1 99:59:59,999 --> 99:59:59,999 I want you to reimagine how life is organized on earth. 2 99:59:59,999 --> 99:59:59,999 Think of the planet like a human body that we inhabit. 3 99:59:59,999 --> 99:59:59,999 The skeleton is the transportation system of roads and railways, 4 99:59:59,999 --> 99:59:59,999 bridges and tunnels, air and seaports 5 99:59:59,999 --> 99:59:59,999 that enable our mobility across the contient. 6 99:59:59,999 --> 99:59:59,999 The vascular system that powers the body 7 99:59:59,999 --> 99:59:59,999 with oil and gas pipelines that distribute energy. 8 99:59:59,999 --> 99:59:59,999 And the nervous system of communications 9 99:59:59,999 --> 99:59:59,999 is the internet cables, satellites, cellular networks 10 99:59:59,999 --> 99:59:59,999 and data centers that allow us to share information. 11 99:59:59,999 --> 99:59:59,999 This ever-expanding infrastructural matrix of 64 million kilometers of roads, 12 99:59:59,999 --> 99:59:59,999 4 million kilometers of railways, 13 99:59:59,999 --> 99:59:59,999 2 million kilometers of pipelines, 14 99:59:59,999 --> 99:59:59,999 and 1 million kilometers of internet cables. 15 99:59:59,999 --> 99:59:59,999 What about international borders? 16 99:59:59,999 --> 99:59:59,999 We have less than 500,000 kilometers of borders. 17 99:59:59,999 --> 99:59:59,999 Let's build a better map of the world. 18 99:59:59,999 --> 99:59:59,999 And we can start by overcoming some ancient mythology. 19 99:59:59,999 --> 99:59:59,999 There's a saying with which all students of history are familiar: 20 99:59:59,999 --> 99:59:59,999 "Geography is destiny." 21 99:59:59,999 --> 99:59:59,999 Sounds so grave, doesn't it? 22 99:59:59,999 --> 99:59:59,999 It's such a fatalistic adage. 23 99:59:59,999 --> 99:59:59,999 It tells us that landlocked countries are condemned to be poor, 24 99:59:59,999 --> 99:59:59,999 that small countries cannot escape their larger neighbors, 25 99:59:59,999 --> 99:59:59,999 that vast distances are insurmountable. 26 99:59:59,999 --> 99:59:59,999 But every journey I take around the world, 27 99:59:59,999 --> 99:59:59,999 I see an even greater force sweeping the planet: 28 99:59:59,999 --> 99:59:59,999 connectivity. 29 99:59:59,999 --> 99:59:59,999 The global connectivity revolution, in all of its forms -- 30 99:59:59,999 --> 99:59:59,999 transportation, energy and communications-- 31 99:59:59,999 --> 99:59:59,999 has enabled such a quantum leap in the mobility of people, 32 99:59:59,999 --> 99:59:59,999 of goods, of resources, of knowledge, 33 99:59:59,999 --> 99:59:59,999 such that we can no longer think of geography as distinct from it. 34 99:59:59,999 --> 99:59:59,999 In fact, I view the two forces as fusing together 35 99:59:59,999 --> 99:59:59,999 into what I call connectography. 36 99:59:59,999 --> 99:59:59,999 Connectography represents a quantum leap 37 99:59:59,999 --> 99:59:59,999 in the mobility of people, resources and ideas, 38 99:59:59,999 --> 99:59:59,999 but it is an evolution, 39 99:59:59,999 --> 99:59:59,999 an evolution of the world from political geography, 40 99:59:59,999 --> 99:59:59,999 which is how we legally divide the world, 41 99:59:59,999 --> 99:59:59,999 to functional geography, 42 99:59:59,999 --> 99:59:59,999 which is how we actually use the world, 43 99:59:59,999 --> 99:59:59,999 from nations and borders, to infrastructure and supply chains. 44 99:59:59,999 --> 99:59:59,999 Our global system is evolving 45 99:59:59,999 --> 99:59:59,999 from the vertically integrated empires of the 19th century, 46 99:59:59,999 --> 99:59:59,999 through the horizontally, interdependent nations 47 99:59:59,999 --> 99:59:59,999 of the 20th century, 48 99:59:59,999 --> 99:59:59,999 into a global network civilization in the 21st century. 