from the economic changes. It was not so much the absolute scale of poverty but the nature of social differentiation and the collapse of social guarantees which led to a tangible level of dissatisfaction amongst the populations and a move towards the left. After the return to power of the former communist parties in Poland, Hungary, Slovakia and Bulgaria, however, the processes of social division continued. The new capital accumulated at the beginning of the 1990's attempted to play the leading role in the processes of privatisation and to accrue more and more wealth. Mass privatisation, most significantly in Russia, led to the concentration of privatisation vouchers in the hands of a small group of extremely wealthy owners who acquired the ownership of enormous production potential for a fraction of its real value. To a lesser extent the same thing happened in Czechoslovakia and a similar picture of social division can be expected in Bulgaria after mass privatisation. The post-communist countries are experiencing a common crisis of identity and profound political contradictions. If they lead to a stratification of society into a small group of wealthy people (5-7%) and a large group of people deprived of any ownership of the means of production, this will be a backwards step. In reality these countries will return to a state from which the industrialised countries have already progressed and to outdated social models. If the division of ownership in Eastern Europe creates class divisions then it is extremely possible for this to create a chain reaction with exceptionally adverse consequences for the process of reform and the transition to a Fourth Civilisation. Clearly the collapse of the Eastern European societies into classes will not send them into the New Civilisation but will hold them back in the grips of the old. The peoples of these countries will have to experience its contradictions and to struggle with the problems which the Western countries have already overcome. This will cause difficulties for the socialisation of ownership and will render the reconstruction of the market impossible leading to a revival of bureaucracy and the bureaucratic state. We should not be surprised that such a transition will not only return the former communist parties to power but also the "strong hand" governments of corrupt politicians and combinations of the two. This will be extremely unfavourable for the development of the Eastern European states and at the same time it will be a retarding factor for the whole of world development, especially if such processes are allowed to take place in Russia, China and other larger countries. The question arises whether it is at all possible for the former totalitarian states to make the transition directly to the Fourth Civilisation. My response is entirely positive. The relatively good material infrastructure of the Eastern European countries, the high level of education and culture of the population as well as the experience of communism as one type of social development are all factors which create a basis for the transition to new types of relations without passing through the phase of initial capital accumulation. The technology of such a transition has been inadequately researched but it is absolutely applicable on the basis ofthe results of the period between 1990-1995. Above all, in order to accomplish such a process of development and to approach the level of the industrialised countries and the trends of the Fourth Civilisation it will be necessary to achieve some sort of minimal political consensus. If confrontations and instability continue, and if behind the facade of the "political struggle" corruption and crime is allowed to flourish, the post-communist countries will regress at least 30-50 years into the past. Only common will and the consolidation of society will redirect their material and cultural heritage towards the framework of the emerging new civilisation. The second great problem is the redistribution of ownership. As I have already mentioned, this process has begun with restitution, or the return of property nationalised at the end of the 1940's. This process, if it takes place within real limits, will throw the post-communist states into serious conflicts which are unnecessary at the end of the 20th century. The example of the Bulgaria is particularly indicative. However, even if privatisation is carried out without restitution, as in Russia and if it is carried out with the out-dated methods of the time of "wild capitalism", this will not lead to any positive results. The main aim of privatisation is to dynamise the post-communist societies, to form civil societies and for the majority of the citizens to receive some form of ownership of the means of production. A society of voluntarily associated owners is the alternative to totalitarianism, the class society and primitive capitalism. In order to achieve this a number of specialised privatisation methods will be required. The most successful experience has been demonstrated in the Czech Republic and Slovenia and, albeit under different conditions, in the former East Germany. The main aim of these methods in my opinion should be: firstly to demonopolise the large-scale enterprises inherited from totalitarian times, to preserve those with the greatest potential and to transform them into trans-national corporations; secondly, a reliable stock exchange system should be developed wherein a significant part of these enterprises can be sold by means of mass privatisation, market methods and the substitution of debt against ownership; thirdly, the necessary legislative framework needs to be developed to allow for privatisation by management teams as well as the possibility for as many small and medium enterprises as possible to be established for the use and gradual purchase by citizens; fourthly, the possibility for workers' collectives to receive without payment ownership in the enterprises in which they are employed. The eventual aim of such policies will be for the majority of the population within 5-10 years to integrated within the structures of ownership in the aims of establishing the economic basis for a civil society. The third major problem of the post-communist countries will be their integration within the world economy. As can be seen from table 6, between 1985-1993 and 1989-1993 five Eastern European states which were analysed achieved an increase in their trade with the EU. Although slowly, the market share of these countries in the European market began to increase. Nevertheless the processes of rapprochement analysed using the Maastricht criteria are extremely contradictory and slow (table 7). This shows that on the whole the process of the integration of the Eastern European countries into the EU will be delayed. The initial predictions of 10-15 years to integration have been revised to the years 2005-2010 at the earliest. Table 6 Trade in industrial goods between the EU and the countries of Central and Eastern Europe. (millions of ECU at current prices, market share in % of the entire trade of the EU with other countries). CEE Bulgaria Czechoslovakia Hungary Poland Rumania Volume Market share Volume Market share Volume Market share Volume Market share Volume Market share Volume Market share Import EU 1980 1985 1988 1989 1990 1991 1992 1993* 5146 7532 8222 9303 10525 13598 16736 12674 3,56 3,23 2,80 2,76 3,06 3,63 4,43 4,55 242 362 350 398 441 600 762 572 0,17 0,16 0,12 0,12 0,13 0,16 0,20 0,21 1139 1875 1950 2228 2401 3678 5102 3840 0,79 0,80 0,66 0,66 0,70 0,98 1,35 1,38 1131 1616 1816 2182 2547 3138 3554 2468 0,78 0,69 0,62 0,65 0,74 0,84 0,94 0,89 1709 2149 2552 2842 3962 4973 5984 4662 1,18 0,92 0,87 0,85 1,15 1,33 1,58 1,67 924 1530 1555 1654 1174 1209 1334 1132 0,64 0,66 0,53 0,49 0,34 0,32 0,35 0,41 Export EU 1980 1985 1988 1989 1990 1991 1992 1993** 6808 8648 8412 10079 10522 15213 18875 15914 3,53 2,63 2,58 2,73 2,84 3,99 4,79 5,27 681 1378 1300 1323 818 895 977 777 0,35 0,42 0,40 0,36 0,22 0,24 0,25 0,26 1126 1730 1969 2142 2343 3428 5628 4582 0,58 0,53 0,60 0,58 0,63 0,90 1,43 1,52 1424 2254 2123 2673 2624 3136 3745 3173 0,74 0,69 0,65 0,72 0,71 0,82 0,95 1,05 2206 2324 2460 3299 3717 6663 6967 6051 1,14 0,71 0,75 0,89 1,00 1,75 1,77 2,00 1371 963 559 642 1021 1091 1557 1332 0,71 0,29 0,17 0,17 0,28 0,29 0,40 0,44 Eurostat and European Commission Services (see Transforming Economies and European Integration, UK, 1995, p. 63). * January--September ** January--September Table 7 Do the countries of Central and Eastern Europe fulfil the criteria for membership of the EU as set out in Maastricht? Criteria Bulgari Czech Rep. Hungary Poland Rumania Slovakia Complete convertibility Strong Central Bank Low inflation Low public debt Low budget deficit Low interest rate Convertible currency no yes no no no no no no yes no yes yes no yes no yes no no no no no no yes no no no no no no yes no yes no no no no yes no yes no no no National sources; OECD -- estimates and projections, Qvigstad, 1992; (see Transforming Economies and European Integration, UK, 1995, p. 39). The fourth problem is the integration of the technology of the Fourth Civilisation and the reconstruction of their own industries. The opening-up of the markets of the Eastern European countries and the invasion of competitors from all four corners of the world has created a danger that some of the more progressive sectors of the economy will collapse. In certain countries, Bulgaria for example, there is evidence of a process of detechnologisation or the reduction of high-technology production in comparison with the 1980's. The high level of outdated and worn-out industrial machinery in Slovakia and Bulgaria has delayed progress. This criterion is proof of how important it is to have a correct policy for foreign investment and skilfully to combine the pre--1989 achievements with world markets and technological structures. The fifth problem is the development of a market infrastructure adequate for the New Civilisation. To this extent the countries of the Visegrad group and Slovenia are undoubtedly in a position of advantage in comparison with the other former socialist countries. There is no doubt that after the fall of the Berlin Wall the Eastern European peoples began a process of rapprochement and integration with the world economy. The universal processes of globalisation and the spirit of the Fourth Civilisation have not left the post-communist countries untouched. The great choice with which they were faced between 1989 and 1990 was totalitarianism or democracy and a market economy. The great choice between 1993-6 and the end of the century will be primitive capitalism or new civilisation. An analysis of the economic and political situation shows that the former members of COMECON are no longer an homogenous regional group. This is due not only to the collapse of the common Eastern European market but also to the different policies which the different governments have been pursuing. In the mid-1990's the division between Central and Eastern Europe was an artificially imposed concept. Now, however, it seems more realistic. The Central European countries, sometimes referred to as the Visegrad Group and Slovenia, are integrating significantly more rapidly than the remaining countries and economically are becoming quite distinct. The second group has a slightly different fate - the three small former Baltic republics of the USSR who are seeking a channel into Europe by means of developing closer ties with the Scandinavian countries, Germany and the U.K. Finally, there is the third group of the Balkan states - Bulgaria, Rumania, Yugoslavia, Croatia, Bosnia and Macedonia where internal disputes and conflicts have delayed their development significantly. The division of the former members of COMECON into separate regional groups could lead to