By Johan Galtung
Keynote European Center for Peace and Development, Beograd, 12 Oct 2013

Two basic facts stand out in the world economic development, leaving aside military, political, cultural and social development:
* The BRICS – an acronym becoming a social fact–are emerging;
* The USA-EU are declining; not only as markets, also as producers.
Another way of saying this is that the West has been outcompeted, not by the Rest but by – so far – a select part. The world market is not constant but increasing sum, but much demand may be met by domestic production, not by import-export. As part of the story.
The West got the definition of development wrong, still clinging to economic development = economic growth (measured by annual GNP/capita increase). The BRICS understood development differently, adding economic distribution (measured by the ratio in acquisitive power between the top and bottom 20%, and between the CEO and average worker salary; at the macro and micro levels). No growth spells recession-depression, no distribution spells worse: death. For economic, like for geographic, positioning, at least two dimensions are needed. A professor in latitudes, or growth, only, is simply not good enough.
Development becomes increasing growth and increasing equality. Growth alone may lead to flagrant inequality at the expense of those at the bottom and nature–a system we know only too well–distribution alone may lead to the shared misery of some human past. We need both.
The map of the world was also wrong. Read More »