle East,
Sub-Saharan Africa, South Asia, and northern China. Regional tensions
over water will be heightened by 2015.
Science and Technology: Fifteen years ago, few predicted the
profound impact of the revolution in information technology. Looking
ahead another 15 years, the world will encounter more quantum leaps in
information technology (IT) and in other areas of science and
technology. The continuing diffusion of information technology and new
applications of biotechnology will be at the crest of the wave. IT will
be the major building block for international commerce and for
empowering nonstate actors. Most experts agree that the IT revolution
represents the most significant global transformation since the
Industrial Revolution beginning in the mid-eighteenth century.
The integration - or fusion - of continuing revolutions in information
technology, biotechnology, materials science, and nanotechnology will
generate a dramatic increase in investment in technology, which will
further stimulate innovation within the more advanced countries.
Older technologies will continue lateral "sidewise
development" into new markets and applications through 2015,
benefiting US allies and adversaries around the world who are interested
in acquiring early generation ballistic missile and weapons of mass
destruction (WMD) technologies.
Biotechnology will drive medical breakthroughs that will enable the
world's wealthiest people to improve their health and increase their
longevity dramatically. At the same time, genetically modified crops
will offer the potential to improve nutrition among the world's one
billion malnourished people.
Breakthroughs in materials technology will generate widely available
products that are multi-functional, environmentally safe, longer
lasting, and easily adapted to particular consumer requirements.
Disaffected states, terrorists, proliferators, narcotraffickers, and
organized criminals will take advantage of the new high-speed
information environment and other advances in technology to integrate
their illegal activities and compound their threat to stability and
security around the world.
The Global Economy and Globalization: The networked global
economy will be driven by rapid and largely unrestricted flows of
information, ideas, cultural values, capital, goods and services, and
people: that is, globalization. This globalized economy will be a net
contributor to increased political stability in the world in 2015,
although its reach and benefits will not be universal. In contrast to
the Industrial Revolution, the process of globalization is more
compressed. Its evolution will be rocky, marked by chronic financial
volatility and a widening economic divide.
The global economy, overall, will return to the high levels of growth
reached in the 1960s and early 1970s. Economic growth will be driven by
political pressures for higher living standards, improved economic
policies, rising foreign trade and investment, the diffusion of
information technologies, and an increasingly dynamic private sector.
Potential brakes on the global economy - such as a sustained financial
crisis or prolonged disruption of energy supplies - could undo this
optimistic projection.
Regions, countries, and groups feeling left behind will face deepening
economic stagnation, political instability, and cultural alienation.
They will foster political, ethnic, ideological, and religious
extremism, along with the violence that often accompanies it. They will
force the United States and other developed countries to remain focused
on "old-world" challenges while concentrating on the
implications of "new-world" technologies at the same time.
National and International Governance: States will continue to be
the dominant players on the world stage, but governments will have less
and less control over flows of information, technology, diseases,
migrants, arms, and financial transactions, whether licit or illicit,
across their borders. Nonstate actors ranging from business firms to
nonprofit organizations will play increasingly larger roles in both
national and international affairs. The quality of governance, both
nationally and internationally, will substantially determine how well
states and societies cope with these global forces.
States with competent governance, including the United States, will
adapt government structures to a dramatically changed global
environment--making them better able to engage with a more
interconnected world. The responsibilities of once
"semiautonomous" government agencies increasingly will
intersect because of the transnational nature of national security
priorities and because of the clear requirement for interdisciplinary
policy responses. Shaping the complex, fast-moving world of 2015 will
require reshaping traditional government structures.
Effective governance will increasingly be determined by the ability and
agility to form partnerships to exploit increased information flows, new
technologies, migration, and the influence of nonstate actors. Most but
not all countries that succeed will be representative democracies.
States with ineffective and incompetent governance not only will fail to
benefit from globalization, but in some instances will spawn conflicts
at home and abroad, ensuring an even wider gap between regional winners
and losers than exists today.
Globalization will increase the transparency of government
decision-making, complicating the ability of authoritarian regimes to
maintain control, but also complicating the traditional deliberative
processes of democracies. Increasing migration will create influential
diasporas, affecting policies, politics and even national identity in
many countries. Globalization also will create increasing demands for
international cooperation on transnational issues, but the response of
both states and international organizations will fall short in 2015.
Future Conflict: The United States will maintain a strong
technological edge in IT-driven "battlefield awareness" and in
precision-guided weaponry in 2015. The United States will face three
types of threats:
Asymmetric threats in which state and nonstate adversaries avoid direct
engagements with the US military but devise strategies, tactics, and
weapons--some improved by "sidewise" technology--to minimize
US strengths and exploit perceived weaknesses;
Strategic WMD threats, including nuclear missile threats, in which
(barring significant political or economic changes) Russia, China, most
likely North Korea, probably Iran, and possibly Iraq have the capability
to strike the United States, and the potential for unconventional
delivery of WMD by both states or nonstate actors also will grow; and
Regional military threats in which a few countries maintain large
military forces with a mix of Cold War and post-Cold War concepts and
technologies.
The risk of war among developed countries will be low. The international
community will continue, however, to face conflicts around the world,
ranging from relatively frequent small-scale internal upheavals to less
frequent regional interstate wars. The potential for conflict will arise
from rivalries in Asia, ranging from India-Pakistan to China-Taiwan, as
well as among the antagonists in the Middle East. Their potential
lethality will grow, driven by the availability of WMD, longer-range
missile delivery systems and other technologies.
Internal conflicts stemming from religious, ethnic, economic or
political disputes will remain at current levels or even increase in
number. The United Nations and regional organizations will be called
upon to manage such conflicts because major states--stressed by domestic
concerns, perceived risk of failure, lack of political will, or tight
resources--will minimize their direct involvement.
Export control regimes and sanctions will be less effective because of
the diffusion of technology, porous borders, defense industry
consolidations, and reliance upon foreign markets to maintain
profitability. Arms and weapons technology transfers will be more
difficult to control.
Prospects will grow that more sophisticated weaponry, including weapons
of mass destruction--indigenously produced or externally acquired--will
get into the hands of state and nonstate belligerents, some hostile to
the United States. The likelihood will increase over this period that
WMD will be used either against the United States or its forces,
facilities, and interests overseas.
Role of the United States: The United States will continue to be
a major force in the world community. US global economic, technological,
military, and diplomatic influence will be unparalleled among nations as
well as regional and international organizations in 2015. This power not
only will ensure America's preeminence, but also will cast the United
States as a key driver of the international system.
The United States will continue to be identified throughout the world as
the leading proponent and beneficiary of globalization. US economic
actions, even when pursued for such domestic goals as adjusting interest
rates, will have a major global impact because of the tighter
integration of global markets by 2015.
The United States will remain in the vanguard of the technological
revolution from information to biotechnology and beyond. Both allies and
adversaries will factor continued US military pre-eminence in their
calculations of national security interests and ambitions. Some states
-adversaries and allies - will try at times to check what they see as
American "hegemony." Although this posture will not translate
into strategic, broad-based and enduring anti-US coalitions, it will
lead to tactical alignments on specific policies and demands for a
greater role in international political and economic institutions.
Diplomacy will be more complicated. Washington will have greater
difficulty harnessing its power to achieve specific foreign policy
goals: the US Government will exercise a smaller and less powerful part
of the overall economic and cultural influence of the United States
abroad.
In the absence of a clear and overriding national security threat, the
United States will have difficulty drawing on its economic prowess to
advance its foreign policy agenda. The top priority of the American
private sector, which will be central to maintaining the US economic and
technological lead, will be financial profitability, not foreign policy
objectives.
The United States also will have greater difficulty building coalitions
to support its policy goals, although the international community will
often turn to Washington, even if reluctantly, to lead multilateral
efforts in real and potential conflicts.
There will be increasing numbers of important actors on the world stage
to challenge and check - as well as to reinforce - US leadership:
countries such as China, Russia, India, Mexico, and Brazil; regional
organizations such as the European Union; and a vast array of
increasingly powerful multinational corporations and nonprofit
organizations with their own interests to defend in the world.
3. Key Uncertainties: Technology Will Alter
Outcomes
Examining the interaction of these drivers and trends points to some
major uncertainties that will only be clarified as events occur and
leaders make policy decisions that cannot be foreseen today. We cite
eight transnational and regional issues for which the future, according
to our trends analysis, is too tough to call with any confidence or
precision.
These are high-stakes, national security issues that will require
continuous analysis and, in the view of our conferees, periodic policy
review in the years ahead.
Science and Technology: We know that the possibility is greater
than ever that the revolution in science and technology will improve the
quality of life. What we know about this revolution is exciting.
Advances in science and technology will generate dramatic breakthroughs
in agriculture and health and in leap-frog applications, such as
universal wireless cellular communications, which already are networking
developing countries that never had land-lines. What we do not know
about the S&T revolution, however, is staggering. We do not know to
what extent technology will benefit, or further disadvantage,
disaffected national populations, alienated ethnic and religious groups,
or the less developed countries. We do not know to what degree lateral
or "side-wise" technology will increase the threat from low
technology countries and groups. One certainty is that progression will
not be linear. Another is that as future technologies emerge, people
will lack full awareness of their wider economic, environmental,
cultural, legal, and moral impact - or the continuing potential for
research and development.
Advances in science and technology will pose national security
challenges of uncertain character and scale. Increasing reliance on
computer networks is making critical US infrastructures more attractive
as targets. Computer network operations today offer new options for
attacking the United States within its traditional continental
sanctuary--potentially anonymously and with selective effects.
Nevertheless, we do not know how quickly or effectively such adversaries
as terrorists or disaffected states will develop the tradecraft to use
cyber warfare tools and technology, or, in fact, whether cyber warfare
will ever evolve into a decisive combat arm. Rapid advances and
diffusion of biotechnology, nanotechnology, and the materials sciences,
moreover, will add to the capabilities of our adversaries to engage in
biological warfare or bio-terrorism.
Asymmetric Warfare: As noted earlier, most adversaries will
recognize the information advantage and military superiority of the
United States in 2015. Rather than acquiesce to any potential US
military domination, they will try to circumvent or minimize US
strengths and exploit perceived weaknesses. IT-driven globalization will
significantly increase interaction among terrorists, narcotraffickers,
weapons proliferators, and organized criminals, who in a networked world
will have greater access to information, to technology, to finance, to
sophisticated deception-and-denial techniques and to each other. Such
asymmetric approaches--whether undertaken by states or nonstate
actors--will become the dominant characteristic of most threats to the
US homeland. They will be a defining challenge for US strategy,
operations, and force development, and they will require that strategy
to maintain focus on traditional, low-technology threats as well as the
capacity of potential adversaries to harness elements of proliferating
advanced technologies. At the same time, we do not know the extent to
which adversaries, state and nonstate, might be influenced or deterred
by other geopolitical, economic, technological, or diplomatic factors in
2015.
The Global Economy: Although the outlook for the global economy
appears strong, achieving broad and sustained high levels of global
growth will be contingent on avoiding several potential brakes to
growth. These include:
The US economy suffers a sustained downturn. Given its large trade
deficit and low domestic savings, the US economy - the most important
driver of recent global growth - is vulnerable to a loss of
international confidence in its growth prospects that could lead to a
sharp downturn, which, if long lasting, would have deleterious economic
and policy consequences for the rest of the world.
Europe and Japan fail to manage their demographic challenges. European
and Japanese populations are aging rapidly, requiring more than 110
million new workers by 2015 to maintain current dependency ratios
between the working population and retirees. Conflicts over social
services or immigration policies in major European states could dampen
economic growth.
China and/or India fail to sustain high growth. China's ambitious goals
for reforming its economy will be difficult to achieve: restructuring
state-owned enterprises, cleaning up and transforming the banking
system, and cutting the government's employment rolls in half. Growth
would slow if these reforms go off-track. Failure by India to implement
reforms would prevent it from achieving sustained growth.
Emerging market countries fail to reform their financial institutions.
Many emerging market countries have not yet undertaken the financial
reforms needed to help them survive the next economic crisis. Absent
such reform, a series of future economic crises in emerging market
countries probably will dry up the capital flows crucial for high rates
of economic growth.
Global energy supplies suffer a major disruption. Turbulence in global
energy supplies would have a devastating effect. Such a result could be
driven by conflict among key energy-producing states, sustained internal
instability in two or more major energy-producing states, or major
terrorist actions.
The Middle East: Global trends from demography and natural
resources to globalization and governance appear generally negative for
the Middle East. Most regimes are change-resistant. Many are buoyed by
continuing energy revenues and will not be inclined to make the
necessary reforms, including in basic education, to change this
unfavorable picture. Linear trend analysis shows little positive change
in the region, raising the prospects for increased demographic
pressures, social unrest, religious and ideological extremism, and
terrorism directed both at the regimes and at their Western supporters.
Nonlinear developments--such as the sudden rise of a Web-connected
opposition, a sharp and sustained economic downturn, or, conversely, the
emergence of enlightened leaders committed to good governance--might
change outcomes in individual countries. Political changes in Iran in
the late 1990s are an example of such nonlinear development.
China: Estimates of developments in China over the next 15 years
are fraught with unknowables. Working against China's aspirations to
sustain economic growth while preserving its political system is an
array of political, social, and economic pressures that will
increasingly challenge the regime's legitimacy, and perhaps its
survival.
The sweeping structural changes required by China's entry into the World
Trade Organization (WTO) and the broader demands of economic
globalization and the information revolution will generate significantly
new levels and types of social and economic disruption that will only
add to an already wide range of domestic and international problems.
Nevertheless, China need not be overwhelmed by these problems. China has
proven politically resilient, economically dynamic, and increasingly
assertive in positioning itself for a leadership role in East Asia. Its
long-term military program in particular suggests that Beijing wants to
have the capability to achieve its territorial objectives, outmatch its
neighbors, and constrain US power in the region.
We do not rule out the introduction of enough political reform by 2015
to allow China to adapt to domestic pressure for change and to continue
to grow economically.
Two conditions, in the view of many specialists, would lead to a major
security challenge for the United States and its allies in the region: a
weak, disintegrating China, or an assertive China willing to use its
growing economic wealth and military capabilities to pursue its
strategic advantage in the region. These opposite extremes bound a more
commonly held view among experts that China will continue to see peace
as essential to its economic growth and internal stability.
Russia: Between now and 2015, Moscow will be challenged even more
than today to adjust its expectations for world leadership to its
dramatically reduced resources. Whether the country can make the
transition in adjusting ends to means remains an open and critical
question, according to most experts, as does the question of the
character and quality of Russian governance and economic policies. The
most likely outcome is a Russia that remains internally weak and
institutionally linked to the international system primarily through its
permanent seat on the UN Security Council. In this view, whether Russia
can adjust to this diminished status in a manner that preserves rather
than upsets regional stability is also uncertain. The stakes for both
Europe and the United States will be high, although neither will have
the ability to determine the outcome for Russia in 2015. Russian
governance will be the critical factor.
Japan: The first uncertainty about Japan is whether it will carry
out the structural reforms needed to resume robust economic growth and
to slow its decline relative to the rest of East Asia, particularly
China. The second uncertainty is whether Japan will alter its security
policy to allow Tokyo to maintain a stronger military and more
reciprocal relationship with the United States. Experts agree that
Japanese governance will be the key driver in determining the outcomes.
