Well all the columns and opinions have been written, I assume, over the Chinese G20 Summit. Other than congratulating the Chinese leadership for having pulled it off – and there is something to be said for that – the general conclusion to be drawn from these many pieces was that little was achieved with the major concern – coordinated economic growth by all the G20. The communique was a classic instance of bureaucratic ‘gobbledegook’. While the yardsticks were moved on a number of issues, no bold announcement by the G20 Leaders was made. As my colleague, Colin Bradford declared in his Brookings blogpost, “2016: The year for leadership that wasn’t for the China G-20”
2016 may have been the year that teed up the need for new direction, fresh initiatives, and strong leadership, but the contrary interests of G-20 member countries seem to have missed this opportunity at Hangzhou. Whereas some of the keywords for an ambitious transformative approach are in the Hangzhou G-20 communiqué, there is evidence of avoiding commitments, ducking the big ideas, and mouthing the right words but dodging the verbs and adjectives that contained ambition.
With the annual G20 fast approaching (September 4th-5th in Hangzhou China) it is worthwhile reflecting on the progress, or lack of it, that the G20 Leaders gathering has accomplished since the successful efforts to avoid the catastrophic consequences of the Great Recession.
For a number of G20 cycles now, observers have recognized that the G20, notwithstanding the urging of many experts and former officials, has failed to make the transition to a steering committee. Meanwhile, G20 process has become heavily freighted with endless recommendations, statements and communiques from a growing variety of expert and non-expert corners. The question is not whether the G20 finally will be a success because of the hosting by China’s leaders. The Chinese Leaders know how to run a summit. They have approached this Summit with great effort and seriousness and should be commended for their efforts. But really, it will not be Chinese leadership that is likely to reveal G20 progress or not.
The Editors at the EastAsianForum in a very recent post, “Making the Hangzhou G20 summit relevant” have once again put their collective finger on the issue:
But the fundamental purpose of the G20 is to set the strategic direction. The worry is that the G20 is drifting away from this role and becoming more like an international think tank than the steering committee for the global economy that it was set up to be. The G20’s deliverables are increasingly bureaucratic, focused on commissioning reports, holding meetings, developing strategy papers, publishing high level principles and high level policy documents.
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.
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.
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.
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.
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.
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.