One useful way to look at D2 (the current global depression) is to view it as a stress test for nation-states. In other words: can nation-states adapt successfully to the twin pressures of the new global environment? Here's what I mean. Nation-states are now caught between two irresistible and strengthening forces:
1. A dominant, turbulent, and uncontrollable global super-network, that is pressuring/weakening/buffeting nation-states from above.
2. Super-empowered individuals/groups rising up from below that are ready to pounce on or exploit any demonstration of nation-state weakness.So far, the vast majority of thinking re: the response to the stress test has been a revival of early 20th Century methods/theories of activist government. I'm fairly sure that this is a sterile response to the challenge.
In contrast, decentralization that both improves resilience and accelerates (parallelizes) innovation offers a greater chance of success. Nation-states that ease the process of decentralization will likely have both the easiest transition to the new fluid environment and the best long term prospects (wealth creation).
Sunday, March 01, 2009
John Robb, JOURNAL: The Stress Test
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