The Changing World Order
How is it changing and why does it matter?
A couple of years ago, I discovered an excellent animated video by Ray Dalio - one of the wealthiest people on the planet, with an estimated net worth of over $16bn - entitled “Principles for Dealing with the Changing World Order”.
The video has over 55 million views to date - for good reason. In the video, Ray explains how his research into the rise and fall of large nations and empires over the past 500 years helped him develop a set of metrics to help explain how they progress through different stages of development and decline.
Why does any of this matter? Because, as the saying goes, “history doesn’t repeat itself, but it often rhymes”.
Only Allah knows the future, but all signs point to a world very different from the one many of us have known, though it may echo the past.
Gone are the days of a “unipolar world” with the US calling all the shots.
As Ray demonstrates in the video (and in more detail in his book of the same name), the US is clearly on the decline, and whilst the decline could potentially be slowed, it seems inevitable.
On the other hand, China is on the ascendancy, and tensions between the two countries and their allies are increasing every day.
If you want to understand how and why the US is declining and what that might lead to, the video is a great starting point (it’s animated and engaging).
So much of what Ray explains in the video appears to be playing out in front of our very eyes, from increased militarism to the rise of BRICS to de-dollarisation.
I can’t help but wonder what the future holds - and what it means for all of us, wherever we are. As sides are picked and battle lines drawn, it feels like there are dark days ahead.
What are your thoughts? How do you think things will play out? And what, if anything, should we be doing to prepare? I'd love to hear from you in the comments.
Hanif