49 99:59:59,999 --> 99:59:59,999 Connectivity, not sovereignty, has become 50 99:59:59,999 --> 99:59:59,999 the organizing principle of the human species. 51 99:59:59,999 --> 99:59:59,999 (Applause) 52 99:59:59,999 --> 99:59:59,999 We are becoming this global network civilization 53 99:59:59,999 --> 99:59:59,999 because we are literally building it. 54 99:59:59,999 --> 99:59:59,999 All of the world's defense budgets and military spending 55 99:59:59,999 --> 99:59:59,999 taken together total just under 2 trillion dollars per year. 56 99:59:59,999 --> 99:59:59,999 Meanwhile, our global infrastructure spending is projected to rise 57 99:59:59,999 --> 99:59:59,999 to 9 trillion dollars per year within the coming decade. 58 99:59:59,999 --> 99:59:59,999 And, well, it should. 59 99:59:59,999 --> 99:59:59,999 We have been living off an infrastructure stock 60 99:59:59,999 --> 99:59:59,999 meant for a world population of 3 billion, 61 99:59:59,999 --> 99:59:59,999 as our population has crossed 7 billion to 8 billion 62 99:59:59,999 --> 99:59:59,999 and eventually 9 billion and more. 63 99:59:59,999 --> 99:59:59,999 As a rule of thumb, we should spend about 1 trillion dollars 64 99:59:59,999 --> 99:59:59,999 on the basic infrastructure needs of every billion people in the world. 65 99:59:59,999 --> 99:59:59,999 Not surprisingly, Asia is in the lead. 66 99:59:59,999 --> 99:59:59,999 In 2015, China announced the creation 67 99:59:59,999 --> 99:59:59,999 of the Asia Infrastructure and Investment Bank, 68 99:59:59,999 --> 99:59:59,999 which together with a network of other organizations, 69 99:59:59,999 --> 99:59:59,999 aims to construct a network of iron and silk roads, 70 99:59:59,999 --> 99:59:59,999 stretching from Shanghai to Lisbon. 71 99:59:59,999 --> 99:59:59,999 And as all of this topographical engineering unfolds, 72 99:59:59,999 --> 99:59:59,999 we will likely spend more on infrastrucutre 73 99:59:59,999 --> 99:59:59,999 in the nest 40 years, 74 99:59:59,999 --> 99:59:59,999 we will build more infrastructure in the next 40 years, 75 99:59:59,999 --> 99:59:59,999 than we have in the last 4,000 years. 76 99:59:59,999 --> 99:59:59,999 Now let's stop and think about it for a little minute. 77 99:59:59,999 --> 99:59:59,999 Spending so much more 78 99:59:59,999 --> 99:59:59,999 on building the foundations of global society 79 99:59:59,999 --> 99:59:59,999 rather than on the tools to destroy it 80 99:59:59,999 --> 99:59:59,999 can have profound consequences. 81 99:59:59,999 --> 99:59:59,999 Connectivity is how we optimize the distribution 82 99:59:59,999 --> 99:59:59,999 of people and resources around the world. 83 99:59:59,999 --> 99:59:59,999 It is how mankind comes to be more than just the sum of its parts. 84 99:59:59,999 --> 99:59:59,999 I believe that is what is happening. 85 99:59:59,999 --> 99:59:59,999 Connectivity has a twin megatrend in the the 21st century: 86 99:59:59,999 --> 99:59:59,999 planetary urbanization. 87 99:59:59,999 --> 99:59:59,999 Cities are the infrastructures that most define us. 88 99:59:59,999 --> 99:59:59,999 By 2030, more than two thirds of the world's population 89 99:59:59,999 --> 99:59:59,999 will live in cities. 90 99:59:59,999 --> 99:59:59,999 And these are not mere dots on the map, 91 99:59:59,999 --> 99:59:59,999 but they are vast archepelagos stretching hundreds of kilomters. 92 99:59:59,999 --> 99:59:59,999 Here we are in Vancouver, 93 99:59:59,999 --> 99:59:59,999 at the head of the Cascadia Corridor 94 99:59:59,999 --> 99:59:59,999 that stretches south across the US border to Seattle. 95 99:59:59,999 --> 99:59:59,999 The technology powerhouse of SIlicon Valley 96 99:59:59,999 --> 99:59:59,999 begins north of San Francisco down to San Jose 97 99:59:59,999 --> 99:59:59,999 and across the bay to Oakland. 