Hot wars and violent terrorist attacks capture headlines, and many of these confrontations are the direct result of cultural conflicts accelerated by expanding globalization. At present, two waves of massive change are pounding away at every country's cultural autonomy and political sovereignty. The industrial and the new industrial revolutions caused the illiquidity and overcapacity issues already discussed in Parts I and II of this Briefing, but electronic communications and information acccessability are provoking nothing less than World War III.
The essence of this new war is permeability of borders and the inability of leaders to maintain their own country's sovereignty. Can countries set to protect themselves against visible enemies handle the instability and unpredictability of a world where invisible insurrection is normal? Or can permeable borders ever be made impermeable again? Although the larger historical answer may be no, many leaders are trying to re-erect barriers that had started to come down. These types of defensive actions suggest that we are entering a period of international instability beyond the Asian troubles.
The "whole enchilada" suggests: Volatility is the norm; established organizations are
incapable of resolving current conflicts (and may make them worse); permeable borders are
commonplace (or, old borders are indefensible); and pricing pressures are downward.