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    How the G7 Intends to Build the World Back Better

    The US Senate recently demonstrated that the only adhesive capable of uniting the two parties is a good, old-fashioned enemy. Although the Democrats and Republicans continue to bicker over the Biden administration’s infrastructure legislation, they achieved rare accord in passing a major technology bill that directs investment into key sectors of the economy.

    Why the sudden bipartisanship? China. The $250 billion investment into semiconductor production, scientific research, space exploration and the like is intended to decrease dependency on inputs from China and maintain a US lead in critical technologies.

    Does the World Need to Contain China?

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    The Biden administration is now eager to replicate that experience on the global level. At last week’s G7 summit in the UK, the United States again used China as a threat to forge transnational solidarity around a global infrastructure deal. Despite some misgivings from Germany and Italy, President Joe Biden managed to steer the group toward something called the Build Back Better World (B3W) initiative, which incidentally sounds a lot like Biden’s 2020 campaign slogan. But that slogan itself echoed a catchphrase adopted by the UN in 2015 to characterize its response to humanitarian disasters. So, B3W can sound both authentically multilateral and distinctively Bidenesque at the same time.

    In the face of the global tragedies of the COVID-19 pandemic and climate change — not to mention the sustained attacks by Donald Trump and other right-wing populists on the global order — it was entirely appropriate for the G7 to come up with a bold approach to addressing global economic inequities in a sustainable manner. Alas, B3W raises as many questions as it addresses.

    For instance, is B3W more than just a fancy name attached to already committed financing and existing institutions like the Blue Dot Network? Isn’t the World Bank supposed to be closing the infrastructure gap between the have-lots and the have-littles? And shouldn’t China be a collaborator in this effort rather than its chief antagonist?

    Improving Upon Belt and Road?

    China launched its Belt and Road Initiative (BRI) in 2013. Its aim has been thoroughly Keynesian: to pump money into the economies on China’s borders — as well as some further away — in order to sustain China’s own economic growth. The more these economies are dependent on Chinese financing, Chinese inputs and Chinese know-how, the more they will ultimately contribute to China’s global economic dominance.

    Is China creating some kind of global alternative to capitalism like the Soviet Union’s old Comecon? No, Beijing is thoroughly capitalist in its orientation, though it pushes a version that rubs many laissez-faire purists the wrong way.

    Embed from Getty Images

    Is China determined to use BRI to consolidate an anti-democratic bloc of nations? Although Beijing may well prefer to deal with more predictable partners — and democracies can elect some pretty outrageous wildcards — it is ultimately agnostic about the political governance of its BRI collaborators. There are 140 nations participating in the BRI, including 18 countries in the European Union. For every Belarus and Cuba, there’s an Estonia and a Chile.

    Well, then, isn’t China using BRI to build a kind of covert military bloc? Critics, for instance, have pointed to the deal China negotiated with Sri Lanka around the port it helped to finance in Hambantota. Struggling with loan repayments in 2017, Sri Lanka signed a 99-year lease arrangement with a Chinese firm. Couldn’t Beijing now turn this port into a military base?

    In fact, Sri Lanka continues to own the facility, though the Chinese commercial firm operates much of the port and thus gets much of the profit. Despite US government claims, China is not and doesn’t seem to have any intention of conducting military business at Hambantota. Two Chinese subs entered the port before the 2017 deal, and Sri Lanka has barred such visits ever since.

    The Sri Lankan example has often been used as exhibit A in the case of China’s use of the “debt trap” to advance its global objectives. According to this scenario, Beijing extends loans through BRI, the target country defaults, and China grabs the assets. It sounds plausible. Except that there’s no evidence that China actually operates that way, including in the Sri Lankan case.

    The Belt and Road Initiative has many flaws, to be sure. It has facilitated large-scale corruption, for instance, in Malaysia. It has promoted dirty energy, including 240 coal projects and billions of dollars in oil and gas investments.

    But it’s not as if China is the only country with dirty hands. Corruption is endemic in infrastructure projects, accounting for as much as 45% of construction costs. And when it comes to fossil fuels, the US was the largest oil exporter in the world last year as well as the fourth-largest exporter of coal.

    So, why did the G7 think it was so important to come up with an alternative to China’s Belt and Road rather than work with Beijing to build back better together?

    Beat ‘em Rather than Join ‘em?