delays in their integration the European Union and increase in the internal disputes. After the post-communist countries, Russia and China are of particular significance. With their size and resources they have an independent and significant geo-political role. In Russia the problems of transition are many time more complex than those of the smaller countries of Central and Eastern Europe. Political stability, the expansion of the market infrastructure and the redistribution of ownership are, in my opinion, the strategic problems of this great power. It is very likely that as we approach the beginning of the Fourth Civilisation Russia will for a long time remain in the orbit of state, corporative capitalism. Arguments in support of this are the concentration of privatised giant state industry in the hands of a very small group of the population and the close connections between this group and the state bureaucracy. China without any doubt will increase its role in the world which in its turn will increase its political stability and the continued awesome development of its massive economy. A open question for China will be the choice between a single party system and political pluralism with the preservation of the stability and integrity of the country. As can be seen, the post-communist countries are divided not by criteria of democracy-communism but by types of democracy and their closeness to the Fourth Civilisation. Some of them will become integrated quite quickly into the directions of progress, others will turn back to the era of corporate, semi-state capitalism. There is no doubt that the transition will be complex and drawn-out and will take place in stages and with the deepening differentiation between the Eastern European countries. The direction of this transition in the long-run will lead to integration with the economic and political systems of the most developed countries in the world. 4. THE APPROACH AND THE END OF THE "THIRD WORLD" Integration leads either to imperialist violence or the rapprochement of social systems and the improved conditions of life. U ntil the end of the 1980's politicians and academics divided the world into three parts: capitalist, socialist and the Third World - the world of the economically backwards countries. Ideologues on the two sides of the Berlin Wall divided the Third World into those countries with capitalist systems and those with socialist orientation. Today, this "structure" has entirely lost any meaning. The socialist world has evaporated and capitalism has become transformed into something else. The "Third World" has changed and no longer represents a community of countries with similar charasteristics. Until 6 or 7 years ago the Third World was defined as something unspecific which would eventually merge with the first or the second. Today, however, one has to use different criteria in evaluating any particular country. In my opinion these criteria are based on the outlines of the new, Fourth Civilisation, from those processes and phenomena which symbolise the leading trends of modern progress. I would place the accent on three of them in particular: 1. the share of high-technology production and activities within the GDP; 2. the structure of ownership and social groups;3. the level of socialisation of ownership and the integration of the market;4. the openness of countries and the stability of their national manufacturing and culture; 5. the GDP per head of population. By using these criteria quantitively and qualitively we can propose another global structure to the countries of the world. The first group is of those countries which are symbols of human progress and which are in transition from the Third Civilisation and to a large extent are the basis for the Fourth Civilisation. For them the advent of the new civilisation is already irreversible. I would include here the members of the European group with the exception of Greece and Portugal, the USA and Canada, Japan, Australia, New Zealand, the Czech Republic, Switzerland, Iceland, Malta and a number of other states. The second group is of those countries which on the basis of certain factors are on the edge of the Fourth Civilisation or remain within the traditions of the 20th century. They are on the threshold of the new civilisation but are essentially at a different level of progress from those countries within the first group. I could include here the new Asian Dragons - Hong Kong, Singapore, Malaysia, Thailand, South Korea, Taiwan as well as countries like Hungary, Poland, Slovenia, Costa Rica, Greece, Portugal and Cyprus. The third group would include such countries which have an industrial or semi-industrial structure and state capitalist or some form of oligarchical or monarchist social structure.: Russia, China, Rumania, Yugoslavia, Croatia, Bosnia, Macedonia, Saudi Arabia, Turkey, the UAE, Pakistan, the majority of Latin American countries, Tunisia, Egypt, Morocco, the Philippines, South Africa, Indonesia, Mexico and a number of others. These countries have not yet achieved political stability and economic balance. The fourth and last group includes countries whose manufacturing and social relations are partially within the third and partially within earlier structures of civlisation. These are the majority of the African, some Asian nations and a number of countries of the Near East. These countries are sometimes referred to as the "forgotten" nations and need special help and programmes to link them to the rest of the world and to overcome problems of poverty and illness. Is it possible to speak of a common transition of civilisation when no more than one fifth of the world's population lives in conditions similar to those which we refer to as the transition to the Fourth Civilisation and more than one third in conditions typical of the transition from the Second to the Third? The basis for a positive answer to this question is integration, the speed at which countries are coming together in the conditions of globalisation. As a consequence of the openness of the large majority of countries and the expansion of the world market the transfer of new technologies and the management model is much easier and faster than at any other time in the history of mankind. The example with the countries of South East Asia shows that given a suitable political climate countries can penetrate world markets and achieve significant results. The rate of development in South Korea over the past 30 years has allowed it to overtake many of the Eastern European countries which in the first half of the 1960's were significantly more advanced.[48] The example of the Asian Dragons will be followed by a number of individual states in Northern Africa and the Near East. Thus we can speak of the collapse and the restructuring of the countries of the "Third World". The Eastern Europeans have great potential. Other countries such as Mexico, Brazil, Argentina, Chile and South Africa also have strong possibilities. They and a dozen or so smaller countries will gradually begin to approach the highly developed countries - the leading figures in the new civilisation. For more than half a century, many of the leaders of the Third World have been looking for their own direction in the struggle to combat poverty and make progress. Ghandi and Neru in India, Mao and Dun Saopin in China, Castro in Cuba, Sengor, Tutu and Kenyatta in Africa have conducted their own experiments with varying degrees of success. The main question for all the poorly developed nations is not to demonstrate their uniqueness but to become incorporated into the trends of progress and the post-industrialised Fourth Civilisation. The fear that foreign investments, progress in the West and the open commodity and financial markets will undermine national pride and specific cultural features is not always justified. Such dependence exists only in the most corrupt regimes and where an imperialistic type of dependence has been allowed to develop. Technological and social progress even in the conditions of the open market does not inevitably lead to the death of national cultures and identity. In fact the opposite is often the case. The experience of China, South Korea and Singapore has shown that only against the background of a well developed economy can national and ethnic culture be preserved for the future. In the global world national identity and specific cultural features will manifest themselves only at a certain level of economic development when poverty and backwardness has been overcome. Nevertheless it will be difficult for the dreams of the apostles of Black Africa or Che Guevara to come true. The closed nature of the societies, corrupt regimes, the lack of law and order and ethnic calm will continue to maintain the countries of the "Third World" in the orbit of the past. When I refute the division of the countries of the world into three groups within the bi-polar model of the world, I, naturally, realise how important it is to adopt a clear position in support of an alternative for future development. The current lack of order and chaos has made many proponents of change wait to see what direction change will take. My understanding of this question is that for the next few years we shall live in a multi-sector world with an enormous diversity of economic and social conditions with enormous differences in economic levels. When I speak of the multiplicity of sectors, I mean a multiplicity of political and economic forms, political systems and specific governmental decisions. At the same time I can see no other prospect for development apart from growing integration and the gradual reduction of differences conditioned by the integration of world financial markets. To this extent the multiplicity of sectors is a transitional state despite the relative stability of the world. The differences inherent in the form of ownership and political systems will gradually disappear. On the other hand economic advances will allow for the protection of the cultural diversity of the world and spiritual identity. 5. BALANCED DEVELOPMENT Post-capitalism and post-communism are stages inthe process of the collapse of the Third Civilisation. The major question is what will replace it? I believe that it will replaced by the societies of the Fourth Civilisation -- societies of balanced development. R epresentatives of individual historical eras are bound to the limits of their own time and are unable to see the world as a whole. All the major ideological doctrines of the last few centuries have been linked to the need for the resolution of group, regional or class contradictions. Global thought was and continues to have little attraction for philosophers and politicians. Even in the 20th century when world globalisation is gradually on the increase, ideological and political doctrines have developed in accordance with the conditions in one or a group of countries and specific ideological models have imposed themselves through force. Marxism-Leninism claimed to be a teaching for the whole of humanity. However, despite Marx's attempt to evaluate the Asian methods of production his doctrine did not take into account the cultural and historical development of China and India. The imposition of Marxist or western bourgeois models upon completely different cultural and historical roots was a manifestation of philosophical and ideological monopolism. The 20th has century provided us with many forms of Marxism and Liberalism but with the increase in democracy more local cultural features have begun to dominate over ideologies. Today, while the Third Civilisation is in a process of disintegration many things have not yet changed. The global approach has made its mark and is no longer considered absurd or abstract challenge. The UN has taken on more responsibility and increased its role in the world. A