economic relations, you get dissent in political relations. But I think in a basic way we should understand the need for redistribution of power and the need for redistribution of wealth, and as a minister I can only say spiritually it would do us no end of good to have both our power and our wealth taken from us if we are not free enough to share it.

I do not think most nations would be free enough to share it, so I do not think we are any more sinful than anybody else. Human nature is prevalent; we do not have to see the loss of power as a negative thing, particularly when we misuse our freedom. I think the redistribution of wealth makes for much greater well-being, spiritually and physically, so it should not be approached as a negative thing. Senator PERCY. Thank you.

PROPOSED CHANGES IN VOTING PROCEDURES OF IBRD AND IMF

Dr. Brown, in your statement, you suggested that we revise the voting procedures in the International Bank for Reconstruction and Development. Your paper was written before publication of the report of the United Nations Panel, which yesterday suggested revision in the voting systems of the World Bank and the International Monetary Fund to give developing countries a greater part in the decisionmaking.

Bankers might say this is like taking a bank and turning it over to decisions made by the borrowers, rather than those who provide the capital. Obviously, the borrower is interested in the longest possible terms, the lowest possible rate of interest, and the least enforcement of repayment.

How would you revise our voting pattern so as to prevent and make needless the fears of those who would say this would lead to the destruction of the banks themselves?

Mr. BROWN. I do not want to present a detailed design without looking very carefully at other studies of colleagues, who are better able to discuss that than I could, and if you like, I could insert some of my favorite schemes in the record later.

Let me suggest, however, that a revision of voting procedures to give less developed countries more weight does not mean that we have to completely revise voting procedures so that stupid and basically unproductive things are done. We need not go completely away from a weighted voting procedure in the World Bank, in order to revise it in the direction of giving some of the participants, recipients, greater weight. So I think we do not have to go all the way just now. For the very reasons that you suggest, I doubt that would be the way that some of the less developed countries would really want to go, because I think the recipients themselves, who have received World Bank money, are sophisticated at least to that level, and they understand the contributions do come in part from private sources who require some reliable indication that they will have repayment. The funds will only go to projects which are thought to be worthy projects. Otherwise, these funds will dry up. This is not an insight which is only an insight of the contributors; it is also insight of the recipients. So I do not think they will be completely stupid. Even though this is a fear, the principle of revision of voting procedures is now supported by a wide group of nations.

Senator PERCY. Should you want to expand on that with any greater specificity, we would be very happy to have your afterthoughts for the record.

[The following additional comments were subsequently submitted for the record:]

Hon. JOHN SPARKMAN,
U.S. Senator,

U.S. Senate,

Washington, D.C.

BROOKINGS INSTITUTION, Washington, D.C., May 28, 1975.

DEAR SENATOR SPARK MAN: I would like to submit for the record a more considered response to two questions posed to me by Senator Percy during the hearings on May 21. The inserts are as follows:

First, possibilities for revising the weighted voting in the World Bank. I do not think all weighted voting should be eliminated; but I do not believe it is essential for the United States to maintain a weighted vote amounting to a veto either for soft or hard loans. For the hard loan window, a formula will have to be negotiated that does not discourage the private sector from purchasing the bonds; I doubt, however, that this means we have to stick to our existing percentage. For the soft loan window, where contributions are provided by governments, the Congress itself will have to make up its mind about how much decision power it wants to share with potential recipients. In neither case are we talking of the U.S. giving up its influence. We are talking of putting the loans on a more truly multinational basis. The precise formulas can be negotiated with other members of the IBRD, including the potential loan recipients, who surely understand their own self-interest in keeping the donors assured that the institution will continue to function responsibly.

Second, on the United States position on the Charter of Economic Rights and Duties, voted on in the U.N. last December, I have now had the opportunity to read Senator Percy's report to this Committee on his attempts to get more qualified language in the Charter, and on his strategy for having separate votes to proposed amendments to the Charter in order that the United States and other governments might clearly pinpoint their areas of agreement and disagreement. Senator Percy is to be commended, I believe, for acting in a patient and understanding spirit, and on his tireless efforts at compromise, in response to the populist demands in this Charter. I can see why our U.N. delegation could not finally vote in favor of the Charter. But I do wish we could have seen fit to abstain along with Austria, Canada, France, Ireland, Israel, Italy, Japan, the Netherlands, Norway, and Spain, instead of voting against the resolution.