India:
Global trends conflict significantly in India. The size of its
population - 1.2 billion by 2015 - and its technologically driven
economic growth virtually dictate that India will be a rising regional
power. The unevenness of its internal economic growth, with a growing
gap between rich and poor, and serious questions about the fractious
nature of its politics, all cast doubt on how powerful India will be by
2015. Whatever its degree of power, India's rising ambition will further
strain its relations with China, as well as complicate its ties with
Russia, Japan, and the West--and continue its nuclear standoff with
Pakistan.
4. Key Challenges to Governance: People Will
Decide
Global Trends 2015 identifies governance as a major driver for the
future and assumes that all trends we cite will be influenced, for good
or bad, by decisions of people. The inclusion of the United States as a
driver - both the US Government as well as US for-profit and nonprofit
organizations is based on the general assumption that the actions of
nonstate actors as well as governments will shape global outcomes in the
years ahead.
An integrated trend analysis suggests at least four related conclusions:
National Priorities Will Matter
* To prosper in the global economy of 2015, governments will have to
invest more in technology, in public education, and in broader
participation in government to include increasingly influential nonstate
actors. The extent to which governments around the world are doing these
things today gives some indication of where they will be in 2015.
US Responsibilities Will Cover the World, Old and New
* The United States and other developed countries will be challenged in
2015 to lead the fast-paced technological revolution while, at the same
time, maintaining military, diplomatic, and intelligence capabilities to
deal with traditional problems and threats from low-technology countries
and groups. The United States, as a global power, will have little
choice but to engage leading actors and confront problems on both sides
of the widening economic and digital divides in the world of 2015, when
globalization's benefits will be far from global.
US Foreign Priorities Will be More Transnational
* International or multilateral arrangements increasingly will be called
upon in 2015 to deal with growing transnational problems from economic
and financial volatility; to legal and illegal migration; to competition
for scarce natural resources such as water; to humanitarian, refugee,
and environmental crises; to terrorism, narcotrafficking, and weapons
proliferation; and to both regional conflicts and cyber threats. And
when international cooperation--or international governance--comes up
short, the United States and other developed countries will have to
broker solutions among a wide array of international players--including
governments at all levels, multinational corporations, and nonprofit
organizations.
National Governments Will be More Transparent
To deal with a transnational agenda and an interconnected world in 2015,
governments will have to develop greater communication and collaboration
between national security and domestic policy agencies. Interagency
cooperation will be essential to understanding transnational threats and
to developing interdisciplinary strategies to counter them. Consequence
management of a biological warfare (BW) attack, for example, would
require close coordination among a host of US Government agencies,
foreign governments, US state and municipal governments, the military,
the medical community, and the media.
5. Discussion
The international system in 2015 will be shaped by seven global drivers
and related trends: population; natural resources and the environment;
science and technology; the global economy and globalization; national
and international governance; the nature of conflict; and the role of
the United States. These trends will influence the capacities,
priorities, and behavior of states and societies and thus substantially
define the international security environment.
6. Population Trends
The world in 2015 will be populated by some 7.2 billion people, up from
6.1 billion in the year 2000. The rate of world population growth,
however, will have diminished from 1.7 percent annually in 1985, to 1.3
percent today, to approximately 1 percent in 2015.
Increased life expectancy and falling fertility rates will contribute to
a shift toward an aging population in high-income developed countries.
Beyond that, demographic trends will sharply diverge. More than 95
percent of the increase in world population will be found in developing
countries, nearly all in rapidly expanding urban areas.
India's population will grow from 900 million to more than 1.2 billion
by 2015; Pakistan's probably will swell from 140 million now to about
195 million.
Some countries in Africa with high rates of AIDS will experience reduced
population growth or even declining populations despite relatively high
birthrates. In South Africa, for example, the population is projected to
drop from 43.4 million in 2000 to 38.7 million in 2015.
Russia and many post-Communist countries of Eastern Europe will have
declining populations. As a result of high mortality and low birthrates,
Russia's population may drop from its current 146 million to as low as
130 to 135 million in 2015, while the neighboring states of Central Asia
will experience continued population growth. In Japan and West European
countries such as Italy and Spain, populations also will decline in the
absence of dramatic increases in birthrates or immigration.
* North America, Australia, and New Zealand - the traditional magnets
for migrants - will continue to have the highest rates of population
growth among the developed countries, with annual population growth
rates between 0.7 percent and 1.0 percent.
7. Divergent Aging Patterns
In developed countries and many of the more advanced developing
countries, the declining ratio of working people to retirees will strain
social services, pensions, and health systems. Governments will seek to
mitigate the problem through such measures as delaying retirement,
encouraging greater participation in the work force by women, and
relying on migrant workers. Dealing effectively with declining
dependency ratios is likely to require more extensive measures than most
governments will be prepared to undertake. The shift towards a greater
proportion of older voters will change the political dynamics in these
countries in ways difficult to foresee.
At the same time, "youth bulges" will persist in some
developing countries, notably in Sub-Saharan Africa and a few countries
in Latin America and the Middle East. A high proportion of young people
will be destabilizing, particularly when combined with high unemployment
or communal tension.
8. Movement of People
Two major trends in the movement of people will characterize the next 15
years - urbanization and cross-border migration - each of which poses
both opportunities and challenges.
Growth in Mega-Cities
The ratio of urban to rural dwellers is steadily increasing. By 2015
more than half of the world's population will be urban. The number of
people living in mega-cities--those containing more than 10 million
inhabitants--will double to more than 400 million.
Urbanization will provide many countries the opportunity to tap the
information revolution and other technological advances.
The explosive growth of cities in developing countries will test the
capacity of governments to stimulate the investment required to generate
jobs and to provide the services, infrastructure, and social supports
necessary to sustain livable and stable environments.
Divergent demographic trends, the globalization of labor markets, and
political instability and conflict will fuel a dramatic increase in the
global movement of people through 2015. Legal and illegal migrants now
account for more than 15 percent of the population in more than 50
countries. These numbers will grow substantially and will increase
social and political tension and perhaps alter national identities even
as they contribute to demographic and economic dynamism.
States will face increasing difficulty in managing migration pressures
and flows, which will number several million people annually. Over the
next 15 years, migrants will seek to move:
To North America primarily from Latin America and East and South Asia.
To Europe primarily from North Africa and the Middle East, South Asia,
and the post-Communist states of Eastern Europe and Eurasia.
From the least to the most developed countries of Asia, Latin America,
the Middle East, and Sub-Saharan Africa.
For high-income receiving countries, migration will relieve labor
shortages and otherwise ensure continuing economic vitality. EU
countries and Japan will need large numbers of new workers because of
aging populations and low birthrates. Immigration will complicate
political and social integration: some political parties will continue
to mobilize popular sentiment against migrants, protesting the strain on
social services and the difficulties in assimilation. European countries
and Japan will face difficult dilemmas in seeking to reconcile
protection of national borders and cultural identity with the need to
address growing demographic and labor market imbalances.
For low-income receiving countries, mass migration resulting from civil
conflict, natural disasters, or economic crises will strain local
infrastructures, upset ethnic balances, and spark ethnic conflict.
Illegal migration will become a more contentious issue between and among
governments.
For low-income sending countries, mass migration will relieve pressures
from unemployed and underemployed workers and generate significant
remittances. Migrants will function as ethnic lobbies on behalf of
sending-country interests, sometimes supporting armed conflicts in their
home countries, as in the cases of the Albanian, Kurdish, Tamil,
Armenian, Eritrean, and Ethiopian diasporas. At the same time,
emigration increasingly will deprive low-income sending countries of
their educated elites. An estimated 1.5 million skilled expatriates from
developing countries already are employed in high-income countries. This
brain drain from low-income to high-income countries is likely to
intensify over the next 15 years.
9. Health
Disparities in health status between developed and developing countries
- particularly the least developed countries - will persist and widen.
In developed countries, major inroads against a variety of maladies will
be achieved by 2015 as a result of generous health spending and major
medical advances. The revolution in biotechnology holds the promise of
even more dramatic improvements in health status. Noninfectious diseases
will pose greater challenges to health in developed countries than will
infectious diseases. Progress against infectious diseases, nevertheless,
will encounter some setbacks as a result of growing microbial resistance
to antibiotics and the accelerating pace of international movement of
people and products that facilitate the spread of infectious diseases.
Developing countries, by contrast, are likely to experience a surge in
both infectious and noninfectious diseases and in general will have
inadequate health care capacities and spending.
Tuberculosis, malaria, hepatitis, and particularly AIDS will continue to
increase rapidly. AIDS and TB together are likely to account for the
majority of deaths in most developing countries.
AIDS will be a major problem not only in Africa but also in India,
Southeast Asia, several countries formerly part of the Soviet Union, and
possibly China.
AIDS will reduce economic growth by up to 1 percent of GDP per year and
consume more than 50 percent of health budgets in the hardest-hit
countries. AIDS and such associated diseases as TB will have a
destructive impact on families and society. In some African countries,
average lifespans will be reduced by as much as 30 to 40 years,
generating more than 40 million orphans and contributing to poverty,
crime, and instability.
AIDS, other diseases, and health problems will hurt prospects for
transition to democratic regimes as they undermine civil society, hamper
the evolution of sound political and economic institutions, and
intensify the struggle for power and resources.
10. Natural Resources and Environment
11. Food:
Driven by advances in agricultural technologies, world food grain
production and stocks in 2015 will be adequate to meet the needs of a
growing world population. Despite the overall adequacy of food, problems
of distribution and availability will remain.
The number of chronically malnourished people in conflict-ridden
Sub-Saharan Africa will increase by more than 20 percent over the next
15 years. The potential for famine will still exist where the
combination of repressive government or internal conflict and persistent
natural disasters prevents or limits relief efforts, as in Somalia in
the early 1990s and North Korea more recently. Donors will become more
reluctant to provide relief when the effort might become embroiled in
military conflict.
The use of genetically modified crops has great potential for meeting
the nutrition needs of the poor in developing countries. Popular and
political opposition in the EU countries and, to a lesser extent, in the
United States, however, has clouded the prospects for applying this
technology.
12. Water
By 2015 nearly half the world's population - more than three billion
people - will live in countries that are "water-stressed" -
have less than 1,700 cubic meters of water per capita per year - mostly
in Africa, the Middle East, South Asia, and northern China.
In the developing world, 80 percent of water usage goes into
agriculture, a proportion that is not sustainable; and in 2015 a number
of developing countries will be unable to maintain their levels of
irrigated agriculture. Overpumping of groundwater in many of the world's
important grain-growing regions will be an increasing problem; about
1,000 tons of water are needed to produce a ton of grain.
The water table under some of the major grain-producing areas in
northern China is falling at a rate of five feet per year, and water
tables throughout India are falling an average of 3-10 feet per year.
Measures undertaken to increase water availability and to ease acute
water shortages - using water more efficiently, expanding use of
desalinization, developing genetically modified crops that use less
water or more saline water, and importing water - will not be sufficient
to substantially change the outlook for water shortages in 2015. Many
will be expensive; policies to price water more realistically are not
likely to be broadly implemented within the next 15 years, and
subsidizing water is politically sensitive for the many low-income
countries short of water because their populations expect cheap water.
Water has been a source of contention historically, but no water dispute
has been a cause of open interstate conflict; indeed, water shortages
often have stimulated cooperative arrangements for sharing the scarce
resource. But as countries press against the limits of available water
between now and 2015, the possibility of conflict will increase.
Nearly one-half of the world's land surface consists of river basins
shared by more than one country, and more than 30 nations receive more
than one-third of their water from outside their borders.
Turkey is building new dams and irrigation projects on the Tigris and
Euphrates Rivers, which will affect water flows into Syria and Iraq--two
countries that will experience considerable population growth.
Egypt is proceeding with a major diversion of water from the Nile, which
flows from Ethiopia and Sudan, both of which will want to draw more
water from the Nile for their own development by 2015. Water-sharing
arrangements are likely to become more contentious.
Water shortages occurring in combination with other sources of
tension--such as in the Middle East - will be the most worrisome.
13. Energy
The global economy will continue to become more energy efficient through
2015. Traditional industries, as well as transportation, are
increasingly efficient in their energy use. Moreover, the most dynamic
growth areas in the global economy, especially services and the
knowledge fields, are less energy intensive than the economic activities
that they replace. Energy production also is becoming more efficient.
Technological applications, particularly in deep-water exploration and
production, are opening remote and hostile areas to petroleum
production.
Sustained global economic growth, along with population increases, will
drive a nearly 50 percent increase in the demand for energy over the
next 15 years. Total oil demand will increase from roughly 75 million
barrels per day in 2000 to more than 100 million barrels in 2015, an
increase almost as large as OPEC's current production. Over the next 15
years, natural gas usage will increase more rapidly than that of any
other energy source - by more than 100 percent--mainly stemming from the
tripling of gas consumption in Asia.
Asia will drive the expansion in energy demand, replacing North America
as the leading energy consumption region and accounting for more than
half of the world's total increase in demand.
China, and to a lesser extent India, will see especially dramatic
increases in energy consumption.
By 2015, only one-tenth of Persian Gulf oil will be directed to Western
markets; three-quarters will go to Asia.
Fossil fuels will remain the dominant form of energy despite increasing
concerns about global warming. Efficiency of solar cells will improve,
genetic engineering will increase the long-term prospects for the
large-scale use of ethanol, and hydrates will be used increasingly as
fuels. Nuclear energy use will remain at current levels.
Meeting the increase in demand for energy will pose neither a major
supply challenge nor lead to substantial price increases in real terms.
Estimates of the world's total endowment of oil have steadily increased
as technological progress in extracting oil from remote sources has
enabled new discoveries and more efficient production. Recent estimates
indicate that 80 percent of the world's available oil still remains in
the ground, as does 95 percent of the world's natural gas.
The Persian Gulf region - absent a major war - will see large increases
in oil production capacity and will rise in its overall importance to
the world energy market. Other areas of the world - including Russia,
coastal West Africa, and Greenland - will also increase their role in
global energy markets. Russia and the Middle East account for
three-quarters of known gas reserves.
Latin America - principally Venezuela, Mexico, and Brazil - has more
than 117 billion barrels of proven oil reserves and potentially 114
billion barrels of undiscovered oil, according to the US Geological
Survey. With foreign participation, Latin American production could
increase from 9 million barrels per day to more than 14 million.
Caspian energy development is likely to be in high gear by 2015. New
transport routes for Caspian oil and gas exports that do not transit
Russia will be operating.
Oil-producing countries will continue to exert leverage on the market to
increase prices but are unlikely to achieve stable high prices. Energy
prices are likely to become more unstable in the next 15 years, as
periodic price hikes are followed by price collapses.
By 2015, global energy markets will have coalesced into two
quasi-hemispheric patterns. Asia's energy needs will be met either
through coal from the region or from oil and gas supplies from the
Persian Gulf, Central Asia, and Russia. Western Europe and the Western
Hemisphere will draw on the Atlantic Basin for their energy sources at
world prices.
14. Environment
Contemporary environmental problems will persist and in many instances
grow over the next 15 years. With increasingly intensive land use,
significant degradation of arable land will continue as will the loss of
tropical forests. Given the promising global economic outlook,
greenhouse gas emissions will increase substantially. The depletion of
tropical forests and other species-rich habitats, such as wetlands and
coral reefs, will exacerbate the historically large losses of biological
species now occurring.
