How to Run the World

How to Run the World Plot Summary

Introduction

In the elegant salons of Vienna in 1814, a handful of powerful men—Britain's Lord Castlereagh, France's Talleyrand, Russia's Czar Alexander I, and Austria's Prince Metternich—gathered for six intense months to redraw Europe's political map after Napoleon's defeat. Their conservative order, the "Concert of Europe," lasted until World War I. Fast forward to today, and the world of diplomacy has transformed dramatically. No longer do a few statesmen in smoke-filled rooms dictate global affairs. Instead, power has fragmented into a complex web of states, corporations, NGOs, celebrities, and influential individuals—a system resembling the medieval world more than the orderly Cold War structure. This neo-medieval landscape demands a new approach to global governance—what the author calls "mega-diplomacy." At its core, mega-diplomacy recognizes that no single nation or institution can solve today's complex problems alone. Climate change, terrorism, financial instability, poverty, and failed states require collaborative action among governments, businesses, and civic organizations. The most effective diplomatic initiatives now emerge when these diverse actors form coalitions to tackle specific challenges. For policymakers, business leaders, activists, and engaged citizens alike, understanding this new diplomatic landscape isn't just intellectually stimulating—it's essential for navigating our rapidly changing world.

Chapter 1: The New Middle Ages: Return of Fragmented Power Centers

The medieval world was a complex patchwork of overlapping authorities. Emperors, kings, dukes, bishops, guilds, and mercenaries all competed for power and influence across territories with fuzzy boundaries. Today's world increasingly resembles this medieval landscape. The neat post-Cold War vision of a unipolar, American-led global order has given way to something far more fractured and fluid. Traditional nation-states now share the stage with multinational corporations whose revenues exceed many countries' GDPs, with NGOs wielding moral authority on global issues, and with mega-cities operating as economic powers in their own right. This fragmentation reflects deep structural changes. State sovereignty, once the cornerstone of international relations, has eroded under the pressures of globalization. Just forty city-regions now account for two-thirds of the world economy. Dubai functions like a modern Venice—a commercial hub more connected to the global marketplace than to its regional neighbors. Meanwhile, corporations like Google and Exxon pursue their own foreign policies, while NGOs like Oxfam and Médecins Sans Frontières operate in conflict zones where governments fear to tread. Even in stable countries, governments increasingly struggle to manage complex problems from climate change to terrorism. Religion has also returned as a potent force in world affairs. Islam is spreading as rapidly today as it did in the seventh and eighth centuries, while Christianity is finding new roots in Africa, Latin America, and China. Religious charities often deliver services that governments cannot or will not provide. In many failed states, tribal and clan loyalties mean more than national identity, further undermining central authority. The line between peace and conflict has blurred, with irregular warfare, terrorism, and organized crime creating zones of instability that defy traditional military solutions. Technology accelerates this fragmentation while paradoxically connecting us more closely than ever. Information flows instantly across borders, empowering individuals but also terrorist networks. The diplomat with a BlackBerry can bypass traditional channels, acting more autonomously than predecessors who waited months for instructions from capitals. Even medieval barbarism has returned in new forms, from sectarian violence in Iraq to drug cartels in Mexico to piracy off Somalia. When Nigerian fuel prices spike, riots erupt within hours, showing how tenuous social order remains beneath the veneer of modernity. Yet the new Middle Ages need not be a permanent dark age. Unlike the original medieval period, our current transition could potentially lead to a renaissance rather than a world war. But getting there requires abandoning outdated notions of centralized global governance in favor of more adaptive, networked approaches. The nation-state will remain important, but its power will be more constrained and contingent, forcing governments to collaborate with other actors they cannot control. This messy reality of shared sovereignty and overlapping authorities is not a temporary aberration but our new normal.

