How the US is seeing the future world is revealed in a recent report, Global Trends 2040: A More Contested World, published by the National Intelligence Council of the US. This report of political, social and economic estimates is prepared through an integrated process for every incoming President of the USA. For Biden, the report was published in March this year. The world, its politics, economics and societies, is going to change under the forces stemmed in changes in demographic modalities, environmental fluctuations, economic preferences and technological transformations. These together are going to impact on societies, states and international systems which would end in sketching five different futures of the world. Uncle Sam seems to be shaking the world, and this time even more intensely.
Starting off how the forces will interact and intersect, it all begins with the changes in demographics. The developed economies are aging bringing a global slow economic growth whereas the contracting working age will weigh on the economies of these developed countries as Japan and South Korea will reach the median age of 53 and Europe the median age of 47 by 2040. On the other side, in developing countries the converse will be happening as Sub Saharan Africa will reach median age of less than 15 years whereas Pakistan, Egypt and Afghanistan will reach the median age of 30 years. This seems opportunity but these economies will be challenged to meet the demands of the growing working age populace in their economies with the slow global economic growth remaining constant dragging the societies into social volatilities while testing the performances of states too.
The forces of environment will leave no country unaffected especially the developing countries that lack in adaptations skills and technologies. The occurrence of heat waves, melting of Arctic, land degradation, water misuses, food insecurity, loss of biodiversity, rising sea levels and pollution will erode the ‘human security’ while affecting states and societies, politics and economics coequally. For curtailing environmental threats, countries may apply geoengineering by interacting with the natural system of earth to counteract threats of climate change like releasing the sun’s energy back into space through Solar Radiations Management or Stratospheric Aerosol Injection spraying to cause global dimming. The developed countries especially US and China will see suspicions on sincerely working on environmental threats as this would require economic sacrifices.
In the sphere of Economics, the national debt management will push countries to avoid funding on the issues of environment as they will already be pressed hard for matching the needs of the growing demands of their elderly and younger populations alike. Covid 19 has already left indelible imprints on the economies of the world especially the developing countries two fifths of which, according to 2019 IMF assessment, were at debt distress. Automation and rapidly growing AI will reduce 9 percent global jobs and transform one third by 2040 while at the same time creating massive new technology and automation stemmed jobs which will test the states adaptability to manoeuvring technology. This will have disproportionate effect across the countries and regions. The element of Superstar firms, the new multinationals, will critically affect world economies and make definitive inroads in the affairs of politics.
The technological forces will surpass all other forces in intensity especially with the significant rise of AI and Biotechnology. The US-China rivalry in this sphere will be rampant. AI will disrupt global current workforce while also creating new dimensions of labor compelling the countries to remodel their working force structures. The application of AI in warfare will be on the rise and will be adding a new element to the geopolitical dynamics. AI is well positioned to fly and reach space which will turn the space diplomacy in new form and bring the two global rivals face to face. AI will siphon out the human element of emotions in making decisions having social effects.
As these forces interact, world will see five possible scenarios in which the first three are the prominent.
In the first scenario, it will the US and allies led democracy which will manipulate the world. Being democratic, there will be more space for innovation and the rise of technology with robust public private partnerships will prosperously affect economic growth of the countries. This will enable the states to be responsive to their people’s needs while the same time making adaptations unlike in the repressive regimes of Russian and China whose policies will let them on steady decline.
In the second scenario, it will be China which will be mastering the world arena but not exactly acting like leading it due to its inherent repressive dynamics. This will happen on account of failure of international organizations with least interest paid to them by the major powers. The factors of high national debt, the costs of caring for aging populations, and hazardous environmental occurrences will havoc states’ budgets and keep them away from spending on education, infrastructure, and scientific research. In these circumstances due to the integrally centralist and controlled Chinese centralism will help China gain global attention through its global infrastructure packages and other initiatives. Many countries will thus tilt to the Chinese sidelines.
In the third effectual scenario, it will be a contested coexistence of US and China which will emerge. This will be based on shared economic and growth preferences and agreements.
Much of what is stated in the report must be happening in the world ahead but much of what is left unstated is more critical. Summed up, there will be more instability, pandemics, economic recessions, state conflicts and disorders in the five different worlds that lay ahead.