Again my thanks to you, Senator Percy, and other members of the Committee for the opportunity to participate in these important hearings.

Sincerely yours,

SEYOM BROWN.

WORLD ORDER AND JUSTICE DEPEND ON LAW

Mr. COUSINS. Just a very brief comment on Coffin's observation. You are quite right, you cannot have world order without justice, but neither can you have justice without law.

Therefore, it would seem clear that the basis of both justice and order has to be the codification of responsibility, which is what we mean by law, and this is the next big job it seems to me for the United Nations.

What does law consist of? How do you make it? What do we mean by defined responsibility? What do we mean by due process in the world scales? You do not expect to enforce the peace unless you know what is being enforced. So both justice and order in the end, it seems to me, requires law.

Mr. TOFFLER. Law without some power to back it up is paper.

Mr. COUSIN. That is what we are talking about. Lawmaking, law enforcement, and law interpretation.

"ADHOCRACY"

Senator PERCY. Dr. Toffler, in "Future Shock," you express the view that "adhocracy" will be the organizational system of the future. Would you expand on that? What do you mean by adhocracy, and how does the concept apply to international organization matters? Mr. TOFFLER. That is what I alluded to in a very, very sketchy fashion.

During the period of industrial society, we have learned to create very large, very powerful, and very seemingly efficient organizational structures that are essentially designed in the shape of pyramids, with a hierarchy of command, with the orders flowing from the top down, with the people down below taking orders, with functional divisions, so that you have, in a company, for example a marketing department, a manufacturing department, a research development department, and some other departments. These are permanent structures with people frozen into positions that are also regarded as more or less permanent. Any large civil service bureaucracy including the U.N. civil service bureaucracy, reflects that kind of organizational structure. Now, that type of organization is highly efficient in an environment which is predictable, because, in effect, the bureaucracy is a kind of machine. It is a factory for producing repetitive decisions. That is what a bureaucracy really is. It is designed to produce a relatively narrow range of decisions and to produce those in as routine and repetitive and standardized a fashion as possible.

Senator PERCY. Could it also be looked on as a machine for grinding up and disintegrating new ideas?

Mr. TOFFLER. Clearly. At this point I would like to throw in a fourline poem that Kenneth Boulding once wrote while attending a boring conference. He said:

In every corporation

Are lines of communication,

Along which, from root to crown,

Ideas flow up and vetoes down.

So yes, of course. But the reason we have built bureaucracies is that they make a certain kind of sense where the organization has to deal with a predictable environment. If it knows that very week it is going to get a fixed number of orders for a certain product, and it will receive a fixed amount of supplies, that is fine. But as organizations move into less predictable environments, as the rate of change becomes more rapid, the "efficiency" of bureaucracy breaks down. What is required are organizational forms that permit ideas, permit inventive responses, permit resourceful responses to totally new situations. Bureaucracies are no good at that. The U.N., it seems to me, is still organized in this anachronistic pyramidal fashion. One alternative to that is the structure which is now beginning to emerge in many advanced industries, but which also has analogs outside the corporate world.

For example, both ITT and the Vietcong share certain organizational characteristics. Thus neither of them is really a classical bureaucracy. Both of them rely on temporary units that are missionoriented, that are created and then folded down after their mission is accomplished. And both of them undobutedly require a great deal

of movement of the people back and forth. Neither of them is a civil service kind of organization. The U.N. is. That's why I think it is going to be forced to restructure itself along more ad-hocratic lineswhich also implies a downward movement of the decisionmaking within the structure. And this is what I was trying to suggest, that our policy could encourage that kind of internal renovation.

HOW TO CREATE A COHERENT INTERNATIONAL NETWORK OF
NONGOVERNMENTAL GROUPS

Senator PERCY. You are a sharp critic of the concept of world government, feeling that you really distrust the centralization of power, as I understand it, and you would much prefer to see created an international network of institutions and arrangements.

