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Indonesia: Think about Islam and the Middle East comes to mind, yet Indonesia s 245 million people comprise a quarter of the world s Muslim population This large nation has signi cant oil reserves and a skilled workforce but also ethnic tension spread across hundreds of islands in the southeast Paci c Rim Already one of the world s 20 largest economy, Indonesia will be among the world s top seven economies by 2050 Understanding and working with this complex nation could help the G7 in future dealings with the Muslim world11 Mexico: Already one of the United States largest trading partners, Mexico has become even more interlinked since the North American Free Trade Agreement (NAFTA) was signed in 1993 With a population of nearly 110 million, Mexico is in the thick of the US immigration debate12 We also should not take its free market and democratic status for granted It is possible that Mexico can slip back to its socialist, statist past if ignored by the United States Mexico should be viewed as a partner promoting greater global integration in Latin America and the Caribbean South Korea: Fifty years ago, South Korea was among the planet s poorest countries Today, it is the 13th largest economy in the world A longtime US ally, South Korea sits in a geographically important corner of East Asia, though recent strains over policy toward Pyongyang have led to growing resentment of the US military presence Given its world-class corporations and its strategic location, greater inclusion of South Korea in global forums seems clearly warranted These seven countries represent huge segments of the world s population and a convenient standard of comparison to the G7, but by no means are they the only important emerging powers In Africa, oil-rich Nigeria with more than 120 million people, Egypt with 70-plus million people, and wealthy South Africa are clearly important countries in a continent that is showing more promise everyday Many central European players like Poland, Romania, Ukraine, and Turkey with 200 million people in total are rapidly pushing for EU integration In Asia, several smaller countries like Singapore and Taiwan, along with larger ones like Thailand, Malaysia, and newcomer Vietnam, have vital economic and nancial places in the world s economy
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Alongside the rise of new sovereign powers, the increasing prominence of nonstate actors (NSAs) have also complicated cross-border relations There have always been a few civil players that were part of cross-border activity missionaries, merchants, and explorers Today, a remarkable variety of NSAs are active globally Some of these players are loosely regulated and monitored by governments, but most are independent on a day-to-day basis Understanding what they are, how they function, and how they can be in uenced will be perhaps government s greatest challenge in policy making Multinational Corporations: Totaling over 100,000, multinational corporations (MNCs) are the economic emissaries of the modern world, seeking higher pro ts by scouring the globe for cheaper labor and new consumers Today, it is common for production and supply chains of these corporate giants to cross not one but several borders MNCs like GE and Nike have built tens of thousands of factories globally, employing millions of people Some companies today are large and complex, and many have greater revenues, employees, and customers than some nations13 Financial Institutions: The globalization of nance has accelerated briskly in the last two decades In 1980, roughly 73 cents of every dollar that went from the rst world to developing countries came from a couple of dozen commercial banks and the World Bank; there were no meaningful emerging market stock and bond markets attracting investor capital Today, the amount of money and number of players can barely be calculated As the current credit crisis underscores, our 24/7 system of nance now includes not only thousands of regulated intermediaries like banks, brokerage rms, insurers, mutual funds, and pension funds but many new ones that y under the radar Private hedge funds and private equity rms raise and invest money globally with little oversight in home or local markets and little allegiance to anything but pro t In addition, dozens of newly founded sovereign wealth funds (SWFs), semiautonomous investment pools, complicate this incredible web of money
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