With the end of the Cold War era, the world has entered a new phase of change in systems and power structures. The world is constantly changing, but this change has accelerated during the first decade of the 21st century. Global power is shifting faster, and consequently diffusing among more stakeholders.

Why does global power diffuse?

With the rapid power shift around the world, the rise in power and influence of the new emerging countries is diminishing the gap with traditional developed countries. These new rising countries are mostly regional powers, so that they can aspire to dominate their regional affairs. Global power is currently so diffused that we cannot discern a strong international power core. There are a number of reasons for this:

First, the extensive process of globalization in different fields is of extraordinary significance. Economic globalization drives the global transfer of scientific technology, management experience, and natural and human resources. With modern industrialization, more and more previously underdeveloped countries are progressing and growing faster than ever, becoming wealthier and more powerful. Meanwhile, all these rising powers expect a stable international security environment for their economic development, and seek status as political powers both in the international sphere as well as at the core of their regional power structures.

Second, the current international economic crisis is accelerating this power shift. The subprime mortgage crisis originated from the US and kindled the international financial and economic crisis. All countries are suffering from economic recession, bankruptcy, high unemployment, and a downturn in trade. The losses experienced by those rising powers that have spent years building a solid base for their real economy, have been much less disastrous than those faced by developed countries, which depend extensively on financial and trade services as well as credit-based consumption.

Third, inefficient international regimes are collapsing. The Bretton Woods System was created just after World War II by a few western countries. It can apply a well-balanced regulation procedure to a situation where the world economy is working normally. However, it can also be utilized by traditional developed countries to safeguard their interests by forcing undeveloped countries to bear the loss during the international economic crisis, because the rules of BWS favor the developed countries at the expense of the underdeveloped countries. Today, BWS is weak in its ability to help developed countries to contain those rising new powers which seek to help poorer countries.

How does the global power diffuse?

In the aftermath of the Cold War, there are four principal ways in which global power is shifting, especially during the current international economic crisis.

First, global power is moving from the developed countries to the developing powers. This does not mean that developed countries will not grow, but that they will grow at a lower pace compared with developing powers, which are still modernizing and optimizing their national economic structure.

Second, global power is shifting from the "froth" economy to the real economy. The profits of the froth economy can easily evaporate in the face of the international economic crisis. However, the real economy can endure, and survive more severe challenges, and can recover faster when the international economic environment improves.

Third, the dynamic core of global power is moving from the west to the east. The East Asian countries can boost their economic innovation and increase foreign trade by making use of the advantages accruing to economic late-starters. These countries are also playing a greater role in the reform of international political and economic forums.

Fourth, global power is diffusing peacefully. The rising powers in the world have grown in strength while complying with existing international economic norms, and not by following revolutionary programs and activities. They do not challenge the security and stability of the status quo, but cooperate with the traditional developed countries in different fields and international institutions.

How to manage the diffusion of global power?

The diffusion of global power is causing widespread problems. Domestic affairs are taking up so much of the Obama administration's attention that it is becoming less inclined to lead the world in addressing some international issues. The policy of multilateralism and negotiation advocated by Obama can do little to tackle some international challenges. The fact that the DPRK has quit the six-party talks on its nuclear issue illustrates the limits of the Obama administration's non-interventionist policy.

There should be at least four strategies for the world to respond to the diffusion of global power:

First, Adaptation Strategy. The whole world, including both developed and developing countries, must learn to adapt to the new international political order, and even more so the new economic order, so that they can take the necessary measures to resolve any difficulties according to their own national circumstances.

Second, Development Strategy. If a country is not well-developed and does not possess a solid economic foundation, it cannot effectively address the international challenges it faces. Only when that country becomes strong can it manage to defend itself and emerge successfully from global political competition and power conflicts with other countries.

Third, Cooperation Strategy. It is difficult for an individual country to develop and become prosperous in isolation. Therefore trade protectionism will end in damage to all parties, including those who initiate such policies. G7 acts as a prejudiced clique of representatives from traditional developed countries, because it usually neglects the interests of developing countries. G20 is more representative because it includes the top 20 most-industrialized countries in the world, but it still needs to give its attention to the undeveloped, the small, and the weak. When countries unite together, they can not only save themselves, but also ensure the safety of others.

Fourth, Integration Strategy. Groups of neighbouring countries can easily integrate to form regional security, economic, and socio-cultural communities. When countries consciously share the same opportunities, challenges, and destinies, they can focus their strength and accomplish more important tasks.

Only when we analyze the different aspects of global power diffusion can we understand its nature and its effects. In the near future it will be the catalyst for a new world order. We can foresee this, and therefore we should also prepare well for it.