Environmental issues will become mainstream issues in several countries,
particularly in the developed world. The consensus on the need to deal
with environmental issues will strengthen; however, progress in dealing
with them will be uneven.
The outlook to 2015 is mixed for such localized environmental problems
as high concentrations of ozone and noxious chemicals in the air and the
pollution of rivers and lakes by industrial and agricultural wastes.
Developed countries will continue to manage these local environmental
issues, and such issues are unlikely to constitute a major constraint on
economic growth or on improving health standards.
The developing countries, however, will face intensified environmental
problems as a result of population growth, economic development, and
rapid urbanization. An increasing number of cities will face the serious
air and water quality problems that already are troubling in such urban
centers as Mexico City, Sao Paulo, Lagos, and Beijing.
Russia and Ukraine will struggle with problems stemming from decades of
environmental neglect and abuse, including widespread radioactive
pollution from badly managed nuclear facilities. These problems are
unlikely to be adequately addressed. As these countries pursue economic
growth, they will devote insufficient resources to environmental
remediation.
Central and Eastern European countries face similar problems as a result
of the legacy of environmental neglect from the Communist era;
nevertheless, driven by their desire to gain EU membership, several will
become more effective in addressing these problems and will upgrade
their environmental standards.
Some existing agreements, even when implemented, will not be able by
2015 to reverse the targeted environmental damage they were designed to
address. The Montreal Protocol is on track to restore the stratospheric
ozone layer over the next 50 years. Nevertheless, the seasonal Antarctic
ozone hole will expand for the next two decades - increasing the risk of
skin cancer in countries like Australia, Argentina, and Chile - because
of the long lag time between emission reductions and atmospheric
effects. Important new agreements will be implemented, including, for
example, a global treaty to control the worldwide spread of such
persistent organic chemicals as DDT and dioxins. Other agreements, such
as the Convention on Biodiversity, will fall short in meeting their
objectives.
Over the next 15 years the pressures on the environment as a result of
economic growth will decrease as a result of less energy-intensive
economic development and technological advances. For example, increased
use of fuel cells and hybrid engines is likely to reduce the rate of
increase in the amount of pollution produced, particularly in the
transportation sector. Also, increases in the utilization of solar and
wind power, advances in the efficiency of energy use, and a shift toward
less polluting fuels, such as natural gas, will contribute to this
trend.
Global warming will challenge the international community as indications
of a warming climate - such as meltbacks of polar ice, sea level rise,
and increasing frequency of major storms- occur. The Kyoto Protocol on
Climate Change, which mandates emission-reduction targets for developed
countries, is unlikely to come into force soon or without substantial
modification. Even in the absence of a formal treaty, however, some
incremental progress will be made in reducing the growth of greenhouse
gas emissions.
Both India and China will actively explore less carbon-intensive
development strategies, although they will resist setting targets or
timetables for carbon dioxide emission limits.
A number of major firms operating internationally will take steps to
reduce greenhouse gas emissions.
15. Science and Technology
The continuing diffusion of information technology and new applications
in the biotechnology field will be of particular global significance.
Two major trends will continue:
* The integration of existing disciplines to form new ones. The
integration of information technology, biotechnology, materials
sciences, and nanotechnology will generate a dramatic increase in
innovation. The effects will be profound on business and commerce,
public health, and safety.
* The lateral development of technology. Older established technologies
will continue "sidewise" development into new markets and
applications, for example, developing innovative applications for
"old" computer chips.
The time between the discovery and the application of scientific
advances will continue to shorten. Developments in the laboratory will
reach commercial production at ever faster rates, leading to increased
investments.
16. Information Technology (IT)
Over the next 15 years, a wide range of developments will lead to many
new IT-enabled devices and services. Rapid diffusion is likely because
equipment costs will decrease at the same time that demand is
increasing. Local-to-global Internet access holds the prospect of
universal wireless connectivity via hand-held devices and large numbers
of low-cost, low-altitude satellites. Satellite systems and services
will develop in ways that increase performance and reduce costs.
By 2015, information technology will make major inroads in rural as well
as urban areas around the globe. Moreover, information technology need
not be widespread to produce important effects. The first information
technology "pioneers" in each society will be the local
economic and political elites, multiplying the initial impact.
Some countries and populations, however, will fail to benefit much from
the information revolution.
Among developing countries, India will remain in the forefront in
developing information technology, led by the growing class of high-tech
workers and entrepreneurs.
China will lead the developing world in utilizing information
technology, with urban areas leading the countryside. Beijing's capacity
to control or shape the content of information, however, is likely to be
sharply reduced.
Although most Russian urban-dwellers will adopt information technologies
well before 2015, the adoption of such technologies will be slow in the
broader population.
Latin America's Internet market will grow exponentially. Argentina,
Mexico, and Brazil will accrue the greatest benefits because of larger
telecommunications companies, bigger markets, and more international
investment.
In Sub-Saharan Africa, South Africa is best positioned to make
relatively rapid progress in IT.
Societies with advanced communications generally will worry about
threats to individual privacy. Others will worry about the spread of
"cultural contamination." Governments everywhere will be
simultaneously asked to foster the diffusion of IT while controlling its
"harmful" effects.
17. Biotechnology
By 2015, the biotechnology revolution will be in full swing with major
achievements in combating disease, increasing food production, reducing
pollution, and enhancing the quality of life. Many of these
developments, especially in the medical field, will remain costly
through 2015 and will be available mainly in the West and to wealthy
segments of other societies. Some biotechnologies will continue to be
controversial for moral and religious reasons. Among the most
significant developments by 2015 are:
Genomic profiling - by decoding the genetic basis for pathology - will
enable the medical community to move beyond the description of diseases
to more effective mechanisms for diagnosis and treatment.
Biomedical engineering, exploiting advances in biotechnology and
"smart" materials, will produce new surgical procedures and
systems, including better organic and artificial replacement parts for
human beings, and the use of unspecialized human cells (stem cells) to
augment or replace brain or body functions and structures. It also will
spur development of sensor and neural prosthetics such as retinal
implants for the eye, cochlear implants for the ear, or bypasses of
spinal and other nerve damage.
Therapy and drug developments will cure some enduring diseases and
counter trends in antibiotic resistance. Deeper understanding of how
particular diseases affect people with specific genetic characteristics
will facilitate the development and prescription of custom drugs.
Genetic modification - despite continuing technological and cultural
barriers - will improve the engineering of organisms to increase food
production and quality, broaden the scale of bio-manufacturing, and
provide cures for certain genetic diseases. Cloning will be used for
such applications as livestock production. Despite cultural and
political concerns, the use of genetically modified crops has great
potential to dramatically improve the nutrition and health of many of
the world's poorest people.
DNA identification will continue to improve law enforcement
capabilities.
18. Other Technologies
Breakthroughs in materials technology will generate widely available
products that are smart, multifunctional, environmentally compatible,
more survivable, and customizable. These products not only will
contribute to the growing information and biotechnology revolutions but
also will benefit manufacturing, logistics, and personal lifestyles.
Materials with active capabilities will be used to combine sensing and
actuation in response to environmental conditions.
Discoveries in nanotechnology will lead to unprecedented understanding
and control over the fundamental building blocks of all physical things.
Developments in this emerging field are likely to change the way almost
everything - from vaccines to computers to automobile tires to objects
not yet imagined - is designed and made. Self-assembled nanomaterials,
such as semiconductor "quantum dots," could by 2015
revolutionize chemical labeling and enable rapid processing for drug
discovery, blood content analysis, genetic analysis, and other
biological applications.
19. The Global Economy
The global economy is well-positioned to achieve a sustained period of
dynamism through 2015. Global economic growth will return to the high
levels reached in the 1960s and early 1970s, the final years of the
post-World War II "long boom." Dynamism will be strongest
among so-called "emerging markets" - especially in the two
Asian giants, China and India - but will be broadly based worldwide,
including in both industrialized and many developing countries. The
rising tide of the global economy will create many economic winners, but
it will not lift all boats. The information revolution will make the
persistence of poverty more visible, and regional differences will
remain large.
20. Dynamism and Growth
Five factors will combine to promote widespread economic dynamism and
growth:
Political pressures for higher living standards. The growing
global middle class--now 2 billion strong--is creating a cycle of rising
aspirations, with increased information flows and the spread of
democracy giving political clout to formerly disenfranchised citizens.
Improved macroeconomic policies. The widespread improvement in
recent years in economic policy and management sets the stage for future
dynamism. Inflation rates have been dramatically lowered across a wide
range of economies. The abandonment of unsustainable fixed exchange rate
regimes in Asia and the creation of the European Monetary Union (EMU)
will contribute to economic growth.
Rising trade and investment. International trade and investment flows
will grow, spurring rapid increases in world GDP. Opposition to
further trade liberalization from special interest groups and some
governments will not erode the basic trend toward expansion of trade.
International capital flows, which have risen dramatically in the past
decade, will remain plentiful, especially for emerging market countries
that increase their transparency.
Diffusion of information technology. The pervasive incorporation
of information technologies will continue to produce significant
efficiency gains in the US economy. Similar gains will be
witnessed--albeit in varying degrees--in numerous other countries as the
integration of these technologies proceeds. But the absorption of IT and
its benefits will not be automatic because many countries will fail to
meet the conditions needed for effective IT utilization--high
educational levels, adequate infrastructure, and appropriate regulatory
policies.
Increasingly dynamic private sectors. Rapid expansion of the
private sector in many emerging market countries - along with
deregulation and privatization in Europe and Japan - will spur economic
growth by generating competitive pressures to use resources more
efficiently. The impact of improved efficiencies will be multiplied as
the information revolution enhances the ability of firms around the
world to learn "best practices" from the most successful
enterprises. Indeed, the world may be on the verge of a rapid
convergence in market-based financial and business practices.
21.
Unequal Growth Prospects and Distribution
The countries and regions most at risk of falling behind economically
are those with endemic internal and/or regional conflicts and those that
fail to diversify their economies. The economies of most states in
Sub-Saharan Africa and the Middle East and some in Latin America will
continue to suffer. A large segment of the Eurasian landmass extending
from Central Asia through the Caucasus to parts of southeastern Europe
faces dim economic prospects. Within countries, the gap in the standard
of living also will increase. Even in rapidly growing countries, large
regions will be left behind.
Emerging Asia will be the fastest growing region, led by breakout
candidates China and India, whose economies already comprise roughly
one-sixth of global GDP. To the degree that China implements reforms
mandated by its entry into the World Trade Organization, its economy
will become more efficient, enabling rapid growth to continue. China's
economic development, however, will be mainly in the dynamic coastal
provinces. Agricultural provinces in northern and western China will lag
behind, causing social tensions that Beijing will be challenged to
manage. India's relatively strong educational system, democracy, and
English-language skills position it well to take advantage of gains
related to information technology. India nevertheless faces enormous
challenges in spreading the benefits of growth to hundreds of millions
of impoverished, often illiterate citizens, particularly in the northern
states.
In Europe and Japan, the picture is mixed. Western Europe is likely to
narrow what has been a growing economic performance gap with the United
States, and Eastern European countries, eager for EU membership,
generally will adopt reform policies and grow apace. South-Eastern
Europe will improve economic prospects only gradually as it improves
regional security. Although Japan's economic performance in the next 15
years will be stronger than that of the 1990s, its relative importance
in the global economy will decrease. Economic prospects for Russia and
Eurasia are not promising.
Latin America will manage fairly rapid aggregate growth, but it will be
spread unevenly across the region. The market-oriented democracies in
Mexico and the southern cone will lead the way. A new generation of
entrepreneurs will be inclined to favor additional market openings, but
the benefits may further distort income distribution, already the most
inequitable in the world. Elsewhere, the Andean region will struggle
with a poorly educated labor force, unstable governance, and dependence
upon commodities such as oil, copper, and narcotics.
The Middle East and North Africa will be marked by increasing internal
differentiation as some countries respond more effectively to the
challenges of globalization or to the uncertainties of closer
integration with the EU while others lag. In Sub-Saharan Africa,
persistent conflicts and instability, autocratic and corrupt
governments, overdependence on commodities with declining real prices,
low levels of education, and widespread infectious diseases will combine
to prevent most countries from experiencing rapid economic growth.
The Role of Education: Education will be determinative of success
in 2015 at both the individual and country levels. The globalizing
economy and technological change inevitably place an increasing premium
on a more highly skilled labor force. Adult literacy and school
enrollments will increase in almost all countries. The educational
gender gap will narrow and probably will disappear in East and Southeast
Asia and Latin America.
Progress will vary among regions, countries, and social groups,
triggering increased income inequalities within as well as among
countries.
School enrollments will decline in the most highly impoverished
countries, in those affected by serious internal conflicts, and in those
with high rates of infectious diseases.
22. Economic Crises and Resilience
The global economy will be prone to periodic financial crises, but its
capacity to correct itself will remain strong. The rapid rebound from
the global financial crisis of 1997-98, the limited impact of the recent
tripling of oil prices on global economic growth, and the successful
management of the "Y2K" problem are the most recent
manifestations of resilience. Nonetheless, economic liberalization and
globalization entail risks and inevitably will create bumps in the road,
some of them potentially highly disruptive.
Economic crises will recur. The trends toward free markets and
deregulation will allow financial markets to overshoot, increase the
possibility for sudden reversal in sentiment, and expose individual
countries to broad swings in the global market. Any of these could
trigger a financial crisis.
Turbulence in one economy will affect others. Increased trade links and
the integration of global financial markets will quickly transmit
turmoil in one economy regionally and internationally, as Russia's
financial turmoil in 1998 affected Brazil.
Disputes over international economic rules. The Asian financial crisis
revealed differences among countries regarding global financial
architecture. As emerging market countries continue to grow, they will
seek a stronger voice in setting the terms of international economic
governance. A lack of consensus could at times make financial markets
skittish and undermine growth.
Alternative Trajectories: Although the outlook for the global
economy appears quite strong, achieving sustained high levels of global
growth will be contingent on avoiding several potential brakes to
growth. Five are described below.
The US economy suffers a sustained downturn. Given the large trade
deficit and low domestic savings, the US economy - the most important
driver of recent global growth - is vulnerable to loss of international
confidence in its growth prospects that could lead to a sharp downturn,
which, if long-lasting, would have deleterious economic and policy
consequences for the rest of the world. Key trading partners would
suffer as the world's largest market contracted, and international
financial markets might face profound instability.
Europe and Japan fail to manage their demographic challenges. European
and Japanese populations are aging rapidly, requiring more than 110
million new workers by 2015 to maintain current dependency ratios
between the working population and retirees. For these countries,
immigration is a controversial means of meeting these labor force
requirements. Conflicts over the social contract or immigration policies
in major European states could dampen economic growth. Japan faces an
even more serious labor force shortage and its strategies for responding
- enticing overseas Japanese to return, broadening the opportunities for
women, and increasing investments elsewhere in Asia - may prove
inadequate. If growth in Europe and Japan falters, the economic burden
on the US economy would increase, weakening the overall global outlook.
