Vittorio Emanuele Parsi

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    Is China the New Champion of Globalization?

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    On January 25, addressing a virtual World Economic Forum, China’s President Xi Jinping not only strongly advocated for a multilateral approach to the COVID-19 pandemic but insisted on the virtues and systemic benefits of free trade and globalization. Jeopardizing those elements may introduce conflict into the international system, Xi warned, clearly referring to, although not mentioning, the United States. This is not the first time Xi has credited himself as the “champion of globalization,” in particular when attending meetings in Davos. In 2017, in the early days of Donald Trump’s presidency, with the long shadow of barriers to trade and isolationist policies just starting to appear on the horizon, China’s president made important remarks encouraging free trade and opening up the markets.

    However, with Trump out and Joe Biden now in the Oval Office, there seems little to suggest any substantial change in US policy, at least in the foreseeable future. If the US isn’t particularly eager to work with China toward free trade and multilateral cooperation, the European Union, and Germany in particular, quickly opted for a completely different approach, signing a key investment deal with Beijing at the end of last year. The Comprehensive Agreement on Investment (CAI) will grant a greater level of market access for investors than ever before, including new important market openings.

    Forecasting the US-China Relationship

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    Washington did not miss the opportunity to express its concerns about a deal that suddenly and unexpectedly sidelined the United States at a moment when, after four years of relative anarchy and opportunism, restarting transatlantic relations should be a priority. Writing in the Financial Times, Gideon Rachman recently pointed out how little sense it makes to rely on a US security guarantee in Europe while undermining its security policy in the Pacific, considering how much Europe has benefitted from the fact that for the past 70 years, the world’s most powerful nation has been a liberal democracy. Germany, in fact, was able over the last decades to exercise a sui generis role of Zivilmacht (civilian power) by framing its national interest in geoeconomic terms, encouraging German exports worldwide while outsourcing its defense to the reassuring presence of US troops.

    To better understand Xi’s quasi-imperial stance at the World Economic Forum, it has to be placed not only against the backdrop of the recent investment deals with the European Union or with the 15 countries of the Asia-Pacific region, but on the big news that China is on course to overtake the US as the world’s biggest economy by 2028, five years ahead of earlier predictions, mainly due to the asymmetric impact of COVID-19. While it is clear that China has successfully contained the Sars-Cov-2 outbreak and the Chinese economy is now recovering at a higher speed than other countries, it is also true that a lack of transparency and delays in sharing information with the international community about the virus have contributed to an acceleration of the pandemic at a global level.

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    Nonetheless, in the current debate over shaping more efficient emergency policies, China is still emerging as the model to follow and imitate, despite being unpopular. There is little doubt that in the “social imaginary” of liberal societies, as reports from Europe and the US suggest, authoritarian regimes are seen by many as more efficient and better prepared to deal with crises than democracies. Yet we must not forget that this efficiency comes at the inevitable cost of political and civil rights.

    Xi Jinping is well aware that the Biden administration can finally change course for the US and its allies, forging a united and progressive front after years of populist, nativist and authoritarian politics. Perhaps this element can help understand Xi’s assertiveness at the World Economic Forum better than the recent economic successes. After all, political and civil rights are China’s Achilles’ heel. Criticism of the Communist Party, let alone advocating for basic human rights such as freedom of speech or the rule of law, inexorably leads to repression that falls with equal severity on the rich metropolis of Hong Kong and the poor areas of Xinjiang, sweeping up ordinary citizens and billionaires alike, from Joshua Wong to Jack Ma.

    Can China credibly profess the virtues of globalization to achieve harmony and balance in an international system if it doesn’t adhere to international law? Can Beijing speak of cooperation to solve global problems when it has withheld vital information about the threat of the COVID-19 pandemic? As Xi Jinping continues to steer the Middle Kingdom out of its historical isolation, avoiding challenging the United States for the position of world leader will be difficult, given China’s demographics and economic status. Will these two Weltanschauungen, two comprehensively different conceptions of the world, sooner or later present the international community with a choice?

    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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      What the US Election Means for the Liberal World Order

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      In 1992, Francis Fukuyama published his controversial best-seller, “The End of History and the Last Man,” arguing that liberal democracy is the final form of government for all nations. Almost three decades later, G. John Ikenberry, one of the most influential theorists of liberal internationalism today, in “A World Safe for Democracy” suggests that the liberal world order, if reformed and reimagined, remains possibly the best “international space” for democracies to flourish and prosper. After all, reasons Ikenberry, what do its illiberal challengers like China or Russia have to offer?

      Apart from outside challengers, the liberal international order’s project is threatened from the inside as well. In fact, both populist parties and technocracies in a variety of forms and shapes represent a growing threat not only to the rule of law, party politics and parliamentary democracy, but to the international order tout court. Ikenberry considers the COVID-19 pandemic as the moment possibly marking the end of the liberal world order, specifically the spring of 2020, “when the United States and its allies, facing the gravest public health threat and economic catastrophe of the postwar era, could not even agree on a simple communiqué of common cause.”

