Thursday, October 25, 2012

Joseph Nye - The Future of Power



*** Joseph Nye – The Future of Power ***
-          First, we must beware of misleading metaphors of organic decline. Nations are not like humans with predictable life spans. Indeed, for all the fashionable predictions of China, Brazil or India surpassing the United States in the next decades, the greater threats may come from modern barbarians and non-state actors.
-          A second pitfall is to confuse power with the resources that states possess and to limit our focus solely to states. Conventional wisdom has always held that the state with the largest military prevails, but in an information age it may be the states (or non-states) with the best story that wins.
-          Power is the capacity to do things, and in social situations to affect others to get the outcomes we want. Power is the ability to alter others’ behaviour to produce preferred outcomes.
-          There are three different aspects of relational power – commanding change, controlling agendas, and establishing preferences.
-          Today, power in the world is distributed in a pattern that resembles a complex three dimensional chessboard. On the top chessboard, military power is largely unipolar and the United States is likely to remain supreme for some time. But in the middle chessboard, economic power has been multipolar for more than a decade with the United States, Europe, Japan and China as the major players, and with others gaining in importance. The bottom chessboard is the realm of transnational relations that cross borders outside of government control, and it includes non-state actors as diverse as bankers electronically transferring sums larger than most national budgets at one extreme and terrorists transferring weapons or hackers threatening cyber-security at the other. This chessboard also includes new transnational challenges such as climate change and pandemics. On this bottom board, power is widely diffused and it makes no sense to speak of unipolarity, multipolarity or hegemony.
-          Smart power is the combination of the hard power of coercion and payment with the soft power of persuasion and attraction.
-          The problem for all states in the twenty first century is that there are more and more things outside the control of even the most powerful states.
-          Power is conveyed through resources, whether tangible or intangible. People notice resources. Power conversion – getting from resources to behavioural outcomes – is a crucial intervening variable. Having the resources for power does not guarantee that you will always get the outcome you want. Converting resources into realized power in the sense of obtaining desired outcomes requires well-designed strategies and skilful leadership- smart power. Yet strategies are often inadequate and leaders frequently misjudge.
-          As a first step in any game, it helps to start by figuring out who is holding the high cards and how many chips that player has. Equally important, however, is that policy-makers have the contextual intelligence to understand what game they are playing.
-          Power resources are simply the tangible and intangible raw materials or vehicles that underlie power relationships, and whether a given set of resources produces preferred outcomes or not depends upon behaviour in context. The vehicle is not the power relationship. Knowing the horsepower and mileage of a vehicle does not tell us whether it will reach the preferred destination.
-          If ideas and institutions can be used to frame the agenda for action in a way that makes others’ preferences seem irrelevant or out of bounds, then it may never be necessary to push or shove them. In other words, it may be possible to shape others’ preferences by affecting their expectations of what is legitimate or feasible.
-          Powerful actors can make sure that the less powerful are never invited to the table, or if they get there, the rules of the game have already been set by those who arrived first.
-          If you can get others to want the same outcomes that you want, it will not be necessary to override their initial desires.
-          States are caught in a zero-sum game where it is rational to fend for themselves because they cannot trust others. If an actor disarms and others do not, the actor is not likely to survive in anarchic conditions. Those who are benevolent and trusting tend to disappear over time. They are weeded out by the dynamics engendered by the structure of the system. The path to security and survival for the actor is to develop its own military resources through growth and to form alliances to balance the power of others. In this world, gains relative to others are more important than absolute gains.
-          Occupation helps to unite what under other circumstances would be disparate populations
-          In general, threats are costly when they fail, not only in encouraging resistance in the target, but also in negatively influencing third parties observing the outcome.
-          Being less dependent can be a source of power. If two parties are interdependent but one is less so than the other, the less dependent party has a source of power as long as both value the interdependent relationship. Manipulating the asymmetries of interdependence is an important dimension of economic power. Perfect symmetry is quite rare, so most cases of economic interdependence also involve a potential power relationship.
-          We live in an interdependent world, in which we will probably harm ourselves if we take unilateral action aimed at harming another side.