China and/or India fail to sustain high growth. China's ambitious goals
for reforming its economy will be difficult to realize: restructuring
state-owned enterprises, cleaning up and transforming the banking
system, cutting the government's employment rolls in half, and opening
up the economy to greater foreign competition. Growth would slow if
these reforms go awry, which, in turn, would exacerbate bureaucratic
wrangling and increase opposition to the reform agenda. India's reform
drive - essential to sustained economic growth - could be sidetracked by
social divisions and by the bureaucratic culture of the public service.
Emerging market countries fail to reform their financial institutions.
Although most emerging market countries bounced back from the 1997-98
financial crisis more quickly than expected, many have not yet
undertaken the financial reforms needed to help them survive the next
economic crisis. Absent such reform, a series of future economic crises
in emerging market countries could dry up the capital flows crucial for
high rates of economic growth.
Global energy supplies are disrupted in a major way. Although the world
economy is less vulnerable to energy price swings than in the 1970s, a
major disruption in global energy supplies still would have a
devastating effect. Conflict among key energy-producing states,
sustained internal instability in two or more major energy-producing
states, or major terrorist actions could lead to such a disruption.
23. National and International Governance
The state will remain the single most important organizing unit of
political, economic, and security affairs through 2015 but will confront
fundamental tests of effective governance. The first will be to benefit
from, while coping with, several facets of globalization. The second
will be to deal with increasingly vocal and organized publics.
The elements of globalization - greater and freer flow of information,
capital, goods, services, people, and the diffusion of power to nonstate
actors of all kinds - will challenge the authority of virtually all
governments. At the same time, globalization will create demands for
increased international cooperation on transnational issues.
All states will confront popular demands for greater participation in
politics and attention to civil rights - pressures that will encourage
greater democratization and transparency. Twenty-five years ago less
than a third of states were defined as democracies by Freedom House;
today more than half of states are considered democracies, albeit with
varying combinations of electoral and civil or political rights. The
majority of states are likely to remain democracies in some sense over
the next 15 years, but the number of new democracies that are likely to
develop is uncertain.
Successful states will interact with nonstate actors to manage authority
and share responsibility. Between now and 2015, three important
challenges for states will be:
-
Managing
relations with nonstate actors;
-
Combating
criminal networks; and
-
Responding
to emerging and dynamic religious and ethnic groups.
24.
Nonstate Actors
States continually will be dealing with private-sector organizations -
both for-profit and nonprofit. These nonstate actors increasingly will
gain resources and power over the next 15 years as a result of the
ongoing liberalization of global finance and trade, as well as the
opportunities afforded by information technology.
The For-profit Sector. The for-profit business sector will grow rapidly
over the next 15 years, spearheading legal and judicial reform and
challenging governments to become more transparent and predictable. At
the same time, governments will be challenged to monitor and regulate
business firms through measures consistent with local standards of
social welfare.
Multinational corporations - now numbering more than 50,000 with nearly
one-half million affiliates - have multiplied in recent years as
governments have deregulated their economies, privatized state-owned
enterprises, and liberalized financial markets and trade. This trend
will continue.
Medium-sized, mostly local firms will multiply in many countries, driven
by the shift away from Communism and other socialist models and the
broadening of financial services and banking systems. Micro-enterprises
also will multiply, not only because of deregulation and liberalization,
but also because many states will have a declining capacity to stymie
small-scale commercial activities. As medium-sized and small businesses
become more numerous, they will encourage, and then link into, various
global networks.
The Nonprofit Sector. Nonprofit networks with affiliates in more than
one country will grow through 2015, having expanded more than 20-fold
between 1964 and 1998. Within individual countries, the nonprofit sector
also will expand rapidly.
The Role of the Nonprofit Sector: Nonprofit organizations deliver
critical services to individuals and private groups, with 67 percent of
nonprofit activities in health, education, and social services alone.
They provide information and expertise, advocate policies on behalf of
their interests, and work through international organizations, both as
implementing partners and as advocates. In many development projects and
humanitarian emergencies, nonprofits will continue to deliver most of
the aid from governments and international organizations.
Over the next 15 years international and national nonprofits will not
only expand but change in significant ways.
Nonprofit organizations will have more resources to expand their
activities and will become more confident of their power and more
confrontational. Nonprofits will move beyond delivering services to the
design and implementation of policies, whether as partners or
competitors with corporations and governments.
Western preponderance will persist but at a declining level as economic
growth in Asia and Latin America produces additional resources for
support of civil society. In addition, autocratic governments and
Islamic states or groups will increasingly support nonprofit groups
sympathetic to their interests.
Nonprofit organizations will be expected to meet codes of conduct.
Governments and corporations - which are increasingly held to standards
of transparency and accountability - will, in turn, expect nonprofits to
meet similar standards.
25. Criminal Organizations and Networks
Over the next 15 years, transnational criminal organizations will become
increasingly adept at exploiting the global diffusion of sophisticated
information, financial, and transportation networks.
Criminal organizations and networks based in North America, Western
Europe, China, Colombia, Israel, Japan, Mexico, Nigeria, and Russia will
expand the scale and scope of their activities. They will form loose
alliances with one another, with smaller criminal entrepreneurs, and
with insurgent movements for specific operations. They will corrupt
leaders of unstable, economically fragile or failing states, insinuate
themselves into troubled banks and businesses, and cooperate with
insurgent political movements to control substantial geographic areas.
Their income will come from narcotics trafficking; alien smuggling;
trafficking in women and children; smuggling toxic materials, hazardous
wastes, illicit arms, military technologies, and other contraband;
financial fraud; and racketeering.
The risk will increase that organized criminal groups will traffic in
nuclear, biological, or chemical weapons. The degree of risk depends on
whether governments with WMD capabilities can or will control such
weapons and materials.
Crime and Corruption Pay: Available data suggest that current
annual revenues from illicit criminal activities include: $100-300
billion from narcotics trafficking; $10-12 billion from toxic and other
hazardous waste dumping; $9 billion from automobile theft in the United
States and Europe; $7 billion from alien smuggling; and as much as $1
billion from theft of intellectual property through pirating of videos,
software, and other commodities.
Available estimates suggest that corruption costs about $500 billion -
or about 1 percent of global GNP - in slower growth, reduced foreign
investment, and lower profits. For example, the average cost of bribery
to firms doing business in Russia is between 4 and 8 percent of annual
revenue, according to the European Bank for Reconstruction and
Development.
26. Changing Communal Identities and Networks
Traditional communal groups - whether religious or ethnic-linguistic
groups - will pose a range of challenges for governance. Using
opportunities afforded by globalization and the opening of civil
society, communal groups will be better positioned to mobilize
coreligionists or ethnic kin to assert their interests or defend against
perceived economic or political discrimination. Ethnic diasporas and
coreligionists abroad also will be more able and willing to provide
fraternal groups with political, financial, and other support.
By 2015, Christianity and Islam, the two largest religious groupings,
will have grown significantly. Both are widely dispersed in several
continents, already use information technologies to "spread the
faith," and draw on adherents to fund numerous nonprofit groups and
political causes. Activist components of these and other religious
groupings will emerge to contest such issues as genetic manipulation,
women's rights, and the income gap between rich and poor. A wider
religious or spiritual movement also may emerge, possibly linked to
environmental values.
Estimates of the number of distinct ethnic-linguistic groups at the
beginning of the twenty-first century run from 2,000 to 5,000, ranging
from small bands living in isolated areas to larger groups living in
ancestral homelands or in diasporas. Most of the world's 191 states are
ethnically heterogeneous, and many contain ethnic populations with
co-ethnics in neighboring states. By 2015, ethnic heterogeneity will
increase in almost all states, as a result of international migration
and divergent birthrates of migrant and native populations.
Communal tensions, sometimes culminating in conflict, probably will
increase through 2015. In addition to some ongoing communal frictions
that will persist, triggers of new tensions will include:
Repression by the state. States with slow economic growth, and/or where
executive power is concentrated in an exclusionary political elite and
the rule of law and civil or minority rights are weak, will be inclined
to discriminate against communal minorities. Such conditions will foment
ethnic tensions in Sub-Saharan Africa, Central and South Asia, and parts
of the Middle East, often in rapidly growing urban areas. Certain
powerful states - such as Russia, China, Brazil, and India - also are
likely to repress politicized communal minorities.
Religious, often fused with ethnic, grievances. Few Muslim states will
grant full political and cultural rights to religious minorities. At the
same time, they will not remain indifferent to the treatment of Muslim
minorities elsewhere: in Russia, Indonesia, India/Kashmir, China, and
the Balkans. Other religious denominations also will support beleaguered
coreligionists.
Resistance to migration. Some relatively homogenous countries or
sub-regions in Asia and Europe will resist ethnically diverse migrants,
creating tensions.
Indigenous protest movements. Such movements will increase, facilitated
by transnational networks of indigenous rights activists and supported
by well-funded international human rights and environmental groups.
Tensions will intensify in the area from Mexico through the Amazon
region; northeastern India; and the Malaysian-Indonesian archipelago.
27. Overall Impact on States
The developed democracies will be best positioned for good governance
because they will tend to empower legitimate nonstate actors in both the
for-profit and nonprofit sectors; will favor institutions and processes
that accommodate divergent communal groups; will press for transparency
in government and the efficient delivery of public services; and will
maintain institutions to regulate legitimate for-profit and nonprofit
organizations and control illegitimate criminal groups. Countries in
Western Europe, Canada, Australia, New Zealand, and Japan have the
requisite agility and institutions to meet the challenges. Countries in
Eastern Europe as well as Turkey, South Korea, India, Chile, and Brazil,
among other developing countries, are moving in these directions,
despite some continuing obstacles.
Some newly democratic states and modernizing authoritarian states will
have leaders amenable to technological change and access to substantial
human and financial resources. They will encourage business firms,
nonprofits, and communal groups supportive of the government and
discourage or suppress those that are independent-minded or critical of
government policies. They will have some success in coping with the
energy, ideas, and resources of nonstate actors. Several Asian
countries, such as Singapore, Taiwan, and perhaps China, as well as some
states in the Middle East and Latin America are likely to take this
approach.
Other states in varying degrees will lack the resources and leadership
to achieve effective governance. Most autocratic states in the Middle
East and Africa will not have the institutions or cultural orientation
to exploit the opportunities provided by nonstate actors - apart from
certain forms of humanitarian assistance. In many of these countries,
nonstate actors will become more important than governments in providing
services, such as health clinics and schools. In the weakest of these
countries, communal, criminal, or terrorist groups will seek control of
government institutions and/or territory.
Overall, the number of states - which has more than tripled since 1945
and has grown 20 percent since 1990 - is likely to increase at a slower
rate through 2015. This growth will result from remaining cases of
decolonization and to communal tensions leading to state secession, most
likely in Sub-Saharan Africa, Central Asia, and Indonesia. In some
cases, new states will inspire other secessionist movements,
destabilizing countries where minorities were not initially seeking
secession.
At the same time, the very concept of "belonging" to a
particular state probably will erode among a growing number of people
with continuing transnational ties to more than one country through
citizenship, residence or other associations.
28. International Cooperation
Globalization and technological change are raising widespread
expectations that increased international cooperation will help manage
many transnational problems that states can no longer manage on their
own. Efforts to realize such expectations will increase, but concerns
about national interests as well as the costs and risks involved in some
types of international activism will limit success.
Mechanisms of international cooperation - intended to facilitate
bargaining, elucidate common interests and resolve differences among
states - have increased rapidly in recent decades.
International treaties registered with the United Nations more than
tripled between 1970 and 1997. In addition, there are growing numbers of
agreements on standards and practices initiated by self-selected private
networks.
The number of international institutions increased by two-thirds from
1985 until 1999, while at the same time becoming more complex, more
interrelated with often overlapping areas of responsibility, and more
closely linked to transnational networks and private groups.
International cooperation will continue to increase through 2015,
particularly when large economic stakes have mobilized the for-profit
sector, and/or when there is intense interest from nonprofit groups and
networks.
Most high-income democratic states will participate in multiple
international institutions and seek cooperation on a wide range of
issues to protect their interests and to promote their influence.
Members of the European Union will tackle the most ambitious agenda,
including significant political and security cooperation.
Strongly nationalistic and/or autocratic states will play selective
roles in inter-governmental organizations: working within them to
protect and project their interests, while working against initiatives
that they view as threatening to their domestic power structures and
national sovereignty. They will also work against those international
institutions viewed as creatures of the established great powers and
thus rigged against them - such as the IMF and the WTO - as well as
those that cede a major role to nonstate actors.
Low-income developing countries will participate actively in
international organizations and arrangements to assert their
sovereignty, garner resources for social and economic development, and
gain support for the incumbent government. The most unstable of these
states will participate in international organizations and arrangements
primarily to maintain international recognition for the regime.
Cooperation is likely to be effective in such areas as:
-
Monitoring
international financial flows and financial safehavens.
-
Law
enforcement against corruption, and against trafficking in narcotics
and women and children.
-
Monitoring
meteorological data and warning of extreme weather events.
-
Selected
environmental issues, such as reducing substances that deplete the
ozone layer or conserving high-seas fisheries.
-
Developing
vaccines or medicines against major infectious diseases, such as
HIV/AIDS or malaria and surveillance of infectious disease
outbreaks.
-
Humanitarian
assistance for refugees and for victims of famines, natural
disasters, and internal conflicts where relief organizations can
gain access.
-
Counterterrorism.
-
Efforts
by international and regional organizations to resolve some internal
and interstate conflicts, particularly in Africa.
Cooperation
is likely to be contentious and with mixed results in such areas as:
-
Conditions
under which Intellectual Property Rights are protected.
-
Reform
and strengthening of international financial institutions,
particularly the Bretton Woods institutions.
-
Expansion
of the UN Security Council.
-
Adherence
by major states to an International Criminal Court with universal,
comprehensive jurisdiction.
-
Control
of greenhouse gas emissions to reduce global warming, carrying out
the purposes of the 1997 Kyoto Protocol on Climate Change.
-
Acceptance
of genetically-modified organisms to improve nutrition and health in
poor regions.
-
Establishing
peacekeeping forces and standby military forces under the authority
of the UN Security Council or most regional organizations, with the
possible exception of the EU.
-
Military
action by forces authorized by the United Nations to correct abuses
of human rights within states, pursuant to an asserted principle of
humanitarian intervention or an expanded right of secession.
Although "coalitions of the willing" will undertake such
operations from time to time, a significant number of states will
continue to view such interventions as illegitimate interference in
the internal affairs of sovereign states.
-
Proposed
new rights to enjoy or appropriate elements of the "global
commons," such as a right to "open borders" for
people from lower-income countries.
29. Future Conflict
Through 2015, internal conflicts will pose the most frequent threat to
stability around the world. Interstate wars, though less frequent, will
grow in lethality due to the availability of more destructive
technologies. The international community will have to deal with the
military, political, and economic dimensions of the rise of China and
India and the continued decline of Russia.
30. Internal Conflicts
Many internal conflicts, particularly those arising from communal
disputes, will continue to be vicious, long-lasting and difficult to
terminate - leaving bitter legacies in their wake.
They frequently will spawn internal displacements, refugee flows,
humanitarian emergencies, and other regionally destabilizing
dislocations. If left to fester, internal conflicts will trigger
spillover into inter-state conflicts as neighboring states move to
exploit opportunities for gain or to limit the possibilities of damage
to their national interests. Weak states will spawn recurrent internal
conflicts, threatening the stability of a globalizing international
system.
