Matter of fact is the world needs a Business Process Re-engineering (BPR). Matter of fact also is that the world does not know who would do it or how to go about it. 

And this unique situation has been roiling the world, from China to the U.S.

Have you ever wondered that we have deomocracy in most nations where leaders spend most of their time in solving domestic issues, without realizing global problems actually lead to majority of these domestic issues now? However we don’t have democracy for the world as a single body. Institutes like the UN or the World Bank or the IMF have failed miserably in their approach in solving global problems, more so when the U.S. has been partly or fully behind these problems. Needless to say that the U.S. itself has been in a mess of its own making.

In this context how do we solve global problems without any able leadership? The world of 2010 faces global problems, like the currency war or the global warming, which manifest itself in various forms across different nations. Rather than tackling the global problem at its root, the nations have been struggling to solve the various forms of these problems within their boundaries.

They have been in a futile struggle in finding a local optima as the global optima remains unattended.

So China, India and Brazil fight to maintain growth with less inflation, whereas the Federal Reserves is working to get inflation high enough in the U.S. (and thereby to the world due to status of dollar) to spur investment within the U.S., to solve the unsolvable unemployment problem within the U.S.

They don’t realize that the nature and the spread of the problem is across the boundaries. Needless to say that the U.S. and the rest of the developing nations have been pulling the world in opposite directions.

No one worries about the poor people affected by high inflation in developing nations.

Chairman Ben Bernanke hoped that change in global perception on the safety of the U.S. treasury should happen incrementally, if it happens at all, in response to the hopelessly irrecoverable U.S. deficits.

He has been right so far as the world desperately realizes that the present financial system has inherent structural problems. But the urge to maintain the status quo remains, due to multiple reasons.

The first is about leadership. Nowhere it is possible to bring a change, involving diverse multiple bodies, without an able and accepted leader. Unfortunately today’s world lacks any who has the ability and acceptability to take on the major global problems.  

One has the right to preach as long as one follows the same principles irrespective of the person. However when we see double-standard in the preachings, one for ‘them’ and another for ‘us’, the precher loses the much desired credibility.

That’s what essentially has been happening with institutions like the IMF, the World Bank, the UN, and alike. And the root cause lies in excessive U.S. influence in running these global institutes. The objective of these institutions should be to prepare the world collectively for the challenges it faces and bring necessary changes, preferably  incrementally, than being forced to act radically for years of inactions.

But their systematic failure in doing so over the years may jeopardize their own existence or purpose, or even may lead to radical changes in which the world runs its systems.

The other development that’s further aggravating the problem is a lack of unity and rising mistrust among other leading nation states of the world in reforming these global institutes. When a leader of undisputed power and influence, like that of the U.S. enjoyed over the years, starts its decline; there is bound to be chaos and rumors amongst the rest.

There are a few who feel ambitious to take that coveted position, and wait and watch without a hurry as China’s been doing wisely; and there are many more who feel insecured in the prospect of that inevitable change. Japan, India fit perfectly in the 2nd group.

Part II of the article, titled the world needs a BPR is here.

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