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Lessons from the Future




                  sustainablefuture.info
Four Questions

I.     What is Acceptable?
II.    What is Possible?
III.   What should we Focus On?
IV.    What are the Obstacles?




                                  2
Numbers

a thousand      in a pinch


a million       in a cup


a billion       in a bathtub


a trillion      in a classroom

                in 10 football
                fields,
a quadrillion
                covered 6 feet
                deep
                                 3
Strategic Knowledge



   Information


       Data

                      4
Steps Towards Scenarios

1. Define project parameters, trends, driving
   forces, assumptions
2. Explore uncertainties and rank
3. Build scenario worlds, write stories, test
4. Use, consider implications, review,
   communicate




                                                5
Futures Studies

Probable futures: forecasting and sometimes
   prediction (Status Quo)
Possible futures: scenarios, risks (Explorative)
Preferred futures: strategies and agendas for
   change, propelled by innovation and leadership
   (Visionary)




                                                    6
Sustainable Future: Project 2058
                       Scenarios

                                   Possible


                          1   2




                                              Probable



                         3    4




                                   Possible

2008       2030          2058
                                                   7
Primary                                              Secondary
Change Agents                                         Change Agents
1. Climate change                                     8. Political systems and
2. Population and                                     institutions
demographics                                          9. Economic models
3. Ecosystems and                                     10. Management of
biodiversity                                          ecosystems and resources
4. Energy                                             11. Infrastructure
5. Resources                                          12. Security and conflict
6. Values and beliefs                                 13. Technology
7. Justice and freedom   Global Drivers               14. Information,
                                                      learning and ideas
                           of Change


                           Wild Cards
                          15. Pandemic
                          16. Tsunami
                          17. Drought
                          18. Volcanoes and
                          earthquakes
                          19. Astronomical events
                          20. Extreme weather
                          21. Terrorism, Biological
                          and chemical warfare

                                                                                  8
Climate Change – New Zealand




                          9
Climate Change & Demography –
                               Global
In 2008, 3 billion make
$2 or less per day.       2008   2008



In 2058, the developed
countries and China
grow old – while Africa
remains young.


                          2058           2058
                                        2008




                                                10
Demography – New Zealand




But New Zealand experiences one of the highest rates of
combined immigration and emigration (population turnover) in
                                                               11
the world.
Demography – New Zealand




                      12
Technology – Global




                13
The US               Technology – Global
Department of
Energy's Oak Ridge
National
Laboratory
Computer can
crunch a
‘quadrillion’
calculations per
second!

If everyone in the
world performed
one mathematical
calculation per
second, it would
take 650 years to
do what this
machine can do in
one day.
                                     14
Technology – New Zealand

In the last fifty years, car ownership
      has almost quadrupled…




                                         15
Security & Terrorism – Global

                   When U.S. forces
                   went into Iraq in
                   2003, they had
                   zero robotic units
                   on the ground.

                   By the end of
                   2004, the number
                   was up to 150.

                   By the end of
                   2008, it was
                   projected to reach
                   as high as 12,000.
                   And these
                   weapons are just
                   the first     16
                   generation.
Economic Risks – New Zealand
                                            1997-99 Asian Crisis
    1930-34 Great Depression
                                     1991-92 Recession
          1979-82 Second oil shock

 1930                   1970         1980            1990           2000         2010
1967-69 Wool bust
                                                     2008-? Current recession
         1974-77 First oil shock




                                                                                17
Economic Risks – Global

The biggest destruction of global
         wealth ever?
                         Value loss
                         (est. $US)
Credit-related losses    $2 trillion
Equity Markets           $30 trillion
Housing                  $4 trillion
Lost output              $3 trillion
                                        18
Economic Risks – New Zealand

Annual              Domestic credit growth
APC
Percent
Change
25
                                           Agriculture
             Business
20


15


10                                           Household

 5


 0
                                                         19
     2004    2005         2006      2007          2008    2009
Information & Ideas – Global