98 99:59:59,999 --> 99:59:59,999 The sprawl of Los Angeles now passes San Diego 99 99:59:59,999 --> 99:59:59,999 across the Mexican border to Tijuana. 100 99:59:59,999 --> 99:59:59,999 San Diego and Tijuana now share an airport terminal 101 99:59:59,999 --> 99:59:59,999 where you can exit into either country. 102 99:59:59,999 --> 99:59:59,999 Eventually, a high-speed rail network may connect the entire Pacific spine. 103 99:59:59,999 --> 99:59:59,999 America's northeastern megalopolis begins in Boston through New York 104 99:59:59,999 --> 99:59:59,999 and Philadelphia to Washingotn. 105 99:59:59,999 --> 99:59:59,999 It contains more than 50 million people 106 99:59:59,999 --> 99:59:59,999 and also has plans for a high-speed rail network. 107 99:59:59,999 --> 99:59:59,999 But Asia is where we really see the magacities coming together. 108 99:59:59,999 --> 99:59:59,999 This continous strip of light from Tokyo through Negoya 109 99:59:59,999 --> 99:59:59,999 to Osaka contains more than 80 million people, 110 99:59:59,999 --> 99:59:59,999 and most of Japan's economy. 111 99:59:59,999 --> 99:59:59,999 It is the world's largest megacity. 112 99:59:59,999 --> 99:59:59,999 For now. 113 99:59:59,999 --> 99:59:59,999 But in China, megacity clusters are coming together 114 99:59:59,999 --> 99:59:59,999 with populations reaching 100 million people. 115 99:59:59,999 --> 99:59:59,999 The Yangtze River Delta around Shanghai 116 99:59:59,999 --> 99:59:59,999 and the Pearl River Delta, 117 99:59:59,999 --> 99:59:59,999 stretching from Hong Kong to ? 118 99:59:59,999 --> 99:59:59,999 And in the middle, 119 99:59:59,999 --> 99:59:59,999 the ? mgacity, 120 99:59:59,999 --> 99:59:59,999 whose geographic footprint is almost the same size 121 99:59:59,999 --> 99:59:59,999 as the country of Austria. 122 99:59:59,999 --> 99:59:59,999 And any number of these megacity clusters 123 99:59:59,999 --> 99:59:59,999 has a GDP approaching 2 trillion dollars, 124 99:59:59,999 --> 99:59:59,999 that's almost the same of all of India today. 125 99:59:59,999 --> 99:59:59,999 So imagine if our global diplomatic institutions like the G20 126 99:59:59,999 --> 99:59:59,999 were to base their membership of economic size 127 99:59:59,999 --> 99:59:59,999 rather than national representation. 128 99:59:59,999 --> 99:59:59,999 Some Chinese megacities may be in and have a seat at the table, 129 99:59:59,999 --> 99:59:59,999 while entire countries, like Argentina and Indonesia may be out. 130 99:59:59,999 --> 99:59:59,999 Moving to India, whose population will soon exceed that of China, 131 99:59:59,999 --> 99:59:59,999 it too has a number of megacity clusters, 132 99:59:59,999 --> 99:59:59,999 such as the Delhi capital region and Mumbai. 133 99:59:59,999 --> 99:59:59,999 In the Middle East, greater Tehran is absorbing 134 99:59:59,999 --> 99:59:59,999 one third of Iran's population. 135 99:59:59,999 --> 99:59:59,999 Most of Egypt's 30 million people 136 99:59:59,999 --> 99:59:59,999 live in the corridor between Cairo and Alexandria. 137 99:59:59,999 --> 99:59:59,999 And in the gulf, a necklace of citystates if forming, 138 99:59:59,999 --> 99:59:59,999 from Bahrain to Qatar, 139 99:59:59,999 --> 99:59:59,999 through the United Arab Emirates through Muscat in Oman. 140 99:59:59,999 --> 99:59:59,999 And then there's Lagos, 141 99:59:59,999 --> 99:59:59,999 Africa's largest city and Nigeria's commerical hub. 142 99:59:59,999 --> 99:59:59,999 It has plans for a rail network that will make it the anchor 143 99:59:59,999 --> 99:59:59,999 of a vast Atlantic coastal corridor, 144 99:59:59,999 --> 99:59:59,999 stretching across Benin, Togo and Ghana, 145 99:59:59,999 --> 99:59:59,999 to Abidjan, the capital of the Ivory Coast. 