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Changing the Cauldrons of Power

The decline of political and corporate power has been observed over the last two decades. Although there is much to celebrate, there is also cause for concern over the ability to push through an agenda and make decisions in a timely manner.

published by
MSNBC Morning Joe
 on March 19, 2013

Source: MSNBC Morning Joe

Speaking on MSNBC's Morning Joe, Carnegie's Moisés Naím discussed the decline of political power around the world, as well as the decline of corporate power structures. Naím cited the monopoly once held by Kodak over the film and photography industries. Kodak has now filed for bankruptcy, while a small app of only 13 employees, known as Instagram, recently sold for a billion dollars. The probability of a company at the top of its sector falling out of this category has doubled over the last 20 years. Companies which responded correctly, such as IBM, have succeeded by adapting and developing a peripheral view while specializing in their field. Without this adaptation, Naím argues that tunnel vision will lead competition and competitors from the most improbable and unexpected places to take away customers.

This shift provides reasons for optimism, Naím explained: there is more competition, tyrants and monopolies are struggling to maintain their power, while new opportunities are available for voters, consumers, and activists. However, there is a downside. These changes can produce gridlock in governments and an inability to make decisions in a timely manner. New, small actors are entering the conversation, sitting at the table, and wanting to shape the outcomes. At times they are undermining initiatives, with no single actor holding enough power to push through an agenda. This is creating a detrimental state of fragile democracies, Naím concluded.

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.