Intelligence Report “Global Trends 2025” Says Leadership Is Key For World To Meet Dangerous Future

The National Intelligence Council (NIC) this month released a report, “Global Trends 2025: A Transformed World.”   This report looks at the next 17 years, and sees a potentially very dangerous world, “more fragmented and conflicted,” with huge population increases and dwindling resources.

The 120 page report (download pdf here)  concludes by saying, “Leadership Will Be Key:  As we indicated at the beginning of the study, human actions are likely to be the crucial determinant of the outcomes.  Historically, as we have pointed out, leaders and their ideas— positive and negative — were among the biggest game-changers during the last century.”

The NIC releases such a report every four years between Election Day and Inauguration Day.  Some of the Reports assessments are:

  • The whole international syste — as constructed following WWI — will be revolutionized. Not only will new players — Brazil, Russia, India and China — have a seat at the international high table, they will bring new stakes and rules of the game.
  • The unprecedented transfer of wealth roughly from West to East now under way will continue for the foreseeable future.
  • Unprecedented economic growth, coupled with 1.5 billion more people, will put pressure on resources — particularly energy, food, and water — raising the specter of scarcities emerging as demand outstrips supply.
  • The potential for conflict will increase owing partly to political turbulence in parts of the greater Middle East.

This report is 120 pages, and I’ve just started to read it.  Some highlights:

  • For the most part, China, India, and Russia are not following the Western liberal model for self- development but instead are using a different model, “state capitalism.”  State capitalism is a loose term used to describe a system of economic management that gives a prominent role to the state.  Other rising powers—South Korea, Taiwan, and Singapore—also used state capitalism to develop their economies.  However, the impact of Russia, and particularly China, following this path is potentially much greater owing to their size and approach to “democratization.”
  • Asia, Africa, and Latin America will account for virtually all population growth over the next 20 years; less than 3 percent of the growth will occur in the West.  Europe and Japan will continue to far outdistance the emerging powers of China and India in per capita wealth, but they will struggle to maintain robust growth rates because the size of their working-age populations will decrease.  The US will be a partial exception to the aging of populations in the developed world because it will experience higher birth rates and more immigration.
  • The World Bank estimates that demand for food will rise by 50 percent by 2030, as a result of growing world population, rising affluence, and the shift to Western dietary preferences by a larger middle class.  Lack of access to stable supplies of water is reaching critical proportions, particularly for agricultural purposes, and the problem will worsen because of rapid urbanization worldwide and the roughly 1.2 billion persons to be added over the next 20 years.  Today,
  • Experts consider 21 countries, with a combined population of about 600 million, to be either cropland or freshwater scarce.  Owing to continuing population growth, 36 countries, with about 1.4 billion people, are projected to fall into this category by 2025.
  • In the absence of employment opportunities and legal means for political expression, conditions will be ripe for disaffection, growing radicalism, and possible recruitment of youths into terrorist groups.  Terrorist groups in 2025 will likely be a combination of descendants of long- established groups—that inherit organizational structures, command and control processes, and training procedures necessary to conduct sophisticated attacks—and newly emergent collections of the angry and disenfranchised that become self-radicalized.


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Samuelson Warns Of Impact Of Lost Wealth On Total Economy

Robert J. Samuelson of Newsweek notes that since September 2007, Americans’ personal wealth has dropped about $9 trillion and that a common estimate is that every dollar’s change in wealth causes people to change their spending by 5 cents. If this estimate is correct, he says, $450 billion ($9 trillion times .05) will be missing from the economy.

Samuelson warns that this big drop in consumer spending could have devastating effects. He says, “If the swing toward saving is too sharp, consumer spending wouldn’t just weaken; it would collapse…. Vehicle sales have already plunged. In 2005, they totaled almost 17 million; Global Insight’s 2009 projection is 12.2 million. And these problems feed on each other. Lower consumer spending depresses profits and stock prices, which corrodes confidence, further dampens spending, raises unemployment and increases loan defaults. Credit card losses could be the next big blow to financial institutions.”

