Rising BRICSAM

'Breaking' Knowledge, Information and Commentary on Rising BRICSAM and Global Governance Summitry

Rising BRICSAM

Puzzling over BRICS Enlargement

As Global Summits go, and besides the leader-led summits, G7 and the G20, there is nothing with greater presence, and possible impact in international relations, than the BRICS. As noted by Ndzendze, Bhaso, Siphamandia Zondo (2023) in their recent article in The Conversation on the state of the BRICS: 

What began in 2001 as an acronym for four of the fastest growing states, BRIC (Brazil, Russia, India and China), is projected to account for 45% of global GDP in purchasing power parity terms by 2030. It has evolved into a political formation as well.

It is the political impact that is most interesting and, I would say, somewhat puzzling. For the BRICS club – Brazil, Russia, India, China and South Africa – all are members of the G20.  Like the G20, and for that matter the earlier created G7, the BRICS represent a ‘leaders club’ that is a leader-led global summit that has an annual meeting of those leaders – the centerpiece of the year-long hosting by one member or another. In some respects the BRICS are unique in what the group is not. That is, unlike the G7, the BRICS members have no  evident ideological dimension – neither democratic nor autocratic. Instead it appears to see itself as focused on opposition to US hegemony in the current global order and they appear to demand a greater development focus and attention to the Global South. Again, as pointed out by Bhaso and Zondo: 

Crucial to this was these countries’ decision to form their own club in 2009, instead of joining an expanded G7 as envisioned by former Goldman Sachs CEO Jim O’Neill, who coined the term “Bric”. Internal cohesion on key issues has emerged and continues to be refined, despite challenges. … Ever since, the grouping has taken on a more pointedly political tone, particularly on the need to reform global institutions, in addition to its original economic raison d’etre. 

Now, it is not that there haven’t been efforts to enlarge these informal leader-led institutions  – to draw in the systemically important Global South players – China, India, Brazil – and other regional powers, Turkey and Indonesia for instance.  Obviously, the G20 is the evident case. Still, it would seem that the BRICS members resisted absorption in the G20, indeed, just at the G7 members – Canada, France, Germany, Italy, Japan, UK and the U.S., and also the EU, failed to wind up the G7 and ‘live’ in an enlarged G20 after the Global Financial Crisis (GFC) in 2008. Though there has been constant academic and expert discussion over absorption, enlargement and continuing separation, there continues to be both a G20 and a G7 a G20 and a BRICS. Again my SOAS colleagues focussing on the BRICS suggest: 

Some may even bring destabilising dynamics for the current composition of the formation. This matters because it tells us that the envisioned change in the global order is likely to be much slower. Simply put, while some states are opposed to western hegemony, they do not yet agree among themselves on what the new alternative should be.

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Advancing Global Governance by Revitalizing a Regional Institution

While I have suggested earlier that I don’t think an initial  focus on building regional or multilateral institutions is necessarily the best first step in global governance and possibly a means to ‘tone down’ geopolitical competition rhetoric and action, I am now about to contradict myself and this position. For, in the end, there are some obvious regional and international institutions that could encourage collaborative action and push global governance collaboration. And, in fact, I have in mind an obvious one that has – as a current Chinese slang term might well describe it – ‘tang ping’  躺平 – or ‘lying flat’. It is the Trilateral Summit.

Trilateral Summit, you say. Well, yes, actually. The Trilateral Summit is, periodically, a Summit of the ‘key’ East Asia leaders – South Korea, Japan and most meaningfully,  China. A little history here. The Trilateral Summit was first proposed by South Korea in 2004. At that time the three powers met for a separate session at the ASEAN gathering, described as ASEAN plus three. In 2007, at the eighth meeting of the ASEAN plus Three, the leaders agreed to initiate a separate Trilateral Summit. And, in December 2008, the first separate summit was hosted by Japan at Fukuoka. At its initiation the three powers saw the Summit focusing on: closer trilateral relations, the regional economy and disaster relief.  One of the regional security issues that has been in front of leaders repeatedly has been the nuclear weapons program of the Democratic Republic of Korea, the DPRK. In the 2018 summit the FT  described the leaders’ view of the DPRK nuclear weapons program: “the three leaders agreed to co-operate over North Korea and called for Pyongyang to give up its nuclear weapons completely.” While that agreement may no longer hold, it shows the value of this Summit.

