The New World Order

Challenges Facing The

Global Corporation

The International Conference

For Thought and Creativity

Feb 15-18, 1993

Cairo

Allow me in the beginning to draw the very simple outlines, or rather characteristics, of our world. A world on the threshold of a new era. This era, or this new link in the chain of history, may well be considered the American era, just as past eras were always known by their predominant countries. Needless to say, such is the nature of history: it slides away from one era to another.

It is inevitable that my following vision of the world should be affected by my own personality and experience as a businessman working in the field of professional services on both the Arab and the international levels. The experience, as I would like to point out, is not of a political nature. I also hope that intellectuals will not be too harsh in judging this paper, which, at best can be considered as the personal viewpoint of an ordinary Arab citizen.

Winston Churchill once said, “The greatest lesson in life is to know that even fools are right sometimes”. I recall another saying by Ibn El Muqafa’ that goes: “Although the advice-seeker may be of a better opinion that the advisor, he benefits from the latter’s opinion”. It is only this far that I hope to reach.

Being unable to translate certain words, I shall use the Arabic transliteration throughout this paper. Evidently, I shall avoid the usage of both “universality” and “internationally” to prevent my meaning from being confused with socialism and communism, both of which are quite different in their aims to contain the world despite their similarity in their totalitarian nature.

What distinguishes this era the most from the ones in the past, in spite of its totalitarian resemblance, is the organizational structure that is beginning to appear and which greatly resembles the corporate structure of the giant American stock companies.

Being acquainted with this structure, I shall now try to apply it to the state into which I believe this world is becoming. This state may be primarily described as the Global Corporation. By this I mean our globe is about to become owned by a company in which everyone has shares, which uses all resources worldwide and which runs the whole world.

As in all stock companies, shares are distributed among different shareholders. Moreover, there are different types of shares, including ordinary, non-voting and preferred shares. This is how business operates in the Global Corporation as I imagine it. According to the principle of “globalization” and since the Global Corporation has the whole world as its shareholders, it also possesses the resources of the whole world and invests in itfor the shareholders according the quantity and type of their shares. Therefore, it would be totally irrelevant for any country to claim the ownership of its natural resources – as this used to occur in the past. Economics should become global. We live in a world that has become an integrated unit in which no country is allowed to monopolize its natural resources as if they are private fortunes.

The Global Corporation is run in the same organizational manner as stock companies. Its board of directors is elected by the shareholders. Those who own the most shares cast the most votes. An executive committee emerges from the board representing the most predominant countries. At the head of the board is the chairman who, naturally, controls most of the shares. As in any stock company, the members of the board are bound to change from time to time depending on changes in the control of the shares, i.e. the different countries of the world, as well as alliances of interests or power centers. And, again, as in usual stock companies, the chairman strives to remain in his position as long as possible, controlling and directing affairs in a way, which enables him to continue in such domination.

The administrative corps of the Global Corporation is appointed, depending on the importance of positions, by the chairman, the executive committee or the board. This is done under the supervision of the chairmanship so that with time, the interests of the governing body of the company will coincide with those of the company. This is the pattern for any economic establishment: the interests of the company and those of its senior management become paralleled.

Attached to the above-mentioned body are several firms, organizations and consulting institutions, all of which should be formed and reformed in accordance with the new corporate strategy of the company. These organizations, whether international, regional or national, will be assigned certain tasks and roles by which they should abide. Predominantly they are to act as tools that legally carry on the goals of the company.

In an audience of such distinguished intellectuals, I need not call a spade a spade. All the elements of the new structure are available and fairly clear for an ordinary man like me.

Because the world is entering an era of economic dominance, it is the more reason why the corporate organizational structure seems to be the more appropriate form for the future. Whoever possesses economic power (predominance over shares) will be the one in control of the world (the company’s chairmanship). I also believe that military power will serve as a tool for economic influence and not vice versa, which is the way it was in the past. Military power is nothing but an instrument of authority as isthe existence of political, social, personal or economic needs. Sometimes, such needs are created to force the authority to fulfill them.

