STOCK MARKET WATCH -- Thursday, 19 January 2012

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58. Facing a dystopian future

http://www.japantimes.co.jp/text/eo20120119a4.html

HONG KONG — Japanese were being optimistic when they chose "kizuna"* (bond) as the word of the year for 2011, referring to people coming together after the triple disasters of earthquake, tsunami and nuclear plant meltdown.

We should regret that Prime Minister Yoshihiko Noda is going to skip the annual meeting of the World Economic Forum (WEF) next week in Davos. That is because he might hear some uncomfortable home truths about the lessons of Great East Japan Earthquake and its aftermath. He would also learn that one of the words of 2012 is "dystopia," and Noda might reflect on how he may be helping to create a modern dystopia.

"Dystopia" is the key word in the "Global Risks 2012" report just issued by the WEF. The main message of the report is that economic turmoil, financial stringency and social upheaval could not only roll back the gains the world has made from globalization but also could lead to a "dystopian future for much of humanity."

The report explains that: "Dystopia, the opposite of a utopia, describes a place where life is full of hardship and devoid of hope." The risks are not single, but come from the "constellation of fiscal, demographic and societal risks. ... The interplay among these risks could result in a world where a large youth population contends with chronic, high levels of unemployment, while concurrently, the largest population of retirees in history becomes dependent upon already indebted governments."