number of new formations involved in global issues have arisen. One major result of such processes was the summit meeting in Rio de Janeiro in 1992 at which politicians from all over the world gathered in the name of the survival of humanity. However, up to now these efforts have not yet produced any serious results. Despite the conflicts evident in the world, despite the complete irrationality of manufacturing structures, despite the continuing destruction of forests and cultivable land, humanity continues to exist in the condition of nationalist thinking or class, social and other types of doctrines. While global reseach is mainly directed towards environmental and philosophical problems, there are still those who aspire to defend one system, one model or one culture. In the risk of repeating myself, I consider such attempts absurd. Neither socialism, nor capitalism, not the political models of the countries of the Third World can serve today as universal models for life on earth. There is little doubt that globalisation and global culture will continue to penetrate the common principles and standards of life. However, this process will take place through manifestations of local culture, as well as specific national, regional and ethnic features. The modern world will no longer accept unified "military" models of development. The dialectics of globalisation and localisation, the advent of the new civilisation can offer a new model. If it is democratic and not imperialistic as in the 20th century. There is no longer any room for universal doctrines in the new era. Universal principles and legal standards -- yes, universal ideologies and models -- no. "Yes" because of the inevitable integration and mutual dependence of countries, "No" because of the resolute and growing diversity of human life. The 20th century was a century of imperialism and forced globalisation. The 21st century will be a century of intermixing and synthesis of different cultures and ideas. I am convinced that the time has come to pose the question of the type and the direction of general world development and of the main principles and trends of the Fourth Civilisation. In this way the danger of global chaos and the resolution of global contradictions through myriad local wars, tension and never-ending disputes may be avoided. At the end of the 20th century, humanity has reached a stage in its development wherein no single nation can impose itself on others and no single country can exist in isolation from the others. This is the effect of globalisation and the constant increase in mutual dependence while on the other hand there is a marked growth in the role of local cultures. After the fall of the Berlin Wall three quarters of the population of the world now live in conditions of free economic initiative and more than 90% of the countries of the world have multi-party democracies. Human rights, the free movement of information and people are becoming more and more an integral part of life. Communism, fascism, Moaism and Polpotism have collapsed. Liberal capitalism is being gradually eroded by the growth in new technology, the growing role of small and medium business and anti-trust legislation. Socialism as it was once known by so many nations has been consigned to the past. What then will be the typical features of global development n the 21st century? Over the past few years many of the industrial nations of the world have begun to speak of "sustainable development". This was initially an environmental concept, a combination of the models of the developed Western societies and the desire to preserve life on Earth. A number of writers have attempted to use this concept to make more comprehensive evaluations of future economic growth, types of manufacturing and the challenges facing future generations.[49] However, the concept of "sustainable development" is still unclear and unnecessarily generalised. It is useful in that it links many varied national models to the common problems of humanity. Its inadequacy is that it does not analyse such fundamental questions such as global political and economic structures, the re-distribution of ownership and authority and control over the media etc.. However, the concept of sustainable development does not provide an answer to the major question -- what comes after post-capitalism and post-communism? What will be the result of their fusion? I would link the answer to this question with the concept of balanced development. From a micro-economic and regional point of view it is not new. The new aspect which I have added is to link it with the global transition to the new, Fourth Civilisation. The first general theory of economic balance was created by L.Walras and V.Pareto, (the Losanne school of political economy). Their aim was to create abstract mathematical models which provided a ratio between supply and demand. In the 19th century and the first half of the 20th A.Kurno, W.Jevans and A.Marshall made significant contributions to the formation of the classical views of market balance. During the second half of the 20th century, G.Hicks and P.Samuelson formed a "political synthesis" based on the studies by the great Swiss economists nd the classic writers on bourgeois political economy. The Hicks-Allan model is perhaps the best expression of market balance.[50] It combines the process of the maximum use for each consumer within the limitations of his income and the maximum profit for each entrepreneur within the limitations of his produce to produce a balance between supply and demand. L.Walras come to some particularly valuable conclusions on the role of the state in the establishment of balance and his advocacy of the principle, "balance of opportunity against imbalance of the the factual situation"[51]. Walras considered the liberal "Laissez Faire" doctrine as a pure illusion and included the regulating role of the state in his balanced system. He supports the cooperative movement and is the only one of many like-minded thinkers to tackle the question of ownership. To be unaware of the work of L.Walras is to be unaware of one of the most brilliant writers on economic and political science. The balanced economic theory of the Lauzanne school and to a lesser extent the school of the neo-classicists is an initial pre-condition for what I refer to as balanced development. At a theoretical and methodological level a number of Marx's conclusions on ownership and the state are also useful.[52] This can also be said of the ideas of "cooperative socialism". In contrast to L.Walras, however, I do not see balance as an ineluctable state or a description of the market but as part of the general reforms of civilisation. The difference is that I approach balance not from the point of view of the conditionally limited market but from a global point of view. In my opinion, balance is not an ideal model but a trend. There is no eternal balance, there is politics and specific historical conditions within which it can be achieved. Moreover, I believe that balance is not only an economic category but a tangential point for economic, political and cultural processes. The great modern significance of balanced development comes from the bankruptcy of "communist nationalisation" and the inadequacy of liberal doctrines. During the entire period of the 20th century these two concepts did not contribute either balance of harmony. In fact the opposite -- they caused innumberable contradictions and hundreds of wars. Pure liberalism divided the world into the rich and the poor and will clearly continue to do so as long as it is predominant in the world. Communism, in its very first stage, brought about the total nationalisation of life and killed freedom and civil societies. The idea of balanced development is an expression of the new theoretical synthesis and the link between it and the globalisation of the world. From a national domestic point of view balanced development is a trend, as well as a supporting policy, towards the redistribution of ownership amongst the largest possible number of citizens and the gradual limitation of the monopolistic role of families and individuals. Balanced development is not a revolutionary but a reformist concept -- an expression of the post-capitalist and post-communist development of the world. To this extent it is a generalised expression not only of the division and redistribution of ownership but also its socialisation. Integration and mutual dependence within the manufacturing processes and financial operations, the transition from a chaotic to an organised and computerised market presuppose the interweaving of interests of the traditional and the new social groups and strata. The gradual, logical and deliberate balancing of the market provides above all for general economic balance. It is here that the Hicks-Allen equation needs significant enhancement to take into account the increased consumption of services and the role of new art forms in the industrialised states. At high levels of economic balance the objective role of the state in the redistribution of ownership is reduced and vice versa. In a balanced society the state fulfils a supportive and regulative role up to the moment of the establishment of self-regulation and the horizontal balance of the system. Neither the state, nor the civil society has permanent limits but gradually during the processes of its maturation society overwhelms the state, not the other way around. Of course, this does not mean that centralised regulation will die or that the nation state will disappear tomorrow. Balanced development presupposes "balanced" human rights for all. The basic pre-condition for the consolidation of balance is the provision of the individual rights of citizens, their freedom to choose, to associate and to be protected from the hindrances of bureaucracy. For this reason the corner stones of democracy -- the freedom of speech and the press, the free movement of people, goods and capital are the fundamental basis for balanced development. This also requires the involvement of the state in the economy and other areas on the principle of minimal sufficiency, as a guarantor of civil rights and a factor in the formation of a dynamic social environment. In contrast to liberalism, however, balanced development is possible only with the redistribution of ownership amongst the growing part of the population and its socialisation and integration. There are clear differences between balanced development and the traditional (until the 1970's) concepts of social democracy. While the foundations of social democracy defined a priori the role of the state within society and presupposes nationalisation and greater or lesser levels of state control, balanced development presupposes the minimalisation of the role of the state with simultaneous horizontal socialisation. This excludes monopolism by a small group of the extremely rich and the state bureaucracy. Only in this context can there be any "balance" of difference social groups or relative "balance of opportunity" (L.Walras) and social justice. Balanced development presupposes the association of different ethnic groups and cultures within the framework of the national state and the global world. In general this concept is an expression of the expansion of the relations within a civil society and the current notion of human rights. Balanced development is inseparable from the legislative resolution of a series of social rights (life, health, work, education, maternity, pensions etc..) not only as the responsibility of the executive authorities but as the responsibility of civil society. This takes the form of social funds, companies, charitable organisations etc. which are independent of the state. This also leads to the need for the protection of the private life of the individual. There can be no