    The United States likes being number one. The success of Trump’s political campaign and his various hyperbolic slogans testify to the endurance of American exceptionalism. The stridency of these exceptionalist claims, however, introduces a measure of doubt. Front-runners who are anxious about their status generally compensate by raising their voices and thumping their chests harder. In this way, we betray our simian origins.

    China has challenged the US status by growing what is now, measured by purchasing power parity, the world’s largest economy. Thanks to its performance in 2020 during the pandemic, China will likely become the world’s undisputed number one economy sometime around 2026.

    But China is also challenging the global economy by establishing its own institutions parallel to the World Bank and the International Monetary Fund (IMF), like the Asian Infrastructure Investment Bank. The BRI, by encompassing so much of the world, is just the kind of grand initiative that number-one economies set up to maintain their dominance.

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    The United States is not so enthusiastic about relinquishing its top status. Ditto all the countries that have hitched themselves to the US economic locomotive. With Trump out of the White House, Washington has eschewed machismo in favor of multilateral and moral arguments against the Belt and Road Initiative: China is throwing developing countries into debt dependency; China is bolstering the power of authoritarian leaders; China is fostering unacceptable work environments including forced labor.

    Those criticisms ring hollow. The developing world is already in debt dependency to the G7 and its financial institutions. The World Bank and IMF worked closely with dictators for decades. Western corporations long turned a blind eye to horrifying working conditions in the countries where they set up operations.

    And the $40 trillion infrastructure gap between have-lots and have-littles that B3W is supposed to bridge? It’s because of this gap that China was so successful in reaching out to the Global South in the first place. In charge of the global economy since 1945, the richest countries failed miserably to achieve a modicum of global economic equity — because that was never really their goal.

    But Can It Help?

    For the sake of argument, let’s put all this history aside. Regardless of the mixed intentions of its backers, can B3W actually help countries that want to catch up to the rest of the world in a way that doesn’t further accelerate the climate crisis?

    The experience of the Blue Dot Network is not encouraging. Established by Japan, Australia and the US in 2019 — after a series of failed infrastructure initiatives like the Asia-Africa Growth Corridor and the Trilateral Partnership — the Blue Dot Network essentially establishes a Good Housekeeping seal of approval for infrastructure deals that meet more stringent requirements around governance, finance, labor conditions and the like. But here’s the problem: The Blue Dot Network doesn’t actually provide credit-hungry countries with access to any new pots of money.

    B3W looks like it might be a similar example of grand rhetoric and few resources. It is articulating the same kind of criteria for investments as the Blue Dot Network. As for the financing, the G7 has promised to mobilize private sector funding — in other words, they aren’t ponying up any money of their own. This is no surprise. The Biden administration is hard-pressed to pass its own domestic infrastructure bill. Fat chance it can get Republicans on board to send similarly earmarked funds abroad, even under the rubric of challenging China.

    Nevertheless, the White House is talking big: “B3W will collectively catalyze hundreds of billions of dollars of infrastructure investment for low- and middle-income countries in the coming years.” The word “catalyze” sounds very dynamic, but frankly, it’s just a fancy way of saying: We will beg and wheedle and maybe twist an arm or two, but frankly we can’t promise much of anything. As Reuters wryly concluded in its article on the initiative, “It was not immediately clear how exactly the plan would work or how much capital it would ultimately allocate.”

    The bottom line is that the world desperately needs a green B3W. It needs to find a way to close the infrastructure gap by providing the funds and financing for the developing world to leapfrog into a clean energy future. At the moment, the Belt and Road Initiative does not do that. And neither does B3W.

    So, how about it, Washington and Beijing? Why not get together to see if you can turn two wrongs into a right and collaborate on a global Green New Deal?

    *[This article was originally published by FPIF.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Biden’s Binary Battle Against Putin

    Well before his trip to Europe, Joe Biden’s team worked out the strategy for its messaging that would color everything connected to foreign policy. Vox summed up the drift with this title: “Biden sees his presidency as proving democracy — not authoritarianism — right for the world.” It is now common for pundits to lament that democracy appears to be under threat, though few agree on the nature of that threat.

    Just as during the Cold War, the US understands the marketing advantage of casting its global mission in binary terms. But this time, instead of communism vs. capitalism, the contrast is between democracy and authoritarianism. The average political consumer will immediately see it as a real and significant choice. In reality, there will always be a third and fourth choice, but deliberating on those choices requires serious thinking. The third choice is neither, which means rejecting both as insufficient. The fourth is something in between, which is what most European nations chose following World War II.