146 99:59:59,999 --> 99:59:59,999 But these countries are suburbs of Lagos. 147 99:59:59,999 --> 99:59:59,999 In the megacity world, 148 99:59:59,999 --> 99:59:59,999 countries can be suburbs of cities. 149 99:59:59,999 --> 99:59:59,999 By 2030, we will have as many as 50 such megacity clusters 150 99:59:59,999 --> 99:59:59,999 in the world. 151 99:59:59,999 --> 99:59:59,999 So which map tells you more? 152 99:59:59,999 --> 99:59:59,999 Our traditional map of 200 discret nations that hang on most of our wallls, 153 99:59:59,999 --> 99:59:59,999 or this map of the 50 megacity clusters? 154 99:59:59,999 --> 99:59:59,999 And yet, even this is incomplete 155 99:59:59,999 --> 99:59:59,999 because you cannot understand any individual megacity 156 99:59:59,999 --> 99:59:59,999 without understanding its connections to the others. 157 99:59:59,999 --> 99:59:59,999 People move to cities to be connected, 158 99:59:59,999 --> 99:59:59,999 and connectivity is why these cities thrive. 159 99:59:59,999 --> 99:59:59,999 Any number of them such as Sao Paolo or Istanbul or Moscow 160 99:59:59,999 --> 99:59:59,999 has a GDP approaching or exceeding one third of one half 161 99:59:59,999 --> 99:59:59,999 of their entire national GDP. 162 99:59:59,999 --> 99:59:59,999 But equally importantly, 163 99:59:59,999 --> 99:59:59,999 you cannot calculate any of their individual value 164 99:59:59,999 --> 99:59:59,999 without understanding the role of the flows of people, 165 99:59:59,999 --> 99:59:59,999 of finance, of technology 166 99:59:59,999 --> 99:59:59,999 that enable them to thrive. 167 99:59:59,999 --> 99:59:59,999 Take the Gauteng province of South Africa, 168 99:59:59,999 --> 99:59:59,999 which contains Johannesburg and the capital Pretoria. 169 99:59:59,999 --> 99:59:59,999 It too represents just over a third of South Africa's GDP. 170 99:59:59,999 --> 99:59:59,999 Equally importantly, it is home to the offices 171 99:59:59,999 --> 99:59:59,999 of almost every single multinational corporation 172 99:59:59,999 --> 99:59:59,999 that invests directly into South Africa 173 99:59:59,999 --> 99:59:59,999 and indeed, into the entire African continent. 174 99:59:59,999 --> 99:59:59,999 Cities want to be part of global value chains. 175 99:59:59,999 --> 99:59:59,999 They want to be part of this global division of labor. 176 99:59:59,999 --> 99:59:59,999 That is how cities think. 177 99:59:59,999 --> 99:59:59,999 I've never met a mayor who said to me, 178 99:59:59,999 --> 99:59:59,999 "I want my city to be cut off" 179 99:59:59,999 --> 99:59:59,999 They know that their cities belong as much 180 99:59:59,999 --> 99:59:59,999 to the global network civilization as to their home countries. 181 99:59:59,999 --> 99:59:59,999 Now for many people, urbanization causes great dismay. 182 99:59:59,999 --> 99:59:59,999 They think cities are wrecking the planet. 183 99:59:59,999 --> 99:59:59,999 But right now, there are more than 184 99:59:59,999 --> 99:59:59,999 200 intercity learning networks thriving. 185 99:59:59,999 --> 99:59:59,999 That is as many as the intergovernmental organizations 186 99:59:59,999 --> 99:59:59,999 that we have. 187 99:59:59,999 --> 99:59:59,999 And all of these intercity networks are devoted to one purpose, 188 99:59:59,999 --> 99:59:59,999 mankind's number one priority in the 21st century: 189 99:59:59,999 --> 99:59:59,999 sustainable urbanization. 190 99:59:59,999 --> 99:59:59,999 Is it working? 191 99:59:59,999 --> 99:59:59,999 Let's take climate change. 192 99:59:59,999 --> 99:59:59,999 We know that summit after summit in New York and Paris 193 99:59:59,999 --> 99:59:59,999 is not going to reduce greenhouse gas emissions. 