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Global Changes Reshaping the Corporate Environment
by Van Wishard, World Trends Research

A Presentation for the Public Affairs Council
Washington, D.C.

I see you've had an advanced tutorial this morning on the basic building blocks of Issue Management. You certainly started with one of the masters. Chris Nelson is the best. If your company ever wants an up-to-the second intelligence source on trade, monetary issues, inside Washington, or global flash points, they could do no better than to subscribe to the daily on-line "Nelson Report."


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Toward A Defining Context For Our Times
The Congressional Institute, Washington, D.C
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Education and a Gyrating Global Environment
College Board, Inc.
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Van Wishard's Latest Book: Between Two Ages


 
 

My own work is not so much Issue Management as it is trend analysis. I'm sure you know many trend analysts, as tracking social attitudes and trends and how they affect consumer tastes is big business. My particular focus is somewhat different. It's looking at the dimension of global change taking place, and attempting to place that in some context of understanding.

We all know something immense is taking place worldwide today. It's not just Iraq, or even terrorism. For some time now, it's been obvious the tectonic plates of life are shifting. How do we put these mega-changes in some understandable framework for decision-makers? In a sense, if my particular work has any single product, it's perspective. Perspective on the full dimension of global change, and what it might mean for the next decade or so.

And that's what I've been asked to talk about today.

How are we to make sense of how the world is changing? Jihad vs. McWorld. Nukes in North Korea. A potential India-Pakistan nuclear shoot-out. The merger of human and artificial intelligence creating what the scientists call the "post-human" era. We seem to have come to the end of the world, as we've known it. The next three decades increasingly loom as the most decisive 30-year period in history.

To consider how the global context in which your companies operate is changing, I want to offer the view of one of the world's most experienced observers of global events. In 1957 Peter Drucker wrote, "No one born after the turn of the 20th century has ever known anything but a world uprooting its foundations, overturning its values and toppling its idols." What Drucker is suggesting is that the fundamentals of life that have anchored nations for centuries are forming some new configuration. This is the context in which every company in the world has to plan, produce and be profitable.

With Drucker's comment in mind, I want to be more specific, and briefly offer five trends that are helping shape the next two decades. After that, I'll focus more tightly on three particular trends.

First, due to accelerating technology development, so much is happening so fast in every part of the world, leaders no longer have any familiar frame of reference within which to understand contemporary events. Life has become a passing blur. Yesterday's crisis has not been resolved, but we can't think about it any more because we've got to confront today's crisis. It's an ad hoc world. One result is that political leaders lack any larger order of purpose and significance, any pattern of meaning that could give collective human existence coherence and lasting relevance. In a sense, we have more information than ever before, but less context of meaning within which to make decisions.

Second, science is in the process of redefining our understanding of terms first given us at the dawn of human consciousness: such terms as "nature," "human," and "life." Increasingly, scientists are subordinating humans to technology. Within the next three decades we may have reached the point where the dominant question will be, "What are humans for in a world of completely independent, self-replicating technological capability that can perform most human activities better than humans?"

Third, for the first time in history, what constitutes a family is being redefined. This has disruptive implications for government, education, social cohesion and what we broadly term "civil society". You possibly saw Business Week's article on how the redefinition of the family affects corporate benefits, pensions, compensation and much more. If not, it's worth reading.

Fourth, also for the first time in history, the Caucasian race is no longer reproducing itself. No European country is reproducing its population; nor are Caucasians in North America reproducing themselves. This has enormous consequences for management, and most particularly, hiring and training policies.

Fifth, the ability to create change, as well as the attitude that change is desirable, is now an accepted policy of all nations. Throughout history, in all civilizations, continuity rather than change has been the normal state of affairs. No society on the planet knows how to live with constant, radical change. Every nation is, concurrently with all other nations, in a state of crisis as we try to adjust to an ever-accelerating pace of change. Thus there is no global center of stability and order such as Britain provided during the nineteenth century, and America supplied the second half of the twentieth century. And so the international climate is likely to continue to be characterized by conflict and instability.

These are only some of the trends shaping the coming decades. It's going to be a period of mounting complexity, dislocation and uncertainty. At the same time we shall realize new possibilities beyond anything we've yet experienced.

Now, let's focus in more tightly on three other trends.