Chapter 2: Beyond Nations: Rise of Non-State Actors as Global Diplomats

The most dynamic diplomatic players today aren't necessarily wearing pinstriped suits or carrying diplomatic passports. From George Soros to Bill Gates, from Bono to Doctors Without Borders, non-state actors increasingly shape global affairs as powerfully as traditional diplomats. These "new diplomats" bring fresh perspectives, resources, and tactics to international challenges that governments alone struggle to address. They don't just influence policy—they actively make it, implement it, and hold governments accountable for failures. Celebrity diplomats wield unique influence through their global recognition and media access. When Angelina Jolie visits refugee camps as a UN Goodwill Ambassador, she brings more attention to humanitarian crises than most official envoys could hope to generate. Bob Geldof's blunt "Give us the fucking money!" at Live Aid demonstrated a directness formal diplomats rarely employ. Bono has lobbied effectively for debt relief and AIDS funding, telling corporate executives, "History is taking notes right now." Rather than dismissing celebrity activism as superficial, we should recognize how these figures mobilize resources and public attention for neglected issues. Corporate leaders have likewise emerged as diplomatic heavyweights. The late John Browne of BP pioneered corporate environmental initiatives well before most governments took climate change seriously. Mo Ibrahim, who made billions selling mobile phones across Africa, now offers a $5 million prize to African leaders who govern well and step down peacefully. Denis O'Brien's Digicel brings cell service to Haiti and other developing nations, providing communication infrastructure that transforms economic possibilities. These business leaders don't just pursue profits—they reshape the social and political landscapes of the countries where they operate. Super-NGOs operate as virtual parallel governments in many regions. Oxfam's $500 million budget allows it to respond to crises more nimbly than many official development agencies. The International Crisis Group provides intelligence on conflict zones that rivals what many foreign ministries collect. Human Rights Watch can shame governments more effectively than traditional diplomatic protests. Karen Tse's International Bridges to Justice trains public defenders in Cambodia and China, directly addressing torture and rights abuses that intergovernmental bodies struggle to influence. New diplomatic forums have emerged to harness this diverse energy. The World Economic Forum brings presidents, CEOs, and activists together in Davos and other locations, enabling cross-sector partnerships that formal institutions rarely facilitate. Bill Clinton's Global Initiative requires concrete commitments from participants, mobilizing billions for development projects. These gatherings aren't just talk shops—they're catalysts for action, connecting those with resources to those with solutions. Even traditional diplomats increasingly acknowledge that real influence requires engaging this broader ecosystem. The new diplomats succeed partly because they operate without traditional constraints. They can speak truth to power, take risks, and pursue innovative approaches that bureaucracies resist. They don't need formal sovereignty to effect change—their legitimacy comes from expertise, effectiveness, and moral authority. Most importantly, they bring resources to the table, whether financial capital, technological solutions, or public support. In a world where government budgets are strained and political will is scarce, these contributions are indispensable to addressing global challenges.