    NATO’s New Challenge in East Asia

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    Faced with the binary choice, nearly everyone besides autocrats themselves will spontaneously choose democracy. But choosing the side that calls itself democratic doesn’t mean that one has chosen democracy. It means one has chosen the side that claims to represent democracy. Like any set of ideas, democracy can be a coherent philosophy accompanied by an ethical system of thought or a mere slogan. In the land of P.T. Barnum and Edward Bernays, the father of public relations, one can never be absolutely sure.

    The Biden administration has clearly understood the advantages of the binary strategy. It is even more compelling in the light of the ostentatious assault on democracy conducted by President Biden’s predecessor, Donald Trump. The Trump loyalists who complain of a stolen election are clearly a minority, but they remain a significant minority, capable of doing extensive damage. They further weaken the already fragile belief that the US electoral system embodies true democratic values. They offer a glaring example to the rest of the world of virulently anti-democratic behavior. They confirm the image many people have of a culture so obsessed with winning that it could never tolerate the give-and-take that democracy implies.

    Following Biden’s arrival in England for the G7 conference, The New York Times reported that the US president “has made challenging a rising China and a disruptive Russia the centerpiece of a foreign policy designed to build up democracies around the world as a bulwark against spreading authoritarianism.”

    Today’s Daily Devil’s Dictionary definition:

    Authoritarianism:

    The epithet commonly attributed by one political authority, whose power derives from a sense of obedience to a particular group of interests, to another political authority who responds to a different group of interests

    Contextual Note

    In today’s remake of the Cold War — which, in many ways, resembles more the facades of a Hollywood set than it does the decades-long historical standoff between the US and the Soviet Union — Biden desperately needed to define a similar ideological split, even though the entire world had fallen into the global political and economic culture imposed by the US. Guided by his political marketers, the 78-year-old could appreciate that the winning formula from the 1950s and 1960s might still resonate with his countrymen. After all, Trump earned his victory in 2016 by exploiting the implicit nostalgia for the post-war years of prosperity with his motto, “Make America Great Again.” Americans have been conditioned to think of the 1950s as their golden age.

    Embed from Getty Images

    This idea has been brewing in the Biden administration for some time as the president’s way of defining his mission in the world. As the Times remarks, “Mr. Biden has argued that the world is at an ‘inflection point,’ with an existential battle underway between democracy and autocracy.” What was once capitalism vs. communism has become democracy vs. autocracy. 

    It may seem paradoxical that following his meeting with Russian President Vladimir Putin in Geneva on June 16, Biden described Putin’s state of mind in these terms: “The last thing he wants now is a Cold War.” This sounds reassuring. Could it mean that the new cold war is over? It is more likely that, once back on terra firma in the US, Biden will return to his theme of the Russian threat, warning that you can never trust Russian leaders. He will certainly boast of his diplomatic accomplishment, lowering the temperature, while seizing on the first occasion that presents itself to accuse Russia of not keeping its promises.

    For the moment, the vibes produced by the Geneva summit appear positive, positive enough in any case to leave The New York Times unsure of how to characterize the meeting. The Times journalists highlight Putin’s assertions of good intentions, but they leave considerable space for doubt about any concrete future outcome when they write: “Mr. Putin said he was ready for talks with the United States, and he voiced unusual optimism about the possibility of achieving results.” “Unusual” was the required epithet, meaning that any hope of actually achieving results should, in the readers’ minds, remain doubtful. The fact that dialogue exists, nevertheless, stands as a very real victory for Biden, if only as a contrast with Trump’s confrontational approach to diplomacy.

    The article concludes by highlighting Putin’s literary culture, who cited Leo Tolstoy to sum up the outcome of the summit. “There is no happiness in life — there are only glimmers of it.” For Americans, who believe in their absolute right to the “pursuit of happiness,” this will be seen as a typical example of Russian fatalistic pessimism, something that Americans, whose culture celebrates optimism, will never accept. It has its literary charm, but it lacks the pizazz of Yankee ambition.

    Historical Note

    Most serious observers today are aware of a deep crisis of Western democracy, a more than two-century-old experiment that sought to demonstrate the possibility of creating and maintaining a government responsive to the people rather than as the privileged tool of a ruling class. The US and other Western countries have recently been faced with the confusion associated with the rise of populism, both on the left and the right.

