The State of the World

My Grandpa was talking about this and he said he got this from his brother, who is possibly the most knowledgeable man I know about business. It's an Open Letter to CEOs entitled What In The World Is Going On?: A Global Intelligence Briefing to CEOs. Apparently it's going around mostly by e-mail, but I did find a copy of it at a blog site.

I think it's definitely worth a read even if it is a bit long, and even if you're not a CEO. He covers four major problems in the world today and then offers some thoughts on the outcomes. Here's a couple of highlights:

1. The War in Iraq

[...]

Today, terrorism is the third attack on Western civilization by radical Islam. To deal with terrorism, the U.S. is doing two things. First, units of our armed forces are in 30 countries around the world hunting down terrorist groups and dealing with them. This gets very little publicity. Second we are taking military action in Afghanistan and Iraq. These are covered relentlessly by the media. People can argue about whether the war in Iraq is right or wrong. However, the underlying strategy behind the war is to use our military to remove the radicals from power and give the moderates a chance. Our hope is that, over time, the moderates will find a way to bring Islam forward into the 21st century. That’s what our involvement in Iraq and Afghanistan is all about.

[...]

2. The Emergence of China

In the last 20 years, China has moved 250 million people from the farms and villages into the cities. Their plan is to move another 300 million in the next 20 years. When you put that many people into the cities, you have to find work for them. That’s why China is addicted to manufacturing; they have to put all the relocated people to work. When we decide to manufacture something in the U.S., it’s based on market needs and the opportunity to make a profit. In China, they make the decision because they want the jobs, which is a very different calculation.

[...]

3. Shifting Demographics of Western Civilization

Most countries in the Western world have stopped breeding. For a civilization obsessed with sex, this is remarkable. Maintaining a steady population requires a birth rate of 2.1. In Western Europe, the birth rate currently stands at 1.5, or 30 percent below replacement. In 30 years there will be 70 to 80 million fewer Europeans than there are today. The current birth rate in Germany is 1.3. Italy and Spain are even lower at 1.2. At that rate, the working age population declines by 30 percent in 20 years, which has a huge impact on the economy.

[...]

4. Restructuring of American Business

The fourth major transformation involves a fundamental restructuring of American business. Today’s business environment is very complex and competitive. To succeed, you have to be the best, which means having the highest quality and lowest cost. Whatever your price point, you must have the best quality and lowest price. To be the best, you have to concentrate on one thing. You can’t be all things to all people and be the best.

These are only the layouts of the problems. He then goes on to present the implications of these problems to American and worldwide business and the world at large. I just love his final conclusion:

Ultimately, it’s an issue of culture. The only people who can hurt us are ourselves, by losing our culture. If we give up our Judeo-Christian culture, we become just like the Europeans. The culture war is the whole ballgame. If we lose it, there isn’t another America to pull us out.

Read the rest.

Herbert Meyer, the author, served during the Reagan administration as special assistant to the Director of Central Intelligence and Vice Chairman of the CIA's National Intelligence Council. According to his bio, "Meyer is widely credited with being the first senior U.S. Government official to forecast the Soviet Union's collapse." Before reading the full document, I was thinking of mentioning that there may be some political bias, but I don't think that needs to be mentioned anymore. It seems like a well-supported, down-to-earth paper.

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