Chapter 3: Redesigning Global Architecture Through Decentralization

The international institutions created after World War II—the United Nations, World Bank, and International Monetary Fund—are showing their age. Designed for a world of sovereign nation-states with clear hierarchies, they struggle to address transnational challenges in our increasingly decentralized world. Their tidy org charts, with separate departments for security, development, health, and environment, fail to capture how these issues intertwine in reality. No wonder their responses to complex crises often seem fragmented and ineffective. The UN Security Council exemplifies this mismatch between structure and reality. Its five permanent members (the P-5) represent a power balance from 1945, not today's multipolar world. China protects Sudan, Russia shields Iran, and America defends Israel, rendering the council ineffective on crucial conflicts. Meanwhile, regional organizations increasingly take responsibility for security in their neighborhoods. The African Union deploys peacekeepers, the European Union undertakes stabilization operations, and the Association of Southeast Asian Nations deepens political cooperation. These regional bodies better understand local contexts and can respond more nimbly than distant global institutions. Economic governance has undergone a similar transformation. The 2008 financial crisis shifted leadership from the G-7 to the G-20, acknowledging the growing influence of emerging economies. Unlike formal institutions with permanent secretariats, the G-20 operates through networks of "Sherpas"—senior officials who coordinate policy through constant digital communication. This "Facebook diplomacy" allows flexible responses to fast-moving events. Rather than elaborate bureaucracies, such networks thrive on trusted relationships and shared expertise. They represent "twenty hubs and no HQ"—a governance model suited to our interconnected age. The Washington Consensus of market fundamentalism has given way to competing economic models. China's state capitalism, combining central direction with market forces, has lifted hundreds of millions from poverty. European social democracy balances economic growth with strong welfare systems. Brazil and India follow their own development paths, blending public and private approaches. These diverse models reflect a key insight: rather than imposing one-size-fits-all solutions, effective governance must adapt to local conditions and needs. Countries at different development stages require different policy approaches. Public-private partnerships have become essential governance tools, particularly in addressing global challenges. The Global Fund to Fight AIDS, Tuberculosis and Malaria combines government funding with private sector expertise and NGO implementation. The Gates Foundation works directly with pharmaceutical companies and health agencies to deliver vaccines where needed most. Climate initiatives increasingly involve energy companies, conservation groups, and government regulators working together. These collaborations leverage each sector's strengths while compensating for their weaknesses. The new global architecture emerging from this flux is messier but potentially more resilient than the old order. Rather than centralized control, it emphasizes networks, adaptability, and what the author calls "mega-diplomacy"—bringing together diverse actors to address specific challenges. Success requires inclusiveness (getting all relevant stakeholders involved), decentralization (pushing resources and decision-making closer to problems), and mutual accountability (creating communities of trust among participants). While lacking the neat symmetry of traditional international organization charts, this approach better matches the complexity of our neo-medieval world.

Chapter 4: Regional Powers and Remapping Troubled Territories

The colonial-era map that carved up Africa, the Middle East, and parts of Asia has produced decades of conflict and instability. Many of these arbitrary borders split ethnic groups across multiple countries or forced antagonistic populations together under artificial states. When colonial powers withdrew, they left behind governance structures ill-suited to local realities. The result has been endemic civil wars, failed states, and territorial disputes that traditional diplomacy has failed to resolve. Perhaps it's time to consider a more radical approach: redrawing these troubled territories to better align political boundaries with ethnic, religious, and economic realities. In Africa, the massive Democratic Republic of Congo has never functioned as a coherent state. Originally assembled for Belgian colonial exploitation of rubber and minerals, it encompasses more than 200 ethnic groups with little shared identity. Despite billions in aid and the world's largest UN peacekeeping mission, the government barely controls territory beyond the capital. Civil war has killed millions while leaving its vast mineral wealth largely untapped. Similarly, Sudan's forced union of Arab Muslims in the north with black Christians and animists in the south has produced decades of bloodshed. Rather than insisting on preserving these colonial constructs, the African Union might better serve its people by overseeing the gradual remapping of these territories into more viable political units. The Middle East faces similar challenges. The 1916 Sykes-Picot agreement, in which Britain and France divided the Ottoman Empire's Arab provinces, created states with little regard for ethnic and sectarian realities. Iraq's violent tensions among Kurds, Sunnis, and Shiites reflect these artificial boundaries. Kurdistan straddles Iraq, Iran, Turkey, and Syria, with Kurds seeking autonomy denied them after World War I. Meanwhile, Israel-Palestine remains deadlocked, with decades of diplomatic efforts producing little progress. Creative solutions might include cross-border economic zones, autonomous regions, or even new political arrangements that better reflect demographic realities. South-central Asia presents another cartographic challenge. The arbitrary Durand Line dividing Afghanistan and Pakistan cuts through Pashtun tribal territories, creating a lawless frontier that harbors extremists. Kashmir remains divided between India and Pakistan, with both claiming the entire region. Rather than reinforcing these troubled boundaries, diplomatic efforts might focus on creating cross-border governance structures for shared resources like water and energy, gradually making the exact location of borders less relevant. The Pashtun people could potentially gain greater autonomy within a confederation arrangement that acknowledges their distinct identity while preserving national frameworks. Cross-border infrastructure offers a path forward even where political settlements remain elusive. China has built roads, railways, and pipelines connecting Central Asia to global markets. The Trans-Asian Railway Network Agreement represents a breakthrough in cooperation across the former Soviet Union. In Africa, Pan-African infrastructure funds are financing highways and power grids that transcend colonial borders. These physical connections can make historical boundaries increasingly irrelevant, fostering economic integration where political unity remains challenging. The remapping of troubled territories need not mean a return to colonial interference. Regional organizations, not distant powers, should take the lead in facilitating these transitions. Foreign companies and donors can support cross-border development without dictating political outcomes. The goal isn't necessarily independent statehood for every ethnic group, but rather governance arrangements that provide security, opportunity, and recognition for diverse communities. By acknowledging that colonial-era maps are not sacred, we open space for more creative, locally-rooted solutions to longstanding conflicts.

