SCARCITY & GLOBALIZATION : A NEEDIER ERA / THE ECONOMIST ( RECOMMENDED READING )

Scarcity and globalisation

A needier era

Jan 28th 2010
From The Economist print edition

The politics of global disruption, and how they may change

THE 1990s was “the age of abundance”, argued Brink Lindsey in a book of that title. Round the world, incomes were rising; capital markets were processing endless flows of money and investment; technological gains meant that ever more information was available ever more cheaply. And politics in the age of abundance, Mr Lindsey claimed, was all about values. In America this was the period of the “culture wars” over abortion and gun ownership; internationally, there was a huge expansion in concern over human rights.

The 2010s, it is sometimes said, will be an age of scarcity. The warning signs of change are said to be the food-price spike of 2007-08, the bid by China and others to grab access to oil, iron ore and farmland and the global recession. The main problems of scarcity are water and food shortages, demographic change and state failure. How will that change politics?

In the domestic debates of some rich democracies, things are shifting already. In Europe the talk is of how to distribute the pain of cutting public debts. In America the return of mad-as-hell populism looks like a turn away from the politics of abundance. Now, a report for the Brookings Institution, a think-tank in Washington, DC, and the Centre on International Co-operation at New York University* looks at international politics in an age of want.

The sort of problems governments increasingly face, they say, will be much less predictable than those associated with old great-power rivalries. Pressure from demography, climate change and shifts in economic power builds up quietly for a long time—and then triggers abrupt shifts.

They claim that the current global system is ill-designed for such a world. It is not just that the foreign policies of big countries are in flux. Rather, the way states deal with new threats is, in the jargon, “stove-piped”. As a UN panel said in 2004, “finance ministers tend to work only with the international financial institutions, development ministers only with development programmes.”

The authors say that what is needed is not merely institutional tinkering but a different frame of mind. Governments, they say, should think more in terms of reducing risk and increasing resilience to shocks than about boosting sovereign power. This is because they think power may not be the best way for states to defend themselves against a new kind of threat: the sort that comes not from other states but networks of states and non-state actors, or from the unintended consequences of global flows of finance, technology and so on.

What would all that mean in practice? They cite the Intergovernmental Panel on Climate Change (IPCC) and the Global Alliance for Vaccines and Immunisation as the sort of institutions they want more of: bodies that use technical expertise—leaving aside the IPCC’s mistake over the melting of Himalayan glaciers—to induce countries to recognise their mutual interests. Such agencies can promote foresight, and help governments think harder about the consequences of failure (unlike traditional diplomacy, which likes muddling along). They propose an Intergovernmental Panel on Biological Safety along the lines of the IPCC to improve biosecurity; they also suggest boosting the G20 by giving it a secretariat and getting national security chiefs together.

Many of these ideas may go nowhere; national sovereignty is hugely resilient. But to those who call the whole exercise pointless, they cite Milton Friedman, who, when monetarism was being mocked in the 1970s, replied “our basic function [is] to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes the politically inevitable.”

* “Confronting the Long Crisis of Globalization”. By Alex Evans, Bruce Jones and David Steven. Brookings/CIC. A member of The Economist served on an editorial board that reviewed an early draft of the paper.

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