Still another instrument of authority is technological superiority, which widens the gap between the ruling and the ruled in a way that puts all the technical tools of authority in the hands of the ruling. This way, the very thought of revolting against leadership seems futile because of the absence of technological tools. Similarly, organizations that represent international legitimacy are very effective tools of authority when you consider their ability to control others and recommend procedures for justice and resolutions.

In my humble opinion, the most important instrument of authority is information. Americans say: “Whoever has the information has the power”. While those who have it can easily make the right decision, people who do not possess the necessary information have to suffer a great deal of confusion and bewilderment. This reminds me of Dwight D. Eisenhower who, responding to the remark “you led the war successfully”, said, “no, I managed the war successfully”.

What I am trying to say – in a few words – is that the world is evolving into an integrated global unit that includes all aspects of life. In my opinion, this can well be achieved under the new American leadership. If part of what I say is correct, it will be necessary to analyze the results of living in such a new order, facing its challenges and finding ways to overcome them.

I would not claim it as my right to evaluate this new order as favorable or otherwise, for I learned something from Shakespeare when he said in Hamlet “There is nothing good or bad, but thinking makes it so”.No one will be able to judge the future but those people who will live in the future and witness the coming world order. I hope my description of the future order of a Global Corporation will not be harshly rejected. I’m convinced that the actual outcome will be produced by the order itself. Ancient societies developed the idea of a benevolent dictator who, even in the worst political system, could bring positive results. Based on that, the United States of America can unilaterally define the features of the New World Order because it is the leader of this world. Again Shakespeare said in Hamlet “We know what we are but not what we may be”.

Perhaps it is beneficial to review some examples of the challenges facing the new leadership of the world and defining its future, in which our children and grandchildren will be living. In fact, they will define the age of this era. The ruler makes the choices during his term but the period of his term is determined by the circumstances and the consequences of his actions.

The Challenge of Technology

In a world where the rate of scientific development doubles every second year, underdeveloped countries (euphemistically know as developing countries) will find it difficult to match the technological development of the advanced world. The past decade has witnessed an adverse movement; the gap widened in a way that contradicts the principle of globalization. Perhaps the best example to mention here would be intellectual bilateral agreements. Such agreements enable advanced countries to take control of technology and frustrate all chances of improvement in underdeveloped countries.

Although we do not wish to deny the individual intellectual property rights, we, nevertheless, admit to the principle of globalization, which grants the international community, a unit that has no separating borders, the use of this technology. In other words, I do not demand the abolition of intellectual property rights for their existence in the whole world as one community and not as specific countries.

Therefore, we should have only two choices: either we consider ourselves living in one world or in two. It would be useless to talk about the problems of the underdeveloped world and to ask the underdeveloped to solve their own problems before they ask for help from the advanced countries. By admitting that the world has only one ruler, this places the responsibility on him or her to treat all situations, whether they are good or bad.

The Challenge of International Free Trade

The ultimate goal of the 1957 Treaty of Rome was to develop a European integrated market for the free movement of goods, services, people and capital, commonly known as the “fourfreedoms”. The world is witnessing emerging trade markets in the Americas and in the Far East. Thus, there will be three free markets in the world, including all the countries of the developed world, so that they are protected from competition from the poorer nations. It is actually the underdeveloped world that really needs protection. The most flagrant example of free trade restrictions is found in the Multifiber Agreement (MFA), which governs about 7% of the world’s trade and accounts for 15% of the exports of the underdeveloped world. The agreement causes the underdeveloped countries to lose more than $15 billion a year as though these countries do not already suffer great losses.

It is remarkable that the Henderson 1991, IMF survey of May 27 states that “for the first time in economic history the impetus to trade liberalization is not coming from the industrialized countries which profess to accept liberal norms, but from countries which have traditionally rejected them.” Since 1973, the developed countries have been the ones to increase trade protections, while the developing countries liberalized theirs. And it is a source of pride and admiration for those who have spoken for the underdeveloped countries in their effort to voice the desire to seek fairness and their wish to be members of a truly equal global partnership.