The Summit is not quite a leaders’ gathering. While South Korea is often represented by its President and Japan by its Prime Minister, China has generally been led by its premier, not the President.

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The New and Rather Difficult Course of Global Order Relations

‘The Decline of US Hegemony and its Consequences for the Global Order’ – A Roundtable at the International Studies Association

ISA 2023: Exhibit, Advertise, and SponsorSo, the International Studies Association (ISA) just concluded in Montreal  after a visibly energetic in-person gathering following several years of virtual meetings only.

I was fortunate enough to chair the roundtable. All sorts of good folk attended including panelists: Arthur Stein, UCLA, Lou Pauly, University of Toronto, Yves Tiberghien, University of British Columbia, and Kyle Lascurettes, Lewis and Clark College. Unfortunately, our colleagues, Janice Stein could not join but I was fortunate enough to receive her speaking note and I have tried to reflect some of her thinking with the notes from other colleagues.

What didn’t surprise me, of course, during the session was the recognition from all that we have a fraught period of transition in the international system. There is the obvious Russian aggression against Ukraine and the challenge by Russia to some of the basic tenets of the current order – most notably territorial integrity and national sovereignty. There is also the obvious growing leading power tensions between the US and China and the growing threat of confrontation and conflict especially over Taiwan that currently stock the relationship. There was the obvious attention to US determination to sustain dominance even in the face of a dramatic power transition with the emergence of China and more broadly the Global South – India and other Indo-Pacific nations including Indonesia, etc. and other Southeast Asian states and then, of course, the return of Lula to Brazil.

But raw geopolitics did not dominate the discourse of the Roundtable. Equally significant in our discussions was the acknowledgement of the continuance of the intergovernmental institutions and collective actions of states to advance global order and achieve collective action within the framework of the current and evolving Order. While some decried the faltering of the global institutions, nevertheless, there was general acceptance that regional and other informal order-based institutions continued advance policies in various ways. AS one of my colleagues Kyle Lascurettes noted: “There is a truly global rules-based order that stands a good chance of outliving American hegemonic decline. But the so called “liberal” or “Western” rules-based order is and will be in trouble.” Indeed, the liberal order or the Liberal International Order (LIO) disappeared, I’d argue with the Global Financial Crisis” in 2008 but the Global Order does indeed remain. And, as Yves Tiberghien focusing on the dramatic power transition suggested: “today is a time of disruption and transition – a special phase. Major shocks, change, crises, innovation will take place over the next 1-2 decades … Also shift in awareness. Western dominated order was an anomaly of last 200 years, with a rise phase for 300 years before that. Return of multiple voices all over the world. Return to a diverse, polymorphic, poly polarity.” As Jagannath Panda recently wrote in an EAF blog on March 20, 2023:  “Obituaries of the US-led liberal international order may be exaggerated, but the shift towards multipolarity is in motion.”

And what then do we have as the Global Order, and how will it advance. Arthur Stein recalled the fragile nature of the Order, which he described for me in his opening chapter of my 2008 edited volume – Can the World be Governed? The global order, he wrote then, and repeated at our Roundtable was:  ‘a weakly confederal world’. As he said at the time (2008, 52) : ”In fact, one could argue not only that multilateralism is an existential reality but that weak confederalism is the nature of modern reality.”