Chapter 5: Public-Private Collaboration: The New Governance Model

In 2004, humanitarian advocates approached Blackwater about potentially intervening in Darfur when governments wouldn't act. In Afghanistan, it's not the national government but corporations, NGOs, and tribal councils that deliver most basic services. Across Africa, Chinese companies build infrastructure while Western NGOs provide healthcare. Welcome to the new model of hybrid governance—where public and private actors increasingly share responsibility for functions traditionally reserved for the state. This emerging system reflects both the weakness of many governments and the entrepreneurial energy of non-state actors in addressing global challenges. The new colonialism operates differently from its historical predecessor. Rather than extracting resources for imperial benefit, today's intervention aims to build capacity, deliver services, and create stability. When the Indonesian tsunami struck in 2004, the first aid to reach remote Banda Aceh came from Dutch logistics company TNT, not from government agencies. UNICEF partners with major corporations to deliver emergency supplies in conflict zones. The UN High Commissioner for Refugees relies on NGOs to manage camps housing millions of displaced people. These public-private partnerships don't displace sovereignty in theory, but in practice they often determine who receives vital services. Failed states present the clearest example of this hybrid governance model. In Somalia, remittance companies issue ID cards to their customers, effectively serving as civil registrars in the absence of functioning government. In eastern Congo, mining companies provide healthcare and education to communities beyond state reach. Haiti's devastating 2010 earthquake brought an influx of NGOs, businesses, and donors who effectively bypassed the weak central government to deliver aid. Rather than temporary emergencies, these arrangements have become semi-permanent features of governance in fragile states. Even in more stable countries, corporations increasingly assume quasi-governmental roles. Walmart's sustainability requirements ripple through global supply chains, affecting environmental practices more directly than many regulations. Google's infrastructure investments in Africa expand internet access where governments lack resources. Mobile phone companies build payment systems that serve millions lacking traditional bank accounts. These private initiatives don't just fill gaps—they often establish new standards and expectations that reshape public policy. Coordinating this diverse ecosystem presents enormous challenges. As Lord Paddy Ashdown, former High Representative in Bosnia, observed: "Before I started my mandate I had been told that managing Bosnia was like herding cats. What I hadn't appreciated was that this applied to the international community too." The proliferation of agencies, donors, and NGOs often creates confusion, duplication, and waste. Uganda had over 1,050 aid programs between 2003 and 2006, each with its own reporting requirements and priorities. Companies may pursue corporate social responsibility projects that align poorly with local needs or undermine government capacity. Effective mega-diplomacy requires moving beyond this fragmentation toward more coordinated approaches. The most successful examples bring together public authority, private resources, and civic engagement under coherent frameworks. Afghanistan's National Solidarity Program, which disbursed grants directly to 28,000 villages through participatory processes, demonstrated how local ownership combined with external support can deliver results even in conflict zones. The extractive Industries Transparency Initiative brings together governments, companies, and civil society to monitor resource revenues. Such initiatives acknowledge the reality of shared governance while creating structures to make it more accountable and effective.

