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To: LindyBill who wrote (36619)3/27/2004 7:27:25 PM
From: LindyBill  Read Replies (1) | Respond to of 793964
 
Here is the article by Peters mentioned in the "One Hand Clapping" blog I just posted. Written in '98, this article is excellent.

Spotting the Losers: Seven Signs of Non-Competitive States
RALPH PETERS
Lieutenant Colonel Ralph Peters (USA, Ret.) was assigned, prior to his recent retirement, to the Office of the Deputy Chief of Staff for Intelligence, where he was responsible for future warfare. Career and personal travels have taken him to 45 countries. He has published and lectured widely on military and international concerns. His seventh novel, The Devil's Garden, was recently released by Avon Books. This is his tenth article for Parameters.From Parameters, Spring 1998, pp. 36-47.

When you leave the classroom or office and go into the world, you see at first its richness and confusions, the variety and tumult. Then, if you keep moving and do not quit looking, commonalties begin to emerge. National success is eccentric. But national failure is programmed and predictable. Spotting the future losers among the world's states becomes so easy it loses its entertainment value.

In this world of multiple and simultaneous revolutions--in technology, information, social organization, biology, economics, and convenience--the rules of international competition have changed. There is a global marketplace and, increasingly, a global economy. While there is no global culture yet, American popular culture is increasingly available and wickedly appealing--and there are no international competitors in the field, only struggling local systems. Where the United States does not make the rules of international play, it shapes them by its absence.

The invisible hand of the market has become an informal but uncompromising lawgiver. Globalization demands conformity to the practices of the global leaders, especially to those of the United States. If you do not conform--or innovate--you lose. If you try to quit the game, you lose even more profoundly. The rules of international competition, whether in the economic, cultural, or conventional military fields, grow ever more homogeneous. No government can afford practices that retard development. Yet such practices are often so deeply embedded in tradition, custom, and belief that the state cannot jettison them. That which provides the greatest psychological comfort to members of foreign cultures is often that which renders them noncompetitive against America's explosive creativity--our self-reinforcing dynamism fostered by law, efficiency, openness, flexibility, market discipline, and social mobility.

Traditional indicators of noncompetitive performance still apply: corruption (the most seductive activity humans can consummate while clothed); the absence of sound, equitably enforced laws; civil strife; or government attempts to overmanage a national economy. As change has internationalized and accelerated, however, new predictive tools have emerged. They are as simple as they are fundamental, and they are rooted in culture. The greater the degree to which a state--or an entire civilization--succumbs to these "seven deadly sins" of collective behavior, the more likely that entity is to fail to progress or even to maintain its position in the struggle for a share of the world's wealth and power. Whether analyzing military capabilities, cultural viability, or economic potential, these seven factors offer a quick study of the likely performance of a state, region, or population group in the coming century.

The Seven Factors

These key "failure factors" are:

Restrictions on the free flow of information.
The subjugation of women.
Inability to accept responsibility for individual or collective failure.
The extended family or clan as the basic unit of social organization.
Domination by a restrictive religion.
A low valuation of education.
Low prestige assigned to work.
Zero-Sum Knowledge

The wonderfully misunderstood Clausewitzian trinity, expressed crudely as state-people-military, is being replaced by a powerful new trinity: the relationship between the state, the people, and information. In the latter phases of the industrial age, the free flow of quality information already had become essential to the success of industries and military establishments. If the internationalizing media toppled the Soviet empire, it was because that empire's battle against information-sharing had hollowed out its economy and lost the confidence of its people. When a sudden flood of information strikes a society or culture suffering an information deficit, the result is swift destabilization. This is now a global phenomenon.

Today's "flat-worlders" are those who believe that information can be controlled. Historically, information always equaled power. Rulers and civilizations viewed knowledge as a commodity to be guarded, a thing finite in its dimensions and lost when shared. Religious institutions viewed knowledge as inflammatory and damnable, a thing to be handled carefully and to advantage, the nuclear energy of yesteryear. The parallel to the world public's view of wealth is almost exact--an instinctive conviction that information is a thing to be gotten and hoarded, and that its possession by a foreign actor means it has been, by vague and devious means, robbed from oneself and one's kind. But just as wealth generates wealth, so knowledge begets knowledge. Without a dynamic and welcoming relationship with information as content and process, no society can compete in the post-industrial age.

Information-controlling governments and knowledge-denying religions cripple themselves and their subjects or adherents. If America's streets are not paved with gold, they are certainly littered with information. The availability of free, high-quality information, and a people's ability to discriminate between high- and low-quality data, are essential to economic development beyond the manufacturing level. Whether on our own soil or abroad, those segments of humanity that fear and reject knowledge of the world (and, often, of themselves) are condemned to failure, poverty, and bitterness.