So the LIO has faded,  and what remains is the global RBIO (rules-based international order). Weaker and less collaborative – indeed as Arthur pointed out, the low hanging fruit of cooperation has passed and it is and will be increasingly difficult to reach collaborative solutions . But as Yves points out that there is continuing support for aspects of the Order including with China where Yves notes the significant China support for COP15 the Conference on  Biodiversity where the multilateral conference came together to agree on a new set of goals to guide global action through 2030 and to halt and reverse nature loss and the recently concluded agreement on the text for the critical High Seas Treaty. The challenge for the leading powers is to maintain a forward collaborative thrust, and as Lou Pauly warned, it is critical for the US to accept: “The challenge is to overcome perennial tendencies toward either insularity or spasmodic over-extension, toward temporizing on necessary decisions, toward shifting the costs of adjustment to the relatively poor internally, and toward exporting the rest of those costs to other countries.” It will not be easy; and Arthur reminded us that American domestic politics has been a problem since 1919 and continues today with the failure to approve through the US Senate, international agreements and the often strained effort to use executive power.

As Janice Stein alludes to in her notes: “Plurilateral and minilateral institutions – from AUKUS to IPEF to Trade and Technology Councils will be the principal sites of innovation. I have called this process “taking it offsite.” New institutions are being stood up, led by the willing, who set rules and invite others to join if they wish. One could argue that we are entering a period of start-up innovation in the creation of new, smaller, more flexible, and more focused institutions.

Although Janice may be a touch pessimistic over multilateral collaborative action, the Global Order has its worked cut out for it to avoid great power conflict and achieve critical global governance policies in climate, global finance, global health and much more.

 

Image Credit: ISA

Focusing on the China-West Dialogue Project (CWD); Advancing Global Governance; and Improving US-China Relations

Now, turning back to the Global Summitry Project (GSP) and the Vision20 – collective efforts of Yves Tiberghien, Professor of Political Science and Konwakai Chair in Japanese Research at the University of British Columbia (UBC), Colin Bradford, nonresident Senior Fellow from Brookings  and myself, the Director of the Global Summitry Project. We have initiated various research initiatives.

A critical major effort over some three years has been the China-West Dialogue Process (CWD). The CWD has been Co-Chaired with Colin Bradford, the lead Co-Chair of the CWD and myself. This initiative has held some twenty plus virtual gatherings and many participants are set to gather in person for the first time in years at the Global Solutions Summit in Berlin May 15-16th <https://www.global-solutions-initiative.org/programs/china-west-dialogue/?utm_source=MASTER_Verteiler&utm_campaign=33fe63ffef-EMAIL_CAMPAIGN_2019_11_11_10_44_COPY_01&utm_medium=email&utm_term=0_4f4e08bb85-33fe63ffef-447373003> to focus on US-China relations and assess how the G20 can advance critical, and dramatically needed global governance issues – global debt management, climate change policy, global food security and health security.

What is required, however, and is currently missing, is that the two leading powers turn their minds to such critical global governance policy efforts – both bilateral and multilateral.  From the beginning the CWD has targeted first Trump policy and now Biden foreign policy. Trump Administration officials made it clear that ‘engagement with China’ born in the Nixon Administration was at an end. Both Administrations called for competition though not for conflict. The outcome so far, especially for bilateral relations has been dismal.

As my Co-Chair Colin Bradford wrote on March 7th: “The strategic competition between the US and China is real and must be accepted and managed. But the confrontational narratives of this binary relationship are dominating and weakening global leadership and governance and present a threat to the global order.”   As the Editorial of the NYTimes, today, March 12th, urges: “Americans’ interests are best served by emphasizing competition with China while minimizing confrontation. Glib invocations of the Cold War are misguided. It doesn’t take more than a glance to appreciate that this relationship is very different. Rather than try to trip the competition, America should focus on figuring out how to run faster, …” <https://www.nytimes.com/2023/03/11/opinion/china-us-relationship.html?referringSource=articleShare>. Competition is not the problem for the Biden Administration; but collaborative policy making certainly appears to be. And current policy has made it more difficult. All one needs to do is to examine the interaction of the Biden Administration and the Chinese Government and Party on “balloon gate”. As Paul Herr of the Chicago Council identifies in his post at EAF: <https://www.eastasiaforum.org/2023/03/12/ballooning-mistrust-in-the-us-china-relationship/?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter2023-03-12> “Washington and Beijing’s response to the appearance of a Chinese surveillance balloon over the United States in February 2023 illustrates several aspects of the current US–China relationship that will make it very difficult to reverse the downward spiral in bilateral ties. The episode displayed mutual distrust, latent hostility, a failure to communicate and the adverse impact of internal politics on how the two sides deal with each other.”