    Populist movements are suspicious of those who have assumed the habit of governing, whatever their declared political orientation. Not only do they appear self-interested, but they are also seen as the hypocritical puppets of an obscurely perceived oligarchical class. The populists are right to suppose that there is more to the exercise of power than appears in the discourse of the power-wielding politicians. They call it the “deep state” and imagine it as a kind of dark well whose depth is unknown but can only be speculated about.

    Today’s version of capitalism is less industrial than purely financial. That means that power will always be measured by the ability of those who exercise or influence power to pay for what they want. In such a system, can democracy as 18th-century Enlightenment thinkers imagined it still have any meaning? A famous Princeton study published in 2014 describes the reality of decision-making today and calls the political system an oligarchy. “In the United States, our findings indicate, the majority does not rule.” It notes that “policymaking is dominated by powerful business organizations and a small number of affluent Americans.” It concludes that “America’s claims to being a democratic society are seriously threatened.”

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    The Balance website characterizes oligarchy in these terms: “Oligarchs only associate with others who share those same traits. They become an organized minority, while average citizens remain an unorganized majority. The oligarchs groom protégés who share their values and goals. It becomes more difficult for the average person to break into the group of elites.” That would appear to be a more accurate description of US politics today than the romantic idea of Jeffersonian democracy or Abraham Lincoln’s “government of the people, by the people and for the people.”

    Then comes the question: Is an oligarchy authoritarian? No, because there is no single decision-maker or institution capable of defining government policy. But neither is it a democracy. If he wished to be honest, perhaps Joe Biden should characterize the combat for the future as a contest between oligarchy and autocracy. The problem: It doesn’t sound convincing to Americans, who still feel an atavistic attachment to the idea of democracy.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    NATO’s New Challenge in East Asia

    US President Joe Biden used the occasion of his trip to Europe for the G7 summit to attend his first NATO meeting. His influence on the meeting appeared unambiguously when a communiqué by the NATO alliance designated China’s influence on the world stage as a military challenge. 

    NATO was born in the aftermath of the Second World War as the West’s response to the ambitions of the Soviet Union, which controlled large portions of Eastern Europe and represented an ideology considered inimical to Western political and economic culture. This gave rise to the Cold War, framed as the rivalry between two systems of social and economic organization: capitalism (supported by democracy) and communism (the dictatorship of the proletariat).

    Does the World Need to Contain China?

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    Because humanity had entered the nuclear age, the Cold War cultivated a permanent and universal feeling of potential terror, unlike tensions and wars of the historical past. Its name, “Cold War,” has been attributed to George Orwell, who didn’t live long enough to see how it would develop. The author of “1984” imagined “two or three monstrous super-states, each possessed of a weapon by which millions of people can be wiped out in a few seconds.” In the end, there were only two major players. The laws of hyperreality, just like the laws of conventional information technology, require reducing the governing logic to a binary opposition. The age of quantum logic, which humanity is only just now discovering, had not yet begun.

    The Cold War was cold in relative terms, simply because the heat that a real nuclear war might produce would have dwarfed anything humanity had ever experienced. As soon as a nuclear war started it would be over, as no one would be left standing. This too reflected the binary logic of the time. There were exactly two choices: hot war or cold war. There could be no warm war between the two proud rivals. A cold war was clearly preferable in the eyes of anyone who wielded power. The leaders in the US understood how to profit from that preference. It justified the creation and rapid growth of a powerful military-industrial complex at the core of the American empire.

    The Cold War marked a moment of history in which military technology was undergoing its most radical paradigm change, thanks to the invention of nuclear weapons in the US and their capacity for devastation demonstrated by their operational deployment in Japan that put an exclamation point on the end of the World War. The entire world became gripped in a state of permanent fear, attenuated only by the sense that because no leader would likely be suicidal enough to engage in open conflict, the actors of the economy were free to realize their boldest ambitions.

    Embed from Getty Images

    In the West, the Cold War produced an odd cultural effect of “carpe diem,” the feeling that it was necessary to “seize the day” and have fun, because there may be no tomorrow. This feeling drove both the rapid growth of the consumer society and the cultural liberation movements we associate with beatniks and hippies. It also proved fatal for the Soviet Union’s false utopia of worker solidarity that depended on accepting austerity for the good of the collectivity.

    NATO should have become obsolete after the fall of the Soviet Union in 1989. But the camp built around the clout of the US military-industrial complex could not simply be dismantled and put to pasture. Two presidents, George H.W. Bush and Bill Clinton, had little choice but to maintain NATO because the entire US economy now revolved around the logic of the military-industrial complex.