Internal conflicts stemming from state repression, religious and ethnic
grievances, increasing migration pressures, and/or indigenous protest
movements will occur most frequently in Sub-Saharan Africa, the Caucasus
and Central Asia, and parts of south and southeast Asia, Central America
and the Andean region.
The United Nations and several regional organizations will continue to
be called upon to manage some internal conflicts because major states -
stressed by domestic concerns, perceived risk of failure, lack of
political will, or tight resources - will wish to minimize their direct
involvement. When, however, some Western governments, international and
regional organizations, and civil-society groups press for outside
military intervention in certain internal conflicts, they will be
opposed by such states as China, India, Russia and many developing
countries that will tend to view interventions as dangerous precedents
challenging state sovereignty.
31. Transnational Terrorism
States with poor governance; ethnic, cultural, or religious tensions;
weak economies; and porous borders will be prime breeding grounds for
terrorism. In such states, domestic groups will challenge the entrenched
government, and transnational networks seeking safehavens.
At the same time, the trend away from state-supported political
terrorism and toward more diverse, free-wheeling, transnational networks
- enabled by information technology - will continue. Some of the states
that actively sponsor terrorism or terrorist groups today may decrease
or even cease their support by 2015 as a result of regime changes,
rapprochement with neighbors, or the conclusion that terrorism has
become counterproductive. But weak states also could drift toward
cooperation with terrorists, creating defacto new state supporters.
Between now and 2015 terrorist tactics will become increasingly
sophisticated and designed to achieve mass casualties. We expect the
trend toward greater lethality in terrorist attacks to continue.
32. Interstate Conflicts
Over the next 15 years, the international system will have to adjust to
changing power relationships in key regions:
China's potential. Estimates of China beyond five years are
fraught with unknowables. Some projections indicate that Chinese power
will rise because of the growth of its economic and military
capabilities. Other projections indicate that the array of political,
social, and economic pressures will increasingly challenge the stability
and legitimacy of the regime. Most assessments today argue that China
will seek to avoid conflict in the region to promote stable economic
growth and to ensure internal stability. A strong China, others assert,
would seek to adjust regional power arrangements to its advantage,
risking conflict with neighbors and some powers external to the region.
A weak China would increase prospects for criminality, narcotics
trafficking, illegal migration, WMD proliferation, and widespread social
instability.
Russia's decline. By 2015, Russia will be challenged even more
than today to adjust its expectations for world leadership to the
dramatically reduced resources it will have to play that role. The
quality of Russian governance is an open question as is whether the
country will be able to make the transition in a manner that preserves
rather than upsets regional stability.
Japan's uncertainty. In the view of many experts, Japan will have
difficulty maintaining its current position as the world's third largest
economy by 2015. Tokyo has so far not shown a willingness to carry
through the painful economic reforms necessary to slow the erosion of
its leadership role in Asia. In the absence of an external shock, Japan
is similarly unlikely to accelerate changes in security policy.
India's prospects. India will strengthen its role as a regional
power, but many uncertainties about the effects of global trends on its
society cast doubt on how far India will go. India faces growing
extremes between wealth and poverty, a mixed picture on natural
resources, and problems with internal governance.
The changing dynamics of state power will combine with other factors to
affect the risk of conflict in various regions. Changing military
capabilities will be prominent among the factors that determine the risk
of war. In South Asia, for example, that risk will remain fairly high
over the next 15 years. India and Pakistan are both prone to
miscalculation. Both will continue to build up their nuclear and missile
forces.
India most likely will expand the size of its nuclear-capable force.
Pakistan's nuclear and missile forces also will continue to increase.
Islamabad has publicly claimed that the number of nuclear weapons and
missiles it deploys will be based on "minimum" deterrence and
will be independent of the size of India's arsenal. A noticeable
increase in the size of India's arsenal, however, would prompt Pakistan
to further increase the size of its own arsenal.
Russia will be unable to maintain conventional forces that are both
sizable and modern or to project significant military power with
conventional means. The Russian military will increasingly rely on its
shrinking strategic and theater nuclear arsenals to deter or, if
deterrence fails, to counter large-scale conventional assaults on
Russian territory.
Moscow will maintain as many strategic missiles and associated nuclear
warheads as it believes it can afford but well short of START I or II
limitations. The total Russian force by 2015, including air launched
cruise missiles, probably will be below 2,500 warheads.
As Russia struggles with the constraints on its ambitions, it will
invest scarce resources in selected and secretive military technology
programs, especially WMD, hoping to counter Western conventional and
strategic superiority in areas such as ballistic missile defense.
China's People's Liberation Army (PLA) will remain the world's largest
military, but the majority of the force will not be fully modernized by
2015. China could close the technological gap with the West in one or
more major weapons systems. China's capability for regional military
operations is likely to improve significantly by 2015.
China will be exploiting advanced weapons and production technologies
acquired from abroad - Russia, Israel, Europe, Japan, and the United
States - that will enable it to integrate naval and air capabilities
against Taiwan and potential adversaries in the South China Sea.
In the event of a peaceful resolution of the Taiwan issue, some of
China's military objectives - such as protecting the sea lanes for
Persian Gulf oil - could become more congruent with those of the United
States. Nevertheless, as an emerging regional power, China would
continue to expand its influence without regard to US interests.
China by 2015 will have deployed tens to several tens of missiles with
nuclear warheads targeted against the United States, mostly more
survivable land- and sea-based mobile missiles. It also will have
hundreds of shorter-range ballistic and cruise missiles for use in
regional conflicts. Some of these shorter-range missiles will have
nuclear warheads; most will be armed with conventional warheads.
China: How to Think About Its Growing Wealth and Power: China has
been riding the crest of a significant wave of economic growth for two
decades. Many experts assess that China can maintain a growth rate of 7
percent or more for many years. Such impressive rates provide a
foundation for military potential, and some predict that China's rapid
economic growth will lead to a significant increase in military
capabilities. But the degree to which an even more powerful economy
would translate into greater military power is uncertain.
The relationship between economic growth and China's overall power will
derive from the priorities of leaders in Beijing - provided the regime
remains stable. China's leaders have assessed for some years that
comprehensive national power derives both from economic strength and
from the military and diplomatic resources that a healthy, large economy
makes possible. They apparently agree that, for the foreseeable future,
such priorities as agricultural and national infrastructure
modernization must take precedence over military development. In the
absence of a strong national security challenge, this view is unlikely
to change even as new leaders emerge in Beijing. In a stable
environment, two leadership transitions will occur in China between now
and 2015. The evidence strongly suggests that the new leaders will be
even more firmly committed to developing the economy as the foundation
of national power and that resources for military capabilities will take
a secondary role. Existing priorities and projected defense allocations
could enable the PLA to emerge as the most powerful regional military
force.
Beyond resource issues, China faces daunting challenges in producing
defense systems. Beijing has yet to demonstrate an assured capacity to
translate increasingly sophisticated science and technology advances
into first-rate military production. To achieve this, China must effect
reforms in its State Owned Enterprises (SOEs), develop a capacity for
advanced systems integration skills, and recruit and retain
technologically sophisticated officers and enlisted personnel.
A decision to alter priorities to emphasize military development would
require substantial change in the leadership. Internal instability or a
rise in nationalism could produce such change but also probably would
result in economic decline.
Japan has a small but modern military force, more able than any other in
Asia to integrate large quantities of new weaponry. Japan's future
military strength will reflect the state of its economy and the health
of its security relationship with the United States. Tokyo will
increasingly pursue greater autonomy in security matters and develop
security enhancements, such as defense improvements and more active
diplomacy, to supplement the US alliance.
A unified Korea with a significant US military presence may become a
regional military power. For the next 10 to 15 years, however,
knowledgeable observers suggest that the process of unification will
consume South Korea'senergies and resources.
Absent unification, North Korea's WMD capabilities will continue to
cloud regional stability. P'yongyang probably has one, possibly two,
nuclear weapons. It has developed medium-range missiles for years and
has tested a three-stage space launch vehicle.
P'yonyang may improve the accuracy, range, and payload capabilities of
its Taepo Dong-2 ICBM, deploy variants, or develop more capable systems.
North Korea could have a few to several Taepo Dong-2 type missiles
deployed by 2005.
In the Middle East, the confluence of domestic economic pressures and
regional rivalries is likely to further the proliferation of weapons of
mass destruction and the means to deliver them. By contrast, spending on
conventional arms probably will remain stable or decline in most
countries. Some governments may maintain large armed forces to absorb
otherwise unemployable youths, but such armies will be less well trained
and equipped. Rather than conventional war, the region is likely to
experience more terrorism, insurgencies, and humanitarian emergencies
arising from internal disparities or disputes over ethnic or religious
identity.
Iran sees its short- and medium-range missiles as deterrents, as
force-multiplying weapons of war, primarily with conventional warheads,
and as options for delivering biological, chemical, and eventually
nuclear weapons. Iran could test an IRBM or land-attack cruise missile
by 2004 and perhaps even an ICBM or space launch vehicle as early as
2001.
Iraq's ability to obtain WMD will be influenced, in part, by the degree
to which the UN Security Council can impede development or procurement
over the next 15 years. Under some scenarios, Iraq could test an ICBM
capable of delivering nuclear-sized payloads to the United States before
2015; foreign assistance would affect the capabilities of the missile
and the time it became available. Iraq could also develop a nuclear
weapon during this period.
33. Reacting to US Military Superiority
Experts agree that the United States, with its decisive edge in both
information and weapons technology, will remain the dominant military
power during the next 15 years. Further bolstering the strong position
of the United States are its unparalleled economic power, its university
system, and its investment in research and development - half of the
total spent annually by the advanced industrial world. Many potential
adversaries, as reflected in doctrinal writings and statements, see US
military concepts, together with technology, as giving the United States
the ability to expand its lead in conventional warfighting capabilities.
This perception among present and potential adversaries will continue to
generate the pursuit of asymmetric capabilities against US forces and
interests abroad as well as the territory of the United States. US
opponents - state and such nonstate actors as drug lords, terrorists,
and foreign insurgents - will not want to engage the US military on its
terms. They will choose instead political and military strategies
designed to dissuade the United States from using force, or, if the
United States does use force, to exhaust American will, circumvent or
minimize US strengths, and exploit perceived US weaknesses. Asymmetric
challenges can arise across the spectrum of conflict that will confront
US forces in a theater of operations or on US soil.
Central Asia: Regional Hot Spot? The interests of Russia, China,
and India - as well as of Iran and Turkey - will intersect in Central
Asia; the states of that region will attempt to balance those powers as
well as keep the United States and the West engaged to prevent their
domination by an outside power. The greatest danger to the region,
however, will not be a conflict between states, which is unlikely, but
the corrosive impact of communal conflicts and politicial insurgencies,
possibly abetted by outside actors and financed at least in part by
narcotraffickers.
It is also generally recognized that the United States and other
developed countries will continue to possess the political, economic,
military, and technological advantages - including through National
Missile and Theater Missile Defense systems - to reduce the gains of
adversaries from lateral or "side-wise" technological
improvements to their capabilities.
Threats to Critical Infrastructure. Some potential adversaries
will seek ways to threaten the US homeland. The US national
infrastructure - communications, transportation, financial transactions,
energy networks - is vulnerable to disruption by physical and electronic
attack because of its interdependent nature and by cyber attacks because
of their dependence on computer networks. Foreign governments and groups
will seek to exploit such vulnerabilities using conventional munitions,
information operations, and even WMD. Over time, such attacks
increasingly are likely to be delivered by computer networks rather than
by conventional munitions, as the affinity for cyber attacks and the
skill of US adversaries in employing them evolve. Cyber attacks will
provide both state and nonstate adversaries new options for action
against the United States beyond mere words but short of physical attack
- strategic options that include selection of either nonlethal or lethal
damage and the prospect of anonymity.
Information Operations. In addition to threatening the US
national infrastructure, adversaries will seek to attack US military
capabilities through electronic warfare, psychological operations,
denial and deception, and the use of new technologies such as directed
energy weapons or electromagnetic pulse weapons. The primary purpose
would be to deny US forces information superiority, to prevent US
weapons from working, and to undermine US domestic support for US
actions. Adversaries also are likely to use cyber attacks to complicate
US power projection in an era of decreasing permanent US military
presence abroad by seeking to disrupt military networks during
deployment operations - when they are most stressed. Many countries have
programs to develop such technologies; few have the foresight or
capability to fully integrate these various tools into a comprehensive
attack. But they could develop such capabilities over the next decade
and beyond.
Terrorism. Much of the terrorism noted earlier will be directed
at the United States and its overseas interests. Most anti-US terrorism
will be based on perceived ethnic, religious or cultural grievances.
Terrorist groups will continue to find ways to attack US military and
diplomatic facilities abroad. Such attacks are likely to expand
increasingly to include US companies and American citizens. Middle East
and Southwest Asian-based terrorists are the most likely to threaten the
United States.
Weapons of Mass Destruction. WMD programs reflect the motivations
and intentions of the governments that produce them and, therefore, can
be altered by the change of a regime or by a regime's change of view.
Linear projections of WMD are intended to assess what the picture will
look like if changes in motivations and intentions do not occur.
Short and medium-range ballistic missiles, particularly if armed with
WMD, already pose a significant threat overseas to US interests,
military forces, and allies. By 2015, the United States, barring major
political changes in these countries, will face ICBM threats from North
Korea, probably from Iran, and possibly from Iraq, in addition to
long-standing threats from Russia and China.
Weapons development programs, in many cases fueled by foreign
assistance, have led to new capabilities - as illustrated by Iran's
Shahab-3 launches in 1998 and 2000 and North Korea's Taepo Dong-1 space
launch attempt in August 1998. In addition, some countries that have
been traditional recipients of missile technologies have become
exporters.
Sales of ICBMs or space launch vehicles, which have inherent ICBM
capabilities, could further increase the number of countries that will
be able to threaten the United States with a missile strike.
The probability that a missile armed with WMD would be used against US
forces or interests is higher today than during most of the Cold War and
will continue to grow. The emerging missile threats will be mounted by
countries possessing considerably fewer missiles with far less accuracy,
yield, survivability, reliability, and range-payload capability than the
strategic forces of the Soviet Union. North Korea's space launch attempt
in 1998 demonstrated that P'yongyang is seeking a long-range missile
capability that could be used against US forces and interests abroad and
against US territory itself. Moreover, many of the countries developing
longer-range missiles assess that the mere threat of their use would
complicate US crisis decisionmaking and potentially would deter
Washington from pursuing certain objectives.
Other means to deliver WMD against the United States will emerge, some
cheaper and more reliable and accurate than early-generation ICBMs. The
likelihood of an attack by these means is greater than that of a WMD
attack with an ICBM. The goal of the adversary would be to move the
weapon within striking distance by using short- and medium-range
missiles deployed on surface ships or covert missions using military
special operations forces or state intelligence services. Non-missile
delivery means, however, do not provide the same prestige, deterrence,
and coercive diplomacy associated with ICBMs.
The risks of escalation inherent in direct armed conflict will be
magnified by the availability of WMD; consequently, proliferation will
tend to spur a reversion to prolonged, lower-level conflict by other
means: intimidation, subversion, terrorism, proxies, and guerrilla
operations. This trend already is evident between Israel and some of its
neighbors and between India and Pakistan. In the event of war, urban
fighting will be typical and consequently, civilian casualties will be
high relative to those among combatants. Technology will count for less,
and large, youthful, and motivated populations for more. Exploitation of
communal divisions within an adversary's civil populations will be seen
as a key to winning such conflicts - increasing their bitterness and
thereby prolonging them.