As the CWD has identified at the GSI CWD Website – <https://www.global-solutions-initiative.org/programs/china-west-dialogue/> “The CWD’s fundamental goal is to help reshape the narratives and behaviours of US-China relations from friction to function by engaging other middle and major powers and emerging powers in a reframed China-West relations in G20 processes and other public forums. The aim of the Project is to identify new political dynamics that yield more productive relations in the international system.” At the CWD has identified, and noted by Colin Bradford on March 7th: “The CWD has concluded that the G20 is the most important platform for profiling and actualizing these alternative political dynamics in the year-long official G20 processes, which could enable convergence on systemic threats and ease geopolitical tensions.”

It is a challenging  goal in the face of current difficult US-China relations – but crucial for settling global order relations that have become ‘so rocky’ and unsettled in the last several years.

March 12, 2023

 

China-West Dialogue (CWD) Members Discuss the Global Debt Management Environment

The CWD focused recent attention on the global management of debt and the growing threat of a sovereign debt crisis. After a number of virtual gatherings and much focused discussion, the CWD completed a Debt Management Proposal that CWD passed to folks in India as India scheduled the first G20 Finance Ministers and Central Bankers Ministerial at Bangalore, or its official name, Bengaluru.

The  CWD Debt Proposal Summary is currently posted at the Global Solutions Initiative. but we do anticipate that the full Proposal will be up at the Global Summitry Project shortly. Meanwhile, I also wanted give you a flavor for the intense discussions that went on among CWD principals working on the Proposal. First, I wanted to link you to the Debt Management analysis prepared by Deborah Brautigam at SAIS that was published as: “The Developing World’s Coming Debt Crisis: America and China Need to Cooperate on Relief” in Foreign Affairs published on February 20th.

And then I wanted to give you a flavor of the deep discussion that went on for several weeks. This is a short back and forth that took place with Deborah Brautigam, Johannes Linn and Richard Carey on February 21st. I have smoothed the discussion and elaborated on the many acronyms in the back and forth:

“Johannes Linn

If I had one wish, Deborah, after reading your excellent article in Foreign Affairs, it would have been that you had explained more fully the nature of the Heavily Indebted Poor Countries (HPIC) process. In my view it was not “debt cancellation” by the IFIs, but the paydown of IFI debt with resources from bilateral donors and some International Bank for Reconstruction and Development (IBRD) net income (which could otherwise have been contributed to International Development Association (IDA)). If I understood the [current] Chinese proposal for the establishment of a World Bank trust fund in parallel with an existing IMF trust fund to pay off IMF debt (as you mention), then that would in effect be parallel to the HPIC approach, and one wonders why the World Bank didn’t accept that. It  could be that World Bank did not want to risk having bilateral donors reduce their new IDA contributions in reaction, which would have meant less new IDA money for the poorest countries.

It appears that the issue with multilateral debt relief is the following: there is no free lunch — if the Multilateral Development Banks (MDBs) take a hit on their balance sheet and give up their long-established “preferred creditor status”, they risk a downgrading and higher risk exposure and thus more restricted prudent use of capital market funding. IDA will have fewer resources for new lending. In effect, other developing countries will pay the price for multilateral debt cancellation. If they go for a HPIC-like solution then bilateral donors will have to pay, burdening either donor countries’ tax payers (which, one could argue, is not unreasonable); this might risk that their contributions to IDA and other concessional multilateral windows will drop and thus concessional new money from MDBs for the poor countries will decline (in which case other developing countries would again pay the price).