I am troubled by how you would organize that and yet I saw in Bucharest where we had the bureaucracy represented by all of the governments there, and all of the private agencies that dealt with population planning formed an organization that they called a tribune. You could actually meet with all of them, address them all. They had a newspaper, they put out daily bulletins, they really proved an effective force and found a way to work with the governments of the bureaucracy. The effort is really rather remarkable.

Would you care to expand on how you would envision groups of people representing across-the-board industry, labor, women, ethnic and religious groups, organized students and so forth, coming from various geographic units? How would you organize them into some sort of a coherent network and what issues would such assemblies take up?

Mr. TOFFLER. The question raises extreme difficulties. When you say I mistrust world government, what I mistrust is centralization of power, and I think we should not find ourselves in a position of opposing the notion of world order based on decentralized power or pluralistic power. We have got to find an alternative structure which deals with both these questions. The ready assumption that if we can centralize power we will be able to solve our problems, is a traditional assumption that grows out of our industrial-era experience. I think it applies less and less.

One of the reasons I argue the case for much more attention to the NGO's is that the NGO's form the potential for any number of temporary, mission-oriented consortia that could be brought together, whether they are environmental organizations or scientific organizations or organizations concerned with community development of food or whatever the issues are. It is possible to put together temporary consortia to deal with specific problems.

Now, in order for that to work you have to have some coordination or management. But what I am describing need not be a pyramid.

Now, here is one way to verbalize the alternative organizational structure. Think of the pyramid. Then think of a thin frame, a very thin frame which is essentially coordinative, which is a thin layer of management and direction, with a whole series of essentially temporary organizational clusters of modules that have relatively short life spans, and among which people float quite freely. They move from one module to another rather than being frozen in a single bureaucratic niche.

If we pump some funds into the nongovernmental sector, we might help to create precisely this thin coordinative system at the top. We would then have a basis for a very large, very diverse, very flexible, ad-hocratic organization that could operate in the international field. If we simultaneously help the U.N. destructure itself and then restructure itself along these lines, we would be ahead of the game that much further. Then if we connected these two networks, we would be light years ahead of where we are now.

Senator PERCY. Thank you very much.

Dr. Brown, can developing countries contribute to international decisionmaking? I understand from your testimony that you believe that the reaction of the United States will be extremely important to determine whether or not a transition from a world dominated by the industrialized countries to a more interdependent world can come about or whether we go into a series of confrontations and conflict. Is that a correct assumption?

Mr. BROWN. That is a correct assumption on two counts. One, it is a correct assumption that is the message of the paper; and I think it is also a correct assumption about what the U.S. policy should be.

Senator PERCY. Do you have any hope, considering the political climate which creates a climate of hostility toward the developed world, that the developing nations are in a position to make a constructive contribution to international decisionmaking and play the role that you would advocate for them?

Mr. BROWN. Yes, I feel that they are; and I feel that they are very sad that the United States is not playing these days the innovative role that they have come to expect from the United States. At the time of the creation of the U.N., the United States put itself on the side of the newly emerging countries. We have not played that role. Most of the diplomats representing these countries, even the countries that are very small, tend to be very sophisticated men and are looking for the opportunities to cooperate with the United States, if only they could do so in a way that would not force these people to go back home embarrassed by their cooperation. This means that on matters such as resolutions, possibly we have to identify with symbols of change rather than symbols of conservatism and the status quo more than we have; whereas on precise organizational arrangements it appears to me that we can work with most of these diplomats to work out very practical institutions.

The Law of the Sea Conference, it appears to me, is a main laboratory for that kind of constructive working together and I do believe that there is a good prospect of some arrangements being made that will not alienate the less-developed countries as long as we do not force them by our rhetoric, by our public posturing, into opposition to us. There are many, many instances of very constructive collaboration. The Outer Space Committee of the U.N. has a great deal of constructive cooperation between the United States and the developing countries although not at the level of rhetoric; there is a grand confrontation in words but not when it comes to working out very practical designs.

Senator PERCY. On behalf of the Senate and the committee I would like to thank you, each of you, for your contribution this morning. The hearing record will be kept open until June 10 in the event that