Chemical and biological threats to the United States will become more
widespread; such capabilities are easier to develop, hide, and deploy
than nuclear weapons. Some terrorists or insurgents will attempt to use
such weapons against US interests - against the United States itself,
its forces or facilities overseas, or its allies. Moreover, the United
States would be affected by the use of such weapons anywhere in the
world because Washington would be called on to help contain the damage
and to provide scientific expertise and economic assistance to deal with
the effects. Such weapons could be delivered through a variety of means,
including missiles, unmanned aerial vehicles, or covertly via land, air,
and sea.
Defense-related technologies will advance rapidly over the next 15 years
- particularly precision weapons, information systems and
communications. The development and integrated application of these
technologies will occur mostly in the advanced countries, particularly
the United States. Given the high costs and complexity of technical and
operational integration, few nations will assign high priority to the
indigenous development of such military technology.
Non-US global defense spending has dropped some 50 percent since the
late 1980s. "Military modernization accounts," particularly
procurement, have been hit hard.
The global arms market has decreased by more than 50 percent during the
same period.
Indications are that global defense spending may be recovering from
mid-1990s lows; part of East Asia, for example, could experience rises
in defense spending over the next decade, but, overall, long-term
spending patterns are uncertain.
Over the past decade, a slow but persistent transformation has occurred
in the arms procurement strategies of states. Many states are attempting
to diversify sources of arms for reasons that vary from fears of arms
embargoes, to declining defense budgets, or to a desire to acquire
limited numbers of cutting-edge technologies. Their efforts include
developing a mix of indigenous production; codeveloping, coproducing, or
licensing production; purchasing entire weapon systems; or leasing
capabilities. At the same time, many arms-producing states, confronted
with declining domestic arms needs but determined to maintain defense
industries, are commercializing defense production and aggressively
expanding arms exports.
Together, the above factors suggest:
Technology diffusion to those few states with a motivation to arm and
the economic resources to do so will accelerate as weapons and
militarily relevant technologies are moved rapidly and routinely across
national borders in response to increasingly commercial rather than
security calculations. For such militarily related technologies as the
Global Positioning System, satellite imagery, and communications,
technological superiority will be difficult to maintain for very long.
In an environment of broad technological diffusion, nonmaterial elements
of military power - strategy, doctrine, and training - will increase in
importance over the next 15 years in deciding combat outcomes.
Export regimes and sanctions will be difficult to manage and less
effective in controlling arms and weapons technology transfers. The
resultant proliferation of WMD and long-range delivery systems would be
destabilizing and increase the risk of miscalculation and conflict that
produces high casualties.
Advantages will go to states that have a strong commercial technology
sector and develop effective ways to link these capabilities to their
national defense industrial base. States able to optimize private and
public sector linkages could achieve significant advancements in weapons
systems.
The twin developments outlined above - constrained defense spending
worldwide combined with increasing military technological potential -
preclude accurate forecasts of which technologies, in what quantity and
form, will be incorporated in the military systems of future
adversaries. In many cases, the question will not be which technologies
provide the greatest military potential but which will receive the
political backing and resources to reach the procurement and fielding
stage. Moreover, civilian technology development already is driving
military technology development in many countries.
Theater-range ballistic and cruise missile proliferation will continue.
Most proliferation will involve systems a generation or two behind state
of the art, but they will be substantially new capabilities for the
states that acquire them. Such missiles will be capable of delivering
WMD or conventional payloads inter-regionally against fixed targets.
Major air and sea ports, logistics bases and facilities, troop
concentrations, and fixed communications nodes increasingly will be at
risk.
Land-attack cruise missiles probably will be more accurate than
ballistic missiles.
Access to Space. US competitors and adversaries realize the
degree to which access to space is critical to US military power, and by
2015 they will have made strides in countering US space dominance.
International commercialization of space will give states and nonstate
adversaries access rivaling today's major space powers in such areas as
high-resolution reconnaissance and weather prediction, global encrypted
communications, and precise navigation. When combined, such services
will provide adversaries who are aware of US and allied force
deployments the capability for precise targeting and global coordination
of operations. Moreover, many adversaries will have developed
capabilities to degrade US space assets - in particular, with attacks
against ground facilities, electronic warfare, and denial and deception.
By 2015, several countries will have such counterspace technologies as
improved space-object tracking, signal jamming, and directed-energy
weapons such as low-power lasers.
Arms Control: An Uncertain Agenda: The last three decades
witnessed significant negotiations between the United States and the
Soviet Union (and Russia), but the future probably will not replicate
those efforts in form or magnitude.
The INF, CFE, and START I treaties and, to a large extent, the CWC were
concluded in an effort to reduce tensions during the Cold War.
Verification and monitoring in each of these treaties were viewed as
essential to their implementation.
Prospects for bilateral arms control between the major powers probably
will be dim over the next 15 years; progress in multilateral regimes -
with less intrusive and lower-certainty monitoring - probably will grow
sporadically. Beyond this generalization:
Efforts will be incremental, focusing mainly on extensions,
modifications or adaptations of existing treaties, such as START III
between the United States and Russia or a protocol enhancing
verification of the Biological Weapons Convention.
Efforts will assume a more regional focus as countries of concern
continue developing their own WMD arsenals.
Safeguarding and controlling transfer of materials and technology for
nuclear weapons and missile delivery systems will take on greater
importance.
Formal agreements probably will contain limited monitoring or
verification provisions.
Agreements are more likely to be asymmetrical in terms of the goals and
outcomes. For example, a form of barter may become the norm. Sides will
negotiate dissimilar commitments in reaching agreement. An example would
be North Korea's willingness to give up nuclear weapons and missiles in
return for electric power and space launch services.
34. Major Regions
The following snapshots of individual regions result from our assessment
of trends and from estimates by regional experts as to where specific
nations will be in 15 years. To make these judgments, we have distilled
the views expressed by many outside experts in our conferences and
workshops. The results are intended to stimulate debate, not to endorse
one view over another.
35. East and Southeast Asia
Regional Trends. East Asia over the next 15 years will be
characterized by uneven economic dynamism - both between and within
states - political and national assertiveness rather than ideology, and
potential for strategic tension if not outright conflict.
The states of the region will be led by generally nationalistic
governments eschewing ideology and focusing on nation-building and
development. These states will broadly accommodate international norms
on the free flow of information to modernize their economies, open
markets, and fight international crime and disease. They also will
encounter pressure for greater political pluralism, democracy, and
respect for human rights. Failure to meet popular expectations probably
will result in leaders being voted out of office in democratic states or
in widespread demonstrations and violence leading to regime collapse in
authoritarian states.
Political and Security Trends. The major power realignments and the more
fluid post-Cold War security environment in the region will raise
serious questions about how regional leaders will handle nascent
great-power rivalries (the US-China, China-Japan, China-India), related
regional "hot spots" (Taiwan, Korea, South China Sea), the
future of challenged political regimes (Indonesia, North Korea absent
unification, China), and communal tensions and minority issues (in
China, Indonesia, the Philippines, and Malaysia). On balance, the number
and range of rivalries and potential flashpoints suggest a
better-than-even chance that episodes of military confrontation and
conflict will erupt over the next 15 years.
The implications of the rise of China as an economic and increasingly
capable regional military power - even as the influence of Communism and
authoritarianism weakens - pose the greatest uncertainty in the area.
Adding to uncertainty are the prospects for - and implications of -
Korean unification over the next 15 years, and the evolution of Japan's
regional leadership aspirations and capabilities.
Instability in Russia and Central Asia, and the nuclear standoff between
India and Pakistan will be peripheral but still important in East Asian
security calculations. The Middle East will become increasingly
important as a primary source of energy.
Economic Dynamism. While governments in the region generally will accept
the need to accommodate international norms on ownership, markets,
trade, and investment, they will seek to block or slow the perceived
adverse economic, political, and social consequences of globalization.
The most likely economic outlook will be that rich societies - Japan,
Korea, Hong Kong, Taiwan, Singapore, and pockets in China and elsewhere
- will get richer, with Japan likely to continue to be a leader in
S&T development and applications for commercial use. In contrast,
the poor societies - Vietnam, Cambodia, Laos, and rural areas in western
China and elsewhere - will fall further behind. Greater economic links
are likely to have been forged between Taiwan, Hong Kong, and South
China as a result of the development of investment and infrastructure.
China will be increasingly integrated into the world economy through
foreign direct investiment, trade, and international capital markets.
Energy markets will have drawn the region more closely together despite
lingering issues of ownership of resources and territorial disputes.
Key uncertainties will persist on economic performance and political
stability, including the rising costs of pensions and services for
Japan's aging population; the adequacy of energy and water for China,
political leadership in Indonesia and China, and the impact of AIDS in
Cambodia, Thailand, and Vietnam.
Regional Interaction. Given the weakness of regional political-security
arrangements, the US political, economic, and security presence will
remain pronounced. At the same time, many countries in the region will
remain uncertain about US objectives, apprehensive of both US withdrawal
and US unilateralism. Key states, most significantly China and Japan,
will continue "hedging," by using diplomacy, military
preparations and other means to ensure that their particular interests
will be safeguarded, especially in case the regional situation
deteriorates.
Japan and others will seek to maintain a US presence, in part to counter
China's influence. Economic and other ties will bind Japan and China,
but historical, territorial, and strategic differences will underline
continuing wariness between the two. China will want good economic ties
to the United States but also will nurture links to Russia and others to
counter the possibility of US pressure against it and to weaken US
support for Taiwan and the US security posture in East Asia. US-China
confrontations over Taiwan or over broader competing security interests
are possible.
Although preserving the US alliance, Japanese leaders also will be less
certain they can rely on the United States to deal with some security
contingencies. More confident of their ability to handle security issues
independently, they will pursue initiatives internally and overseas that
are designed to safeguard Japanese interests without direct reference to
the US alliance.
36. South Asia
Regional Trends. The widening strategic and economic gaps between the
two principal powers, India and Pakistan - and the dynamic interplay
between their mutual hostility and the instability in Central Asia -
will define the South Asia region in 2015.
India will be the unrivaled regional power with a large military -
including naval and nuclear capabilities - and a dynamic and growing
economy. The widening India-Pakistan gap - destabilizing in its own
right - will be accompanied by deep political, economic, and social
disparities within both states. Pakistan will be more fractious,
isolated, and dependent on international financial assistance.
Other South Asian states - Bangladesh, Sri Lanka, and Nepal - will be
drawn closer to and more dependent on India and its economy. Afghanistan
will likely remain weak and a destabilizing force in the region and the
world.
Wary of China, India will look increasingly to the West, but its need
for oil and desire to balance Arab ties to Pakistan will lead to
strengthened ties to Persian Gulf states as well.
Demographic Challenges. Although population growth rates in South
Asia will decline, population still will grow by nearly 30 percent by
2015. India's population alone will grow to more than 1.2 billion.
Pakistan's projected growth from 140 million to about 195 million in
2015 will put a major strain on an economy already unable to meet the
basic needs of the current population. The percentage of urban dwellers
will climb steadily from the current 25-30 percent of the population to
between 40-50 percent, leading to continued deterioration in the overall
quality of urban life. Differential population growth patterns will
exacerbate inequalities in wealth. Ties between provincial and central
governments throughout the region will be strained.
Resource and Environmental Challenges. Water will remain South
Asia's most vital and most contested natural resource. Continued
population and economic growth and expansion of irrigated agriculture
over the next 15 years will increasingly stress water resources, and
pollution of surface and groundwater will be a serious challenge. In
India, per capita water availability is likely to drop by 50-75 percent.
Because many of the region's waterways are interstate, water could
become a source of renewed friction. Deforestation in India and Nepal
will exacerbate pollution, flooding, and land degradation in Bangladesh.
India in 2015. Indian democracy will remain strong, albeit more
factionalized by the secular-Hindu nationalist debate, growing
differentials among regions and the increase in competitive party
politics. India's economy, long repressed by the heavy hand of
regulation, is likely to achieve sustained growth to the degree reforms
are implemented. High-technology companies will be the most dynamic
agents and will lead the thriving service sector in four key urban
centers - Mumbai, New Delhi, Bangalore, and Chennai. Computer software
services and customized applications will continue to expand as India
strengthens economic ties to key international markets. Industries such
as pharmaceuticals and agro-processing also will compete globally.
Numerous factors provide India a competitive advantage in the global
economy. It has the largest English-speaking population in the
developing world; its education system produces millions of scientific
and technical personnel. India has a growing business-minded middle
class eager to strengthen ties to the outside world, and the large
Indian expatriate population provides strong links to key markets around
the world.
Despite rapid economic growth, more than half a billion Indians will
remain in dire poverty. Harnessing technology to improve agriculture
will be India's main challenge in alleviating poverty in 2015. The
widening gulf between "have" and "have-not" regions
and disagreements over the pace and nature of reforms will be a source
of domestic strife. Rapidly growing, poorer northern states will
continue to drain resources in subsidies and social welfare benefits.
Pakistan in 2015. Pakistan, our conferees concluded, will not
recover easily from decades of political and economic mismanagement,
divisive politics, lawlessness, corruption and ethnic friction. Nascent
democratic reforms will produce little change in the face of opposition
from an entrenched political elite and radical Islamic parties. Further
domestic decline would benefit Islamic political activists, who may
significantly increase their role in national politics and alter the
makeup and cohesion of the military - once Pakistan's most capable
institution. In a climate of continuing domestic turmoil, the central
government's control probably will be reduced to the Punjabi heartland
and the economic hub of Karachi.
Other Regional States. Prospects for Afghanistan, Bangladesh, and
Sri Lanka in 2015 appear bleak. Decades of foreign domination and civil
war have devastated Afghanistan's society and economy, and the country
is likely to remain internationally isolated, a major narcotics
exporter, and a haven for Islamic radicals and terrorist groups.
Bangladesh will not abandon democracy but will be characterized by
coalitions or weak one-party governments, fragile institutions of
governance, deep-seated leadership squabbles, and no notion of a loyal
opposition.
Security and Political Concerns Predominate. The threat of major
conflict between India and Pakistan will overshadow all other regional
issues during the next 15 years. Continued turmoil in Afghanistan and
Pakistan will spill over into Kashmir and other areas of the
subcontinent, prompting Indian leaders to take more aggressive
preemptive and retaliatory actions. India's conventional military
advantage over Pakistan will widen as a result of New Delhi's superior
economic position. India will also continue to build up its ocean-going
navy to dominate the Indian Ocean transit routes used for delivery of
Persian Gulf oil to Asia. The decisive shift in conventional military
power in India's favor over the coming years potentially will make the
region more volatile and unstable. Both India and Pakistan will see
weapons of mass destruction as a strategic imperative and will continue
to amass nuclear warheads and build a variety of missile delivery
systems.
37.