By the way, a straightforward comparison of debt outstanding across creditor classes, while relatively easy to compile, tells only a partial story. One really should look at the net present value of debt service obligations across creditor classes, since that reflects the real cost of debt to countries, allowing for very different terms under which different classes of debt are contracted. Under this approach private debt will weigh much more heavily and MDB debt less so. It would be interesting to see what happens to Paris Club debt versus Chinese debt.

Deborah Brautigam

My own view is that the World Bank should have explored the establishment of a Catastrophe Containment and Relief Trust (CCRT) – an IMF trust – equivalent more seriously. There was a view expressed that China wanted it to be funded in proportion to voting shares, which was deemed infeasible, but the IMF trust is, I believe, funded by voluntary contributions. This would have been a start.

As I recall during HIPC, since the debt relief was counted as “aid”, countries did reduce their non-relief funding. I remember that Japan warned that this would be the consequence.

Richard Carey

The decision to adopt and implement the “enhanced HIPC” was taken at the Cologne G8 Summit in 1999, after agreement at the previous Summit in Birmingham in 1998 that the following year the Summit would definitively deal with debt.

In that intervening year, the details were hammered out in the contentious process as previously described. Funding of multilateral debt reduction came from the OECD’s Development Assistance Committee (DAC) concessional aid essentially (the IMF used some of its own resources for the Multilateral Debt Relief Initiative (MDRI), with a call for bilateral contributions to cover additional needs, and the MDRI was extended to all countries with less than $380 per capita, whether they had been in the HIPC program or not).

The key mover was Clare Short, then new Labour Government Secretary of State with a new Department of International Development (DFID) and a new White Paper which endorsed the 1996 DAC International Development Goals (IDGs). She flew to Washington to help Brian Atwood, then the Head of USAID, face down Treasury and State who held that the 1996 DAC Goals had not been endorsed. The position was that this initiative did represent US agreement for what eventually became the IDGs. The story of how the HIPC became linked to the goal for poverty reduction is told in Chapter 10 of the recent history of the DAC.

In 1998 the Jubilee 2000 Campaign for Debt Reduction was having a major impact on  public opinion. Short saw an opportunity to make debt relief conditional on poor countries drawing up poverty reduction strategies. To establish that link, Short had to fly to Washington to face down USAID Administrator Brian Atwood and objections from Treasury and State that the US had never agreed to the OECD’s DAC International Development Goals. With her position that Prime Minister Blair would publicly criticize President Clinton if he failed to support the IDGs (eventually to become the Millennium Development Goals (MDGs), the 1998 G8 Communique endorsed them in resounding terms. That is how the enhanced HIPC came to be based on Poverty Reduction Strategy Papers. (Note that CWD Common Framework proposal involves countries adopting medium term strategies based on the “new development narratives”…).

A subplot in this story was that the Comprehensive Development Framework (CDF), was lost to the Poverty Reduction Strategy Papers (PRSPs), although the 1999 Cologne G8 Communique had briefly welcomed the CDF. As Chapter 10 in the DAC History relates, a joint note circulated on April 5, 2000, by James Wolfensohn and Stanley Fischer sought to square the circle of the urgency of the PRSPs to deliver fast on debt relief and the more time-consuming task of bringing multiple stakeholders into a country-led long-term development platform:

For some time the formulation of “PRSPs incorporating the principles of the CDF” became a standard phrase. But eventually the battle for the CDF was lost and this formula faded away. And without the CDF, the HIPC PRSPs essentially left out agendas such as infrastructure, urbanisation  and rural development. The MDGs were essentially human development/wellbeing- based proxies  – these left-out agendas only came back with the Sustainable Development Goals (SDGs) in 2015.

In the present case of the CF, medium term country strategies based on the “new development narratives” can in principle be built on the basis of nationally owned SDGs and Nationally Determined Contributions (NDCs)  to the Paris Climate Change Agreement. But let us see what is emerging in Finance Ministers and Central Bankers meeting in India this week and beyond. And, with bond financing now a major part of the picture, impact investing by the private sector and asset managers on the basis of projects and programs that are green, social, sustainable and sustainability linked  (GSSS) seems to be in vogue.  Also, as mentioned, the article by the Lazard Sovereign Debt Unit has useful ideas  -e.g., on how bondholders can be brought into early agreements with special bonds that provide a payoff for “haircuts” if and when the economy is in much better shape.