balanced development if the social security of citizens is not guaranteed in a new way. This concerns the protection of the family, women and children, pregnancy and maternity, personal, genetic, ethnic and behavioural information. Balanced development presupposes the existence of any specific feature which does not negate any another, the combination and mutual harmony of all the features of mankind and social and ethnic groups. The political regimes and the cultures of the Third Civilisation imposed their models and cultures through violence. The Fourth Civilisation and its main features -- balanced development means the rejection of such practices. Most significantly, this doctrine could become a common reality only if applied globally. It is already clear that any further increase in the gap of imbalance between indivual nations stimulates chaos in the world and will cause even greater damage within the most developed countries. I recently heard someone say in a small Bulgarian town, "How can I live peacefully, when there is poverty all around me and rising crime?" These were the words of a well-off man who was aware of the simple economic truth that if you are richer than others, you become the object of their dissatisfaction. This is something which will have to be understood in the industrialised western countries. Otherwise, sooner or later they will be obliged to isolate themselves and to experience the hatred of the poor. The outcome is clear: gradually and inexorably, in accordance with the norms of the global world, economic levels will balance out. In other words, balanced development is only possible and necessary in the international aspect, both as a consequence of and a precondition for the global market. This requires changes in the international economic order and global regulation which I will mention at a later stage. Balanced development presupposes the creation of an environment for intermixing, cohabitation and development within the universal market and legislative frameworks of different cultures. Instead of cultural imperialism there will be a muliticultural society, instead of enmity between countries with different political and economic regimes, there will be rapprochement and a reduction of the multiplicity of economic sectors. There will also be an new trend in geo-politics: instead of imperialism and the domination of one or a group of states there will be a gradual process of policentrism. In the next chapters I will attempt to prove that the trends emerging at the beginning of the Fourth Civilisation and its main outlining feature -- balanced development -- are irreversible. At the same time I realise the strength of the inertia inherited from the past and the strength of other factors which want to delay global change. When I set out my views on balanced development before a mixed Bulgarian political auditorium I received two profoundly different reactions. The representatives of the former communist party said, "You've gone too far to the right." The other half of the auditorium occupied by members of the anti-communist groups commented, "This is left-wing babble". In reality balanced development is neither one nor the other. It is not me who has gone to the right or to the left but time and human progress which have gone forward. Chapter Seven OBSTRUCTIONS 1. THE DEFENDERS OF THE THIRD CIVILISATION During the entire period of the 20th century, the representatives of different classes, nations and blocs have battled with each other. They created the industry of confrontation and the belief in its eternity. Today these same people are the defenders of the Third Civilisation. E very historical phenomenon has its own driving forces as well as its own obstacles. The advent of any phenomenon on the historical scene does not come as an overnight victory -- this is the illusion of revolutionaries -- but as the result of the gradual propulsion of the driving forces against the obstacles which always exist to the new. This is also true for the Fourth Civilisation. The Fourth Civilisation could be accelerated or hindered by a series of political, economic and moral factors. Although we are living through the last years of the Third Civilisation, it still has many adherents. The inertia of the past is alive and its advocates constantly refer back to the old formulae, "How good it used to be in the past." I once discussed this issue with one of the initiators of the process of perestroika in the USSR, A.Yakovliev.[53] I asked him what was the reason for the conservatism of the older population in Eastern Europe. He joked in response, "Well, their wives were younger then!" There is perhaps something a element of truth in this joke. Conservatives in principle support the regimes and systems for which they have struggled all their lives. They always tend to over-dramatise the difficulties of the transition and consider any changes a deviation from the true belief. Moreover, conservatives are not only divided according to age or to party membership. There are pensioners who support the coming of the new and young conservatives with opinions set in concrete. In Eastern Europe the conservatives are concentrated mainly amongst the former communists, the former security forces but also amongst many members of the old bourgeois class who are involved in the struggle for political revenge and the re-establishment of the political status quo from the time before the Second World War. In the West the defenders of the old civilisation recognise only the collapse of communism as a symbol of change and their own thoughts do not go beyond their own privileges and global domination. This is an historical paradox. The defenders of the Third Civilisation are not divided into countries and ideologies. They are all enamoured to a greater or lesser extent of the structures of the bi-polar model and the cold war. Masses of anticommunists and anticapitalists, Liberals and Marxists, capitalists and party bureaucrats, generals and spies piously believe in their correctness and their way of life. Of course, it would be improper to reject their past, or the struggles they waged, not the fact that each one of them in his own way may have been an honourable defender of his native land. However, this is not the most important element. The most signicant thing is that they are defending models and attitudes which have crippled the 20th century and transformed it into the most bloody century in the history of mankind. The 20th century will be the last century of belligerent nationalism, imperialism and the domination of one nation over another. However, albeit with weakened authority, those political forces who advocated such phenomena have not disappeared. There are still insufficient guarantees that globalisation will not give rise to imperialism or that the reaction to this will not provide more opportunities to nationalism and autarchy. While thought and ideological criteria remain within the framework of egoistical national iterests, while global awareness is still undeveloped, the conflicts of the passing century are still possible. The question is whether we are for or against the structures of the old civilisation -- for or against the emerging structures of the new time. Those who dream of the renewed domination of one nation over another, of imbalanced international economic conditions, of party and nomenclature leaders, of media monopolism, of the eternalisation of differences in living standards are on one side of the barricade. Yesterday the party bureaucrats and the capitalists were opponents. Today they might even become allies in the struggle for survival and the survival of the structures of the Third Civilisation. Still prisoners to their old ideologies and international confrontations they maintain those ideas and structures which could still return us to the time of the Cold War or grant us a period of Cold Peace. Fighting with each other, the proponents of the Third Civilisation can only renew fears, thoughts and activities which leave us in the grips of the past. In Spain there is a monument to the memory of both the supporters of Franco and the Republicans. In one and the same place, under one and the same cross are gathered the honour and the debt, the errors and mistakes, the greatness and the perdition of people who killed one another. The names of the killers are illumiated by those of the victims, whatever side they may have fought for, whatever side of the barrier they may have belonged to. In Spain the reconciliation of history is already a fact. In Bulgaria, the former Yugoslavia and partially in Poland there are still many people who believed that Gorbachev was a CIA agent while in the USA there are those who consider Clinton an American communist. The sooner such thinking disappears, the sooner we shall become awards of the problems and the greatness of the new civilisation. In order to understand the new, we must forget the old language, the old categories of division, the old enmities and prejudices. The Cold War is over but the Cold Peace and mistrust could unknowingly lead us back to it. Unfortunately this is not all. The life of the Third Civilisation could be prolonged via the maintainance of the economic and political structures which were typical of the 20th century. In most general terms, these structures can be united into two mutually conditional phenomena, which albeit in different forms have supported the current world conflicts. These are imperialism and nationalism and their modern manifestations. As paradoxical as it might seem, these two satellites of the 20th century are supported by one common culture -- that of violence and confrontation. The alternative to violence and confrontation is tolerance -- the recognition of differences, respect for the problems of others, responsibility to help those who are worse off. Perhaps, it is indeed tolerance as an alternative to violence which is the most important feature of the political culture of the Fourth Civilisation. 2. THE GREAT THREAT -- MEDIA IMPERIALISM With the passing of the Third Civilisation it is also possible that the imperialist dependencies between nations will disappear. However if the abstract liberal trends of the past continue to develop this may lead to new forms of imperialist domination -- less overt but with equally dangerous consequences. T he first manifestations of the global world were inseparably linked with the ambitions of empire and the growing power of the most developed countries of the time. The colonial system, international trusts and cartels, the redistribution of the world into zones of influence and two world wars was an expression of imperialist domination. The division of the world into two systems and the cold war was also a form of international imperialism. The main slogan used by Lenin, Stalin and their followers was the "struggle against imperialism". They, however, created a system closely based on imperial allegiance. If Gorbachev with his power had begun a process of the gradual reconstruction of Eastern Europe and the world, imperialism could have been replaced by the agreed establishment of a new world economic, informational and legislative order. I am convinced that such a policy would have found support amongst the majority of the political and intellectual circles in the West. Gorbachev's failure was to allow the Eastern European regimes to collapse without any dignity opening the way for the globalisation of the world without removing the danger of new imperialism. The gap between the poor and the rich remained as wide as ever. The differences in political and military power were so different that the danger of imperialist domination remained. Of course, it would be imprudent to suppose that imperialism might return in its old colonial forms or to the time of the Cold War. Although the wealth