Years it took to reach a market audience of 50 million



                                      38



                    13



               4


                                                         20
Our Methodology
                     The world does          The world does not
                     manage its strengths,   manage its strengths,
                     weaknesses,             weaknesses
                     opportunities and       opportunities and
                     threats                 threats

 New Zealand does    Scenario 1:             Scenario 2:
 manage its          Power to the People     An Island Paradise:
 strengths,                                  but Back to the Jungle
 weaknesses,
 opportunities and   New Zealand             New Zealand
 threats             World                   World

 New Zealand does    Scenario 3:             Scenario 4:
 not manage its      Missed the Global Bus   All Over Rover
 strengths,
 weaknesses,         New Zealand             New Zealand
 opportunities and   World                   World
 threats
                                                                      21
Our Findings
                            …the World            …the World
    Scenario                   does
                              manage
                                                   does not
                                                   manage
     Matrix              its opportunities   its opportunities and
                            and threats             threats

       New Zealand
            does
          manage
     its strengths and
    weaknesses and..

       New Zealand
         does not
          manage
     its strengths and
    weaknesses and…
                                                                     22
What to Watch For?

  1.   Fortress Mentality
  2.   Disparities
  3.   Leadership
  4.   Ethics




                            23
1. Fortress Mentality
• $1 trillion pa Illicit Trade
• 150 unauthorised use of nuclear or radioactive
materials in the last 4 years
• 20,000 active nuclear weapons




                                                   24
2. Disparities

        Total                      Includes                      Includes                   Includes                  Includes
  Human Development             Education Index            Disparity of income           RST expenditure           GDP (per capita)
        Index                                            (ratio of richest 10% to           (% GDP)
                                                              poorest 10%)



1. Iceland       (0.968)    1= Australia     (0.993)    1. Japan            (4.5)   1. Israel         (4.46)   1. Luxembourg (60 228)



3. Australia     (0.962)    1= New Zealand (0.993)      42. Ireland         (9.4)   20. Australia     (1.70)   16. Australia   (31 794)



19. Italy        (0.945)    6. Norway        (0.991)    64. Macedonia      (1.25)   25. Russia        (1.17)   27. UAE         (25 514)



20. New Zealand (0.944)     12. Ireland      (0.978)    65. New Zealand    (12.5)   26. New Zealand   (1.16)   28. New Zealand (24 996)



21. UK           (0.942)    18. UK           (0.970)    66. Australia      (12.5)   27. Ukraine       (1.16)   29. Greece      (23 381)



177. Sierra Leone (0.336)   177. Burkina Faso (0.255)   126. Bolivia      (168.1)   91. Peru          (0.10)   174. Malawi       (667)


                                                                                                                                 25
3. Leadership   Global trends in governance, 1946-2007




                                                         26
4. Ethics
Example 1: Economic
G20 summit must make the moral case for capitalism
The privatisation of gains, but the socialisation of losses, or what the
Governor of the Bank of England calls "moral hazard" – is at the heart
of popular anger.

It is an issue which must be addressed: bankers developed a culture
of reckless risk with our money in part because they believed that, if
things went wrong, the Government would step in and bail them out.

In the long term, "moral hazard" is not a feasible basis on which to run
an economic system. What should it be replaced with? One temptation
that needs to be firmly resisted is the idea that the panacea of our
economic ills is more government control of the economy.
(Source: Telegraph UK, 9 March 2009)
                                                                           27
Example 2: Social
                                        N.J. Senate committee approves
                                       increase in fines for ocean medical
                                                 waste dumping

                                        A New Jersey Senate committee has
                                       approved a bill that would double the
                                          fines for a host of medical waste
                                                      violations.
                                       (Source: The Associated Press Monday
                                                   March 16, 2009)




This 2004 photo shows Dr. Thomas McFarland with his wife,
Joanne, on the pier at their home in Avalon, N.J. McFarland, a
suburban Philadelphia dentist. Doctor McFarland was charged on
Sept. 5, 2008 for dumping medical waste that fouled beaches in
Avalon.
                                                                     28
Example 3: Environmental




The total volume of Transuranic
Radioactive Waste and contaminated
soil is estimated at around one
million cubic meters. It will remain
harmful after 24,000 years. The
graph provides the projected amount
of waste to the year 2015. The map,
the proposed storage site for up to
                                       29
two million cubic meters.
III. There is no Silver Bullet…
        so what should we focus on?




