Scholar Explains How States Can Build Governance in Era of Mega-Shifts

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How can states maintain governability and stability in a world where established rules are rapidly losing their force? Prof. Ali Farazmand of Florida Atlantic University answered this question in a presentation delivered at the XXVI April International Academic Conference named after Evgeny Yasin. The scholar proposed examining the transformation of the global order through the lens of two ‘mega-shifts’—from the rise of global corporate capitalism to the emerging multipolarity of today—and demonstrated why this transition between eras requires fundamentally new approaches to governance.

Ali Farazmand is a professor at the School of Public Administration at Florida Atlantic University and the author of more than 200 academic publications and over 45 books. He presented his own analytical framework centred on two mega-global events (mega-shifts) that have shaped the course of the 20th and early 21st centuries. The first mega-event was the transformation of capitalism from a national system into a corporate and global one. Prof. Farazmand traced how capitalism gradually moved beyond national economies: corporations, in search of new markets and lower costs, relocated production first within countries and then across continents. In his view, states were not passive observers of this process; rather, they provided institutional support to corporations, while international financial organisations (such as the IMF and the World Bank) promoted a model of open markets and structural reforms, which became a precondition for receiving loans.

Ali Farazmand

According to Prof. Farazmand, the result was the emergence of a unipolar system in which a single centre of power effectively set the rules for all other actors. However, in his assessment, this model has now exhausted its potential.

From around 2020, the world entered the phase of a second mega-shift—a transition towards a multipolar order. This refers to a situation in which several major centres of influence—both states and international organisations—jointly shape the global agenda, with none able to impose its will on the others. As evidence of this transition, Ali Farazmand pointed to the expansion of BRICS, the development of the Shanghai Cooperation Organisation and the Eurasian Economic Union, the emergence of alternative financial institutions, and the gradual diversification of currencies in international trade.

The central part of the presentation focused on how states and their administrative systems can and should prepare to operate under the conditions of the second mega-shift. The speaker identified three strategic directions. First, the protection and strengthening of existing institutions. Second, the development of strategies that enable governance systems to respond rapidly to a fast-changing environment, including crises and emergencies. Third, anticipatory development, which involves building institutional capacity for conditions that do not yet exist but are highly likely to emerge.

Within these directions, Prof. Farazmand highlighted a number of priority areas: strategic infrastructure, decision-making systems, financial and banking institutions, organisational design and governance structures, and—particularly important in the context of new alliances—mechanisms for interstate coordination. In his view, countries participating in such groupings as BRICS need to establish shared administrative and communication mechanisms capable of ensuring coordinated interaction while preserving the sovereignty of each member.

The researcher also spoke about his ‘theory of governing the unexpected in action,’ which he has been developing since 2007. The theory emerged from an analysis of the failed response of the US authorities to Hurricane Katrina and draws on chaos theory and non-linear dynamics. Its central premise is that chaos is not an anomaly but a permanent property of environment and that attempts to control it through standard planning methods are bound to fail. Accordingly, Prof. Farazmand proposes a systematic strengthening of preparedness, whereby governance institutions develop the capacity to operate under conditions of high uncertainty. The theory suggests training a particular type of administrator—individuals capable of making decisions in non-linear, rapidly changing situations where conventional procedures no longer apply.

According to the author, countries that have invested in strategic capacity in advance are now demonstrating greater resilience. Complacency, even from a position of strength, leads to a rapid loss of previously achieved gains. In conclusion, Prof. Farazmand called for a cooperative model of international relations, in which major powers recognise the reality of multipolarity and develop shared rules rather than seeking dominance.