    That militarized economy had become the key to installing a global, neocolonial system capable of replacing Europe’s colonial system that was in the decades following World War II. Because it was industrial as well as military, it spawned the technologies that began to dominate the global economy. These new technologies conveniently straddled the pragmatic (civil applications) and the political (military applications), providing a new motor for the late 20th economy that we all live under today.

    Though NATO had lost its initial geopolitical justification, it continued to operate as a pillar of the new military-economic system. It influenced the evolution of the formerly isolated regime of communist China, destined to become a major actor in the global economy. There was only one model for any large nation that wished to participate effectively in the global economy. It had to encourage capitalism and have its own military-industrial logic. China has succeeded, thanks to the global consumer market spearheaded by the US. For various reasons, India, which might have moved in that direction, failed.

    NATO now finds itself in an odd position. Contested by the mercurial Donald Trump, its members greeted with a sigh of relief the electoral victory of a conventional Cold War establishment politician, Joe Biden. For the past five years, Biden’s Democratic Party has sought to revive the ambience and ethos of the Cold War, focusing on Russia. But Russia simply isn’t a serious rival of the US. Both major US parties have designated China as the bugbear to focus on. But China falls way outside NATO’s “North Atlantic” purview.

    Nevertheless, Biden appears to have persuaded NATO to include China in its official discourse. The communiqué from this week’s meeting makes the case: “China’s stated ambitions and assertive behaviour present systemic challenges to the rules-based international order and to areas relevant to Alliance security.”

    Today’s Daily Devil’s Dictionary definition:

    Systemic challenge:

    A politically correct euphemism for “serious threat,” applied to anything that calls into question the weaknesses and vices of an existing system, especially when that system’s weaknesses and vices have become dramatically visible

    Contextual Note

    The unresolved pandemic that has been raging for nearly a year and a half and the growing crisis of climate change have created a situation in which the system now being challenged has been found seriously wanting. Defending the status quo has become an ungratifying task. All lucid observers agree that the political and economic system inherited from the 20th century needs either to evolve radically or be replaced by something new. 

    It is equally clear that Beijing has no alternative system to propose. This is partly because China’s success is due largely to its adaptation to and integration within the system being challenged, but equally because the Chinese system of autocratic communism is a failed model itself and the Chinese themselves know it.

    NATO worries about China’s “stated ambitions and assertive behaviour.” But in reality, its ambitions appear modest and the behavior, while certainly assertive, cannot compare with the historically aggressive behavior of the US, so clearly demonstrated in Korea, Vietnam and the Middle East.

    Historical Note

    As for the “systemic challenges to the rules-based international order,” the rules that existed at the time of the creation of the United Nations and the establishment of the Bretton Woods system have long been challenged by the Western powers, to the point of being distorted beyond recognition.

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    Even the reference to “areas relevant to Alliance security” needs to be put in historical perspective. NATO is nominally focused on one area in the world: the North Atlantic. But for the past two decades, it has ventured further and further, not only into Eastern Europe, but also Afghanistan, presumably turning Central Asia into an area of “Alliance security.” With the political turmoil that emerged in 2016 in both the US (Donald Trump) and Europe (Brexit), there should be enough to feel insecure about within NATO’s traditional sector of the North Atlantic. Reaching out to China’s area of influence would be a real stretch.

    It’s true that China’s Belt and Road Initiative (BRI) seeks to extend its influence across both Asia and Europe. This could be interpreted as potentially encroaching on the North Atlantic military fiefdom. But the BRI’s character is economic and clearly not military. It is soft power rather than hard power.

    Most lucid observers in the West, conscious of the current system’s growing incapacity to deal with any global problem — whether it’s a pandemic, war, migration, domestic tranquility or climate change — find themselves looking for something that could be called a “systemic challenge” to the current unproductive and often unjust system of doing things. At the end of the day, the systemic challenge at home will likely have more impact than China’s.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Biden meeting marks rare trip out of ‘bunker’ for Covid-cautious Putin