194 99:59:59,999 --> 99:59:59,999 But what we can see is that transffering technology 195 99:59:59,999 --> 99:59:59,999 and knowledge and policies between cities 196 99:59:59,999 --> 99:59:59,999 is how we've actually begun to reduce 197 99:59:59,999 --> 99:59:59,999 the carbon intensity of our economies. 198 99:59:59,999 --> 99:59:59,999 Cities are learning from each other. 199 99:59:59,999 --> 99:59:59,999 How to install zero-emissions buildings, 200 99:59:59,999 --> 99:59:59,999 how to deploy electric car-sharing systems. 201 99:59:59,999 --> 99:59:59,999 In major Chinese cities, they're imposing quotas 202 99:59:59,999 --> 99:59:59,999 on the number of cars on the streets. 203 99:59:59,999 --> 99:59:59,999 In many Western cities, 204 99:59:59,999 --> 99:59:59,999 young people don't even want to drive anymore. 205 99:59:59,999 --> 99:59:59,999 Cities have been part of the problem, 206 99:59:59,999 --> 99:59:59,999 now they are part of the solution. 207 99:59:59,999 --> 99:59:59,999 Inequality is the other great challenge 208 99:59:59,999 --> 99:59:59,999 to achieving sustainable urbanization. 209 99:59:59,999 --> 99:59:59,999 When I travel through megacities from end to end, 210 99:59:59,999 --> 99:59:59,999 it takes hours and days, 211 99:59:59,999 --> 99:59:59,999 I experience the tragedy of extreme disparity 212 99:59:59,999 --> 99:59:59,999 within the same geography. 213 99:59:59,999 --> 99:59:59,999 And yet, our global stock of financial assets 214 99:59:59,999 --> 99:59:59,999 has never been larger, 215 99:59:59,999 --> 99:59:59,999 approaching 300 trillion dollars. 216 99:59:59,999 --> 99:59:59,999 That's almost four times the actual GDP of the world. 217 99:59:59,999 --> 99:59:59,999 We have taken on such enormous debts 218 99:59:59,999 --> 99:59:59,999 since the financial crisis, 219 99:59:59,999 --> 99:59:59,999 but have we invested them in inclusive growth? 220 99:59:59,999 --> 99:59:59,999 No, not yet. 221 99:59:59,999 --> 99:59:59,999 Only when we build sufficient, affordable public housing, 222 99:59:59,999 --> 99:59:59,999 when we invest in robust transportation networks 223 99:59:59,999 --> 99:59:59,999 to allow people to connect to each other 224 99:59:59,999 --> 99:59:59,999 both physically and digitally, 225 99:59:59,999 --> 99:59:59,999 that's when our divided cities and societies 226 99:59:59,999 --> 99:59:59,999 will come to feel whole again. 227 99:59:59,999 --> 99:59:59,999 (Applause) 228 99:59:59,999 --> 99:59:59,999 And that is why infrastructure has just been included 229 99:59:59,999 --> 99:59:59,999 in the United Nations Sustainable Development Goals, 230 99:59:59,999 --> 99:59:59,999 because it enables all the others. 231 99:59:59,999 --> 99:59:59,999 Our political and economic leaders 232 99:59:59,999 --> 99:59:59,999 are learning that connectivity is not charity, 233 99:59:59,999 --> 99:59:59,999 it's an opportunity. 234 99:59:59,999 --> 99:59:59,999 And that's why our financial community needs to undestand 235 99:59:59,999 --> 99:59:59,999 that connectivity is the most important asset class of the 21st centiry. 236 99:59:59,999 --> 99:59:59,999 Now, cities can make the world more sustainable, 237 99:59:59,999 --> 99:59:59,999 they can make the world more equitable, 238 99:59:59,999 --> 99:59:59,999 I also believe that connectivity between cities 239 99:59:59,999 --> 99:59:59,999 can make the world more peaceful. 240 99:59:59,999 --> 99:59:59,999 If we look at regions of the world with dense relations across borders, 241 99:59:59,999 --> 99:59:59,999 we see more trade, more investment, 242 99:59:59,999 --> 99:59:59,999 and more stability. 243 99:59:59,999 --> 99:59:59,999 We all know the sotry of Europe after WWII, 244 99:59:59,999 --> 99:59:59,999 where industrial integration kicked off a process 245 99:59:59,999 --> 99:59:59,999 that gave rise today's peaceful European Union. 