Globalization. We all have some idea of what globalization means. Most of the discussion about globalization focuses on trade, currency relationships, and the need for non-western nations to adopt free markets and democratic political systems.

But I suggest the essence of globalization is the human instinct for greater communication between peoples and cultures, and the subsequent merging of modes of life-including economics-as well as beliefs. This process began very slowly in the 16th century with European exploration and colonialization of Africa, South America and Asia. It picked up speed in the 1840s with the invention of the telegraph, the first component of what has become the world's electronic information communication system. Clearly, in the 20th century globalization moved at an exponential pace. In its present phase, it means that western social, cultural and philosophical ideas are gradually seeping into the fabric of the rest of the world, and a reciprocal transfer of culture and lifestyles from non-western nations to the west.

Look at what's happening. Nations are adopting such ideas as the sanctity of the individual, due process of law, universal education, the equality of women, human rights, private property, legal safeguards governing business and finance, concepts of civil society, and perhaps most importantly, the ability of people to take charge of their destiny and not simply accept the hand dealt them in life.

We take these ideas for granted, but for millions of people such concepts are completely new modes of thought and behavior. While we Americans believe what works for America will work for others, we're sometimes unaware that the cultural differences between the U.S. and the rest of the world represent significant psychological differences. Take some contrasts between America and Asia. America prizes individuality, while Asia emphasizes relationships and community. Americans see humans dominating nature, while Asians see humans as part of nature. In the U.S. there is a division between mind and heart, while in Asia mind and heart are unified.

I mention this to illustrate the deep psychological trauma nations are experiencing as they confront the effects of globalization. We Americans, raised on the instinct of change, say, "Great. Let tradition go. Embrace the new." But much of the world says, "Wait a minute. Traditions are our connection to the past. If we jettison them, we'll endanger our social cohesion and psychic stability." Many thoughtful Muslims clearly fear that the western model of globalization, based on secular, scientific rationalism, will eventually bring about the destruction of Islam.

What we Americans fail to appreciate is that the pace of globalization is driven by the increase in the pace of technology development in America. The faster computers we produce, the faster other nations must change their established patterns of living. No nation today can develop without adjusting to the global economic system anchored in American information technology. Just look at global financial flows and how they operate. Thus all nations struggle as they try to adjust to the new global system. It's a psychological as well as structural crisis.

One aspect of globalization is the onslaught of the largest migration in world history. For those of you whose companies have plants in China, your companies may be facing an enormous social upheaval in the coming years. For in China alone, there are one hundred million people on the move from the countryside to the cities. This is causing urban problems of a magnitude never before experienced.

In the West, migration is changing the face of Europe. The European Union needs 180 million immigrants in the next three decades simply to keep its population at 1995 levels, as well as to keep the current ratio of retirees to workers. In Brussels, over fifty percent of the babies born are Muslim. In Germany, the death rate has exceeded the birth rate for decades, so they now have to fly in planeloads of technicians from India just to maintain their high tech structure. In England, there are now more practicing Muslims than Anglicans. In Russia, the population has dropped three million in the past decade. In general, demographers suggest that present patterns point to a decline of the western European population of 20 million in the next two decades.

As migration increases, the historic legends that are the basis of national identities tend to wane. As one British historian put it, "A white majority that invented the national mythologies underpinning modern European culture lives in an almost perpetual state of fear that it and its way of life are about to disappear." In Italy, the Archbishop of Bologna recently warned that Italy is in danger of "losing its identity" due to the immigration from North Africa and central Europe. The Catholic Church is facing the distinct probability of Islam becoming the largest European religion. The fear of such demographic shifts and their potential consequences is the subtext for everything else happening in Europe today. It's far more traumatic than adjusting to increased economic integration or to the euro.

In the coming years, the face of nations will be very different from today. Traditional images of what it means to be French, German, Italian or English are going to change just as radically as the image of what it means to be American has changed in recent decades.

At the end of the day, for globalization to succeed, if we're going to build a global age, it's got to be built on more than free markets and the Internet. It's got to be built on some common view of life far more inclusive than "my nation," "my race" or "my religion". The challenge both for corporations and for nations in the next decades is to see the world whole, and act in accord with that awareness. Frankly, I think corporate leadership is doing a much better job of understanding that than is political leadership. But to be legitimate, globalization must validate itself in terms of equitable benefits for all nations, and sensitivity to other nations' need for social and political stability.

