A Reform Agenda for China’s G20 Summit

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Coordination and harmonization are keys to collective action in global governance.  The jury remains out as to exactly what China’s hosting can accomplish with respect to either.

ANU’s Adam Triggs recently wrote that there were only three practical things that any G20 Leaders’ summit can accomplish:

… it can share information and best practice policies between countries; it can reform global governance by either reforming existing institutions like the IMF or creating new ones; or it can undertake what Oxford University’s David Vines calls ‘concerted unilateralism’, where countries implement policies (fiscal, monetary or structural) to suit their own economies, but do so collectively.

As a number of us suggested in our V20 Hangzhou gathering at Zhejiang daxue in the spring, Leaders also can, and should extend, their efforts beyond what is described above. Indeed in our collective view there is nothing more critical than having G20 Leaders direct their message to their own publics.  They need to signal their publics as to what is critical in their G20 efforts.  As our Blue Report to the Chinese leadership urged:

Together, G20 leaders can make clear and powerful statements which can signal the path of economic progress to all actors around the world. … Leaders at G20 Summits can strengthen their connection with their publics by devoting more attention to the content and the modes of communications from the summit platform.  … Key ideas could be summarized and Leaders could speak in more direct ways to their publics.  … G20 Leaders understand that globalization requires fair and updated rules that can elicit trust, a sense of fairness, and certainty.

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China and a People-Centred G20

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So it is evident there is much anger out in ‘election land’ and among the many electorates these days. The distemper is widespread.  The ‘oddest’ of campaigns of course is the Presidential race  – just 98 days away – in the United States.  A campaign driven in part by the Republican nominee who has abused his opponents and his putative friends – all in the name of ‘no more political correctness’. We are reminded constantly that rising inequality and plodding economic growth across the established powers and increasingly among the rising powers has led to growing frustration and anger from those in the 99 percent. Whether you are looking at global GDP, global trade, or global investment, all these measures of possible global prosperity look anemic. At a minimum these measures signal that the global economy has in fact not really recovered from the Great Recession.

Gideon Rachman of the FT suggested very recently that there is a strong link between those supporting Donald Trump in the US and those who voted in favor of leaving the EU in the UK referendum. As Rachman concludes in assessing these Brexit voters:”The second [parallel] is the way in which the Trump and Brexit campaigns have become vehicles for protest votes about economic insecurity. The third is the chasm between elite opinion and that of the white working class.” While it is of course much harder to identify frustration and alienation from governments in authoritarian societies, it is not hard to believe that there is much anger lying ‘just below the surface’ in states with authoritarian regimes and high degrees of inequality such as in China and Russia and in more democratic developing ones such as Brazil and South Africa.

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Undermining the Global Order – One Dark Speech after Another

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As my colleague Dan Drezner titled his blog about Donald Trump’s Cleveland acceptance speech at the Washington Post – “Donald Trump’s terrible, horrible, no good, very bad, too long speech.” And it was. Though apparently modeled after Richard Nixon’s 1968 acceptance speech -with an emphasis on “law and order” – there was not a scintilla of sunny optimism, a better future, whatever.  Even Richard Nixon had that in his speech.

But the real damage had already been.  That had occurred with the publication of the interview (actually a continuation of an interview begun in March) by David Sanger and Maggie Haberman of the NYT with Trump.

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Enhancing Global Order: Is It Not Possible With the Great Powers?

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The Law of the Sea claim the Philippines commenced against China in 2013 came to an end last week with the award from the UNCLOS (UN Convention on the Law of the Sea) tribunal. The award was a setback to the expansive claims by China in the South China Sea (though the Tribunal made clear it had no jurisdiction to determine the sovereignty claims asserted by China or any other country).

A number of conclusions were reached by this UNCLOS panel.   First, with respect to the historical rights China claimed through the 9-dash line (China has never made clear the actual claims arising from the 9-dash line), the Tribunal acknowledged the historical claims of China but as Taylor Fravel suggested, “the tribunal reasoned that whatever historic rights or high-seas freedoms China enjoyed were “extinguished” when it acceded to the convention.”

Second, the Tribunal set out a 4-part test to determine whether a ‘feature’ – rock, or protruding reef, or islet, is an island thus providing for expanded maritime rights.  The Tribunal utilizing this newly enunciated test rejected that any features in the Spratly Island chain brought with it a 200 mile exclusive economic zone (EEZ), as opposed to a 12 mile maritime territorial limit.  This ruling is likely to have a significant impact on a variety of maritime claims asserted by other states. It also would suggest that Mischief Reef, part of the Spratly Islands and where China has carried out reclamation work, is located within the EEZ claimed by the Philippines.

Finally, the Tribunal acknowldeged that the Philippines held EEZ rights in the Scarborough Island’s Second Thomas Shoal, where China has denied access to Philippine fishing boats.

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Take a Deep Breath – Not Yet the End of the Global Order

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Gloom and despair have accompanied the Brexit vote, especially for those concerned about the wider Atlantic alliance.