of the world is divided as unequally as 150 years ago, many things have changed. The colonial model has been rejected by history. Anti-monopoly legislation has put down deep roots, major changes have taken place in peoples' awareness and the infrastructure of the UN and other world non-governmental organisations have expanded guaranteeing the rights of all the citizens of the earth. Thus the old type of coercive, belligerent imperialism has for ever been consigned to the past. I ask myself, however, whether imperialism as a method of domination of certain nations over others has finally died. I do not think so. In fact, the opposite may even be true. Together with the globalisation of the world there are now new pre-conditions for a new type of imperialism, of a new type of domination by one people over another. This, without doubt, is one of the greatest dangers facing world development and the establishment of new relations within civilisation. The most powerful modern force for globalisation is the trans-national corporations. Their roles can be as positive for development as they can lead to its deformation. At the beginning of the 1980's the trans-national corporations accounted for one third of the world's industrial production. Their appearance in Russia and China after the democratisation of their regimes made them, especially in a number of specialised branches, the absolute rulers of world production. As a rule the trans-national corporations take national legislation into account but in global terms they are uncontrollable. This allows them to redistribute enormous funds and to exert influence in all spheres of social life. In recent years the trans-national corporations have tended to decentralise their activities and adapt them to the conditions of the countries in which they are operating. A typical example of this are the European operations of Ford and a number of Japanese corporations. This, however, is insufficient. If the present state of the distribution of global production and products is allowed to persist then the imbalances in world development will worsen. If the status quo remains without significant changes in the world economic order then the rich will become richer and the poor even poorer. International imperial power in this case will not be guaranteed by armies and conquests but via financial operations, technology and the structures of the trans-national corporations. The finances and management structures will remain in the most developed countries of the world. The countries which provide cheap labour (predominantly in Asia) will manufacture products without seeing any significant improvement in their life while a groups of other countries (equatorial Africa) will remain for some time to come in the grips of poverty. It seems as though the imperialism of the 20th century and the domination of the super powers is on its way out. Or does it only "seem" so? If the structures of the old civilisation are preserved for any longer this will not only serve to delay the reform processes but it may also lead to serious new local and world conflicts. Imperialism which was the main cause of the crisis of the Third Civilisation might simply mutate its form. Imagine a world in which 80% of the news, 70% of the technology, 60% of the films and 50% of all profits are created in two or three countries. Imagine that all other countries are dependent on those news broadcasts and that the awareness of their peoples is modelled by a group of media magnates. Does this not closely resemble some of the predictions made by George Orwell? Will it not lead in the long term to reactions from the majority of countries and peoples? I would call this phenomenon electronic or media imperialism. By this I mean the monopolisation of the world's media and culture by individual nations and trans-national groups. The danger of such a system dominating the world is evident. If globalisation proceeds in this way, if the global world does not turn into a world of mono-truths and mono-cultures disseminated by one or a number of centres than this will lead to a mutation of human development and will render us dependent on new empires. Today the ambitions of empire are not manifested through wars of conquest and battles for resources but in the endeavour to dominate as many sectors of markets, cultures and media regions as possible. There are only a few countries and corporations in the world which can afford the development of world-wide television networks. Only few can survive in the sphere of super investments. National legislation is powerless. This allows for unbelievable global power. It can make people accept standards, buy goods and accept truths broadcast from the screen by a group of media magnates. I do not think I am oversimplifying the situation. I am convinced that the majority of the owners of the world media are conscious of their responsibilities to the citizens of the world. I believe that Ted Turner the founder of CNN is one of these. His company promotes respect for the culture of all the countries of the world. However, despite the efforts of such people the consequences of media imperialism can be dramatic. The danger is that the television and radio channels of the world are monopolised by the representatives of those countries who have the historical advantage over the rest of the world. The USA, Europe and Japan are the leading countries in this respect. Russia, China and a number of other countries are relatively well protected because of their scale and their capabilities. But what about the rest? What will happen to the culture of the smaller and the poorer nations, their culture and their identity? If the trend of the 1980's and early 1990's continues and if global media continue to express the positions and the cultural policies of but a handful of countries this will strike a serious blow to many other countries and peoples and will have a general delaying effect on the processes leading to the advent of the new civilisation. To begin with a large number of small cultures will disappear taking with them the identity of many peoples. As can be seen in a number of countries this will cause defensive reactions and lead to protective nationalism. In the end this will cause complex political conflicts and will turn the world into a world of a small group of dominant nations. Electronic or media imperialism is the remnants of the Third Civilisation, reborn into its final possible form of the domination of one people over another. I see the solution to media imperialism in pluralism and the gradual construction of national electronic media in the poorer countries and in multicultural policies of the world television media. For at least the next 20--30 years cultural and media production will be concentrated in the hands of a small group of countries. During this period it will be necessary to form a new attitude which takes into account the interests of the smaller and poorer nations and cultures. The problem does not end here. It also concerns the cinema, video, cable television networks and satellite television. Clearly the new media technology can be used to stimulate world development, but at the same time it could lead to the destruction of the traditions of many peoples. A major question, especially in the conditions of the transition, is how will we use the new technologies and what will be the consequences for world development. 3. POST-MODERN NATIONALISM Nationalism as we knew it in the 20th century is the antipathe of the new civilisation, the global world, the intermixing of national cultures. Its chances of survival depend on it changing its limits and forms. T he Fourth Civilisation will be a time of openness hiterto unseen in the world. However, it will also involve a difficult, sometimes painful combination of different cultures and economics. We would be completely naive, however to believe that this "intermixing" will come about automatically simply because culture and economies are becoming globalised. If the processes are left to blind chance, the world will find itself beset with many local and regional conflicts, local wars between ethnic groups, religions and cultures. In practice this means the artificial blocking of globalisation, new contradictions and in the long run, the restoration of confrontationalism. Although such a danger is also posed by the "march of the poor" and by the reaction against media imperialism, the major resource of such a gloomy prospect is undoubtedly nationalism. John Lukac defined nationalism as the greatest political force on the planet. Although I doubt whether this conclusion is absolutely precise, I find myself concurring that nationalism is still very stubborn and persistent especially when one takes into account the inertia of the political thinking of the past. For the whole of the 20th century nationalism has been the driving force, notwithstanding the official "domination" and propaganda of communist, liberal, socialist and other ideologies. Very frequently these ideologies have been but a facade for nationalism. Stalinism and Nazism are perhaps the best examples of this. Can globalisation and nationalism be reconciled? This appears possible only if we equate nationalism with something new, if it changes from what it was in the 20th century and does not stand in the way of globalisation. Otherwise nationalism will find itself in very serious conflict with objective trends in the development of the modern world. On the other hand, globalisation will either be a bridge leading to the resolution of total poverty of billions of people or it will stimulate the most mutated forms of nationalism. Let us think for a moment about this important mutuality. Globalisation which unifies the world by destroying local customs and traditions and by killing small cultures cannot avoid causing mutation and reaction. Consequently, only globalisation based on and stimulates diversity can be an alternative to reactionary nationalism and stimulus for the structures of the Fourth Civilisation. At the end of the 20th century after the collapse of the Berlin Wall, the dominant factor of world development is openness. There is now only a small groups of states (e.g. North Korea) which maintain policies of isolation and the absolutism of their own traditions. At the end of the 20th century, nationalism might reappear as an ideological movement protected by culture and religion. Ideological nationalism is a relatively rare phenomenon in the modern world although in a certain number of poorly-developed countries of Africa and Asia it might seen as a panacea for the resolution of serious problems. North Korean communism, for example, is ideological nationalism wrapped in a mask of dead-end ideology. A more widespread and typical form of nationalism at the end of the 20th century is defensive nationalism. This may appear in any country which feels under threat, for the survival of its economy from the invasion of imported goods, its culture -- from the invasion of foreign information and cultural products. Defensive nationalism is not necessarily cultural or religious. It often appears as a result of economic reasons or is linked with historical and political aims of particular nations. The question is not whether this is the "defence" of an individual small culture from the invasion of foreign media or "protection" against an undisputed and powerful culture from the presence of foreign immigrants. In both cases this leads to conflicts, isolation, blocks the processes of globalisation and gives rise to chimera and xenophobia. Ethnonationalism is similar in character and is also widespread. The explosion in ethnic self-confidence and self-determination is a direct and explicable reaction in the struggle for survival in the conditions of globalisation. When, however, this self-awareness