The ability of most of America's work force to cope psychologically and practically with today's flood of data, and to cull quality data from the torrent, is remarkable--a national and systemic triumph. Even Canada and Britain cannot match it. Much of Japan's present stasis is attributable to that nation's struggle to make the transition from final-stage industrial power to information-age society. The more regulated flow of information with which Japan has long been comfortable is an impediment to post-modernism. While the Japanese nation ultimately possesses the synthetic capability to overcome this difficulty, its structural dilemmas are more informational and psychological than tangible--although the tangible certainly matters--and decades of educational reform and social restructuring will be necessary before Japan returns for another world-championship match.

In China, the situation regarding the state's attempt to control information and the population's inability to manage it is immeasurably worse. Until China undergoes a genuine cultural revolution that alters permanently and deeply the relationship among state, citizen, and information, that country will bog down at the industrial level. Its sheer size guarantees continued growth, but there will be a flattening in the coming decades and, decisively, China will have great difficulty transitioning from smokestack growth to intellectual innovation and service wealth.

China, along with the world's other defiant dictatorships, suffers under an oppressive class structure, built on and secured by an informational hierarchy. The great class struggle of the 21st century will be for access to data, and it will occur in totalitarian and religious-regime states. The internet may prove to be the most revolutionary tool since the movable-type printing press. History laughs at us all--the one economic analyst who would understand immediately what is happening in the world today would be a resurrected German "content provider" named Marx.

For countries and cultures that not only restrict but actively reject information that contradicts governmental or cultural verities, even a fully industrialized society remains an unattainable dream. Information is more essential to economic progress than an assured flow of oil. In fact, unearned, "found" wealth is socially and economically cancerous, impeding the development of healthy, enduring socioeconomic structures and values. If you want to guarantee an underdeveloped country's continued inability to perform competitively, grant it rich natural resources. The sink-or-swim poverty of northwestern Europe and Japan may have been their greatest natural advantage during their developmental phases. As the Shah learned and Saudi Arabia is proving, you can buy only the products, not the productiveness, of another civilization.

States that censor information will fail to compete economically, culturally, and militarily in the long run. The longer the censorship endures, the longer the required recovery time. Even after the strictures have been lifted, information-deprived societies must play an almost-hopeless game of catch-up. In Russia, it will take at least a generation of genuine informational freedom to facilitate an economic takeoff that is not founded hollowly upon resource extraction, middleman profits, and the looting of industrial ruins. Unique China will need even longer to make the next great leap forward from industrial to informational economy--we have at least half a century's advantage. Broad portions of the planet may never make it. We will not need a military to deal with foreign success, but to respond to foreign failure--which will be the greatest source of violence in coming decades.

If you are looking for an easy war, fight an information-controlling state. If you are looking for a difficult investment, invest in an information-controlling state. If you are hunting a difficult conflict, enter the civil strife that arises after the collapse of an information-controlling state. If you are looking for a good investment, find an emerging or "redeemed" state unafraid of science, hard numbers, and education.

A Woman's Place

Vying with informational abilities as a key factor in the reinvigoration of the US economy has been the pervasive entry of American women into the educational process and the workplace. When the stock market soars, thank Elizabeth Cady Stanton and the suffragettes, not just their beneficiary, Alan Greenspan. After a century and a half of struggle by English and American women, the US economy now operates at a wartime level of human-resource commitment on a routine basis.

Despite eternally gloomy headlines, our country probably has the lowest wastage rate of human talent in the world. The United States is so chronically hungry for talent that we drain it from the rest of the planet at a crippling pace, and we have accepted that we cannot squander the genius of half our population. Even in Europe, "over-skilling," in which inherent and learned abilities wither in calcified workplaces, produces social peace at the cost of cultural and economic lethargy, security at the price of mediocrity. The occasional prime minister notwithstanding, it is far rarer to encounter a female executive, top professional, or general officer in that mythologized, "more equitable" Europe than in the United States. Life in America may not be fair, but neither is it stagnant. What we lose in security, we more than compensate for in opportunity.

While Europe sleepwalks toward a 35-hour work-week, we are moving toward the 35-hour day. The intense performance of our economy would be unattainable without the torrent of energy introduced by competitive female job candidates. American women revolutionized the workforce and the workplace. Future social and economic historians will probably judge that the entry of women into our workforce was the factor that broke the stranglehold of American trade unions and gave a new lease on life to those domestic industries able to adapt. American women were the Japanese cars of business labor relations: better, cheaper, dependable, and they defied the rules. Everybody had to work harder and smarter to survive, but the results have been a spectacular recovery of economic leadership and soaring national wealth.