Johannes Linn

By the way, one question we all seem to studiously avoid in this discussion about debt relief is how to prevent a new debt crisis a few years down the road, after we solve this one. In the mid 1990s I was involved in establishing the broad design of HPIC – moving from basic concept to decision in principle –  with President James Wolfensohn at the World Bank, so it is particularly frustrating to see the debt issues being replayed all over again, except that it may be an even more intractable problem now than it was then.”

Hope you like it.

Image Credit: IMF

Impact of zero-Covid Policies on the CPC, the Government and Xi Jinping

Protests against the zero-COVID policy in China quickly spread across the country. While Anti-COVID protests are certainly not a new global phenomenon, such a public and widely spread expression of frustration towards the Chinese government is rarely seen.

This note examines the Chinese top level leadership’s approach to the zero-COVID policy; why it led to mounting public anger and frustration; and where it may lead.

The Initial Approach – Central Government’s Blame Avoidance

 While President Xi vowed that he will “supervise and deploy (COVID-19 prevention operations) personally”, the COVID-19 prevention throughout the country took on a decentralized approach.[1] In other words, the order (of no COVID cases) was delivered by the Central Government, but it was up to the local authorities to interpret the order and execute it. For instance, each province has its own mandatory QR code system that rated users’ risk of exposure to COVID-19, and each province had its own domestic and international arrival quarantine requirements.

As power becomes more consolidated within the CPC, it would only appear plausible that the whole country would take on a centralized approach for COVID-19 strategy such as a national QR code system and a standardized requirement for traveling and quarantine. Nevertheless, these decentralized approaches were permitted to continue in the past two years. Frequently, these inconsistent COVID policies among provinces and regions in China caused confusion and frustrations among residents and travellers. This could be viewed as the Central Government’s strategy for ‘blame avoidance’. By providing an opaque order of “no COVID cases”, the Central Government shifts responsibilities to the local governments while leaving them to interpret its own plan. If the strategy is successful, the Central Government, or President Xi himself, could take credit as the operations are overseen by him “personally”.[2] In the event that the strategy is unsuccessful, or controversial, residents naturally would hold the local government accountable as they implemented these procedures.

Too Little To Lose?

A stable society based on rapid economic growth has been a key goal of the CPC. The idea of “you can earn money and spend money but don’t touch politics” is an unspoken social contract among many Chinese and foreign citizens and companies. While China enjoyed rapid economic growth, so also its middle class. Owning at least an apartment and a vehicle and living comfortably have already become the default goal of many middle class citizens. Based on the prerequisite of not participating in politics, these goals are achievable when the balance of the ability to earn a decent wage and reasonable cost of living is maintained. The Chinese citizens know very well that what they have accomplished and acquired could be lost very quickly if they are disobedient to the government. Therefore, most citizens have chosen to refrain from directly criticizing the government for its actions.

With a decelerating economy, however, this balance of economic advancement and political silence is eroding. In major cities such as Beijing and Shanghai, it is hardly possible for youth to find a job that pays high enough to support themselves and afford an apartment or vehicle. The draconian COVID measures further impeded citizens’ ability to find jobs and get paid; hence, their ability to make new purchases. According to the National Bureau of Statistics, real estate development between January 2022 to July 2022 dropped by 6.4 percent while residential investment dropped by 5.8 percent.[3] On the other hand, major online shopping platforms often publish sales volume during November 11th, Single’s Day.[4] According to Sohu News, online shopping platforms such as Alibaba and Tmall both recorded double digit or triple digit growth in sales volume in the past several years.[5] Nevertheless, Tmall did not disclose its sales volume for 2022, instead it published a statement that “the sales volume was largely the same as last year”.[6] These moderated data could also suggest that the general public prefers to save their money instead of spending it given their job stability is affected by the unpredictable COVID policies.