has specific historical, cultural and religious roots it can give rise to serious conflicts. Why is nationalism on the rise? Why has this happened despite the continuing intensive processes of globalisation? Why in many places has nationalism taken on extreme forms and lead to military conflicts? The reason is that the surge of nationalist feelings is a reaction to informational and cultural imperialism, to the invasion of the world media and trans-national coporations. In such conditions is has become convenient and fashionable for politicians and ordinary people to re-identify themselves as the members of a regional family. In the poorer countries the rise in national self-determination is a result of former humiliations and repressed ethnic awareness. Before the fall of the Berlin Wall the new nationalism was less important than the struggle between the two world systems. Today, however, this is not the case. National survival and self-determination has replaced Marxist and Leninist teaching in the East and the liberal-conservative doctrines in the West. They have filled the emotional, spiritual, economic and political vacuum almost totally unhindered. Finally, self-identification and its consequent nationalism within modern conditions has become possible as a result of the reduced authority of the nation state as a consquence of globalisation. Nationalism is not the only, but undoubtedly the major reason for the possible new division of the world into opposing economic or military and political blocs. The regrouping of countries into new economic alliances is a part of the geo-political restructuring of the world. Here the danger is in the trend for the divisions to turn into confrontation and the bi-polar model to be replaced with a new bi- or tri-polar oppositional structure. What will predominate in the future the global prospects for the Fourth Civilisation or new regional isolation? Nationalism, combined with regional autarchy or forms of the new open world society? I believe that the answer to this question will still be unclear for the next few decades. There is an undisputed trend towards global integration and the advent of the new civilisation. It is inevitable and it will continue. However, the question whether this process will involve a new phase of world conflicts and collapses, whether there is a danger of evil egoism dominating the world will depend to a very great extent on the means and forms of globalisation. 4. THE EGOISM OF POLITICIANS The responsibility of politicians is not to incite conflict but to resolve them, not to serve the people of the past but to open up the potential for the future. T he advent of the New Civilisation is indisputably irreversible. However, when it will come and what controversies it will bring with it depends to a large extent on the modern political leaders. There is grounds to speak of the possibility of the formation of new global elites in accordance with the great structural changes on a world scale. They will be above all the leaders of the trans-national corporations and other international companies, international traders, representatives from the world of show business and intellectuals who identify their lives with the progress of the whole world. Would it be correct to say that the majority of contemporary world politicians are the defenders and advocates of the Fourth Civilisation? Hardly. The mass of people seem to be conservative defenders of the Third Civilisation. There are exceptions, of course, such as Jacques Delor, Hans van der Bruk, Leo Tindemans and other architects of European integration. Other exceptions include those politicians who have contributed much to world peace such as Bill Clinton, Itsach Rabin, Edward Shevardnadze and many others whose world view is more global than local. Unfortunately, the majority of modern politicians are influenced not by global responsibilities but purely local and national interests. This local egoism is above all a product of the political structures themselves. In every country where there is a pluralist structure the party leaders have the responsibility to their own parties or at best to their countries while members of parliament are responsible to their constituents. Even when the level of education and intellect of the politicians makes them aware of the interests of others their dependency on the national and local systems renders them powerless before the challenges of the New Civilisation. Minimal efforts are necessary to bring a halt to infant mortality all over the world and the funds needed to finance this are less that 1% of the budgets of the industrialised world. Young people at universities are more interested in the resolution of environmental problems than the elected representatives of the nations. However, the egoism of politicians is a product of the electoral systems and the necessity for each politician to defend first and foremost the current interests of his electors. In this way the richest countries and peoples of the world are protecting their own interests above all and the problems of the starving and childrens' illnesses remain in the periphery of their thoughts. The political forces which should work to establish the Fourth Civilisation are not yet clearly identified. They are somewhere amongst the different interests and competition of the trans-national corporations, amongst the group of leaders of the major nations and the representatives of the intellectual community and environmental movements etc.. Despite the successes of the New Civilisation, despite the growing global awareness, these forces are insufficient. Clearly, for an indefinite period of time the majority of politicians will play a conservative, rather than a progressive role in the furtherment of global relations. Today the political awareness of the majority of people involved in such activities goes as far as agreeing to inter-state positions almost exclusively on the basis of national interests. The expansion of global problems is still in no-man's land. There is a clear need for changes in the culture and the awareness of the political elite as well as changes to the political systems. One has to admire the majority of modern European politicians for their constancy and stubborn resilience with which they have built the European Union. It is not customs mechanisms nor the development of a prototype European parliament which should serve as shining examples to the rest of the world but the gradual development over a period of forty years of the dynamic processes of the European idea. However, even here there are a number of examples where the European idea has been compromised by national ambitions and prejudices or has been used demagogically for local political interests. British, French and German members of the EU parliament acknowledge the interests of those who do not want to give up its privileges and to accept their challenges of economic and political integration. Analyses have shown that these are people who put priority on the interests of the manufacturers in their constituencies or a simply victims of limited political thought. The main reason for the egoism of politicians is inherent the nature of the political systems, in the national limitations of the concept of political responsibility, in the weakness of the link between the electoral mechanisms and the concern for future generations. 5. MILITANT RELIGIONS When a shell exploded in the market place in Sarajevo and killed dozens of people, a young woman cried out, "Allah, have revenge for me..." A friend of mine from Serbia told me how a detachment of Muslims in Bosnia raped a group of women and them murdered them... The hatred which he spoke was enough to last him for the rest of his life. T he ethnic war and cleansing in Bosnia, the religious attacks in Algeria, the fundamentalist attacks in Egypt, the victory of the Islamic party in Turkey, ethnic and religious problems in Iran, Iraq, Northern Ireland, Israel and Palestine, India and dozens of other places all over the world are all steeped in the blood of continuing religious conflicts. They are sometimes referred to as the militant religions. Perhaps this is correct. Religion and faith is the greatest unifying principle, the strongest mass feeling overwhelming emotions, traditions, indignation and interests and unites them under a common will. Whoever captures this will shall be victorious. It is true that there is no life without faith just as there is no matter without spirit. No-one can deny that the major traditional religions have survived for many thousands on this earth and they will clearly survive for many more. Religions have learnt how to adapt to new processes and phenomena, to demonstrate flexibility and to acknowledge the needs of the people. Some call this pragmatism, others call it hypocrisy. The great challenge of the modern day which faces all world religions is should they adapt to the global world or should they continue to fight over their old conquests. The dilemma is either to adapt to the open and modern world or to defend the life and traditions of the past, to integrate religious symbols into a modern, open economy or isolation and a war of cultures. Another great challenge is tolerance between religions. Will they continue to fight with each other or will they allow co-existence with other faiths and the free choice of people? The militant isolationist and totalitarian religions are in opposition to the New Civilisation. They and their representatives form part of the obstacles to the advent of the new. There is little doubt that the conflicts arising from the conflict of open societies and cultures will frequently be based on religious principles. I and inclined to think, however, that the role of the militant religions will grow only if this is allowed for by certain preconditions such as poverty and nationalism and the spread of new utopian ideas. When in 1991 President George Bush and his aides unexpectedly halted the American invading force en route to Basra and Baghdad many people could not understand why he did this. Five years later it is now clear that the Americans had to choose between the consequences of religious conflicts or the preservation of the regime of Saddam Hussein. Militant religions can take power, as they did in Iran or they can halt the processes of modernisation of entire regions. However, they can do little more since for the same reasons for which I reject the thesis of S.Huntington I believe that religious modernism will prevail over fundamentalism. 