      360˚ Context: The 2020 US Election Explained

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      However, Ikenberry admits that “the chaos of the coronavirus pandemic engulfing the world these days is only exposing and accelerating what was already happening for years.” As the COVID-19 pandemic risks to mark the end of the world liberal order, will the upcoming US election represent the last call for the existing system or what still remains of it?

      A Brief History of the Liberal World Order

      The liberal world order was forged in the aftermath of the Second World War upon a set of principles governing the international system. Based on the leadership of the United States and exerted through five core institutions — the UN, the International Monetary Fund, the World Bank, the World Trade Organization and NATO — with all its limits and weaknesses, granted economic development and security to a significant part of the world during the Cold War. Free market societies, supported by strong welfare policies, produced a long-term yet fragile balance between instances of economic competition, social inclusion and cohesion.

      The dynamic worked well until the 1980s, when the foresightedness of preserving such a fragile balance gradually vanished. Liberal premises (equality of opportunities) and liberal promises (a more equal, peaceful and wealthy world) have been subverted by neoliberal politics and economic ideological positions, regressive and anti-progressivist in nature.

      Today, a neoliberal world order has almost replaced the liberal one, bringing with it the opening of the markets through economic privatization, financialization and deregulation that results in national governments unable to shield citizens from social inequality deriving from unregulated globalization. Neoliberal politics and technocracies, often by taking advantage of emergencies and crises, have produced financial bubbles and rising economic inequality. This has taken place in light of an abstract intellectual orthodoxy, often reduced in opening international markets even if detrimental to social order, as argued, among others, by Joseph Stiglitz.

      These days, the majority of the mass media points to radical-right populism and nationalism as the main threat to liberal democracy and its “international space.” In fact, the mainstreaming of the radical right has become an international phenomenon, with radical-right and nationalist parties experiencing growing electoral support among the middle classes globally. Yet Donald Trump, Matteo Salvini, Marine Le Pen & Co are not the only threat: A new balance between state sovereignty and the coordinative action of international institutions is paramount to saving the international liberal order.

      If we want liberal democracies to escape a Scylla and Charybdis’ kind of dilemma, such as having to choose between the trivialization of politics proposed by populists or the gray hyper-complexity of technocratic governance, it is key to point out elements of convergence, different from the status quo and envisioning a general interest — not the sum of particular interests — to change non-cooperative behavior.

      Everything’s Not Lost

      From abandoning the World Health Organization (WHO) in the middle of a global pandemic to the signing of the Abraham Accords and openly flirting with right-wing extremists and white supremacists like the Proud Boys or QAnon adherents, President Donald Trump’s radical and populist rule has given up on multilateralism for a chaotic and opportunistic unilateralism. Trump has galvanized radical and far-right nationalist and populist parties worldwide, while his administration’s lack of interest in multilateral governance, in times of increasingly global nature of the issues policymakers are called to deal with, has implied both the weakening of the international order and the risk of handing it over to authoritarian challengers.

      Paradoxically, some of those challengers, particularly China, have now even recognized that international institutions and organizations such as the WHO, with all their shortcomings, do have a comparative advantage in confronting global trends such as pandemics, climate change or large-scale migration.

      However, on the other side of the Atlantic, old historic allies, in particular Germany, have not given up on the possibility to resume multilateralism with the US, as recently argued, among others, by Max Bergmann on Social Europe and Peter Wittig in Foreign Affairs. While the Trump administration jeopardized decades of liberal international order, transatlantic relations and multilateralism, Germany kept fighting to keep it alive. Germany’s Zivilmacht — civilian power, to use Hanns Maull’s formulation — even if often expressed internationally in geoeconomic terms, with key business partnerships established with China or Russia, has never allowed business interests to undermine its regional and international commitments.

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      Chancellor Angela Merkel has demonstrated leadership in the recent poisoning of Alexei Navalny, Russia’s key opposition figure, or when forced to act unilaterally during the 2015 refugee crisis, providing leadership by example to reluctant EU member states despite being heavily criticized at home, or in the case of the €750-billion ($821-billion) EU recovery fund, produced in close partnership with France. These crises made Angela Merkel the most trusted leader worldwide (and, for the time being, without a political heir), holding that spot since 2017, when Trump succeeded Barack Obama as US president, according to PEW research surveys. This trust was even more confirmed during the COVID-19 pandemic, with Germany’s leadership considered most favorably in relation to the US, France, China, UK and Russia.

      As we await the 2020 US presidential election, we should not forget one lesson: In a globalized world, crises can be unique occasions to rediscover the mistreated virtues of multilateralism and collective decision-making. A victory for Donald Trump next week would translate into a coup de grace for the liberal world order, as countries as Germany will not be able to take on America’s role as global leader, in particular if other European Union member states are neither able nor willing to join their efforts.

      If Joe Biden enters the Oval Office next January, there is a chance for the liberal system to survive, but it would require both bold vision and reforms, as suggested by Ikenberry. However, if globalization keeps increasing financialization and deregulation, only a simulacrum of the liberal world order will remain.

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