Russia and Eurasia
Regional Trends. Uncertainties abound about the future internal
configuration, geopolitical dynamics, and degree of turbulence within
and among former Soviet states. Russia and the other states of Eurasia
are likely to fall short in resolving critical impediments to economic
and political reform in their struggle to manage the negative legacies
of the Soviet period. Changing demographics, chronic economic
difficulties, and continued questions about governance will constrain
Russia's ability to project its power beyond the former Soviet republics
to the south, complicate Ukraine's efforts to draw closer to the West,
and retard the development of stable, open political structures
throughout the Caucasus and Central Asia. Those states that could make
progress on the basis of potential energy revenues are likely to fail
because of corruption and the absence of structural economic reform. The
rapid pace of scientific and technological innovation, as well as
globalization, will leave these states further behind the West as well
as behind the major emerging markets.
The economic challenges to these countries will remain daunting:
insufficient structural reform, poor productivity in agriculture as
compared with Western standards, decaying infrastructure and
environmental degradation. Corruption and organized crime, sustained by
drug trafficking, money laundering, and other illegal enterprises and,
in several instances, protected by corrupt political allies, will
persist.
Demographic pressures also will affect the economic performance and
political cohesiveness of these states. Because of low birthrates and
falling life expectancy among males, the populations of the Slavic core
and much of the Caucasus will continue to decline; Russian experts
predict that the country's population could fall from 146 million at
present to 130-135 million by 2015. At the other end of the spectrum,
the Central Asian countries will face a growing youth cohort that will
peak around 2010 before resuming a more gradual pattern of population
growth.
The centrality of Russia will continue to diminish, and by 2015
"Eurasia" will be a geographic term lacking a unifying
political, economic, and cultural reality. Russia and the western
Eurasian States will continue to orient themselves toward Europe but
will remain essentially outside of it. Because of geographic proximity
and cultural affinities, the Caucasus will be closer politically to
their neighbors to the south and west, with Central Asia drawing closer
to South Asia and China. Nonetheless, important interdependencies will
remain, primarily in the energy sphere.
Russia will remain the most important actor in the former Soviet Union.
Its power relative to others in the region and neighboring areas will
have declined, however, and it will continue to lack the resources to
impose its will.
The Soviet economic inheritance will continue to plague Russia. Besides
a crumbling physical infrastructure, years of environmental neglect are
taking a toll on the population, a toll made worse by such societal
costs of transition as alcoholism, cardiac diseases, drugs, and a
worsening health delivery system. Russia's population is not only
getting smaller, but it is becoming less and less healthy and thus less
able to serve as an engine of economic recovery. In macro economic terms
Russia's GDP probably has bottomed out. Russia, nevertheless, is still
likely to fall short in its efforts to become fully integrated into the
global financial and trading system by 2015. Even under a best case
scenario of five percent annual economic growth, Russia would attain an
economy less than one-fifth the size of that of the United States.
Many Russian futures are possible, ranging from political resurgence to
dissolution. The general drift, however, is toward authoritarianism,
although not to the extreme extent of the Soviet period. The factors
favoring this course are President Putin's own bent toward hierarchical
rule from Moscow; the population's general support of this course as an
antidote to the messiness and societal disruption of the post-Soviet
transition; the ability of the ruling elite to hold on to power because
of the lack of effective national opposition, thus making that elite
accountable only to itself; and the ongoing shift of tax resources from
the regions to the center. This centralizing tendency will contribute to
dysfunctional governance. Effective governance is nearly impossible
under such centralization for a country as large and diverse as Russia
and lacking well-ordered, disciplined national bureaucracies.
Recentralization, however, will be constrained by the interconnectedness
brought about by the global information revolution, and by the gradual,
although uneven, growth of civil society.
Russia will focus its foreign policy goals on reestablishing lost
influence in the former Soviet republics to the south, fostering ties to
Europe and Asia, and presenting itself as a significant player vis-a-vis
the United States. Its energy resources will be an important lever for
these endeavors. However, its domestic ills will frustrate its efforts
to reclaim its great power status. Russia will maintain the second
largest nuclear arsenal in the world as the last vestige of its old
status. The net outcome of these trends will be a Russia that remains
internally weak and institutionally linked to the international system
primarily through its permanent seat on the UN Security Council.
Ukraine's path to the West will be constrained by widespread corruption,
the power of criminal organizations, and lingering questions over its
commitment to the rule of law. Kiev will remain vulnerable to Russian
pressures, primarily because of its continued energy dependence, but
Ukrainians of all political stripes and likely to opt for independence
rather than reintegration into Russia's sphere of influence.
In 2015, the South Caucasus will remain in flux because of unresolved
local conflicts, weak economic fundamentals, and continued Russian
meddling. Georgia probably will have achieved a measure of political and
economic stability, fueled in part by energy transit revenues, but it
will remain the focus of Russian attention in the region. Armenia will
remain largely isolated and is likely to remain a Russian - or possibly
Iranian - client and, therefore, a regional wild card. Azerbaijan's
success in developing its energy sector is unlikely to bring widespread
prosperity: Baku will be a one-sector economy with pervasive corruption
at all levels of society.
In Central Asia, social, environmental, religious, and possibly ethnic
strains will grow. Wasteful water-intensive practices and pollution of
ground water and arable land will lead to continued shortages for
agricultural and energy generation. The high birthrates of the 1980s and
early 1990s will lead to strains on education, healthcare, and social
services. The region also is likely to be the scene of increased
competition among surrounding powers - Russia, China, India, Iran, and
possibly Turkey - for control, influence, and access to energy
resources. Developments in Afghanistan and Pakistan will threaten
regional stability.
38. The Middle East and North Africa
Regimes in the region - from Morocco to Iran - will have to cope with
demographic, economic and societal pressures from within and
globalization from without. No single ideology or philosophy will unite
any one state or group of states in response to these challenges,
although popular resentment of globalization as a Western intrusion will
be widespread. Political Islam in various forms will be an attractive
alternative for millions of Muslims throughout the region, and some
radical variants will continue to be divisive social and political
forces.
By 2015, Israel will have attained a cold peace with its neighbors, with
only limited social, economic, and cultural ties. There will be a
Palestinian state, but Israeli-Palestinian tensions will persist and
occasionally erupt into crises. Old rivalries among core states - Egypt,
Syria, Iraq, and Iran - will reemerge. International attention will
shift anew to the Persian Gulf, an increasingly important source of
energy resources to fuel the global economy, and oil revenues
anticipated for Iraq, Iran, and Saudi Arabia in particular will provide
strategic - and potentially destabilizing - options for those states.
New relationships between geographic regions could emerge between North
Africa and Europe (on trade); India, China and the Persian Gulf (on
energy); and Israel, Turkey, and India (on economic, technical, and in
the case of Turkey, security considerations).
A key driver for the Middle East over the next 15 years will be
demographic pressures, specifically how to provide jobs, housing, public
services, and subsidies for rapidly growing and increasingly urban
populations. By 2015, in much of the Middle East populations will be
significantly larger, poorer, more urban, and more disillusioned. In
nearly all Middle Eastern countries, more than half the population is
now under 20 years of age. These populations will continue to have very
large youth cohorts through 2015, with the labor force growing at an
average rate of 3.1 percent per year. The problem of job placement is
compounded by weak educational systems producing a generation lacking
the technical and problem-solving skills required for economic growth.
Globalization. With the exception of Israel, Middle Eastern
states will view globalization more as a challenge than an opportunity.
Although the Internet will remain confined to a small elite due to
relatively high cost, undeveloped infrastructures, and cultural
obstacles, the information revolution and other technological advances
probably will have a net destabilizing effect on the Middle East by
raising expectations, increasing income disparities, and eroding the
power of regimes to control information or mold popular opinion.
Attracting foreign direct investment will also be difficult: except for
the energy sector, investors will tend to shy away from these countries,
discouraged by overbearing state sectors; heavy, opaque, and arbitrary
government regulation; underdeveloped financial sectors; inadequate
physical infrastructure; and the threat of political instability.
Political Change. Most Middle Eastern governments recognize the
need for economic restructuring and even a modicum of greater political
participation, but they will proceed cautiously, fearful of undermining
their rule. As some governments or sectors embrace the new economy and
civil society while others cling to more traditional paradigms,
inequities between and within states will grow. Islamists could come to
power in states that are beginning to become pluralist and in which
entrenched secular elites have lost their appeal.
39. Sub-Saharan Africa
Regional Trends. The interplay of demographics and disease - as
well as poor governance - will be the major determinants of Africa's
increasing international marginalization in 2015. Most African states
will miss out on the economic growth engendered elsewhere by
globalization and by scientific and technological advances. Only a few
countries will do better, while a handful of states will have hardly any
relevance to the lives of their citizens. As Sub-Saharan Africa's
multiple and interconnected problems are compounded, ethnic and communal
tensions will intensify, periodically escalating into open conflict,
often spreading across borders and sometimes spawning secessionist
states.
In the absence of a major medical breakthrough, the relentless
progression of AIDS and other diseases will decimate the economically
productive adult population, sharply accentuate the continent's youth
bulge, and generate a huge cohort of orphaned children. This condition
will strain the ability of the extended family system to cope and will
contribute to higher levels of dissatisfaction, crime, and political
volatility.
Poverty and poor governance will further deplete natural resources and
drive rapid urbanization. As impoverished people flee unproductive rural
areas, many cities will double in population by 2015, but resources will
be inadequate to provide the needed expansion of water systems, sewers,
and health facilities. Cities will be sources of crime and instability
as ethnic and religious differences exacerbate the competition for ever
scarcer jobs and resources. The number of malnourished people will
increase by more than 20 percent and the potential for famine will
persist where the combination of internal conflict and recurring natural
disasters prevents or limits relief efforts.
Economic Prospects. Conditions for economic development in
Sub-Saharan Africa are limited by the persistence of conflicts, poor
political leadership and endemic corruption, and uncertain weather
conditions. Africa's most talented individuals will shun the public
sector or be lured abroad by greater income and security. Effective and
conscientious leaders are unlikely to emerge from undemocratic and
corrupt societies.
Most technological advances in the next 15 years - with the possible
exception of genetically modified crops - will not have substantial
positive impact on the African economies.
Although West Africa will play an increasing role in global energy
markets, providing 25 percent of North American oil imports in 2015, the
pattern of oil wealth fostering corruption rather than economic
development will continue.
There will be exceptions to this bleak overall outlook. The quality of
governance, rather than resource endowments, will be the key determinant
of development and differentiation among African states.
South Africa and Nigeria, the continent's largest economies, will remain
the dominant powers in the region through 2015. But their ability to
function as economic locomotives and stabilizers in their regions will
be constrained by large unmet domestic demands for resources to
stimulate employment, growth, and social services, including dealing
with AIDS. Even a robust South Africa will not exert a strong pull on
its partners in the Southern African Development Community (SADC). The
success of the South African economy will be more closely tied to its
relationship with the larger global economy than with Sub-Saharan
Africa.
Role of Nonstate Actors. The atrophy of special relationships
between European powers and their former colonies in Africa will be
virtually complete by 2015. Filling the void will be international
organizations and nonstate actors of all types: transnational religious
institutions; international nonprofit organizations, international crime
syndicates and drug traffickers; foreign mercenaries; and international
terrorists seeking safehavens.
Fundamentalist movements, especially proselytizing Islamic groups, will
plow fertile ground as Africans seek alternative ways to meet their
basic needs.
Internal conflicts will attract - and leaders will in some cases welcome
- foreign criminal organizations or mercenaries to assist in the
plundering of national assets, while faltering regimes will willingly
trade their sovereignty for cash.
International organizations will be heavily engaged in Sub-Saharan
Africa over the next 15 years, given its growing needs and slow growth
relative to other regions. Africa will continue to receive more
development assistance per capita than other regions of the world.
The international financial institutions will be a continuing presence
in Africa, as many donor countries funnel development assistance through
them. The perpetuation of poor governance and communal conflicts in a
region awash with guns will generate frequent natural and man-made
humanitarian crises, precipitating international humanitarian relief
efforts. The Economic Community of West African States (ECOWAS) and the
SADC will be the primary economic and political instruments through
which the continental powers, Nigeria and South Africa, exert their
leadership.
40. Europe
Regional Trends. Most of Europe in 2015 will be relatively
peaceful and wealthy. Its residents will do extensive business with the
rest of the world but politically will be more inward-looking than the
citizens of Europe in 2000. Looking out to 2015, Europe's agenda will be
to put in place the final components of EU integration; to take
advantage of globalization; to sustain a strong IT and S&T base to
tackle changing demographics; and to wean the Balkans away from virulent
nationalism.
EU enlargement, institutional reform, and a common foreign, security and
defense policy will play out over the next 15 years, so that by 2015 the
final contours of the "European project" are likely to be
firmly set. Having absorbed at least 10 new members, the European Union
will have achieved its geographic and institutional limits.
As a consequence of long delays in gaining EU entry (and the
after-effects of actual membership), leaders in some Central/Eastern
Europe countries will be susceptible to pressures from authoritarian,
nationalist forces on both the left and right. These forces will
capitalize on public resentment about the effects of EU policy and
globalization, including unemployment, foreign ownership, and cultural
penetration.
The EU will not include Russia. The Europeans, nevertheless, will seek
to engage Moscow - encouraging stability and maintaining dialogue.
Although Russia will continue to recede in importance to the European
governments, they will use US handling of Russia as a barometer of how
well or poorly Washington is exerting leadership and defending European
interests.
Economic Reform & Globalization. EU governments will continue to
seek a "third way" between state control and unbridled
capitalism: piecemeal and often unavowed economic reform driven in part
by an ever denser network of overseas business relationships and changes
in corporate governance. Lingering labor market rigidity and state
regulation will hamper restructuring, retooling, and reinvestment
strategies. Europe will trail the United States in entrepreneurship and
innovation as governments seek ways to balance encouragement of these
factors against social effects. Thus, Europe will not achieve fully the
dreams of parity with the United States as a shaper of the global
economic system.
In Prague, Vienna, and other European capitals, protestors have
questioned the merits of globalization. By 2015, Europe will have
globalized more extensively than some of its political rhetoric will
suggest. It also will have less difficulty than other regions coping
with rapid change because of high education and technological levels.
States will continue to push private sector competitiveness in the
international market. Three of the top five information technology
centers in the world will be in Europe: London, Munich, and Paris.
Many Europeans will see the role of foreign policy as protecting their
social and cultural identities from the "excesses" of
globalization - and from its "superpatron," the United States.
One of the ways in which leaders will respond will be to clamor for
greater political control over international financial and trade
institutions.
The aging of the population and low birthrates will be major challenges
to European prosperity and cohesion. Greater percentages of state
budgets will have to be allocated to the aging, while, at the same time,
there will be significant, chronic shortages both of highly skilled
workers in IT and other professions and unskilled workers in basic
services. Legal and illegal immigration will mitigate labor shortages to
a limited extent but at a cost in terms of social friction and crime. As
EU governments grapple with immigration policy and European and national
identity, anti-immigrant sentiment will figure more prominently in the
political arena throughout Western Europe.
Turkey. The future direction of Turkey, both internally and
geopolitically, will have a major impact on the region, and on US and
Western interests. Shifting political dynamics; debates over identity,
ethnicity and the role of religion in the state; and the further
development of civil society will figure prominently in Turkey's
domestic agenda. The road to Turkish membership in the EU will be long
and difficult, and EU member states will evaluate Turkey's candidacy not
only on the basis of economic performance, but on how well it tackles
this comprehensive agenda. Part of Turkey's success will hinge on the
effectiveness of a growing private sector in advancing Turkey's reform
efforts and its goal of full integration in the West. NATO's involvement
in the Ballkans and expected enlargement in southern Europe will
increase ties between Turkey and the West.