The Challenge of Resource Distribution Among the World’s Nations

Based on my projection of GATT figures for 1987/1988, the total GNP of advanced countries will continue to increase. This occurs while the underdeveloped countries, which represent by far the large part of the human race, will still account for a disproportionately smaller share of the total GNP – optimistically, some $4,000 billion. Thus, the leadership of the new world is faced with two choices: to stand by and watch the rich get richer and the poor get poorer, or to build a system that eventually results in the distribution of the world’s wealth according to the concept of globalization, not only in the use of resources but also in their distribution.

The Challenge of Justice

Our true religion teaches that justice is the root of power. Therefore, the future of the New World Order depends on its capability of enforcing justice and treating all people equally. History reveals that injustice is the main cause behind the decline of authority. Might does not make right, though, in practice, power may mean justice but only for a short time. Having said that, I realize that pressure may force, due to interests, emotions, security concerns and covert operations, the ruler to neglect the pursuit of justice and even drive him or her to contradict the principles of justice. The ruler’s whole future may depend on these decisions.

The Challenge of Democracy

One thing that underdeveloped countries have in common is their yearning for democracy. Therefore, it would be unfair to call some nations undemocratic. The failure to achieve democracy is sometimes the result of circumstances, and in many case, the responsibility of advanced countries. I believe that in this world there is no such thing as democratic and undemocratic nations. All nations are democratic, though some have fulfilled their yearning for democracy and others are still working on it. Even those who enjoy democracy are not equally successful. Nor are those who strive for it. This is why I object to the attempt to assign classifications rather than help in the realization of democratic aspirations.

The challenge of democracy is closely connected with social change because no nation can flourish without a corresponding cultural change.

Figures reveal that Americans spend more than one thousand billion dollars a year on education, which is more than the total amount of what all underdeveloped nations spend. Evidently, it is difficult for any reasonable person to imagine any cultural, social or democratic link between the leadership of the world and its constituent countries.

Again, figures indicate that last year the US spent more than $ 25 billion on research. This makes it all the more difficult to expect any corresponding improvement in underdeveloped countries because their total expenditure on research last year was one-thousandth as much on a per capita basis. Such figures heighten our admiration for the United States, but they also heighten our concerns.

These are some of the challenges that the New World Order will face with the world being one global corporation or one home. According to former Soviet President Mikhail Gorbachev, “We all live in one home. Some of us may enter through a door, while others may enter through another, but still we all have to cooperate and organize life and relations in this home”. I find it hard to imagine the father of this home expecting to provide safety for his family when there is no system that secures justice, peace and basic necessities to its entire membership. I also find it hard to picture any ruler feeling safe and secure about the continuance of his influence while ignoring all influencing factors, including foreign ones. For, according to the concept of globalization, there are no such things as external and internal factors. “We all live in one home”, as Gorbachev says. Globalization pictures the whole world as one unit with neither national nor foreign institutions. It is a concept that aims at establishing global systems that absorb the whole world under one leadership. Modern literature speaks of the global economy, global market, global trade and global security and not foreign economy, foreign market, foreign trade and foreign security.

I now address the intellectuals, beseeching their intellect and ability of expression. Whether expertise politics, economy or sociology, I hope they will use their thoughts and powers of expression to give the leaders of the New World Order advice on setting its principles. This would eventually help in the construction of one world, just as any ruler aims to establish a government that secures the best interest of his or her people in general rather than one group in particular.

Only in this way can anyone establish a successful and surviving order. History teaches us that all empires were destroyed as soon as one basic fact was forgotten: the world is too big to be limited by walls that protect the dominant nation. I honestly believe the leadership of the new world is in need of those who present themselves objectively and positively with what serves their true interests. This is what the new leaders need as they form their strategic plans to manage the New World Order, which aims to serve the whole world and not just a part of it.

“So that all this can be done”, as the president of the Arab Republic of Egypt said during his meeting with writers and thinkers in Moscow in May 1990,

“The creative abilities of thoughtand literature should rise and strive to lay the foundations of collective development as one whole”. We have a lot to learn from that wisdom.

Finally, please permit me to share with you words of faith, from our holy book, the Quran, with which I trust we can all identify and in which we may seek consolation:

“O mankind! We created you from a single (pair) of a male and a female. And made you into nations and tribes that ye may know each other, (Not that ye may despise each other). Verily, (he who is) the most honored of you in the sight of God is the most righteous of you”.