246 99:59:59,999 --> 99:59:59,999 And you can see that Russia, by the way, 247 99:59:59,999 --> 99:59:59,999 is the least connected of major powers 248 99:59:59,999 --> 99:59:59,999 in the internaitonla system. 249 99:59:59,999 --> 99:59:59,999 And that goes a long way towards explaining 250 99:59:59,999 --> 99:59:59,999 tensions today. 251 99:59:59,999 --> 99:59:59,999 Countries that have less stake in the system 252 99:59:59,999 --> 99:59:59,999 also have less to loose in disturbing it. 253 99:59:59,999 --> 99:59:59,999 In North America, the lines that matter most on the map 254 99:59:59,999 --> 99:59:59,999 are not the US-Canada border or the US-Mexico border, 255 99:59:59,999 --> 99:59:59,999 but the dense network of roads and railways and pipelines 256 99:59:59,999 --> 99:59:59,999 and electricity grids and even water canals 257 99:59:59,999 --> 99:59:59,999 that are forming an integrated North American union. 258 99:59:59,999 --> 99:59:59,999 North America does not need more walls, 259 99:59:59,999 --> 99:59:59,999 it needs more connections. 260 99:59:59,999 --> 99:59:59,999 (Applause) 261 99:59:59,999 --> 99:59:59,999 But the real promise of connectivity is in the post-colonial world. 262 99:59:59,999 --> 99:59:59,999 All of those regions where borders have historically been 263 99:59:59,999 --> 99:59:59,999 the most arbitrary 264 99:59:59,999 --> 99:59:59,999 and where generations of leaders have had hostile relations with each other, 265 99:59:59,999 --> 99:59:59,999 but now a new group of leaders has come into power 266 99:59:59,999 --> 99:59:59,999 and is burying the hatchet. 267 99:59:59,999 --> 99:59:59,999 Let's take Southeast Asia, 268 99:59:59,999 --> 99:59:59,999 where high-speed rail networks are planned 269 99:59:59,999 --> 99:59:59,999 to connect Bangkok to Singapore 270 99:59:59,999 --> 99:59:59,999 and trade corridors from Vietnam to Myanmar. 271 99:59:59,999 --> 99:59:59,999 Now this region of 600 million people 272 99:59:59,999 --> 99:59:59,999 coordinates its agricultural resources and its 273 99:59:59,999 --> 99:59:59,999 and its industrial output. 274 99:59:59,999 --> 99:59:59,999 It is evolving into what I call a Pax Asiana, 275 99:59:59,999 --> 99:59:59,999 a peace among Southeast Asian nations. 276 99:59:59,999 --> 99:59:59,999 A similar phenomenon is underway in East Africa, 277 99:59:59,999 --> 99:59:59,999 where a half dozen countries are investing 278 99:59:59,999 --> 99:59:59,999 in railways and multimodal corridors 279 99:59:59,999 --> 99:59:59,999 so that landlocked countries can get their goods to market. 280 99:59:59,999 --> 99:59:59,999 Now these countries coordinate their utilities 281 99:59:59,999 --> 99:59:59,999 and their investment policies. 282 99:59:59,999 --> 99:59:59,999 They, too, are evolving into a Pax Africana. 283 99:59:59,999 --> 99:59:59,999 One region we know that could especially use this kind of thinking 284 99:59:59,999 --> 99:59:59,999 is the Middle East. 285 99:59:59,999 --> 99:59:59,999 As Arab states tragically collapse, 286 99:59:59,999 --> 99:59:59,999 what is left behind but the ancient cities, 287 99:59:59,999 --> 99:59:59,999 such as Cairo, Beirut and Baghdad. 288 99:59:59,999 --> 99:59:59,999 In fact, the nearly 400 million people of the Arab world 289 99:59:59,999 --> 99:59:59,999 are almost entirely urbanized. 290 99:59:59,999 --> 99:59:59,999 As societies, as cities, 291 99:59:59,999 --> 99:59:59,999 they are either water rich or water poor, 292 99:59:59,999 --> 99:59:59,999 energy rich or energy poor. 293 99:59:59,999 --> 99:59:59,999 And the only way to correct these mismatches 294 99:59:59,999 --> 99:59:59,999 is not through more wars and more borders, 295 99:59:59,999 --> 99:59:59,999 but through more connectivity of pipelines and water canals. 