Leverett, senior fellow at The New America Foundation, argued that control of commodities and scarce energy reserves will be the defining paradigm in the global economy for years to come. Increased energy demand throughout the developing world and a tight supply have created a structural shift in global energy markets that has rendered past boom-bust cycles obsolete for the foreseeable future. One notable structural shift constraining supply is that 80% of oil reserves are owned by governments as opposed to multinational private corporations. As a result, market forces do not play a role in inducing additional productive capacity. He also pointed to institutions and relationships that have accompanied the growth of the World Without the West. Multilateral institutions such as the Shanghai Cooperation Organization have begun to compete with traditional multilateral organizations for regional influence. These developments are part of the larger phenomenon of the developing world soft balancing U.S. power.
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