At the outset of the 21st century, confidence in the effectiveness and legitimacy of established forms of governance is ebbing. This article considers historical developments in governance, the driving forces likely to transform governance worldwide and the policies that might have the best chance of enhancing governance capacities in line with the desires and needs of the future. Challenges and propects are discussed which entail the dual policy of: encouraging a virtuous circle between governance and technological, economic and social dynamism; and targeting improvements in learning infrastructure, the frameworks for establishing confidence, and the standards (mission/values) within which society functions. By improving the capacity to make and implement decisions throughout society these policies are likely to provide one of the main stepping stones to the realization of people’s aspirations in the 21st century.

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The prospects for prosperity and well‐being in the 21st century will depend on leveraging social diversity to encourage technological, economic and social dynamism. A striking confluence of forces over the next twenty years could drive a twofold convergence: first, towards more highly differentiated and complex societies, and second, towards the adoption of a common set of general policy goals that are conducive to both diversity and social sustainability. In the opening decades of the 21st century four simultaneous and powerful societal transformations will give rise to more variety and interdependence: from the uniformity and obedience of the mass‐era to the uniqueness and creativity of a knowledge economy and society; from rigid and isolated command planning to flexible, open and rule‐based markets; from predominantly agricultural structures to industrial urbanization; and lastly, from a relatively fragmented world of autonomous societies and regions to the dense and indispensable interdependencies of an integrated planet. In different ways and in different parts of the world, greater social complexity will in all likelihood accompany these wrenching shifts. Rather than fear this increase in social diversity we should welcome the opportunities for learning and sharing that could bring prosperity and well‐being. Nevertheless, there are risks of heightened conflict due to the possible polarization that frequently accompanies the passing of old social orders and the emergence of new ones. Policy choices will be the determining factor in minimizing this friction and encouraging the potential synergies.

The world stands on the threshold of a tantalizing opportunity: the possibility of a sustained economic boom over the first decades of the next millennium. This article outlines the confluence of forces – particularly the transition to a knowledge society, the emergence of a global economy and the pursuit of environmental sustainability – which could come together to propel huge improvements in wealth‐creating capacity and wellbeing world‐wide. The transition to a knowledge economy and society over the next few decades opens up the possibility of massive productivity gains. Equally significant, stimulus for a long boom could emerge from the creation of much more deeply integrated global markets for goods, services, capital and technology. Finally, the long boom could be sustained by a cooperative push to redirect the path of humanity’s relationship to the environment – a change entailing massive investments in new, less resource‐intensive patterns of consumption and methods of production. The unleashing of these dynamic forces hinges on two basic policy thrusts. First, economic dynamism in general and a long boom in particular will demand exceptional efforts – nationally and internationally – to encourage continuous innovation and high levels of investment. Second, with the prospects for a long boom contingent on the realization of a leap in the levels of international cooperation, decision makers will have to consider bold new approaches to negotiating and reconciling conflicting interests and divergent needs.

Note to Delegations:This document is also available on O.N.E under the reference code: DSTI/STP(2021)6/FINAL This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.