    For more than a year, people who have wanted to get within breathing distance of Vladimir Putin have performed a ritual, two-week quarantine in Russian hotels and sanatoriums to protect the 68-year-old president from falling ill with coronavirus.Since March 2020, powerful business people, regional governors, his pilots and medical staff, volunteers at an economic conference, and even second world war veterans have shut themselves away to meet the Kremlin leader or even stand in his general vicinity.So it will be a rare sit-down when Putin jets into Geneva to meet Joe Biden, who has been on a whirlwind tour through Europe, attending the G7 summit in Cornwall and then flying to Brussels for meetings with EU and Nato leaders before travelling to Switzerland. Putin has not publicly travelled abroad since the outbreak of coronavirus in early 2020, hosting foreign leaders in Moscow or Sochi and holding most of his meetings with government ministers and regional governors over videoconference.Critics have chided Putin for sheltering in a “bunker” during the coronavirus outbreak, reportedly protected by medical tunnels of dubious efficacy that sprayed visitors with a cloud of disinfectant.The Proekt investigative website later claimed the Kremlin had built an identical windowless office in Sochi, a resort city on the Black Sea, where Putin was reportedly holding meetings while he was believed to be in Moscow.All that was expected to end after Putin was given his first Sputnik vaccine dose in March, a procedure that was not documented on camera but that the Kremlin said the media would “have to take our word for it”.But the two-week quarantine period has remained for many visitors, including the US television crew who met Putin for an interview before the summit.“Appreciate the extra time, Mr President,” said Keir Simmons, an NBC correspondent. “The team has been in quarantine for almost two weeks, so this interview is very important to us.” Russian state television journalists have faced similar quarantine measures.The international coronavirus response will probably take a back seat in Wednesday’s discussions to pressing issues of strategic stability, as the US and Russia try to regulate their strained, hostile relationship.But they come as coronavirus has in effect halted normal business and tourism travel between Russia and the US, a result of Russia’s coronavirus travel restrictions and forced staff reductions at US embassies that make it difficult for Russians to get visas to the US.Vaccines administered in the two countries also remain mutually unrecognised by medical authorities, portending a political battle for their approval.Slow vaccination rates in Russia have led to “explosive growth in cases”, according to the Moscow mayor, Sergei Sobyanin, leading him to declare a week-long business holiday.Before the trip for the summit, Putin’s spokesperson Dmitri Peskov told journalists he was not vaccinated because he still had a high antibody count from when he had coronavirus last year.“All safety precautions have been taken extremely seriously,” said Yuri Ushakov, a Putin aide. “From the standpoint of the presidents’ health, both the Americans and we have taken a very serious approach toward this. There have been not that many in-person contacts lately, and so the special attention attached to these issues is natural.” More

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    Nato summit: leaders declare China presents security risk