                        1.   Land
                        2.   Isolation
                        3.   Infrastructure
                        4.   Community
                        5.   Attitude
                        6.   Networking

                                              30
Land Cover

                      100
                                                             Alpine zone

                      80
                                                                              Tussock
Total land area (%)




                                                                    Scrub, wetlands and dunes                     Exotic
                      60                                                                                          grass-
                                                                                                                  land
                                       Native forest
                      40
                                                                                                                  Exotic
                                                                                                                  forest
                      20

                                                                                                                 Settlement
                       0                                                                                         and crops
                      1000      1200                1400               1600             1800              2000
                                            Main period                                        Main period          31
                                        of Maori expansion                               of European expansion
Livestock

                       Total number of livestock per country per person as at
Total number per                            30 June 2007
     person                                 (Includes all cattle, sheep, and pigs)
14

12

10

 8

 6

 4

 2

 0
        New        Australia   Ireland   Brazil      UK        France       China    USA   India
      Zealand                                                                                  32
Composition of Export (Goods)




                                33
Destination of Exports (Goods)




                                 34
IV. What are the Obstacles?


1. Our Mindset
2. Relevant Information
3. Space for Long-Term Thinking
4. The Recession




                                  35
Level of public spending on
agricultural R&D in New Zealand
compared to Australia




                                  36
Initiatives to progress long-term
     thinking in New Zealand
                                                                        2009 National Job Summit 
                                                                        convenes in Auckland 

                                   2001 Knowledge Wave 
                                   conference recommends the 
   1976‐1982 Commission for        “creation of a widely shared 
   the Future                      vision for New Zealand”


        1980                               1990                               2000                          2010

1991 Porter analysis – Upgrading New 
                                                  2007‐ present Sustainable Future’s Project 
Zealand’s Competitive Advantage –
                                                  2058 aims to develop a national strategy
concludes there is a need to build 
consensus to improve prosperity
                                                                   2008 Morrison and Co. launches 
                                                                   One Goal online project 


                                                                          Number                 Duration
                                        National Job Summit               210 participants       1 day
                                        One Measurable Goal project       112 comments           3 months
                                        Project 2058                      19 publications        3 years
                                        Knowledge Wave                    450 participants       3 days
                                        Commission for the Future         Over 20 publications   6 years           37
New Zealand
                  needs a
            ‘National Strategy’
          to optimise our future,
           to align our industry,
   to reinforce our national brand and
   to be an example of what is possible


- not because we have to, but because we
          want what it can deliver       38
39

