Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail | Ray Dalio

From legendary investor Ray Dalio, author of the #1 New York Times bestseller Principles, who has spent half a century studying global economies and markets, Principles for Dealing with the Changing World Order examines history’s most turbulent economic and political periods to reveal why the times ahead will likely be radically different from those we’ve experienced in our lifetimes—and to offer practical advice on how to navigate them well.

A few years ago, Ray Dalio noticed a confluence of political and economic conditions he hadn’t encountered before. They included huge debts and zero or near-zero interest rates that led to massive printing of money in the world’s three major reserve currencies; big political and social conflicts within countries, especially the US, due to the largest wealth, political, and values disparities in more than 100 years; and the rising of a world power (China) to challenge the existing world power (US) and the existing world order. The last time that this confluence occurred was between 1930 and 1945. This realization sent Dalio on a search for the repeating patterns and cause/effect relationships underlying all major changes in wealth and power over the last 500 years.

In this remarkable and timely addition to his Principles series, Dalio brings readers along for his study of the major empires—including the Dutch, the British, and the American—putting into perspective the “Big Cycle” that has driven the successes and failures of all the world’s major countries throughout history. He reveals the timeless and universal forces behind these shifts and uses them to look into the future, offering practical principles for positioning oneself for what’s ahead.

Editorial Reviews

Review

“Ray Dalio has a special talent for identifying the key questions of our time. In this sweeping new book, he marshals a variety of economic, social, and political measures to trace the rise and decline of nations. It is a serious contribution—and an urgent warning to the West.”
—Henry Kissinger

“An audacious, practical guide to the rise and fall of empires over the last five hundred years of history—with important lessons for the U.S. and China today.”
—Graham Allison, Douglas Dillon Professor of Government at Harvard University and author of Destined for War

“When Ray Dalio talks, I listen. His new book is remarkable in its scope—shedding new light on the biggest reasons nations win in the global economic and political arenas, and applying it to China and the US today. After reading this book, you probably won’t see the world the same again.”
—Henry Paulson

“History is too important to leave to historians. Only Ray Dalio would have the brilliant audacity to attempt such a synthesis of the financial, economic, and political history of the world. Agree or disagree, Dalio’s book is essential reading to understand our times.”
—Lawrence H. Summers

“Ray does an astounding job of giving us an inspiring and thought-provoking experience by looking at the rises and declines of empires, showing how economics, culture, military prowess, innovation, inequality, and other elements interact. He leaves us with an improved perspective for thinking about very vexing issues such as the state of America versus China.”
—Jamie Dimon

Praise for Ray Dalio's Principles: Life and Work, Winner of the Axiom Business Book Award for 2018

“Mr. Dalio has long been an object of fascination. . . . His new book is more significant than the original list of principles: It is part memoir, part how-to guide. It is a deeply personal story, with Mr. Dalio wading into how he started his firm in 1975, internal conflicts inside the company, and strife early on in his career. The book is both instructive and surprisingly moving. . . . Underneath what may seem like a clinical, emotionless approach is something different and far more poignant: Mr. Dalio is preaching for individuals to have a sense of humility and introspection, an ability to open themselves to appreciate pointed criticism and use it to improve.”
—The New York Times

“If there was an ‘it’ book for businesses or careers in 2017, it was Ray Dalio’s Principles. The book, weighing in at nearly 600 pages, begins with the author’s own story, including the rise of Bridgewater Associates, Dalio’s highly successful investment firm. Part memoir, part strategic plan, Dalio uses his own history to provide suggestions on attaining success while always stressing the power of individuality and personal goals. This isn’t just a book for the power elite. Dalio’s highly detailed game plan focuses on what he calls ‘radical’ truths and transparencies, and are applicable to the careers of powerful CEOs, ladder-climbing executives, longtime grunts, and fresh-faced rookies.”
—Chicago Tribune

“Ray Dalio has provided me with invaluable guidance and insights that are now available to you in Principles.”
—Bill Gates

“I absolutely loved this book. It’s beautifully written and filled with such wisdom.”
—Arianna Huffington

“I found it to be truly extraordinary. Every page is full of so many principles of distinction and insights—and I love how Ray incorporates his history and his life in such an elegant way.”
—Tony Robbins

“Ray Dalio’s market acumen is legendary, but it was creating and living by a set of principles that allowed him to reach the top. Everyone with goals and dreams can learn from Ray’s approach.”
—Michael Bloomberg

“It’s important and instructive to share what you’ve learned in life with others, and Ray does this in an interesting and provocative way in this compelling work.”
—Jamie Dimon

“I was surprisingly moved by it. I found it to be remarkably engaging. It made me think about life and how we all deal with each other in pretty profound ways. And Mr. Dalio’s own story about how he came to these principles is fascinating.”
—Andrew Ross Sorkin

“The billionaire investor has created the strongest culture I’ve ever seen in an organization—one that prizes radical transparency over politics and meritocracy over democracy. In his long-awaited book, he describes the systems that he has designed to shape meaningful work, meaningful relationships, and the world’s most successful hedge fund.”
—Adam Grant

“I highly, highly recommend this book. It has already changed how I think about making decisions in my life and in my business.”
—Tim Ferriss

“It’s the book I wish I had as a young entrepreneur, stressing over not knowing what I didn’t know. Principles offers a bible to the greatest skill an entrepreneur can have, the ability to Learn How to Learn in any situation. Read it.”
—Mark Cuban

“Principles had a profound positive impact on my leadership style—through living more honestly.”
—Reed Hastings

“Ray brings unique analytic insights about how to think about complex issues. His Principles is a must read. It’s a gift to all of us.”
—Steve Schwarzman         

“Among a handful of philosopher-investors known not only for moneymaking prowess but also for their distinctive take on life.”
—The Wall Street Journal

“What makes Dalio compelling is not just his track record but the way he goes about making money, and the rigorous analysis he applies to understanding markets, organizations, the economy, and life.”
—Fortune

About the Author

Ray Dalio is the founder and cochairman of Bridgewater Associates, which, over the last forty years, has become the largest and best performing hedge fund in the world. Dalio has appeared on the Time 100 list of the most influential people in the world as well as the Bloomberg Markets list of the 50 most influential people. He is the author of Principles, Big Debt Crisis, and Principles for Dealing with the Changing World Order. He lives with his family in Connecticut.