296 99:59:59,999 --> 99:59:59,999 Sadly, this is not yet the map of the Middle East. 297 99:59:59,999 --> 99:59:59,999 But it should be, 298 99:59:59,999 --> 99:59:59,999 a connected Pax Arabia, 299 99:59:59,999 --> 99:59:59,999 internally integrated and productively connected 300 99:59:59,999 --> 99:59:59,999 to its neighbors: Europe, Asia and Africa. 301 99:59:59,999 --> 99:59:59,999 Now it may not seem like connectivity is what we want right now 302 99:59:59,999 --> 99:59:59,999 towards the world's most turbulent region. 303 99:59:59,999 --> 99:59:59,999 But we know from history that more connectivity is the only way 304 99:59:59,999 --> 99:59:59,999 to bring out stability in the long run, 305 99:59:59,999 --> 99:59:59,999 because we know that in region after region, 306 99:59:59,999 --> 99:59:59,999 connectivity is the new reality. 307 99:59:59,999 --> 99:59:59,999 Cities and countries are learning to aggregate 308 99:59:59,999 --> 99:59:59,999 into more peaceful and prosperous wholes. 309 99:59:59,999 --> 99:59:59,999 But the real test is going to be Asia. 310 99:59:59,999 --> 99:59:59,999 Can connectivity overcome the patterns of rivarly 311 99:59:59,999 --> 99:59:59,999 among the far east. 312 99:59:59,999 --> 99:59:59,999 After all, this is where World War III 313 99:59:59,999 --> 99:59:59,999 is supposed to break out. 314 99:59:59,999 --> 99:59:59,999 Since the end of the Cold War, a quarter-century ago, 315 99:59:59,999 --> 99:59:59,999 at least 6 major wars have been predicted for this region. 316 99:59:59,999 --> 99:59:59,999 But none have broken out. 317 99:59:59,999 --> 99:59:59,999 Take China and Taiwan. 318 99:59:59,999 --> 99:59:59,999 In the 1990s, this was everyone's leading WWIII scenario. 319 99:59:59,999 --> 99:59:59,999 But since that time, 320 99:59:59,999 --> 99:59:59,999 the trade and investment volumes across the straits 321 99:59:59,999 --> 99:59:59,999 have become so intense that last November, 322 99:59:59,999 --> 99:59:59,999 leaders from both sides held a historic summit 323 99:59:59,999 --> 99:59:59,999 to discuss eventual peaceful reunification. 324 99:59:59,999 --> 99:59:59,999 And even the election of a Nationalist party in Taiwan 325 99:59:59,999 --> 99:59:59,999 that's pro-independence earlier this year 326 99:59:59,999 --> 99:59:59,999 does not undermine this fundamental dynamic. 327 99:59:59,999 --> 99:59:59,999 China and Japan have an even longer history of rivalry 328 99:59:59,999 --> 99:59:59,999 and have been deploying their air forces and navies 329 99:59:59,999 --> 99:59:59,999 to show their strength in island disputes. 330 99:59:59,999 --> 99:59:59,999 But in recent years, Japan has been making 331 99:59:59,999 --> 99:59:59,999 its largest foreign investments in China. 332 99:59:59,999 --> 99:59:59,999 Japanese cars are selling in record numbers there. 333 99:59:59,999 --> 99:59:59,999 And guess where the largest number of foreigners 334 99:59:59,999 --> 99:59:59,999 residing in Japan today comes from? 335 99:59:59,999 --> 99:59:59,999 You guessed it: China. 336 99:59:59,999 --> 99:59:59,999 China and India have fought a major war 337 99:59:59,999 --> 99:59:59,999 and have three outstanding border disputes, 338 99:59:59,999 --> 99:59:59,999 but today India is the second largest shareholder 339 99:59:59,999 --> 99:59:59,999 in the Asia Infrastructure Investment Bank. 340 99:59:59,999 --> 99:59:59,999 Their building a trade corridor stretching from Northeast India 341 99:59:59,999 --> 99:59:59,999 through Myanmar and Bangladesh to Southern China. 342 99:59:59,999 --> 99:59:59,999 Their trade volume has grown from 20 billion dollars a decade ago 343 99:59:59,999 --> 99:59:59,999 to 80 billion dollars today. 344 99:59:59,999 --> 99:59:59,999 Nuclear-armed Indian and Pakistan have fought three wars