For better and for worse, the twentieth century has been the golden age of the state. But as the century closes, the state is losing its monopoly as new players are entering the global field. Even the overwhelmingly powerful United States, which, as Ambassador Gotlieb pointed out last week, is the unchallenged leader in both military power and cultural dominance, can accomplish far less than it would like alone. It too often finds the world frustrating.

States everywhere are grudgingly beginning to work with new partners in new ways. nternational organizations, non-governmental organizations, multinational corporations, and even individuals are becoming more and more important.

Traditional realists, accustomed to the monopoly of the state in global politics and the pre-eminence of national security on the foreign policy agenda, may be uncomfortable with the new players, the new diplomacy, the wide range of assets that are required to exert influence in a densely connected world, and broader, more demanding agendas. They had better adjust.

The overwhelming importance of the United States to the economic well being of Canadians is beyond dispute. Despite years of effort to diversify our investment and trading relationships, the American market is both relatively and absolutely more important to Canadians than it was a decade ago.

The United States, however, is itself becoming more enmeshed in the global economy. For the foreseeable future, the US will exercise disproportionate influence in establishing the rules of the international economic game as it uses its economic muscle to try to make others adjust to its needs. As a result, we will need to invest extraordinary effort in persuading the president, Congress, even state capitals to recognise not only Canadian needs but also Canada's importance to the American market.

Traditional state-to-state diplomacy will be vital, but it alone is not enough to underscore the importance of the Canadian market to the United States. The increasingly visible Canadian corporate "brand" in New York, Los Angeles, Seattle, and Miami, helps to boost awareness of Canada's entertainment, educational, software, pharmaceutical, and telecommunications sectors in the American market. Nortel Networks, for example, is not only one of Canada's most important companies, but a major player in the delivery of information in North American and global markets. In an ever more tightly connected world, Canadians corporations are ambassadors, not only in the United States, but wherever they go. And ambassadorships, as seasoned diplomats well know, bring not only opportunity but also obligation.

New partnerships between government and business will not be restricted only to the promotion of trade and investment. As states retrench everywhere, they are sub-contracting to new partners many of what have traditionally been regarded as essential state functions in global politics.

Canada is no exception, even on such core issues as security, traditionally a monopoly of the state. Canada, for example, has turned to the private sector to provide the aircraft to train NATO pilots in its airspace. It has contracted a private company to train police forces on missions it has undertaken with the United Nations. More and more, our government sets the rules of the game and then seeks partners from the private and not-for-profit sector to accomplish shared purposes.

Canadian non-governmental organizations are also important participants in global politics. The non-governmental sector now reaches across state borders to forge alliances. The rapid expansion and decentralization of information systems and sharp reduction in the costs of international communications have made it easier for non-governmental organizations to build effective partnerships. The resulting pooling of ideas and influence has put them in a much better position, not only to work with each other, but also with national governments and international organizations.

Canadian NGOs are partnering with their counterparts throughout the Americas to advance common agendas in preparation for the summit of the Americas to be held in Canada in 2000. They are also working with the Canadian government to lobby international institutions on arms control and environmental issues, to advance the human rights agenda, and to deliver humanitarian relief and development assistance.

Indeed, Canada's government has taken the lead globally in partnering with the not-for-profit sector. Early on, it worked together with the International Committee to Ban Land Mines (ICBL) to promote a global treaty to ban anti-personnel land mines. This partnership of state and non-government organizations succeeded where each alone would likely have failed.

Similarly, Canada worked with the non-governmental sector to develop a statute for an International Criminal Court. NGOs pooled resources to provide free legal support to state delegations lacking the information and resources to participate effectively in the debate on the statute. Creation of the Court will significantly advance the international legal regime; when it is established, the Court will have the authority to try those who stand accused of genocide and crimes against humanity.

These kinds of partnerships, between states and players from other sectors joined together by shared objectives, are likely to become more and more important in the global politics of the next century. States, and the diplomats who represent them, will become primus inter pares as citizens, corporations, and non-governmental organizations participate directly in the new diplomatic formations.

Canada is well positioned to lead in this new diplomacy. Our experience as a federal society has prepared our political leaders and officials to orchestrate and co-ordinate. Canadians have long understood and supported the importance of international law and institutions.

We already have a rich and diverse civil society, with a history of engagement on domestic issues. It is a short and natural step for our non-governmental sector to engage beyond our increasingly porous borders. Similarly, more and more, Canadian companies are looking beyond our borders, first to North American and then to global markets.

These processes are being helped by a Canadian public that is diverse in origin, internationalist in outlook, and unusually well connected across borders. Canada's largest cities increasingly mirror the globe's diverse population.

This diversity is Canada's most significant asset in the new diplomacy of the next century. To use this asset wisely and well will be Canada's most significant policy challenge.