FACT SHEET: Power

[Source: The End of Power: From Boardrooms to Battlefields and Churches to States, Why Being in Power Isn’t What it Used to Be, Moisés Naίm, NY: Basic Books, 2013.]

Naίm is an internationally-published columnist, author of 10 books, former Minister of Trade, Venezuela, named “one of the world’s leading thinkers”

Major premise of book [See separate sheet for contextual statistics from the book.]

Today the accumulation and exercise of power is headed into unchartered waters – in world-changing ways. Power is becoming more feeble, transient and constrained; micropowers challenge megaplayers. Causes include technology, but even more important: the challenge of MORE MOBILITY (higher standards of living of people, goods, money); and MENTALITY (changing mindsets, expectations and aspirations).

Definition of power: the ability to direct or prevent the course of future actions. There are major power players today, but they are subject to more restraints. “Common Power” helps build society, not destroy it, resulting in pluralism not paralysis. We must acknowledge the decline of power and use different techniques and policies. This is more than a shift in power; power, itself, is more widely available. The key is to understand the barriers to power; this helps us solve the current power puzzles. The author doesn’t offer specific solutions; he’s describing today’s power dynamics.

Major Solutions/Actions Proposed by the Author [Chp 11: “What to do”]

... Change the way we think/talk about power (“who is #1”); we are all connected

… Adopt a mindset for maximum flexibility; many power centers remain rigid

… It’s a post-hegemonic age; we’re vulnerable to simplistic ‘technical’ solutions

… We need grassroots political reform; youth, especially, have lost trust in governments

… Political parties must be strengthened, adapt to new technologies, a networked world

… Create new mechanics of efficient governance to overcome current gridlocks

… Advances in communication have not widely impacted politics or governance

… Multiplication of NGOs should not erode our faith in the political parties

… Build multinational collaboration; increase trust in these cooperative actions

Components of Power

… Influence seeks to change perceptions, not situations

… Power changes both the perception and the situation

… Distribution of power now changed: transparency; innovation; warfare; small actors

… Barriers: geography; specialized human skills; marketing; licenses; laws, contracts

… Barriers are crumbling, eroding, leaking, becoming irrelevant

Selective History of Power Dynamics

... Earlier: Egypt, Rome, British civil service in India

… Rise of bureaucracy (Weber)

… Large-firm advantages like economies of scale

… Managerial revolution, vertical integration and World War mass mobilization

… Growth of gov’t structures; military-industrial complex; large labor unions

…19th century freedoms; post WWII restoration; now power flows away from the top

… Entrenched elites and power centers now seem unfair and/or irrelevant

… We now face the exhaustion of this power: it exists, but is under constraint by 3 Ms

More

... Age of profusion: population size; longevity; youth bulge; decreasing poverty; literacy

… Increase of professional scientists (63 million in 2009); rising education levels

… Middle Class expanding globally, especially in urban centers

Mobility

… Over 214 million migrants who change their new cultural environs; porous borders

… Millions in remittances mailed home

… Majority of humanity now lives in cities

… 6 billion cell phones globally; Internet usage; prepaid phone cards, mobile phones

Mentality

… Brains circulate as experts move around the globe, establish new companies

… Revolution in expectations, a new mindset of aspiration

… Increased education for women; their entrance into economies, governance

… More than 80 states have populations with a median age of 25 or less

… Importance of individual autonomy, gender equality, innovation disruption

Power and Politics/Governance

… An age of volubility: power bosses are challenged by insurgencies and outsiders

… Public policy erodes; fewer absolute majorities; factions create gridlock

… Elections are more frequent; people, critical of political leadership, change leaders

… Big money has openly infused elections and governance

… Losing many functional judiciaries

Military and Nation-State Affected by Power Changes

... Smaller guerrilla wars requiring more flexible military responses

… Weaker actors seem to defeat larger powers; age of ad-hoc allies

… War 2.0, but vested interests block military budget changes

… Digital warfare; rise of powerful non-state actors; fewer “boots on the ground”

Corporations, Labor, Churches, Philanthropy Affected by Power Diffusion

… New corporate start-ups challenge large companies and brands; trading algorithms

… Banking challenged by hedge funds; high-tech economy; collusion; lobbying

… Technology is disruptive; wire transfers; knowledge management; outsourcing

… Centralized churches losing members; people resent authoritarian hierarchies

… Union decreases; in Europe trade unions rooted in professional associations/guilds

… Unions must deal with technology, globalization, distrust of hierarchies

… Venture-philanthropy multiplying; cell-phone donations; crowd-funding; microloans

Media/Communications Altered by Power Dynamics

… Constant flow; digital platforms challenge ‘old’ media

… Some blogs and citizen journalism threaten media structures and content quality

… Powers (political parties, churches) must communicate effectively to citizens, youth

Background Statistics from The End of Power:

Corporate Trends

… In 2006 the average tenure for US CEOs was six years

… Many corporate headquarters are outside their own country

… Corporations are larger, influential, but subject to more risks

… Private-sector unions represent 7% from a post-World War II high of 40%

Communication/Technology Changes

… Twitter traffic during the Egyptian uprising was 75% from outside the Arab world

… 6.3 million professional scientists globally

… In 2012 there were 6 billion cellphones globally and increasing rapidly

… US newspaper industry has shrunk 43% since 2000

Democracy Growth

… In 1977 some 89 countries were ruled by autocrats; in 2011 the number was 22

… More than half the world’s population live in democracies

Demographics

…Middle Class population was 2 billion in 2012

... 84% of the world’s population is now literate

... World’s migrant population is now over 214 million

…There are about 180,000 public protests each year

Economy Trends

… In 2007 official development aid was $101 billion: private aid was $60 billion

… “Dark Pools” (anonymous) handle 14% of US equity

Military Changes

… Al Qaeda spent $500,000 on 9/11 attack; US costs were $3.3 trillion

… In 2012 the US defense budget was $700 billion; related costs made it $1 trillion

Philanthropy Changes

… In 2007 US international giving was $39.6 billion

… In 1975 there were 40,000 US foundations; in 2012 there were 76,000

Religion Data

… In the US 23% of churchgoers are Pentecostals and Charismatics

Values/Attitudes

… World Values Survey notes people choose individual autonomy, gender equality

This book’s Appendix gives more data on “Main Trends on Democracy and Political Power” in the post-war period. Covered are: taxonomy of regimes; freedom in the world; percentages of democracies that have increased significantly globally; regional differences; and liberalization reforms.