Change that men long resisted and feared in our own country resulted not only in greater competition for jobs, but in the creation of more jobs, and not in the rupture of the economy, but in its assumption of imperial dimensions (in a quirk of fate, already privileged males are getting much richer, thanks to the effects of feminism's triumph on the stock market). Equality of opportunity is the most profitable game going, and American capitalism has realized the wisdom of becoming an evenhanded consumer of skills. Despite serious exclusions and malignant social problems, we are the most efficient society in history. When Europeans talk of the dignity of the working man, they increasingly mean the right of that man to sit at a desk doing nothing or to stand at an idling machine. There is a huge difference between just being employed and actually working.

The math isn't hard. Any country or culture that suppresses half its population, excluding them from economic contribution and wasting energy keeping them out of the school and workplace, is not going to perform competitively with us. The standard counterargument heard in failing states is that there are insufficient jobs for the male population, thus it is impossible to allow women to compete for the finite incomes available. The argument is archaic and wrong. When talent enters a work force, it creates jobs. Competition improves performance. In order to begin to compete with the American leviathan and the stronger of the economies of Europe and the Far East, less-developed countries must maximize their human potential. Instead, many willfully halve it.

The point isn't really the fear that women will steal jobs in Country X. Rather, it's a fundamental fear of women--or of a cultural caricature of women as incapable, stupid, and worrisomely sexual. If, when you get off the plane, you do not see men and women sitting together in the airport lounge, put your portfolio or treaty on the next flight home.

It is difficult for any human being to share power already possessed. Authority over their women is the only power many males will ever enjoy. From Greece to the Ganges, half the world is afraid of girls and gratified by their subjugation. It is a prescription for cultural mediocrity, economic failure--and inexpressible boredom. The value added by the training and utilization of our female capital is an American secret weapon.

Blaming Foreign Devils

The cult of victimhood, a plague on the least-successful elements in our own society, retards the development of entire continents. When individuals or cultures cannot accept responsibility for their own failures, they will repeat the behaviors that led to failure. Accepting responsibility for failure is difficult, and correspondingly rare. The cultures of North America, Northern Europe, Japan, and Korea (each in its own way) share an unusual talent for looking in the mirror and keeping their eyes open. Certainly, there is no lack of national vanity, prejudice, subterfuge, or bad behavior.

But in the clutch we are surprisingly good at saying, "We did it, so let's fix it." In the rest of the world, a plumbing breakdown implicates the CIA and a faltering currency means George Soros--the Hungarian-born American billionaire, fund manager, and philanthropist--has been sneaking around in the dark. Recent accusations of financial connivance made against Mr. Soros and then against the Jews collectively by Malaysia's Prime Minister Mahathir only demonstrated that Malaysia's ambitions had gotten ahead of its cultural capacity to support them. Even if foreign devils are to blame--and they mostly are not--whining and blustering does not help. It only makes you feel better for a little while, like drunkenness, and there are penalties the morning after.

The failure is greater where the avoidance of responsibility is greater. In the Middle East and Southwest Asia, oil money has masked cultural, social, technical, and structural failure for decades. While the military failure of the regional states has been obvious, consistent, and undeniable, the locals sense--even when they do not fully understand--their noncompetitive status in other spheres as well. It is hateful and disorienting to them. Only the twin blessings of Israel and the United States, upon whom Arabs and Persians can blame even their most egregious ineptitudes, enable a fly-specked pretense of cultural viability.

On the other hand, Latin America has made tremendous progress. Not long ago, the gringos were to blame each time the lights blinked. But with the rise of a better-educated elite and local experience of economic success, the leadership of Latin America's key states has largely stopped playing the blame game. Smaller states and drug-distorted economies still chase scapegoats, but of the major players only Mexico still indulges routinely in the transfer of all responsibility for its problems to Washington, D.C.

Family Values

After the exclusion of women from productive endeavors, the next-worst wastage of human potential occurs in societies where the extended family, clan, or tribe is the basic social unit. While family networks provide a safety net in troubled times, offering practical support and psychological protection, and may even build a house for you, they do not build the rule of law, or democracy, or legitimate corporations, or free markets. Where the family or clan prevails, you do not hire the best man (to say nothing of the best woman) for the job, you hire Cousin Luis. You do not vote for the best man, you vote for Uncle Ali. And you do not consider cease-fire deals or shareholder interests to be matters of serious obligation.
End of Part One.