Mr. Obama, after meeting with leaders of the European Union attending the Warsaw NATO Leaders’ Summit, tried to play down fears that Britain’s exit would weaken European resolve. He acknowledged that the “Brexit” vote had “led some to suggest that the entire edifice of European security and prosperity is crumbling. But he added, “Let me just say that as is often the case in moments of changes, that this hyperbole is misplaced.”

As Kathleen McNamara of Georgetown succinctly put it in her recent Foreign Affairs article, “the answer to the breathless question posed in the New York Times on Sunday—“Is the post-1945 order imposed on the world by the United States and its allies unraveling, too?”—is simple. No, it is not. And yet the emotions and cultural chasms brought to bear in the Brexit vote cannot, and should not, be ignored.

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“Burning the International Order to the Ground”

 

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Image Credit:  en.wikipedia.org

 

There is shock and incredulity following the victory of the ‘Leave’ vote in Britain.  I will let my colleagues who follow closely the EU to pick up the threads of both this negotiation and the future of this supranational institution.  There will be much analysis over this difficult exit and the reduction of the EU from 28 to 27, though it may well be that it will return to 28 if Scotland decides it unprepared to leave the EU.

But let’s turn to the implications of the British exit on larger global order questions. The vote to leave immediately brought to mind the phrase that adorns this post that my colleague at Brookings, Tom Wright used to describe Donald Trump’s foreign policy. The post from Brookings (June 3, 2016)  was using Hilllary Clinton’s San Diego speech to examine Trump’s foreign policy ideas.  As Tom concluded:

So he will double down. And as he does, he will reinforce every word of Clinton’s San Diego speech and further alienate those voters who may be skeptical of an activist foreign policy but do not want to run the experiment of deliberately burning the international order to the ground.

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A ‘Quaint’ but Made-up US Grand Strategy

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My colleagues John Mearsheimer and Stephen Walt have returned to offer a new and improved version of US foreign policy.  In their recent piece “The Case for Offshore Balancing: A Superior US Grand Strategy” they offer both a critique of current foreign policy, which they see as some variant of liberal hegemony and provide, according them a clear and superior alternative – ‘offshore balancing’:

There is a better way. By pursuing a strategy of “offshore balancing,” Washington would forgo ambitious efforts to remake other societies and concentrate on what really matters: preserving U.S. dominance in the Western Hemisphere and countering potential hegemons in Europe, Northeast Asia, and the Persian Gulf. Instead of policing the world, the United States would encourage other countries to take the lead in checking rising powers, intervening itself only when necessary.

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The ‘Season of Summits’ continues

8th Round S&ED June 2016 (Xinhua)Well really no sooner had the G7 at Ise-Shima Summit (May 26th-27th) in Japan concluded, then our attention was redirected to the US-China 8th S&ED (Security and Economic Dialogue) that concluded in Beijing on June 7th.  

The annual meeting is a chance to take the temperature once again of US-China relations. The Summit, as the name implies is made up of two tracks – the Strategic Track led by the US Secretary of State, John Kerry and State Councilor Yang Jiechi and each is a special representative to their respective leader.  Meanwhile the Economic Track was led by US Treasury Secretary Jacob Lew and Chinese Vice Premier Wang Yang.  

Even a quick read of the two communiques reveals just how different the tracks are.  The Strategic Dialogue took some 19 pages to report on its collective efforts, while the Economic Track took a mere 3.  

It is clear that the US came at the economic discussions urging changes and reforms to Chinese economic behavior and bringing the complaints and difficulties that US businesses have, and continue to face, in China. From the media report, below from the  the NYT,  it is clear that there is growing frustration in the US business community over the  array of regulations that inhibit US business interests in China:

James McGregor, Greater China chairman for communications consultancy APCO Worldwide, who attended a Tuesday event for executives with senior U.S. and Chinese officials, said executives were blunt in stressing how negative things were becoming for foreign companies in China.

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Who Governs the Global Order

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So the G7 met in Japan this past week.  And the media did in fact pay some attention to it.  But the attention was largely for the wrong reasons.  This caucus/club was often in the past dismissed by those not invited to the party.  Countries and experts alike referred to the G7 as the ‘Rich Man’s Club’.  The emergence of the G20 – at the time of the global financial crisis – redirected attention to this Informal as opposed to the G7.  There was criticism of course.  Media, experts and representatives of those countries not included reflected on the lack of legitimacy, failing to be universal, self-identification, etc.  But the G20 was never attacked for being a narrow interest as the G7 had been.  The G20 was the first, and remains the most notable global summit platform of established and emerging powers. Indeed at the time of the G20’s creation, there was much discussion of the likely passing of the G7 summit. Obviously that didn’t happen.

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Back Again: The Global Order in Our Sights

Munk School - 940x622It has been a long hiatus.  Truth be told, I was planning to remain silent for an entire year.  But I couldn’t resist coming back before then.  As it turns out – just on the cusp of Memorial Day weekend for my American colleagues – and in the face of the announcement that Donald Trump had enough delegates to be nominated in Cleveland at the Republican Convention in July, I am back. The fact is too much is happening both in the world of global governance and also in the examination of global order ideas.  So it’s time to end my silence.

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