Chapter 6: From Resource Curse to Prosperity: Navigating Development

Many resource-rich countries remain stubbornly poor, trapped in what economists call the "resource curse." Angola produces two million barrels of oil daily yet ranks among the world's worst in child mortality. Nigeria has earned hundreds of billions from petroleum while most of its population lives on less than two dollars per day. Congo's vast mineral wealth funds warlords rather than development. This paradox persists because resource extraction often strengthens corrupt elites, fuels conflict, and crowds out productive economic activity. Breaking this cycle requires new approaches to managing natural wealth. Public-private partnerships offer one promising path. Botswana's partnership with De Beers transformed potential "blood diamonds" into a foundation for Africa's most stable democracy. The government auctioned resource rights to get the best price, taxes corporate revenues rather than accepting personal bribes, and invests profits in national development. Similarly, Malaysia's state oil company Petronas developed technical expertise while channeling energy revenues into education and infrastructure. These success stories demonstrate that with transparent management and strategic investment, natural resources can become a blessing rather than a curse. Foreign investors, once viewed primarily as exploiters, increasingly recognize their stake in promoting good governance. When Shell returned to Nigeria after protests over environmental damage and resource distribution, it helped convince the government to allocate more oil revenue to producing regions and funded schools and scholarships. Newmont Mining works with local mayors in Peru to improve fiscal management and shares economic benefits more widely in mining communities. These corporate initiatives reflect both enlightened self-interest and pressure from shareholders and consumers for responsible resource development. Trade and investment create more sustainable pathways to prosperity than aid alone. Mauritius transformed its economy by abolishing trade barriers, attracting textile manufacturers from Hong Kong, and simultaneously developing its indigenous business sector. Vietnam has become a major exporter of rice, coffee, and manufactured goods, lifting millions from poverty. Even in Africa, countries including Ghana, Tanzania, and Botswana have achieved significant growth through policies that encourage both foreign and domestic investment. China's infrastructure investments across the continent, while controversial, have opened new economic opportunities that Western aid programs often failed to deliver. Migration and remittances represent another underappreciated development engine. The roughly 200 million migrants worldwide send home over $500 billion annually—five times more than official development assistance. These funds directly support families, fund education, and seed small businesses. Mexico, the Philippines, and India have developed sophisticated policies to engage their diasporas and leverage these flows. Some countries actively cultivate "brain circulation" rather than bemoaning brain drain, encouraging citizens who succeed abroad to return with capital, skills, and connections. This human mobility creates transnational networks that benefit both sending and receiving countries. Technology enables countries to leapfrog traditional development stages. Mobile phones have revolutionized access to financial services, market information, and healthcare in regions lacking basic infrastructure. Solar power provides electricity to communities far from any grid. These innovations spread rapidly through market mechanisms, often faster than government programs. The challenge is ensuring that technological progress benefits the marginalized rather than widening existing divides. Public-private collaborations like M-PESA mobile banking in Kenya demonstrate how government enabling frameworks combined with private sector innovation can extend services to previously excluded populations. Navigating from resource curse to prosperity requires abandoning ideological absolutes in favor of pragmatic experimentation. Neither state control nor unfettered markets alone can transform resource wealth into sustainable development. The most successful approaches combine public oversight, private efficiency, and community participation—creating accountability mechanisms at multiple levels. They also recognize that development paths will differ across cultures and contexts. China's state-directed model, India's entrepreneurial chaos, and Brazil's social policies all offer distinct lessons for countries seeking their own routes to prosperity.