Samuelson points out how wild stock prices have moved: the stock market has changed by 4% or more 25 out of the last 50 trading days (16 down, nine up). In the last 25 years, on average, such big one day swings in stock prices have only occured once per year. Says Samuelson, “We’ve gone from one a year to one every other day.” He says, “The wild stock swings confirm the palpable fear and uncertainty. … What terrifies Americans is the prospect that the slump will become much worse than average—and that the government has lost control of events.”

He writes, “The hyper-anxiety is not irrational pessimism, though it may prove unfounded. Every major episode of this crisis—from Bear Stearns’s failure to General Motors’ possible bankruptcy—has come as a surprise. Similarly, the crisis’s three main causes have repeatedly been underestimated: the burst housing ‘bubble’; fragile financial institutions; and a reversal of the ‘wealth effect.’ Of these, the last is least recognized.

Samuelson fears that the $9 trillion in missing wealth, will cause a “wealth effect,” that will further depress consumer activity, leading to even more problems in the economy.

He writes, “The case for a sizable economic “stimulus” package is that it would temporarily compensate for the erosion of consumer spending. But if the positive “wealth effect” is now giving way to a lasting negative or neutral “wealth effect”—as people try to replenish savings and offset lost wealth—then even a recovery would be sluggish. A new source of demand is needed to sustain faster growth. An obvious solution is for high-saving Asian countries, led by China, to consume and spend more so that their imports increase. Whether they have the political capacity to reduce their dependence on export-led growth is unclear.”

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Sidwell Friends School Nurtures Love Of Learning: “Let The Light Shine Out From All”

Sidwell Friends School is known as “the Harvard of Washington’s private schools.” The Obamas have decided to send their daughters, Sasha and Malia, to Sidwell. Chelsea Clinton and Al Gore III (the former Vice President’s son) graduated from the school. Joe Biden’s grandchildren are current students. President Nixon’s daughter attended it.

Tuition at Sidwell is $28,442 per year in the lower school, and $29,442 in the middle school. There are just over 1,000 students.

Thomas Sidwell

Thomas Sidwell

The school this year celebrated its 125th year. It was started in 1883 by a 24 year old Quaker named Thomas Sidwell. In its first class, there were eighteen students.

Thomas chose a great motto for the school: Eluceat Omnibus Lux, meaning, “Let the light shine out from all.” The motto alludes to the Quaker concept of inner light. And the idea of bringing out this inner light in its students has been a consistent part of the school’s philosophy.

There must be a sweet story that binds together the first fifty years of the school. In 1885, Thomas hired a beautiful recent Vassar grad,Frances Haldeman, to teach Greek, English and history. Romance bloomed and in 1887 Thomas and Francis were married.

For the next fifty years, Sidwell School became a team effort of Thomas and Francis. They literally devoted their lives to teaching, administrating and building Sidwell School. Francis passed away in 1934 and Thomas continued at the school until his death in 1936.

Francis  Haldeman Sidwell

Francis Haldeman Sidwell

The school’s web-site says, “We are guided by the Quaker belief in ‘That of God’ in each person. We seek academically talented students of diverse cultural, racial, religious and economic backgrounds. We offer these students a rich and rigorous interdisciplinary curriculum designed to stimulate creative inquiry, intellectual achievement and independent thinking in a world increasingly without borders. We encourage these students to test themselves in athletic competition and to give expression to their artistic abilities. We draw strength from silence—and from the power of individual and collective reflection. We cultivate in all members of our community high personal expectations and integrity, respect for consensus, and an understanding of how diversity enriches us, why stewardship of the natural world matters and why service to others enhances life. Above all, we seek to be a school that nurtures a genuine love of learning and teaches students ‘to let their lives speak.’”

Mr. Sidwell with one of his early classes

Mr. Sidwell with one of his early classes


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