    Nato leaders have declared China presents a security risk at their annual summit in Brussels, the first time the traditionally Russia-focused military alliance has asserted it needs to respond to Beijing’s growing power.The final communique, signed off by leaders of the 30-member alliance at the urging of the new US administration, said China’s “stated ambitions and assertive behaviour present systemic challenges to the rules-based international order”.After the summit, Joe Biden said that the US had a “sacred commitment” to come to the defence of its Nato allies in an effort to soothe residual nervousness in the wake of Donald Trump’s hostility. Biden said that his fellow leaders at the summit knew most Americans were committed to democracy and that the US was a “decent, honourable nation”.On the question of potential Ukrainian membership of Nato, Biden said the Russian occupation of Crimea would not be an impediment, but that Ukraine still had work to do on corruption before it could join a membership action plan.“It depends on whether they meet the criteria. The fact is, they still have to clean up corruption,” Biden said.The Nato leaders declared their concern about China’s “coercive policies” – an apparent reference to the repression of the Uyghur Muslims in Xinjiang – the expansion of its nuclear arsenal and its “frequent lack of transparency and use of disinformation”.The language, notably stronger than the China remarks contained in the G7 statement agreed on Sunday, follows lobbying and pressure by the Biden administration, seeking to create a counterweight of democratic nations in response to Beijing’s growing economic and military might.However, Nato’s secretary general, Jens Stoltenberg, insisted China was “not an adversary”, saying instead the emerging strategy was to address “the challenges” posed by Beijing, which will “soon be the biggest economy in the world” and “already has the second-largest defence budget, the biggest navy”.At the beginning of the summit, Biden said there was a growing recognition that Nato faced new challenges. “We have Russia, which is acting in a way that is not consistent with what we had hoped, and we have China.”Nato, founded in 1949 at the start of the cold war, was created to respond to the Soviet Union and more recently Russia, while Beijing rarely posed a serious security concern for its members.China had never previously been mentioned in a Nato summit declaration, apart from a brief reference in 2019 to the “opportunities and challenges” the country posed for members of the western alliance – a time when Biden’s predecessor, Donald Trump, was president.On Sunday night, Jake Sullivan, the US national security adviser, promised Nato would increase its focus on Beijing, saying that China “will feature in the communique in a more robust way than we’ve ever seen before”.Other countries have highlighted the importance of striking a balance. Boris Johnson, the UK prime minister, said as he arrived at the gathering: “I think when it comes to China, I don’t think anybody around the table today wants to descend into a new cold war.”G7 leaders criticised Beijing over human rights in its Xinjiang region, called for Hong Kong to keep a high degree of autonomy and demanded a full investigation of the origins of the coronavirus in China.China’s embassy in London said such mentions of Xinjiang, Hong Kong and Taiwan distorted the facts and exposed the “sinister intentions of a few countries such as the United States”. It added: “China’s reputation must not be slandered.”Stoltenberg also said the alliance’s relationship with Russia was at “its lowest point since the end of the cold war”. He blamed Russia’s “aggressive actions” for the deterioration in relations at the start of a one-day summit attended by Biden for the first time since he took office.Alliance members had hoped for a strong statement of support for Nato from Biden after several years in which Donald Trump dominated the summits, threatening to pull out of Nato in 2018 and storming home early in 2019.“Nato is critically important for US interests in and of itself,” Biden said as he met Stoltenberg. The president described Nato’s article 5, under which an armed attack against one member is deemed an attack against them all, as “a sacred obligation”.He added: “I want Nato to know America is there.”The allies denounced Moscow’s “hybrid actions”, “widespread disinformation campaigns”, “malicious cyber activities”, and election interference directed against Nato members. “Until Russia demonstrates compliance with international law and its international obligations and responsibilities, there can be no return to ‘business as usual’,” the statement said. “We will continue to respond to the deteriorating security environment by enhancing our deterrence and defence posture.”Alliance members agreed a new cybersecurity strategy in response, and will for the first time help each other out in the case of “cyber-attacks of significance”, mirroring Nato’s obligation of collective defence in the traditional military sphere, enshrined in article 5. More

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    Vladimir Putin says Biden ‘radically different’ after impulsive Trump

    The Russian president, Vladimir Putin, has said US-Russia relations are at their lowest point in years, in an interview before his meeting with the US president, Joe Biden, next week.Putin and Biden will meet in Geneva on Wednesday. The White House has said Biden will bring up ransomware attacks emanating from Russia, Moscow’s aggression against Ukraine, the jailing of dissidents and other issues that have irritated the relationship.“We have a bilateral relationship that has deteriorated to its lowest point in recent years,” Putin said, according to an NBC translation of excerpts of an interview broadcast on Friday.Putin characterised the former US president Donald Trump as “an extraordinary individual, talented individual”, but impulsive, and said Biden, as a career politician, was “radically different” from the “colourful” Trump.“It is my great hope that, yes, there are some advantages, some disadvantages, but there will not be any impulse-based movements on behalf of the sitting US president,” he said, according to a translation by NBC News.Putin has openly admitted that in the 2016 vote he supported Trump, who voiced admiration for the Russian leader and notoriously at their first summit appeared to accept his denials of election interference.Biden, at the start of an eight-day visit to Europe this week, said: “We’re not seeking conflict with Russia.“We want a stable and predictable relationship … but I’ve been clear: the United States will respond in a robust and meaningful way if the Russian government engages in harmful activities.”Putin was asked about several Russian dissidents whose deaths have been blamed on Moscow, including the ex-KGB spy Alexander Litvinenko who was poisoned in 2006. Putin dismissed the question and said some of those responsible for the deaths had gone to prison.Asked about Biden calling him a killer in an interview in March, Putin said he had heard dozens of such accusations. “This is not something I worry about in the least,” Putin said, dismissing it as part of “macho behaviour” common in Hollywood.Such discourse “is part of US political culture where it’s considered normal. By the way, not here, it is not considered normal here,” he said.On the issue of recent ransomware attacks that the United States has traced to Russia, Putin denied any knowledge of the hackings and called on Biden to reach an agreement with him on cyberspace, NBC News said.Putin also dismissed a report in the Washington Post this week that Russia was preparing to supply Iran with an advanced satellite that would enable it to track potential military targets across the Middle East. “It’s just fake news. At the very least I don’t know anything about this kind of thing,” Putin said, according to NBC News. “It’s just nonsense, garbage.” More