-          States struggle to shape the structure of markets to their advantage by manipulating market access with tariffs, quotas and licenses; diversifying supply chains; pursuing equity shares in companies; and using aid to gain special concessions. P62
-          Even where natural resources are scarce within a nation’s borders, their absence is not an index of low economic power. Much depends on a country’s vulnerability, and that depends on whether substitutes are available and whether there are diverse sources of supply. P63
-          It turns out that oil is the exception, not the rule, in judgements about economic power derived from natural resources. P64
-          When a transnational corporation goes into a resource-rich country with a new investment, it can strike a bargain in which the multinational gets a large part of the joint gains. From the point of view of the poor country, having a multinational come in to develop its resources will make the country better off. At the early stages when the multinational has a monopoly on capital, technology and access to international markets, it strikes a bargain with the poor country in which the multinational gets the lion’s share. But over time, the multinational inadvertently transfers resources to the poor country and trains locals, not out of charity but out of the normal process of doing business. Eventually, the poor country wants a better division of the profits. The multinational could threaten to pull out, but now the poor country can threaten to run the operation by itself. So over time, the power of the transnational company to structure a market, particularly in raw materials, diminishes in terms of its bargaining with the host county. P65
-           Information creates power, and today a much larger part of the world’s population has access to that power. Technological advancements have led to a dramatic reduction in the costs of processing and transmitting information. The result is an explosion of information, and that has produced a paradox of plenty. Plentiful information leads to scarcity of attention. When people are overwhelmed with the volume of information confronting them, they have difficulty knowing what to focus on. Attention, rather than information, becomes the scarce resource, and those who can distinguish valuable information from the background clutter gain power. Cue-givers become more in demand, and this is a source of power for those who can tell us where to focus our attention. P103
-          Two types of power shifts are occurring in this century; power transition and power diffusion. Power transition from one dominant state to another is a familiar historical event, but power diffusion is a more novel process. The problem for all states in today’s global information age is that more things are happening outside the control of even the most powerful states. We have not so much a multi-polar world as a no-polar world. P113
-          States will remain the dominant actor on the world stage, but they will find the stage far more crowded and difficult to control. A much larger part of the population both within and among countries has access to the power that comes from information. P114
-          In principle, as costs and barriers of entry into markets diminish, the Information Revolution should reduce the power of large states and enhance the power of small sates and non-state actors. But in practise, international relations are more complex than such technological determinism implies. Some aspects of the information revolution help the small, but some help the already large and powerful. Size still matters. Economies of scale still remain in some of the aspects of power that are related to information. P117
-          No matter how power is measured, an equal distribution of power among states is relatively rare. More often the processes of uneven growth means that some states will be rising and others declining. P153
-          British columnist Martin Wolf calls India a ‘premature superpower’, meaning a country with low living standards but a huge economy. P173
-          China is another of Wolf’s premature superpowers. China’s current reputation for power benefits from projections about the future. P178
-          China does have impressive power resources, but we should be sceptical about projections based primarily on current growth rates and political rhetoric. P179
-          Moreover, linear projections of economic growth trends can be misleading. Countries tend to pick the low-hanging fruit as they benefit from imported technologies sin the early stages of economic take-off, and growth rates generally slow as economies reach higher levels of development. P181
-          The power paradox – The fact that power is given to those individuals, groups, or states that advance the interests of the greater good in a socially intelligent fashion, but what people want from leaders – social intelligence – is what is damaged by the possession of power. P207
-          Noble causes can have terrible consequences if they are accompanied by excessive optimism or wilful blindness about the probabilities of success. P209
-          Empires are easier to rule when they rest on the soft power of attraction as well as the hard power of coercion. P212
-          The world is neither uni-polar, nor multi-polar, nor chaotic – it is all three at the same time. Thus a smart grand strategy must be able to handle very different distributions of power in different domains and understand the trade-offs among them. It makes no more sense to see the world through a purely realist lens that focuses only on the top chess-board or a liberal institutional lens that looks primarily at the other boards. Contextual intelligence today requires a new synthesis of ‘liberal realism’ that looks at all three boards at the same time. After all, in a three-level game, a player who focuses on only one board is bound to lose in the long run. P213
-          Global government is unlikely in the twenty-first century, but degrees of global governance already exist. The world has hundreds of treaties, institutions, and regimes for governing areas of interstate behaviour ranging from telecommunications, civil aviation, ocean dumping, trade and even the proliferation of nuclear weapons. But such institutions are rarely self-sufficient. They still benefit from the leadership of great powers. And it remains to be seen whether the largest countries in the twenty-first century will live up to this role. P215
-          One of the dilemmas of multilateral diplomacy is how to get everyone into the act and still get action. The answer is likely to lie in what Europeans have dubbed ‘variable geometry’. There will be many multilateralisms that will vary with the distribution of power resources in different issues. P216
-           Centrality in networks can be a source of power, but the power that flows from this kind of connectivity is not the power to impose outcomes. Networks are not directed and controlled as much as they are managed and orchestrated. Multiple players are integrated into a whole that is greater than the sum of its parts – in other words, the network provides power to achieve preferred outcomes with other players rather than over them. P217
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