The second trend shaping the coming decades is a new stage of technology development that is without precedent in the history of science and technology.

At least since Francis Bacon in the seventeenth century we have viewed the purpose of science and technology as being to improve the human condition. As Bacon put it, the "true and lawful end of the sciences is that human life be enriched by new discoveries and powers."

Indeed it has. Take America. During the last century, the real GDP, in constant dollars, increased by $48 trillion, much of this wealth built on the marvels of technology. A few years ago, I had a quadruple heart by-pass performed with the most modern medical technology. So believe me, I'm a fan of what technology can do.

But along with technological wonders, uncertainties arise. The question today is whether we're creating certain technologies not to improve the human condition, but for purposes that appear to be to replace human meaning and significance altogether. Let me explain.

For at least the past thirty years, psychologists have known that overwhelming people with more technological change than they can process clearly leads to various forms of emotional and mental instability. But what we're confronted with now is not simply acceleration in the pace of change; it's the acceleration of acceleration itself. In other words, technological change growing not at a constant rate, but an exponential rate.

It's estimated that the rate of technological change doubles every decade-20% one decade, 40% the next decade, 80% the third decade, and so on; that at today's rate of change, we'll experience one hundred calendar years of technological change in the next twenty-five years; and that due to the nature of exponential growth, the 21st century as a whole will experience nearly one thousand times more technological change than did the 20th century.

But it's not only the rate of change that challenges us; it's also the character of change. British Telecom's futures research unit predicts that eventually "a combination of man and computer search will be able to identify the genes needed to produce a people of any chosen characteristics." Someone, somewhere, they say, "will produce an elite race of people, smart, agile and disease resistant." Ray Kurzweil, one of the world's foremost authorities on artificial intelligence, predicts, "When machines are derived from human intelligence but are a million times more capable, there won't be a clear distinction between human and machine intelligence-there's going to be a merger." Another tech visionary tells us that the wiring of human and artificial minds into one planetary soul will ultimately mean "the disappearance of the self altogether, right into the collective organism of the mind." No socialist or communist could have had a greater vision of the collectivized society. Thus arrives what some scientific intellectuals call the "post-human" or "post-species" age. For the tech visionaries, it's the next step in evolution.

If this sounds like science fiction, it's not. It's what some of America's most accomplished scientists are working to achieve.

And so we've come to dismiss the counsel of the scientific father of our age. Said Einstein in a speech at Cal Tech, "Concern for man himself and his fate must form the chief interest of all technical endeavors."

Will all these technological visions come to pass? One wonders. Project forward the predicted million-fold increase in the speed of computers and the resulting ratcheting up of the pace of life over the next couple of decades, and one ends up asking, "how much more of this can the human metabolism take?" As it is, multiplying social pathologies already indicate human resistance to such change. While stress is still a major issue, the deeper issue your companies now face is individual psychological integrity. Thirty years ago, major corporations didn't have to think much about the mental health of their employees. Now, I suspect, mental and emotional health is the fastest growing component of health insurance for many of your companies. To help relieve the mounting pressures, some of your companies provide employees with special rooms for relaxing, meditation, prayer, taking naps or simply listening to music.

Other indicators tell of further psychic disturbances caused by too rapid a pace of change. Loneliness has reached epidemic proportions. ADD-attention deficit disorder-is skyrocketing for adults. The suicide rate among women has increased 200% in the past two decades. Books are now written for eight year-old children advising them how to recognize the symptoms of stress, and how to deal with it in their own lives. Character controlling drugs are now given to three year-olds. Thus the University of Louisville concludes in a study on health that our very mode of life has now become our principle cause of emotional and mental instability.

Some people are already searching for the wisest way to approach such potential challenges as the new technologies present. I'm sure you know of Bill Joy, cofounder and former chief scientist of Sun Microsystems, and described by the Economist magazine as "the Edison of the Internet." He suggests that we've reached the point where we must "limit development of technologies that are too dangerous, by limiting our pursuit of certain kinds of knowledge." His concerns are based on the unknown potential of genetics, nanotechnology and robotics, driven by computers capable of infinite speeds, and the possible uncontrollable self-replication of these technologies. Joy acknowledges the pursuit of knowledge as one of the primary human goals since earliest times. But, he says, "If open access to, and unlimited development of, knowledge henceforth puts us all in clear danger of extinction, then common sense demands that we reexamine even these basic, long-held beliefs." Joy well knows he's pushing against the wind, but he clearly thinks it's worth it.