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Lessons from the Future

  • 1. Lessons from the Future sustainablefuture.info
  • 2. Four Questions I. What is Acceptable? II. What is Possible? III. What should we Focus On? IV. What are the Obstacles? 2
  • 3. Numbers a thousand in a pinch a million in a cup a billion in a bathtub a trillion in a classroom in 10 football fields, a quadrillion covered 6 feet deep 3
  • 4. Strategic Knowledge Information Data 4
  • 5. Steps Towards Scenarios 1. Define project parameters, trends, driving forces, assumptions 2. Explore uncertainties and rank 3. Build scenario worlds, write stories, test 4. Use, consider implications, review, communicate 5
  • 6. Futures Studies Probable futures: forecasting and sometimes prediction (Status Quo) Possible futures: scenarios, risks (Explorative) Preferred futures: strategies and agendas for change, propelled by innovation and leadership (Visionary) 6
  • 7. Sustainable Future: Project 2058 Scenarios Possible 1 2 Probable 3 4 Possible 2008 2030 2058 7
  • 8. Primary Secondary Change Agents Change Agents 1. Climate change 8. Political systems and 2. Population and institutions demographics 9. Economic models 3. Ecosystems and 10. Management of biodiversity ecosystems and resources 4. Energy 11. Infrastructure 5. Resources 12. Security and conflict 6. Values and beliefs 13. Technology 7. Justice and freedom Global Drivers 14. Information, learning and ideas of Change Wild Cards 15. Pandemic 16. Tsunami 17. Drought 18. Volcanoes and earthquakes 19. Astronomical events 20. Extreme weather 21. Terrorism, Biological and chemical warfare 8
  • 9. Climate Change – New Zealand 9
  • 10. Climate Change & Demography – Global In 2008, 3 billion make $2 or less per day. 2008 2008 In 2058, the developed countries and China grow old – while Africa remains young. 2058 2058 2008 10
  • 11. Demography – New Zealand But New Zealand experiences one of the highest rates of combined immigration and emigration (population turnover) in 11 the world.
  • 12. Demography – New Zealand 12
  • 14. The US Technology – Global Department of Energy's Oak Ridge National Laboratory Computer can crunch a ‘quadrillion’ calculations per second! If everyone in the world performed one mathematical calculation per second, it would take 650 years to do what this machine can do in one day. 14
  • 15. Technology – New Zealand In the last fifty years, car ownership has almost quadrupled… 15
  • 16. Security & Terrorism – Global When U.S. forces went into Iraq in 2003, they had zero robotic units on the ground. By the end of 2004, the number was up to 150. By the end of 2008, it was projected to reach as high as 12,000. And these weapons are just the first 16 generation.
  • 17. Economic Risks – New Zealand 1997-99 Asian Crisis 1930-34 Great Depression 1991-92 Recession 1979-82 Second oil shock 1930 1970 1980 1990 2000 2010 1967-69 Wool bust 2008-? Current recession 1974-77 First oil shock 17
  • 18. Economic Risks – Global The biggest destruction of global wealth ever? Value loss (est. $US) Credit-related losses $2 trillion Equity Markets $30 trillion Housing $4 trillion Lost output $3 trillion 18
  • 19. Economic Risks – New Zealand Annual Domestic credit growth APC Percent Change 25 Agriculture Business 20 15 10 Household 5 0 19 2004 2005 2006 2007 2008 2009
  • 20. Information & Ideas – Global Years it took to reach a market audience of 50 million 38 13 4 20
  • 21. Our Methodology The world does The world does not manage its strengths, manage its strengths, weaknesses, weaknesses opportunities and opportunities and threats threats New Zealand does Scenario 1: Scenario 2: manage its Power to the People An Island Paradise: strengths, but Back to the Jungle weaknesses, opportunities and New Zealand New Zealand threats World World New Zealand does Scenario 3: Scenario 4: not manage its Missed the Global Bus All Over Rover strengths, weaknesses, New Zealand New Zealand opportunities and World World threats 21
  • 22. Our Findings …the World …the World Scenario does manage does not manage Matrix its opportunities its opportunities and and threats threats New Zealand does manage its strengths and weaknesses and.. New Zealand does not manage its strengths and weaknesses and… 22
  • 23. What to Watch For? 1. Fortress Mentality 2. Disparities 3. Leadership 4. Ethics 23
  • 24. 1. Fortress Mentality • $1 trillion pa Illicit Trade • 150 unauthorised use of nuclear or radioactive materials in the last 4 years • 20,000 active nuclear weapons 24
