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   From: luken@frontiernet.net   
      
   An interconnected world demands an interconnected system. Klaus Schwab,   
   founder and executive chairman of the World Economic Forum, lays out his   
   plan.   
      
   By Klaus Schwab, contributor   
      
   global-economyFORTUNE -- We talk of being a global community, but our   
   institutions and behaviors tend to run counter to these currents. Our   
   new reality -- complex, interconnected, and faster than ever -- means   
   that the need for global cooperation and global solutions has never been   
   greater. So what criteria should underpin a global system for the 21st   
   century?   
      
   First, such a system must foster cooperation. We're all in this   
   together. Governments, business, and civil society cannot do it on their   
   own. Global issues are interrelated, and multi-stakeholder responses   
   such as public-private partnerships bring innovative solutions to the   
   table. They engage the passion, purpose, and networks of civil society   
   with the resources and experience of business.   
      
   MORE: Globalism goes backward   
      
   Next, a global system must also approach challenges in a systemic,   
   integrated way. The issues on the global agenda are all interrelated,   
   but our current system is too compartmentalized: the World Trade   
   Organization for trade, the World Health Organization for health, and   
   the International Monetary Fund for finance. We also have to establish   
   the necessary interlinkages to create coherence. For example, how do we   
   strike the optimal balance between the G-20 and the United Nations? How   
   do we best engage nongovernmental actors? We need flexible networks --   
   more heterarchies, fewer hierarchies.   
      
   Third, the system should be strategic, not crisis-driven. Most of our   
   energy is currently absorbed by reactive rather than proactive measures.   
   Managing crises instead of thinking about the future leads to defensive   
   attitudes. We must adapt to a changing world, not defend outdated models.   
      
   MORE: How Davos can become more useful   
      
   Fourth, a global system must continually demonstrate legitimacy. Today,   
   this goes beyond mandates based on democratic principles; it includes   
   clear objectives and concrete results. We undoubtedly have a delivery   
   problem. And since promised actions are not fulfilled, we also have a   
   trust deficit with governments, international organizations, and business.   
      
   Finally, our global governance system must embrace the notion of global   
   citizenship. In an interconnected world, it is in the interest of   
   nation-states to strive for solutions to truly global challenges, such   
   as climate change. Today, we not only need a Charter of Human Rights,   
   but must also expand this notion to include responsibilities.   
      
   MORE: 'Dr. Doom's' risks for the global economy   
      
   As a global community, we depend on the functioning of institutions and   
   processes to manage our global neighborhood. Integrating these five   
   criteria into our global system will be challenging, but if we don't, we   
   will continue applying topical treatments to conditions that   
   fundamentally require global cardiac care.   
      
   --Klaus Schwab is the founder and executive chairman of the World   
   Economic Forum.   
      
   This story is from the February 4, 2013 issue of Fortune.   
   http://finance.fortune.cnn.com/2013/01/30/global-economy-schwab/   
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