But there's a deeper question.

Ultimately, technology deals with extension of human capability. It does not address the question of the meaning and purpose of human society. Thus, in my view, the great need in the coming two decades is not so much for more mind-blowing technology, as it is to explore the depths of the human personality; to discover what deeper meaning can be given to human existence as we enter a radically changed environment of technological possibility.

To consider the third trend, I want to quote Adlai Stevenson, who had the unfortunate luck of twice being the democratic presidential candidate chosen to oppose Dwight Eisenhower. In a 1954 speech at Columbia University, Stevenson asked, "Are America's problems but surface symptoms of something even deeper, of a moral and human crisis in the western world which might even be compared to the fourth, fifth and sixth-century crisis where the Roman Empire was transformed into feudalism and primitive Christianity? Are Americans," Stevenson queried, "passing through one of the great crises of history when man must make another mighty choice?"

A decade later, Joseph Campbell, perhaps the world's foremost authority on the symbolic and psychological meaning of myths, noted in a New York speech, "The world is passing through perhaps the greatest spiritual metamorphosis in the history of the human race."

Stevenson and Campbell-two of the most thoughtful Americans of the mid-20th century-comparing the condition of America and the western world to that of Rome during the end of the ancient world and the emergence of Christianity and feudal Europe. I want to explore the ramifications of their remarks a bit, for this issue has become a dominant driving force not only in America's spiritual life, but also in our culture, our politics, and international affairs.


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What actually happened when the Greco-Roman world was transformed into early Christianity? The history books tell a certain amount-the corruption of Rome, the severe decline in population, the neglect and even collapse of the Roman aqueducts, roads and farms.

Those were the outer manifestations, but what happened to the inner life of the people? We get some sense from the Roman poet Lucretius who summed up the temper of the times when he wrote of "aching hearts in every home, racked incessantly by pangs the mind was powerless to assuage." There was a loss of collective meaning; a disappearance of what had represented life's highest value. The God-image that had informed the inner life and culture of the Greco-Roman world for a thousand years lost its compelling force, especially for the leadership class. This led to a breakdown of the historic psychic structures that had been the source and container of Greco-Roman morals and beliefs. A collapse of the ethical and social guidelines underlying civilized order took place.

The history books speak of the "decline" of Rome. But at its heart, it was a long-term-at least four or five centuries-psychological shift of the prevailing God-image of the Greco-Roman period, to a new spiritual dispensation. A new God-image emerged for a new phase of psychological maturity and human experience. From Ireland to Italy, Europe went through a prolonged period of the transformation of underlying principles and symbols.

What Stevenson and Campbell-and others-have suggested is that America and the West have been experiencing a similar long-term spiritual and psychological reorientation. This is what Drucker was referring to when he talked about a world uprooting its foundations, overturning its values and toppling its idols. What they are suggesting is that America and Europe have come to the end of the Christian era, and the beginning of some new spiritual expression.

When we speak of the end of the Christian eon, what we're suggesting is that, while there are millions of Christians in America, the spiritual impulse that gave highest value and meaning to Western civilization is no longer the inner dynamic of the collective western psyche. It's no longer the informing force in the soul of America and Europe's "creative minority" who give us our literature, theater, science, technology, education, cinema and music. In this sense, the character of our culture is the best indication of what is bubbling up from the depths of the western soul. For culture is to a nation what dreams are to an individual-an indication of what's going on in the depths of the inner life.

Thus America is in the midst of the greatest spiritual change and search in our history. To get an idea of this search, walk into any bookstore and look at the section on religion, spirituality, Buddhism, Nostradamus, yoga, channeling, angels, miracles, Eastern philosophy, addiction, psychic health, mysticism, or finding meaning in life. I suggest that understanding this search is essential for issue management, for the spiritual search has, in its fundamentalist expression, become one of the most potent forces in domestic politics, as well as in international affairs. Nothing illustrates this better than the fact that over 50% of the fundamentalists supporting the administration's position on Israel believes Israel must control all of Palestine in order to fulfill the Biblical conditions for Christ's return to earth.