  • 25. 2. Disparities Total Includes Includes Includes Includes Human Development Education Index Disparity of income RST expenditure GDP (per capita) Index (ratio of richest 10% to (% GDP) poorest 10%) 1. Iceland (0.968) 1= Australia (0.993) 1. Japan (4.5) 1. Israel (4.46) 1. Luxembourg (60 228) 3. Australia (0.962) 1= New Zealand (0.993) 42. Ireland (9.4) 20. Australia (1.70) 16. Australia (31 794) 19. Italy (0.945) 6. Norway (0.991) 64. Macedonia (1.25) 25. Russia (1.17) 27. UAE (25 514) 20. New Zealand (0.944) 12. Ireland (0.978) 65. New Zealand (12.5) 26. New Zealand (1.16) 28. New Zealand (24 996) 21. UK (0.942) 18. UK (0.970) 66. Australia (12.5) 27. Ukraine (1.16) 29. Greece (23 381) 177. Sierra Leone (0.336) 177. Burkina Faso (0.255) 126. Bolivia (168.1) 91. Peru (0.10) 174. Malawi (667) 25
  • 26. 3. Leadership Global trends in governance, 1946-2007 26
  • 27. 4. Ethics Example 1: Economic G20 summit must make the moral case for capitalism The privatisation of gains, but the socialisation of losses, or what the Governor of the Bank of England calls "moral hazard" – is at the heart of popular anger. It is an issue which must be addressed: bankers developed a culture of reckless risk with our money in part because they believed that, if things went wrong, the Government would step in and bail them out. In the long term, "moral hazard" is not a feasible basis on which to run an economic system. What should it be replaced with? One temptation that needs to be firmly resisted is the idea that the panacea of our economic ills is more government control of the economy. (Source: Telegraph UK, 9 March 2009) 27
  • 28. Example 2: Social N.J. Senate committee approves increase in fines for ocean medical waste dumping A New Jersey Senate committee has approved a bill that would double the fines for a host of medical waste violations. (Source: The Associated Press Monday March 16, 2009) This 2004 photo shows Dr. Thomas McFarland with his wife, Joanne, on the pier at their home in Avalon, N.J. McFarland, a suburban Philadelphia dentist. Doctor McFarland was charged on Sept. 5, 2008 for dumping medical waste that fouled beaches in Avalon. 28
  • 29. Example 3: Environmental The total volume of Transuranic Radioactive Waste and contaminated soil is estimated at around one million cubic meters. It will remain harmful after 24,000 years. The graph provides the projected amount of waste to the year 2015. The map, the proposed storage site for up to 29 two million cubic meters.
  • 30. III. There is no Silver Bullet… so what should we focus on? 1. Land 2. Isolation 3. Infrastructure 4. Community 5. Attitude 6. Networking 30
  • 31. Land Cover 100 Alpine zone 80 Tussock Total land area (%) Scrub, wetlands and dunes Exotic 60 grass- land Native forest 40 Exotic forest 20 Settlement 0 and crops 1000 1200 1400 1600 1800 2000 Main period Main period 31 of Maori expansion of European expansion
  • 32. Livestock Total number of livestock per country per person as at Total number per 30 June 2007 person (Includes all cattle, sheep, and pigs) 14 12 10 8 6 4 2 0 New Australia Ireland Brazil UK France China USA India Zealand 32
  • 33. Composition of Export (Goods) 33
  • 35. IV. What are the Obstacles? 1. Our Mindset 2. Relevant Information 3. Space for Long-Term Thinking 4. The Recession 35
  • 36. Level of public spending on agricultural R&D in New Zealand compared to Australia 36
  • 37. Initiatives to progress long-term thinking in New Zealand 2009 National Job Summit  convenes in Auckland  2001 Knowledge Wave  conference recommends the  1976‐1982 Commission for  “creation of a widely shared  the Future vision for New Zealand” 1980 1990 2000 2010 1991 Porter analysis – Upgrading New  2007‐ present Sustainable Future’s Project  Zealand’s Competitive Advantage – 2058 aims to develop a national strategy concludes there is a need to build  consensus to improve prosperity 2008 Morrison and Co. launches  One Goal online project  Number Duration National Job Summit 210 participants 1 day One Measurable Goal project 112 comments 3 months Project 2058 19 publications 3 years Knowledge Wave 450 participants 3 days Commission for the Future Over 20 publications 6 years 37
  • 38. New Zealand needs a ‘National Strategy’ to optimise our future, to align our industry, to reinforce our national brand and to be an example of what is possible - not because we have to, but because we want what it can deliver 38
  • 39. 39