Today humankind has broken the law of the jungle. There is at last real peace, and not just absence of war. For most polities, there is no plausible scenario leading to full-scale conflict within one year. What could lead to war between Germany and France next year? Or between China and Japan? Or between Brazil and Argentina? Some minor border clash might occur, but only a truly apocalyptic scenario could result in an old-fashioned full-scale war between Brazil and Argentina in 2014, with Argentinian armoured divisions sweeping to the gates of Rio, and Brazilian carpet-bombers pulverising the neighbourhoods of Buenos Aires. Such wars might still erupt between several pairs of states, e.g. between Israel and Syria, Ethiopia and Eritrea, or the USA and Iran, but these are only the exceptions that prove the rule.
This situation might of course change in the future and, with hindsight, the world of today might seem incredibly naïve. Yet from a historical perspective, our very naïvety is fascinating. Never before has peace been so prevalent that people could not even imagine war.
Scholars have sought to explain this happy development in more books and articles than you would ever want to read yourself, and they have identified several contributing factors. First and foremost, the price of war has gone up dramatically. The Nobel Peace Prize to end all peace prizes should have been given to Robert Oppenheimer and his fellow architects of the atomic bomb. Nuclear weapons have turned war between superpowers into collective suicide, and made it impossible to seek world domination by force of arms.
Secondly, while the price of war soared, its profits declined. For most of history, polities could enrich themselves by looting or annexing enemy territories. Most wealth consisted of fields, cattle, slaves and gold, so it was easy to loot it or occupy it. Today, wealth consists mainly of human capital, technical know-how and complex socio-economic structures such as banks. Consequently it is difficult to carry it off or incorporate it into one’s territory.
Consider California. Its wealth was initially built on gold mines. But today it is built on silicon and celluloid – Silicon Valley and the celluloid hills of Hollywood. What would happen if the Chinese were to mount an armed invasion of California, land a million soldiers on the beaches of San Francisco and storm inland? They would gain little. There are no silicon mines in Silicon Valley. The wealth resides in the minds of Google engineers and Hollywood script doctors, directors and special-effects wizards, who would be on the first plane to Bangalore or Mumbai long before the Chinese tanks rolled into Sunset Boulevard. It is not coincidental that the few full-scale international wars that still take place in the world, such as the Iraqi invasion of Kuwait, occur in places were wealth is old-fashioned material wealth. The Kuwaiti sheikhs could flee abroad, but the oil fields stayed put and were occupied.
43. and 44. Gold miners in California during the Gold Rush, and Facebook’s headquarters near San Francisco. In 1849 California built its fortunes on gold. Today, California builds its fortunes on silicon. But whereas in 1849 the gold actually lay there in the Californian soil, the real treasures of Silicon Valley are locked inside the heads of high-tech employees.
While war became less profitable, peace became more lucrative than ever. In traditional agricultural economies long-distance trade and foreign investment were sideshows. Consequently, peace brought little profit, aside from avoiding the costs of war. If, say, in 1400 England and France were at peace, the French did not have to pay heavy war taxes and to suffer destructive English invasions, but otherwise it did not benefit their wallets. In modern capitalist economies, foreign trade and investments have become all-important. Peace therefore brings unique dividends. As long as China and the USA are at peace, the Chinese can prosper by selling products to the USA, trading in Wall Street and receiving US investments.