By dint of its history, location, and interests, Turkey will continue to
pay attention to its neighbors to the north - in the Caucasus and
Central Asia - and to the south and east - Syria, Iraq and Iran. With
few exceptions, these states will continue to struggle with questions of
governance. As Turkey crafts policies toward the countries in these
regions, no single issue will dominate its national security agenda.
Rather, Ankara will find itself having to cope with regional rivalries -
including what policies to adopt toward internal and interstate
conflicts - proliferation of weapons of mass destruction, the politics
and economics of energy transport, and water rights.
Europe and the World. Europe's agenda will require it to
demonstrate influence in world affairs commensurate with its size in
population and economic strength. The EU's global reach will be based
primarily on economics: robust trade and investment links to the United
States and growing ties to East and Southeast Asia and Latin America.
In dealing with matters outside the region, European leaders will
construe their global responsibilities as building legal mechanisms,
encouraging diplomatic contact, and - to a lesser extent - providing
nonmilitary aid. They will respond sporadically to foreign crises -
either through the UN or in ad hoc "coalitions of the willing"
with Washington or others - but they will not make strong and consistent
overseas commitments, particularly in regard to sending troops.
Transatlantic Links. Economic issues will have overtaken security
issues in importance by 2015, and the United States will see its
relations with Europe defined increasingly through the EU, not only on
the basis of trade but in the context of using economic tools - such as
aid and preferential trading regimes - to underwrite peace initiatives.
By 2015, NATO will have accepted many, but not all, Central/Eastern
European countries. European Security and Defense Policy will be set in
terms of partnership with, rather than replacement of, NATO.
41. Canada
Trends. Canada will be a full participant in the globalization
process in 2015 and a leading player in the Americas after the United
States, along with Mexico and Brazil. Ottawa will still be grappling
with the political, demographic, and cultural impact of heavy Asian
immigration in the West as well as residual nationalist sentiment in
French-speaking Quebec. The vast and diverse country, however, will
remain stable amidst constant, dynamic change.
Ottawa will continue to emphasize the importance of education, and
especially science and technology, for the new economy. Canada also will
promote policies designed to stem the flow of skilled workers south and
will seek to attract skilled immigrants - especially professionals from
East and South Asia - to ensure that Canada will be able to take full
advantage of global opportunities. The question of Quebec's place in the
country will continue to stir national debate.
Canada's status as the pre-eminent US economic partner will be even more
pronounced in 2015. National sensitivity to encroaching US culture will
remain, even as the two economies become more integrated. Ottawa will
retain its interests in the stability and prosperity of East Asia
because of growing Canadian economic, cultural, and demographic links to
the Pacific region. As additional trade links with Latin America are
developed through the North American Free Trade Agreement and a likely
Free Trade Area of the Americas, Canada increasingly will take advantage
of developments in the Western hemisphere. Although Canadians will focus
more on Latin America and less on Europe, they will still look to NATO
as the cornerstone of Western security. Like Europeans, Canadians will
judge US global leadership in terms of the relationship with Russia,
especially regarding strategic arms and National Missile Defense (NMD).
Despite the relatively small size of Canada's armed forces, Ottawa still
will seek to participate in global and regional discussions on the
future of international peacekeeping. Canada will continue to build on
its traditional support for international organizations by working to
ensure a more effective UN and greater respect for international
treaties, norms, and regimes. Canadians will be sympathetic to calls for
greater political "management" of globalization to help
mitigate adverse impacts on the environment and ensure that
globalization's benefits reach less advantaged regions and states.
42. Latin America
Regional Trends. By 2015, many Latin American countries will
enjoy greater prosperity as a result of expanding hemispheric and global
economic links, the information revolution, and lowered birthrates.
Progress in building democratic institutions will reinforce reform and
promote prosperity by enhancing investor confidence. Brazil and Mexico
will be increasingly confident and capable actors that will seek a
greater voice in hemispheric affairs. But the region will remain
vulnerable to financial crises because of its dependence on external
finance and the continuing role of single commodities in most economies.
The weakest countries in the region, especially in the Andean region,
will fall further behind. Reversals of democracy in some countries will
be spurred by a failure to deal effectively with popular demands, crime,
corruption, drug trafficking, and insurgencies.
Latin America - especially Venezuela, Mexico, and Brazil - will become
an increasingly important oil producer by 2015 and an important
component of the emerging Atlantic Basin energy system. Its proven oil
reserves are second only to those located in the Middle East.
Globalization Gains and Limits. Continued trade and investment
liberalization and the expansion of free trade agreements within and
outside of Latin America will be a significant catalyst of growth.
Regional trade integration through organizations such as MERCOSUR and
the likely conclusion of a Free Trade Area of the Americas will both
boost employment and provide the political context for governments to
sustain economic reforms even against opposing entrenched interest
groups.
Latin America's Internet market is poised to grow exponentially,
stimulating commerce, foreign investment, new jobs, and corporate
efficiency. Although Internet business opportunities will promote the
growth of firms throughout the region, Brazil, Argentina, and Mexico are
likely to be the biggest beneficiaries.
Shifting Demographics. Latin America's demographics will shift
markedly - to the distinct advantage of some countries - helping to ease
social strains and underpin higher economic growth. During the next 15
years, most countries will experience a substantial slowdown in the
number of new jobseekers, which will help reduce unemployment and boost
wages. But not all countries will enjoy these shifts; Bolivia, Ecuador,
Guatemala, Honduras, Nicaragua, and Paraguay will still face rapidly
increasing populations in need of work.
Democratization Progress and Setbacks. By 2015, key countries
will have made some headway in building sturdier and more capable
democratic institutions. Democratic institutions in Mexico, Argentina,
Chile, and Brazil appear poised for continued incremental consolidation.
In other countries, crime, public corruption, the spread of poverty, and
the failure of governments to redress worsening income inequality will
provide fertile ground for populist and authoritarian politicians.
Soaring crime rates will contribute to vigilantism and extrajudicial
killings by the police. Burgeoning criminal activity - including money
laundering, alien smuggling, and narcotrafficking - could overwhelm some
Caribbean countries. Democratization in Cuba will depend upon how and
when Fidel Castro passes from the scene.
Growing Regional Gaps. By 2015, the gap between the more
prosperous and democratic states of Latin America and the others will
widen. Countries that are unable or unwilling to undertake reforms will
experience slow growth at best. Several will struggle intermittently
with serious domestic political and economic problems such as crime,
corruption, and dependence on single commodities such as oil. Countries
with high crime and widespread corruption will lack the political
consensus to advance economic reforms and will face lower growth
prospects. Although poverty and inequality will remain endemic
throughout the region, high-fertility countries will face higher rates
of poverty and unemployment.
The Andean countries - Colombia, Venezuela, Ecuador, and Peru - are
headed for greater challenges of differing nature and origin.
Competition for scarce resources, demographic pressures, and a lack of
employment opportunities probably will cause workers' anger to mount and
fuel more aggressive tactics in the future. Fatigue with economic
hardship and deep popular cynicism about political institutions,
particularly traditional parties, could lead to instability in
Venezuela, Peru and Ecuador. Resolution of the long-running guerrilla
war is key to Colombia's future prospects. The Cuban economy under a
Castro Government will fall further behind most of the Latin American
countries that embrace globalization and adopt free market practices.
Rising Migration. Pressures for legal and illegal migration to
the United States and regionally will rise during the next 15 years.
Demographic factors, political instability, personal insecurity,
poverty, wage differentials, the growth of alien-smuggling networks, and
wider family ties will propel more Latin American workers to enter the
United States. El Salvador, Guatemala, Honduras, and Nicaragua will
become even greater sources of illegal migrants. In Mexico, declining
population growth and strong economic prospects will gradually diminish
pressures to seek work in the United States, but disparities in living
standards, US demand for labor, and family ties will remain strong pull
factors. Significant political instability during a transition process
in Cuba could lead to mass migration.
The growth of Central American and Mexican alien-smuggling networks will
exacerbate problems along the US border.
Illegal migration within the region will become a more contentious issue
between Latin American governments. Argentina and Venezuela already have
millions of undocumented workers from neighboring countries, and
resentment of illegal workers could increase. Although most Haitian
migrants will head for the United States, Haiti's Caribbean neighbors
will also experience further strains.
Significant Discontinuities: The trends outlined in this study
are based on the combinations of drivers that are most likely over the
next 15 years. Nevertheless, the drivers could produce trends quite
different from the ones described. Below are possibilities different
from those presented in the body of the study:
-
Serious
deterioration of living standards for the bulk of the population in
several major Middle Eastern countries and the failure of Israel and
the Palestinians to conclude even a "cold peace," lead to
serious, violent political upheavals in Egypt, Jordan, and Saudi
Arabia.
-
The trend
toward more diverse, free-wheeling transnational terrorist networks
leads to the formation of an international terrorist coalition with
diverse anti-Western objectives and access to WMD.
-
Another
global epidemic on the scale of HIV/AIDS, or rapidly changing
weather patterns attributable to global warming, with grave damage
and enormous costs for several developed countries - sparking an
enduring global consensus on the need for concerted action on health
issues and the environment.
-
A state
of major concern to US strategic interests - such as Iran, Nigeria,
Israel, or Saudi Arabia - fails to manage serious internal religious
or ethnic divisions and crisis ensues.
-
A growing
antiglobalization movement becomes a powerful sustainable global
political and cultural force - threatening Western governmental and
corporate interests.
-
China,
India, and Russia form a defacto geo-strategic alliance in an
attempt to counterbalance US and Western influence.
-
The
US-European alliance collapses, owing in part to intensifying trade
disputes and competition for leadership in handling security
questions.
-
Major
Asian countries establish an Asian Monetary Fund or less likely an
Asian Trade Organization, undermining the IMF and WTO and the
ability of the US to exercise global economic leadership.
Appendix
Four Alternative Global Futures
In September-October 1999, the NIC initiated work on Global Trends 2015
by cosponsoring with Department of State/INR and CIA's Global Futures
Project two unclassified workshops on Alternative Global Futures:
2000-2015. The workshops brought together several dozen government and
nongovernment specialists in a wide range of fields.
The first workshop identified major factors and events that would drive
global change through 2015. It focused on demography, natural resources,
science and technology, the global economy, governance, social/cultural
identities, and conflict and identified main trends and regional
variations. These analyses became the basis for subsequent elaboration
in Global Trends 2015.
The second workshop developed four alternative global futures in which
these drivers would interact in different ways through 2015. Each
scenario was intended to construct a plausible, policy-relevant story of
how this future might evolve: highlighting key uncertainties,
discontinuities, and unlikely or "wild card" events, and
identifying important policy and intelligence challenges.
Scenario One: Inclusive Globalization:
A virtuous circle develops among technology, economic growth,
demographic factors, and effective governance, which enables a majority
of the world's people to benefit from globalization. Technological
development and diffusion - in some cases triggered by severe
environmental or health crises - are utilized to grapple effectively
with some problems of the developing world. Robust global economic
growth - spurred by a strong policy consensus on economic liberalization
- diffuses wealth widely and mitigates many demographic and resource
problems. Governance is effective at both the national and international
levels. In many countries, the state's role shrinks, as its functions
are privatized or performed by public-private partnerships, while global
cooperation intensifies on many issues through a variety of
international arrangements. Conflict is minimal within and among states
benefiting from globalization. A minority of the world's people - in
Sub-Saharan Africa, the Middle East, Central and South Asia, and the
Andean region - do not benefit from these positive changes, and internal
conflicts persist in and around those countries left behind.
Scenario Two: Pernicious Globalization
Global elites thrive, but the majority of the world's population fails
to benefit from globalization. Population growth and resource scarcities
place heavy burdens on many developing countries, and migration becomes
a major source of interstate tension. Technologies not only fail to
address the problems of developing countries but also are exploited by
negative and illicit networks and incorporated into destabilizing
weapons. The global economy splits into three: growth continues in
developed countries; many developing countries experience low or
negative per capita growth, resulting in a growing gap with the
developed world; and the illicit economy grows dramatically. Governance
and political leadership are weak at both the national and international
levels. Internal conflicts increase, fueled by frustrated expectations,
inequities, and heightened communal tensions; WMD proliferate and are
used in at least one internal conflict.
Scenario Three: Regional Competition
Regional identities sharpen in Europe, Asia, and the Americas, driven by
growing political resistance in Europe and East Asia to US global
preponderance and US-driven globalization and each region's increasing
preoccupation with its own economic and political priorities. There is
an uneven diffusion of technologies, reflecting differing regional
concepts of intellectual property and attitudes towards biotechnology.
Regional economic integration in trade and finance increases, resulting
in both fairly high levels of economic growth and rising regional
competition. Both the state and institutions of regional governance
thrive in major developed and emerging market countries, as governments
recognize the need to resolve pressing regional problems and shift
responsibilities from global to regional institutions. Given the
preoccupation of the three major regions with their own concerns,
countries outside these regions in Sub-Saharan Africa, the Middle East,
and Central and South Asia have few places to turn for resources or
political support. Military conflict among and within the three major
regions does not materialize, but internal conflicts increase in and
around other countries left behind.
Scenario Four: Post-Polar World
US domestic preoccupation increases as the US economy slows, then
stagnates. Economic and political tensions with Europe grow, the
US-European alliance deteriorates as the United States withdraws its
troops, and Europe turns inward, relying on its own regional
institutions. At the same time, national governance crises create
instability in Latin America, particularly in Colombia, Cuba, Mexico,
and Panama, forcing the United States to concentrate on the region.
Indonesia also faces internal crisis and risks disintegration, prompting
China to provide the bulk of an ad hoc peacekeeping force. Otherwise,
Asia is generally prosperous and stable, permitting the United States to
focus elsewhere. Korea's normalization and de facto unification proceed,
China and Japan provide the bulk of external financial support for
Korean unification, and the United States begins withdrawing its troops
from Korea and Japan. Over time, these geostrategic shifts ignite
longstanding national rivalries among the Asian powers, triggering
increased military preparations and hitherto dormant or covert WMD
programs. Regional and global institutions prove irrelevant to the
evolving conflict situation in Asia, as China issues an ultimatum to
Japan to dismantle its nuclear program and Japan - invoking its
bilateral treaty with the US - calls for US reengagement in Asia under
adverse circumstances at the brink of a major war. Given the priorities
of Asia, the Americas, and Europe, countries outside these regions are
marginalized, with virtually no sources of political or financial
support.
Generalizations Across the Scenarios
The four scenarios can be grouped in two pairs: the first pair
contrasting the "positive" and "negative" effects of
globalization; the second pair contrasting intensely competitive but not
conflictual regionalism and the descent into regional military conflict.
In all but the first scenario, globalization does not create widespread
global cooperation. Rather, in the second scenario, globalization's
negative effects promote extensive dislocation and conflict, while in
the third and fourth, they spur regionalism.
In all four scenarios, countries negatively affected by population
growth, resource scarcities and bad governance, fail to benefit from
globalization, are prone to internal conflicts, and risk state failure.
In all four scenarios, the effectiveness of national, regional, and
international governance and at least moderate but steady economic
growth are crucial.
In all four scenarios, US global influence wanes.

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