Chapter 7: Technology and Human Will Over Political Bureaucracy

In Tehran's 2009 post-election protests, Twitter became a vital coordination tool for demonstrators and a window for the world into unfolding events. So crucial was this technology that the U.S. State Department urged Twitter to delay scheduled maintenance to keep information flowing. This moment crystallized a profound shift: technology has democratized diplomacy, giving ordinary citizens unprecedented ability to organize, communicate, and challenge authority. From mobile phones documenting human rights abuses to Facebook groups mobilizing millions for social causes, technology empowers what the author calls "human will"—the capacity for individuals and communities to take action without waiting for governments or international organizations. The contrast between technological agility and bureaucratic inertia grows starker daily. While the UN Security Council debates for months without action, crowdfunding platforms like Kiva disburse millions in microloans to entrepreneurs worldwide. While climate negotiations drag on, clean-tech companies rapidly develop and deploy solar, wind, and energy efficiency solutions. Traditional institutions often become paralyzed by process, producing declarations and communiqués rather than concrete progress. Technology enables more direct, adaptive approaches to global challenges—connecting those with resources to those with solutions without bureaucratic intermediaries. Mobile phones exemplify this transformative potential. With five billion phones worldwide—more than the number of people with access to clean water—mobile technology connects the previously disconnected to information, markets, and each other. In Kenya, the M-PESA system enables millions without bank accounts to transfer money, pay bills, and receive remittances through simple text messages. In India, farmers use phones to check market prices, breaking the monopoly of local middlemen. During health emergencies, phones allow real-time disease reporting and treatment guidance. These applications emerge not from grand plans but from users adapting technology to meet local needs. Internet platforms have similarly revolutionized civic engagement. Avaaz, with over three million members, mobilizes global campaigns on issues from climate change to human rights. During Myanmar's 2008 cyclone, when the military junta blocked official aid, Avaaz delivered $2 million directly to monks providing relief. Transparency International uses online tools to collect and publish corruption data, creating accountability where formal institutions fail. These digital networks operate across borders, languages, and time zones, bypassing traditional diplomatic channels to build transnational communities of interest. Clean technology demonstrates how innovation can outpace political inertia. While international climate negotiations produce modest commitments for distant dates, venture capital funds invest billions in renewable energy, energy efficiency, and sustainable transportation. China has rapidly become the world's leading manufacturer of solar panels and wind turbines. European companies develop ultra-efficient buildings that consume minimal energy. Electric vehicles move from concept to commercial production. These market-driven developments often advance faster than regulatory frameworks, forcing policymakers to catch up with technological reality. The rise of human will through technology doesn't make governments irrelevant, but it fundamentally changes how governance functions. Successful policies increasingly emerge from collaboration rather than command—leveraging the distributed intelligence of networks rather than centralizing control. Estonia's digital governance system allows citizens to vote, pay taxes, and access services online while maintaining privacy protections. Singapore's water management combines sophisticated technology with community education to achieve near self-sufficiency. These approaches succeed by enhancing rather than restricting individual agency. This technological empowerment represents a profound challenge to traditional authority but also an opportunity. Institutions that embrace transparency, participation, and technological innovation can become more effective and legitimate. Those that resist change risk obsolescence. In a world where individuals increasingly have the tools to connect, organize, and act independently, lasting solutions will come not from grand declarations at international summits but from countless local innovations scaling through networks. Technology alone cannot solve our problems, but by amplifying human will, it creates possibilities that bureaucracy alone cannot imagine.

Summary

Throughout this exploration of modern global governance, one central truth emerges: the world has irreversibly shifted from centralized power structures to a complex network of diverse actors. Traditional diplomacy conducted solely by nation-states can no longer adequately address our interconnected challenges. Instead, effective governance requires what the author calls "mega-diplomacy"—bringing together governments, corporations, NGOs, communities, and influential individuals in flexible coalitions to tackle specific problems. This approach recognizes that climate change, terrorism, poverty, and failed states defy neat bureaucratic categories and national boundaries. Success depends on leveraging the strengths of each sector while compensating for their limitations. The path forward lies not in grand designs for new global institutions but in pragmatic experimentation at multiple levels. Regional organizations should take greater responsibility for security in their neighborhoods. Public-private partnerships should coordinate development efforts in ways that respect local priorities. Technology enables direct connections between those with resources and those with needs, bypassing bureaucratic bottlenecks. Rather than waiting for elusive "political will" from governments, we must harness "human will"—the distributed energy and ingenuity of individuals and communities worldwide. This decentralized approach may seem messy compared to traditional governance models, but it better matches the complexity of our neo-medieval world. As power continues to diffuse across borders and sectors, our capacity to address global challenges will depend less on hierarchy and more on our ability to build networks of shared purpose and mutual accountability.

About Author

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Parag Khanna

Parag Khanna is Founder & Managing Partner of FutureMap, a data and scenario based strategic advisory firm. He is the international bestselling author of six books, has traveled to most of the countries of the world, and holds a PhD from the London School of Economics

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