6. A CUP OF COFFEE IN APENZEL The defenders of the Third Civilisation do not only live in the poor countries. A large number of them live in resplendent luxury and comfort or in conditions of social harmony alien to four fifths of the world. These people live in the West and do not want global change... H ave you ever been to Apenzel? It is a Swiss Canton with a capital of the same name on the road from the lake of Boden to Liechtenstein. It is the smallest, best ordered and quietest of all the cantons in the Swiss confederation. There are no large factories as there are in Basel or the vanity of the financial centre of Zurich. There are none of the bank employees forever in a hurry or the limousines of the major banks. Apenzel has the the cleanest cows in the world, the most beautiful green fields merging in the distance into the majesty of the Alpine peaks. It is a land of peaceful, almost invisible work where everyone knows what to do and when to do it. If you get the chance to go to the capital of the canton, take a walk across the bridge and a stroll through the little town and you will feel as though you are in a fairy story. The flowers in the windows, the decorated roofs of the houses and the hidden little backstreets. My reason for writing about this is because Apenzel is not only the smallest and most comfortable canton in Switzerland but also the most conservative. Here the majority of the people do not want any form of change. For them Switzerland's membership of the European Union is a dangerous event with unforeseeable consequences. I stopped in Apenzel for a cup of coffee and a cake in the summer of 1993 and my contacts with the local people made a strong impression on me. This was not only because they had voted against Swiss membership of the EU but for the reasons which they explained to me. The people passionately and convincingly did not want to become part of the united Europe since they were afraid that the underdeveloped European countries would hold back their development and their towns "would be invaded by immigrants" and that they were "getting on very well without the Common Market" etc.. I would not have bothered to mention this event if this attitude was not repeated in other wealthy parts of the world. One of the main sources for the rising xenophobia in Germany, France and Austria is this unwillingness to share their wealth with others and to experience the risk of cultural intermixing. In contrast to the supporters of Zhirinovski in Russia who admire his defence of traditional Russian values or Erbakan in Turkey who advocates the traditions of Islam against the modern processes taking place in the West my experience in Apenzel has completely different origins. I could call it result of "resplendent comfort". Millions of people in Western Europe and North America are entirely satisfied by their lifestyles and do not want to jeopardise the status quo. Employment, security, mistrust of other cultures are reasons for which they prefer nationalism to the open world and the advent of the New Civilisation. Do not be angry with the conservatives of Apenzel. This is not an emotional but a widespread cultural and political phenomenon. It manifests itself in many forms of protective nationalism and is the social basis for potential serious conflict against the Fourth Civilisation. About ten years ago the French Nationalist, Le Pen, seemed a political curiosity, now, however, he is accepted as something real and necessary by many intellectuals. Such is the case with the Austrian Nationalist J.Heider whose party categorically won third place in the country and has even greater political ambitions. Thus the defenders of the old civilisation come not only from amongst the ranks of the fundamentalists, the supporters of Islam or the ultra-nationalists from the lesser developed countries. They also come from the West, from its more conservative circles, from people who are frightened of losing the luxury which they have achieved. Undoubtedly the New Civilisation will involve the intermixing of cultures and economies, the global redistribution and harmonisation of resources, production and benefits. This will also lead to structural changes and even cause difficulties in the most developed countries of the West. Will the people of these countries be prepared to concede some of the privileges which their current state of economic and political advantage allows them? This "drowning in luxury" will continue to hold back the progress of the New Civilisation and lead to a variety of conflicts and other hitherto unknown phenomena. Together with the slow and gradual opening-up of the world and its cultural intermixing we will also become witnesses to processes of temporary "closing-up" and the victories of nationalists and fundamentalists. If in the richer countries of the world those who live in states of "resplendent luxury" win this battle imperial or neo-colonial thinking and fundamentalism will inevitably increase. Section Three The Alternatives to the Fourth Civilisation Chapter Eight THE NEW ECONOMIC ORDER 1. THE ECONOMIC HEART OF THE GLOBAL WORLD Throughout the whole of the 20th century the economic dependence of nations grew to become what is the now the nucleus of the New Civilisation. One essential part of the modern infrastructure is the supra-sovereign control of nation states. The main question is whether this will lead to a new economic order or will it revive the familiar conflicts... T he economic interaction of countries and peoples is at the basis of each human community. "Economic interaction" is not always the leading factor but is does always dominate. It challenges not only the autonomy of particular communities but also their unification into nation states. The new elements of the 20th century is that the modern global economy is becoming less and less an object of control of national governments and is tending to form its own, independent relations. This process has been taking place throughout the 20th century. Between 1870 and 1913 world trade increased by 6% annually. Between 1918 and 1938 there was practically no growth. This can be explained by the slow processes of reconstruction after the First World War, the Great Depression (1929--193) and the self-imposed isolation of the USSR, Germany and a number of other countries. After the Second World War international economic exchange reached it highest level of progress. This was mainly driven by Western Europe, America and Japan. Between 1946 and 1973 world trade was increasing on average by 10% and doubled n volume from 1980--1995. Notwithstanding wars, political confrontation and the accompanying protectionism, the entire period of the 20th century was a time of expansion and global economic strengthening. By resolving their conflicts countries began more and more to see or were forced to see the advantages of the "open" economy and to accept bi-lateral and multi-lateral customs and trade unions. The Genoa conference in 1922 and the World Economic Conference in 1927 are of great significance despite the non-implementation of their decisions as a result of the crisis of 1929 and the Second World War. On the 30th of October 1947 the General Agreement of Trade and Tariffs (GATT) was ratified. This was a milestone leading to the removal of trade discrimination, the consolidation of the principle of "most-favoured nation" status and the formation of customs unions. Between 1964--1967 the "Kennedy round" of talks in which 54 nations took part lead to a 35% reduction in trade tariffs. A further round of talks held in Tokyo in 1979 helped to further develop this process. Together with progress in trade there was also significant progress in economic integration: the complete economic opening of the American states with each other; the German customs union (1871), the Belgium-Luxembourg economic union (1921), the European Iron and Steel Agreement and the Rome Treaty of 1957 on the creation of a Common Market within Europe; the Committee for Economic Cooperation (COMECON) in Eastern Europe (1949) and the European zone for free trade (1960). Despite the political, class and military confrontation of the 20th century there has been a constant process of opening-up and a reduction in the significance of national borders. This has expanded with the ratification of the Latin American Association for Free Trade (LAFTA) in 1960 the Caribbean Common Market (CARICOM) in 1973. At the beginning of the 1990's a new stage in European integration began with the reatification of the Maastricht treaty. The NAFTA agreement on free trade in North America was also signed in 1993. I mention these facts in order to show once again the constant increase in the integrational processes taking place within the entire world. As a result total world trade has grown from 1635 billion USD in 1979 to 1915 billion USD in 1984 to 3667.6 billion USD in 1992. Through the exchange of goods and services the entire world has become linked within a single system. The major factor for integration is the exchange of goods in the area of: -- communications, including satellite television, international telephone links and electronic mail, these advances are particularly significant; -- petrol which despite a marked decline has continued to account for one third of world energy consumption; -- food and raw agricultural products .-- trade with grain, sugar and coffee are amongst the most important factors; -- metals and ore; -- transport and machine building -- planes, cars, ships etc.. the production of which is continuing to increase. A significant new phenomenon in recent decades has been the linking of the financial systems of practically all the countries of the world into a unified system. In the 16--18th century world trade was carried out on the basis of national currencies, gold and silver. During this same period international trade was also based on trade credits and exchange of goods for goods. It was only in the second half of the 19th century that the most industrialised countries accepted the gold standard and the predominance of the British Pound Sterling. Up until the 1930's this system remained, in general terms, in force. Later it was replaced by the Brenton Woods agreement and the domination of the American dollar. At the beginning of the 1970's the Brenton Woods system gave way to floating exchange rates and open financial and currency markets. The predominance of the British Pound was undermined as a result of the reduced importance and the collapse of the British Empire. However, the reason for the changes which took place in the 1970's was the impossibility of any single national currency to monopolise international markets. This is a further demonstration of a common phenomenon, globalisation does not stimulate monopolies but, on the contrary, it creates the conditions for their destruction. In recent decades the world has witnessed the hitherto unseen linkage of countries and nations via currency and financial mechanisms. The replacement of the Brenton Woods system was in fact the removal of the last barriers to the multi-directional fusion of national currencies and exchange rates and to banking and stock exchange operations. Floating exchange rates served as a shock absorber for the resolution of differences and a bridge for overcoming global economic imbalance. During the last 20 years the trade in securities reached previously unknown levels. The trade in international bonds has increased from 76.3 to 167.3 billion dollars[54]. In practice this has meant the growing mutual dependency of capital markets. We can add to this the enormous increase in Euro-dollar markets. After the fall of the Berlin Wall the processes of linkage of the capital markets in all the countries of the world has become undisputed and to a large extent irreversible. Another particulary important indicator of this are the currency policies of practically all the countries in the world. Through a system of mutual convertibility, the maintenance of official reserves in varying currencies and the greater independence of commercial banks, the national economies of countries over the world have become more dependent on each other. After the beginning of the 1970's the international role of the dollar began to subside slowly. This could be seen in the reduction in the size of the official dollar reserves of the industrialised countries to be replaced in the main by the German mark and the Japanese yen. Perhaps the clearest indicator of the economic growth of the Fourth Civilisation is the level of direct investments and the development of trans-national corporations. In the world today there are 37,000 trans-national corporations with over 170,000 branches. Of these, 24,000 corporations are based in the developed countries, 2700 in the developing countries (mainly, South Korea, Hong Kong, Brazil and China) and less than 500 in Central and Eastern Europe. In 1992, the global volume of direct investments reached 2 trillion dollars accounting for a level of sales by the foreign branches of the trans-national corporations of 5.5 trillion dollars.