[Book Sip] How to Respond to the 'Changing World Order'

Some sentences encapsulate the entire content of the book itself, while others instantly resonate with the reader’s heart, creating a connection with the book. Here, we introduce such meaningful sentences excerpted from the book. - Editor’s note

Ray Dalio, who won the love of readers worldwide and domestically with ‘Principles: Life & Work,’ has returned with a new book. While ‘Principles’ revealed his principles on life and company management, this new book analyzes the economic, political, and historical patterns of major countries over the past 500 years to reveal how the world will change going forward and how we should respond. His new book, ‘The Changing World Order,’ contains Ray Dalio’s unique principles for coping with the ever-changing world order.

In other words, to properly understand the current situation and future events, it was necessary to know the underlying mechanisms of similar past situations. For example, the rise and fall of the Netherlands and the British Empire between 1930 and 1945, and the rise and fall of Chinese dynasties.

While I was studying these, the COVID-19 pandemic broke out, which, although historically similar events have occurred several times, was the first time I experienced it in my lifetime. As a result of studying past pandemics, I realized that natural disasters such as diseases, famines, and floods must also be considered. These natural phenomena have a greater impact than any severe economic depression or war. _p.13

Within the big cycle, there are other cycles as well. For example, the long-term debt cycle of about 100 years and the short-term debt cycle of about 8 years. Within these smaller cycles, there are long periods of prosperity and short periods of recession, so cycles exist within cycles. _p.15

After studying the rise and fall of empires over long periods, it was found that historically powerful empires generally last about 150 to 250 years, with some variations. And major economic, debt, and political cycles last between 50 and 100 years. _p.26

We are now witnessing a typical major shift in wealth and power and the world order that will profoundly affect all humanity. _p.38

Traditionally, during the early peaceful and prosperous periods of the big cycle, unfair wealth distribution occurs, so a very limited few hold and control enormous wealth and power. This imbalance continues until a recession hits, severely impacting the poor and powerless, leading to revolutions or civil wars, the birth of a new order, and the start of a new cycle. _p.111

The Changing World Order | Written by Ray Dalio | Translated by Song Iru & Jo Yongbin | HanbitBiz | 616 pages | 38,000 KRW

This content was produced with the assistance of AI translation services.