Book cover of How to Run the World by Parag Khanna

Parag Khanna

How to Run the World Summary

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To fix a chaotic world, we need a new kind of diplomacy—one that brings together all actors, from governments to activists, to create real change.

1. The World is a Chaotic Mosh Pit of Competing Interests

The world today resembles a chaotic mosh pit, with various actors—countries, corporations, NGOs, and religious groups—pursuing their own interests. This self-interest often leads to power struggles and conflict, making global harmony seem unattainable. The current system is fragmented, with no single entity capable of addressing global challenges like poverty, war, and climate change.

Historically, diplomacy was a tool for negotiation and conflict resolution, often conducted in secret by powerful elites. Ancient Mesopotamians used it to convey divine messages, while the Greeks employed it for trade and politics. By the 19th and 20th centuries, diplomacy became a closed-door affair, dominated by state actors. However, this old model is no longer sufficient in a world where non-state actors wield significant influence.

To address today’s challenges, we need "Mega-Diplomacy"—a system that connects all influential forces to work collaboratively. This approach requires rethinking diplomacy as a web of relationships, where governments, corporations, NGOs, and individuals come together to create solutions. It’s about breaking down silos and fostering cooperation across sectors.

Examples

  • The Global North and South often clash over trade policies, highlighting the need for inclusive dialogue.
  • Multinational corporations like Google and Amazon influence global policies, yet they rarely engage in traditional diplomacy.
  • Religious groups, such as the Vatican, play a role in peace negotiations, showing the diversity of actors in global affairs.

2. Diplomacy is No Longer Just for Governments

In the modern world, anyone with influence can be a diplomat. Diplomacy has expanded beyond state actors to include entrepreneurs, activists, academics, and even celebrities. These new diplomats use their platforms to address global issues and foster collaboration.

Organizations like Oxfam exemplify this new diplomacy. Oxfam not only provides aid but also invests in corporations to influence policies, such as vaccine distribution. This proactive approach allows them to address immediate needs while shaping long-term solutions. Similarly, workshops like those organized by Americans for Informed Democracy (AID) simulate real-world negotiations, teaching students to navigate complex global issues.

To be effective, modern diplomats must be proactive and collaborative. They should seek partnerships with experts in various fields to create well-rounded solutions. For instance, a diplomat working on water access might collaborate with engineers, local leaders, and NGOs to implement sustainable projects.

Examples

  • Oxfam’s investment in pharmaceutical companies to influence vaccine policies.
  • AID’s workshops that simulate negotiations involving diverse actors like Greenpeace and oil cartels.
  • French diplomats being incentivized to complete impactful projects before receiving promotions.

3. Regional Stability is the Foundation for Global Peace

Global peace is unattainable without first achieving regional stability. Many conflicts, such as those between Saudi Arabia and Iran or China and India, are deeply rooted in regional tensions. Addressing these issues requires localized solutions rather than broad, global strategies.

Regional organizations like the European Union (EU), the Union of South American Nations (UNASUR), and the Association of Southeast Asian Nations (ASEAN) play a key role in fostering trust and cooperation. These groups create frameworks for resolving disputes and promoting economic growth within their regions. By focusing on regional stability, they contribute to a more peaceful global landscape.

Independent organizations also play a role in regional diplomacy. For example, Independent Diplomat, founded by Carne Ross, provides diplomatic services to states and regions. Their work with the exiled government of Burma demonstrates how independent actors can mediate conflicts and promote democracy without being tied to state agendas.

Examples

  • The EU’s role in maintaining peace among its member states.
  • ASEAN’s efforts to resolve disputes in Southeast Asia.
  • Independent Diplomat’s work with Burma’s exiled government to foster communication and democracy.

4. Colonialism’s Legacy Can Be Reversed with New Approaches

Colonialism left many countries weak and fractured, unable to sustain themselves after gaining independence. These nations often struggle with issues like poverty, unemployment, and political instability. However, a new form of "colonialism" could help rebuild these states by empowering them to solve their own problems.

Instead of imposing solutions, modern diplomats should focus on providing resources and guidance. For example, after the 2004 tsunami in Indonesia, foreign aid flooded the country, but the government’s absence highlighted the need for stronger local institutions. By helping countries build infrastructure and governance systems, new colonialists can foster independence rather than dependence.

This approach involves intervening in domestic policies, removing corrupt leaders, and empowering citizens. It’s about creating the conditions for self-sufficiency rather than perpetuating reliance on foreign aid.

Examples

  • Indonesia’s reliance on foreign aid after the 2004 tsunami.
  • The Congo’s ongoing struggles with governance and infrastructure.
  • Afghanistan’s challenges in building a stable government post-colonialism.

5. Poor Countries Should Focus on Realistic Goals

Developing countries often fail to progress because they try to emulate larger economies like Brazil, Russia, India, and China (BRIC). Instead, they should set realistic goals and focus on niche markets where they can excel.

For instance, the Persian Gulf states have thrived by specializing in oil, gas, tourism, and shipping. Similarly, Nepal and Kyrgyzstan have leveraged their natural beauty to build successful tourism industries. By identifying their unique strengths, smaller nations can create sustainable growth without overextending themselves.

Public-private partnerships are also essential for development. In India, Tata Power worked with the Delhi government to reduce electricity theft, while Saudi Arabia’s Aramco partnered with universities to improve education. These collaborations combine resources and expertise to achieve shared goals.

Examples

  • Nepal’s focus on mountain tourism as a key economic driver.
  • Tata Power’s partnership with Delhi to address electricity theft.
  • Aramco’s collaboration with universities to enhance education in Saudi Arabia.

6. Aid Dependency Hinders Progress

Foreign aid often creates dependency, preventing poor countries from achieving true progress. Many nations rely on aid for basic needs, which stifles their ability to develop sustainable solutions. For example, Burkina Faso, Haiti, and Gambia receive half of their national budgets from foreign aid, leaving them vulnerable to external influence.

Instead of providing endless aid, organizations should focus on meeting immediate needs and building local capacity. This involves addressing issues like clean water, education, and infrastructure. By mobilizing resources on the ground, rather than through bureaucratic systems, aid can become more effective.

Building businesses and attracting foreign investment are also key to reducing dependency. For example, constructing highways, schools, and hospitals can create jobs and stimulate economic growth, paving the way for long-term independence.

Examples

  • Burkina Faso’s reliance on foreign aid for half its national budget.
  • The World Bank’s bureaucratic challenges in implementing large-scale projects.
  • Efforts to build infrastructure in underdeveloped regions to attract investment.

Takeaways

  1. Foster collaboration across sectors by involving governments, NGOs, corporations, and individuals in diplomatic efforts.
  2. Focus on regional stability as a stepping stone to global peace, using localized solutions to address conflicts.
  3. Help developing countries build independence by addressing immediate needs and creating sustainable systems for growth.

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