[55] As each year goes by the internationalisation of industry increases which will lead to the intermixing of cultures, manufacturing structures and changes in the awareness of billions of people. Everywhere in the world, the USA or France, Russia or Rumania, Kenya or Ruanda people are becoming more and more aware of the influence of the world economy on their day to day life. Most significantly the houses in which we live and the services which we use are becoming more and more internationalised. I do not know whether it is an exaggeration to say that the modern citizen of the world is a "product of the world". Everywhere in the world, even in the most isolated of countries you will come across cars from the USA, Japan and Germany, household goods from Italy, coffee and fruit from Latin America, electrical goods from Hong Kong and Japan, carpets from Iran or Bulgaria and clothes from China and India etc.. If you take a look at the raw materials used in the production of the finished goods then you will see the labour and the talents of millions of people from many countries. All this might be summed up as two basic phenomena which show the end of one human civilisation and the beginning of another. The first of these phenomena is that the mutual dependence of countries has reached a level at which nation states, autonomous religions and cultures can no longer historically dominate the processes of integration and universal human interests. It is true that the danger of new class, cultural and religious divisions is still possible but the trend towards world integration is becoming more and more irreversible. The new factor is that the most integrated regions in North America, Europe and Japan have created sound economic and financial links with each other. This has also lead to the involvement of all the remaining countries in the world in the global economy. If we take foreign investments as our criteria, we will see that at the beginning of the 1990's the three main economic centres of the world had direct influence over about 50 other satellite countries which accounted for over 3/4 of the world economic product. Today, there is not a single country which can exclude itself from the world economy without causing serious damage to its own development. The attempts by North Korea, Iraq and in the recent past, Albania and Cuba to develop independently in conditions of self-sufficiency have lead to their economic collapse. The huge level of economic inter-dependence in the world has lead to more than just closer integration. When different systems grow closer they form a common, more universal community which is more vital than any individual national or regional, economic or political force. The second phenomenon is the formation of economic forces for which national identity is more formal than essential. Not only in terms of behaviour, interests and structures these forces belong more to the world than to any particular nation state. Above all, these are a part of the trans-national corporations whose economic activities are spread throughout a number of countries and whose connections and dependencies upon national governments are of less significance than, for example, the state of the London Stock Exchange. We could also look at the large number of financial institutions who operate on a global level not as the citizens of any particular country but as citizens of the world. I believe that both the level of mutual economic dependency of countries as well as the several thousand trans-national manufacturing and financial corporations form the economic nucleus of the new civilisation. At the end of the 20th century these structures which control the majority of world manufacturing and trade are the most powerful globalising force in the world. The 20th century was a time when the global world was born but also a time of the creation of supra-national economic structures and the essence of a new civilisation. When I speak of the economic nucleus of the Fourth Civilisation, I mean the influence it has on all areas of life and that the objective changes brought about by the integration of manufacturing and finances have imposed profound changes in the world economic order. 2. NEW GROWTH AND NEW STRUCTURES The trend of the 20th century towards the constant opening-up of national economies will continue at an increasing rate for the next few decades. This will cause the wide-scale redistribution of manufacturing forces and their re-structuring on a branch level. The dynamics of national and world economic growth will be determined more and more by international exchange... T here is not doubt that the globalisation of the world economy is accelerating. According to the predictions of the World Trade Organisation the volume of goods traded in 1995 will increase by 8%. In 1994 this figure was 9.4%. The fact that during the past ten years, world trade has grown faster than the annual global domestic product (see table 8) shows that the integration and opening-up of national borders continues to be a dominant process. Table 8 % annual growth 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 World Trade 8,0 2,5 4,1 5,3 7,9 6,5 4,5 3,5 4,0 3,5 9,5 World GDP 6,0 2,4 2,8 2,9 4,9 3,4 0,5 -2 -0,5 0,2 2,4 Source: World Trade Organisation. How can this phenomenon be explained? Why for the greater part of the 20th century has world trade been greater than manufacturing? My brief response to these two questions is as follows: the constant growth of world exchange has been caused not only by the growth of manufacturing but also by the cultural and political opening-up of countries, the laws of human progress and technological development. The vast majority of the governments in the countries of the world realise that the effectiveness of their efforts and the wealth of their citizens depends on export and their successful involvement in the international distribution of labour. It has become beneficial not only to exchange newly manufactured products but also those products created in the recent past as well as knowledge, services and personnel. Of particular significance is the difference between the growth of trade and the growth in World Gross Product over the past six years (1990--1995) or since the collapse of the Berlin Wall. There has been a rise in the levels of export from the most developed nations to Eastern Europe and Russia and a continuous increase in the exchange of trade with China. In 1984 alone the progressive Asian economies, including China but with the exception of Japan, achieved a 20% increase in their services trade. There is a simultaneous related increase in Eastern Asia and Central and Eastern Europe. There is no doubt that we are witnessing a new rise in world trade and a reduction in the significance of national borders. If we exclude Africa and the Near East, there is evidence almost everywhere of a growth in world trade and the resulting economic revival. The growth of export is a feature of future change in the structure of product manufacture. The most dynamic group of new products in recent years has been telecommunications and office equipment. I believe that telecommunications will continue to increase their share of world trade and will be the most dynamic and profitable export area. This will result in increased communications between people and the intermixing of cultures and manufacture in the world. Telecommunications are a symbol of the Fourth Civilisation and the main technological channel for its development. Clearly telecommunications will continue to contribute to the re-structuring of social life and the stimulation of growth, the opening-up of the world and the linkage of millions and billions of people. The main integrational effect will be the linking of the new communications technologies to televisions and computer technology. The American media group "Time Warner" has already developed and begun to market the first digital interactive television network in the world. Their "Full Service Network" permits its subscribers to carry out banking operations from home, to receive information about products, services and events, to buy and to order and to see new films etc.. Consumers' choice is guaranteed. However, at the same time, this allows the television companies to guarantee their monopoly of the market. Whatever happens in the future, there is little doubt that telecommunications will continue to expand their share of world trade and be a key factor in economic development and structural and social changes. Together with world finance which has developed as a result of improved world communications, telecommunications will continue to be the most attractive area of the world economy. The Internet has allowed tens of millions of people over the entire world have become part of a single network of communications and access to information. Computer networks will lead to revolutionary changes in finances, trade and manufacturing. Despite certain serious predictions concerning a fall in profits from manufacture and sale of aeroplanes[56], I believe that all modern forms of transport will continue to grow dynamically. People of different races, ethnic groups and cultures are coming closer to one another, running to embrace each other. They are beginning to realise how useful it is to travel together and to meet and use the experience of others. The conclusion which seems to suggest itself is that the branches of the Fourth Civilisation (telecommunications, finances, services, computers, information technology, transport, services etc..) have made life more integrated and are a product of the new inter-dependency which is required by humanity. The process will not stop here. On the basis of these key branches of the New Civilisation, still more, newer, branches will be formed. Television and telephones will spur the creation of new audio-visual telephones. Paging systems and mobile telephones will become cheaper and will allow parents to have more control over their children and to gain information from their teachers. Doctors and policemen will be called to where they are needed. This will change politics and management. It will ease and change ways of voting. There is already software available for conducting trade over the computer with full legal support. In ancient times peoples were separated from one another by years of travel. In the Middle Ages the distance shortened to months. In modern times distances can be covered in days. In the New Civilisation the whole of humanity is connected within hours, minutes and seconds. I recently had to fly from Sofia to Honolulu by Lufthansa and United Airlines. I covered the distance in 15--16 hours. Twenty time zones to the other side of the globe in 16 hours! I am convinced that in the Fourth Civilisation people will be able to circumnavigate the world in less time. Despite the opinions of certain sceptics I am sure that transport will continue to improve and develop with leaps and bounds. This applies to car manufacturing, aeroplane construction, shipbuilding and certain other completely new forms of transport. This will also provide new prospects for world economic growth. New technologies will continue to stimulate this growth and the dynamic processes will never stop despite the critics who believe that the computer and audio-visual market are already satiated. The limits of high technology growth and integrational products have not yet been reached. It is not certain whether this growth will dominate the world economy as a whole. It is most likely that the next 10--20 years will be years of technological progress but also slow reconstruction. The lack of manageability and even elementary order within the world economy means that it is not clear which of the two will gain the upper hand. Above all this requires the replacement of old industrial production with new technology, a pro