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Parag Khanna: Second world countries hold the majority of the world’s oil reserves; so that does include Saudi Arabia, Russia, other Middle Eastern state,s those in South East Asia, Brazil and Venezuela. The second world countries are most certainly where the natural resources are at; that also means timber and other kinds of natural resources as well.

So they will be a focal point for resource competition in the future. Whether or not, again, that translates in to a conflict, I don’t know. But second world countries also have increasing share of the world's foreign exchange reserves and other kinds of capital equal like sovereign wealth funds; and so they are able to not just be on the receiving end of empires, like China, that are resource-hungry, but they also have financial assets that can allow them to project their own power and set the terms.

Recorded on: 3/3/2008

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