We are in a great age with many changes. We are faced with quadrupling oil prices and ever increasing commodity prices, strong recessions in United States and hot emerging economies in Middle East, Asia and Latin America. It seems the world order is beginning to change. There are at least the following processes that are going on.

  • Sustaining high oil prices and insatiable oil and commodities needs of emerging economies will inevitably lead industries to alternative energy and food sources, thus creating new industry leaders while crushing old ones like Ford, GM.
  • The oil economy is on the demise, new unpredictable energy source is on the way to glory. It might well be that there will be no dominant force, much like the world’s multilateral politics today.┬áThe future is hybrid.
  • The euro is becoming stronger and stronger, with a potential to replace the dollar as a world currency. Much of the emphasis of the rate hike of ECB is in the maintenance of a strong euro to combat inflation so that oil and foods remain affordable for Europeans.
  • The emerging economy is striving to ascend up to the living standards of the few hundred million souls in the West, in which process, a degradation of Western living standards might be under way. In my view, this whole process is a redistribution of wealth among nations. Living standards of West and East will inevitably converge.

And with all these radical changes and problems on the development, the international organizations are also experiencing a difficult time: tie or die. The G8 meeting a an example how useless the discussions and the decisions are regarded by the world community in the face of oil shock, rising food price and the credit crunch. The organization needs serious restructuring or it will die, as posed by the economist.