If America could some how magically transfer all its managerial know-how to every nation, world GDP would rise nearly 300 percent. There are a host of obstacles standing between us and this prosperity boom: lack of education, lack of infrastructure, oppressive or profligate governments, and protectionist policies. Yet there is a force which has the potential to overcome these obstacles, the force of the global capital market. The process of globalization has indeed been going on for decades, but there is new evidence that the world’s capital markets are now reaching critical mass. They are poised to fuse into a global capital market which can discipline governments, transport capital where it is needed, and transform the way people live and do business in every corner of the globe.

We are about to enter into an era of explosive growth and change as a result, but the journey to prosperity will not be entirely smooth. The capital market will force governments to cut unsustainable entitlement policies including pensions, subsidized healthcare or welfare, and force businesses dependent on government protection to restructure or perish. There are likely to be massive job losses and great social and personal dislocations as these changes...