The question remains, given all we've discussed thus far, how do we respond to such a historic moment? In my view, we must respond on at least two levels. The first is the level of our collective life, and here we're already undertaking the most sweeping redefinition of life in our history. All our institutions are being redefined and restructured. Corporations are redefining their mission, structure and modus operandi. In education, countless new experiments are underway, from vouchers to charter schools to home schooling. The legal system is assisted by the increasing use of alternative dispute resolution (ADR). Functions formerly executed by local governments are now undertaken by civic and charitable organizations. Numerous steps have been taken to redress the severe environmental imbalance we've created. It's estimated that well over fifty percent of all adult Americans donate a portion of their time to non-profit social efforts. Perhaps most importantly, we're gradually integrating a global perspective into the fabric of our education, culture, and international relations. Take West Point, for example. All the cadets at West Point learn a foreign language such as Chinese, Arabic or Russian, and they take a year's course in a foreign culture. So on one level, we're already at grips with some of the manifestations of the reorientation that engulfs us.

Against the background of the three trends I mentioned, perhaps this is a modest start, but at least it's a start. Clearly, there's another level of effort to move to. As Bill Joy suggests, such efforts must include a decision whether or not to continue research and development of technologies that could, in Joy's words, "bring the world to the edge of extinction." Obviously, such an examination must be done in a global context if it's to be valid.

But there's another question of how we respond. The psychological and spiritual change taking place in America and the world is not taking place out in the ether somewhere. It's taking place in all of us-in the depths of our collective soul, whether we're aware of it or not. So I suggest that understanding how these changes affect us both collectively and individually is essential for Issue Management, as well as for each of us personally.

For example, it's becoming clear that the more information a person or company amasses, the more important context and meaning become. We live in two worlds-the world of abstract data and the world of human meaning. Meaning requires reflection and time-consuming thought. Thus numerous companies are training managers in the exercise of reflection or various forms of inner awareness. Managers need an inward center of reflection from which to make considered decisions.

For a deeper understanding of the human-technical relationship, I suggest considering the whole discipline of Media Ecology. In recent years, Media Ecology has grown into a wide-ranging consideration how rapid change and technology affect both our social arrangements and us as individuals. "Google" Media Ecology and you'll gain indispensable insights for Issue Management.

Critical to the question of how we respond is the need to ask ourselves, "What is my highest value in life?" Each of us must know the answer to that question, and for a vital reason. As a result of this transition, Europe and America no longer have the original collective myth that provided Western civilization with its highest significance. Once such conviction has eroded, culture becomes degraded and a nation's youth lack any sense of meaning to life beyond entertainment and the consumer ethic. For one of the functions of a true culture is to transmit to each new generation the collective wisdom and highest meaning life and experience have provided. At this point, I think for America, perhaps technology has become the new American myth. We talk about the high virtues of life, but we live by the power of technology and its possibilities. But technology is a means to an end, not an end in itself. Technology alone cannot create the greatness of character and meaning needed for a new phase of a nation's journey.

To sum up, as we look towards the coming decades, we cannot escape the fact that some great phase of the human experience is dying, while some new stage seeks to take shape. We daily watch and experience the trauma of this historic shift in world events, in our institutions, in our mounting emotional health issues, and in the ethos of destruction that has become such a cultural motif. At the deepest level, what we're experiencing is a sign of the collective soul passing through the throes of a reorientation, a death and rebirth. We shouldn't be surprised, as it's happened before in history, and now it's our turn to be part of such a critical moment. It's a process of disintegration of old beliefs and structures, and the birth of some fresh understanding and perspective struggling to come into existence. Like all births, it's painful. But the great challenge to each of us and to America is to find our unique way to be a creative part of this new integration seeking to shape a new time of human history.

These, I suggest, are some of the broader currents that will carry us through the next two decades, and will form the inner substance of the daily challenges Issue Management will confront.

Sometimes when I give a talk such as this, I'm asked what I expect people to do with such information. My response is simply: reflect, understand, assimilate and apply.

Thank you.



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