New technologies, dwindling resources and explosive population growth in the next 18 years will alter the global balance of power and trigger radical economic and political changes at a speed unprecedented in modern history, says a new report by the U.S. intelligence community.
The 140-page report released today by the National Intelligence Council lays out dangers and opportunities for nations, economies, investors, political systems and leaders due to four "megatrends" that government intelligence analysts say are transforming the world.
Those major trends are the end of U.S. global dominance, the rising power of individuals against states, a rising middle class whose demands challenge governments, and a Gordian knot of water, food and energy shortages, according to the analysts.
"We are at a critical juncture in human history, which could lead to widely contrasting futures,"Council Chairman Christopher Kojm writes in the report.
Leading the list of the "game-changers" -- factors the report says will shape the impact of the megatrends -- is the "crisis-prone" global economy, which is vulnerable to international shocks and to disparities among national economies moving at significantly different speeds.
The future is "malleable," according to Kojm. "Our effort is to encourage decision-makers, whether in government or outside, to think and plan for the long term so that negative futures do not occur and positive ones have a better chance of unfolding."
The report reflects the consensus judgments of all 16 U.S. intelligence agencies, who consulted or contracted with academics, research institutes, political leaders and corporations in 14 countries and the European Union.
While technological advances, migrations, wars and other factors drove change in earlier periods, what sets the next quarter century apart is the way seven "tectonic shifts" are combining to drive change at an accelerating rate, said NIC Counselor Mathew Burrows, the report’s principle author. Those factors are: the growth of the middle class, wider access to new technologies, shifting economic power, aging populations, urbanization, growing demand for food and water, and U.S. energy independence
The velocity of change is a function of several mutually reinforcing dynamics, the report found. One is what the report calls a "definitive shift of economic power to the East and South" as the U.S., European and Japanese share of global income is projected to fall from 56 percent today to well under half by 2030.
The report envisions an international economy that remains prone to potential “black swans” such as the collapse of the euro and the European Union, a pandemic, a Chinese economic collapse, a nuclear war or a debilitating cyberattack.
Even absent such events, it says: "A return to pre-2008 growth rates and previous patterns of rapid globalization looks increasingly unlikely, at least for the next decade," in part because total non-financial debt across G-7 countries has doubled since 1980 to 3,000% of GDP.
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