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Indonesia’s G20 Win: behind-the-scenes gatherings and unity in a time when global governance needs it most – and now to India

Dominating our smartphone screens, televisions, and front pages were photos of Justin Trudeau, Xi Jinping, Joe Biden, and Giorgia Meloni in traditional Indonesian attire, participating in a ceremonial mangrove tree planting event and gathering late night to discuss the missiles that killed two Poles, contemplating potential next steps using NATO’s Article 4. These leaders are – whether they want to be or not – celebrities. They are simultaneously praised and critiqued depending on who is watching them. Yet, what is not seen by mainstream audiences, perhaps even those more politically astute, is the intricate machine of behind-the-scenes work taking place throughout 257 meetings between December 2021 and December 2022 under Indonesia’s presidency of the G20 Summit.

In 2011, the Director of the Global Summitry Project, Alan Alexandroff, wrote about the notion of the G20 not being solely about its leaders, but rather surrounding the Leaders’ Summit an array of complementary “personal representatives, ministers, other officials, IFIs, IOs, [and] global regulators that make the G[20] system work – or not”. Whether the G20 is successful (a subjective term, in any case), is a different conversation.

Alexandroff’s Iceberg Theory of Global Governance positions the G20 Leaders’ Summit at its tip, but the vast bulk of the iceberg is situated below the surface, and often goes unnoticed by the majority of observers and experts.

This underwater all-encompassing mass is formed by numerous assemblies: from Ministerial meetings regarding health, environment and climate, women’s empowerment, trade investment and industry, the energy transition, development, labor, research and innovation, and tourism; to Finance Ministers and Central Bank Governor meetings, Finance-Health Deputies meetings, joint Sherpa and Finance Deputies meetings, individual Sherpa meetings, Foreign Ministers meetings, G20 Digital Ministers meetings, and Education Ministers meetings; and lastly, engagement group gatherings (including the U20, B20 on climate/energy, integrity, compliance, and business leaders; the T20, with numerous recommendations from think tanks around the world, the Y20, with priority areas on digital transformation and youth empowerment, and the L20 Employment Summit).

It would be hard to contest that the G20 indeed has been a platform that has developed and advanced key collaborative actions toward policies and priorities, from the Leader Declaration identifying the Pandemic Fund, the Financial Intermediary Funds for Pandemic Prevention, which employs the World Bank and World Health Organization.

The incoming G20 Troika – Indonesia, India and Brazil – will mark a unique shift in global governance deliberations. It will be led by three Global South countries with emerging large market economies hosting the year-long activities. The hosting will pass from India in 2023, Brazil in 2024, and South Africa in 2025.

We anticipate this three-year spread of Global South presidencies will tackle issues that have been brushed to the side or missed in other G20 Summits. This is certainly a significant step in the effort to construct a multilateral network to seek mutually beneficial responses to growing challenges impacting all countries.

The Financial Times released an article following Indonesia’s Leaders’ Summit, deeming its outcomes “remarkable”. Russia, represented by its Minister of Foreign Affairs, Sergei Lavrov, seemed isolated on the world stage as China put forth a more neutral stance in its support towards Moscow. Xi commented that his administration “resolutely opposes attempt[s] to politicize food and energy issues or use them as tools and weapons”.

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Scepticism Again Abounded Prior to the Opening of a G20 Leaders’ Summit – But Then …

Alan Beattie, veteran G20 watcher from the Financial Times, has regaled us once again with reasons to dismiss G20 summits before they begin.  On November 14th,  a day before the Indonesian G20 summit begins in Bali, we are treated to the conclusion by him that the G20 is a “gabfest” and  that “it is what it always has been, which is largely pointless”! 

To prove his point,  Alan Beattie links us to his March 13, 2009, article , published a month before the London G20 summit, which was arguably the most important economic summit ever. Entitled “the gap of twenty”, he wrote back then rather definitively that “there should be little doubt…that the divisions seen on display have already dissipated the G20’s ability to spread confidence”.

The Indonesian G20 Summit has in fact demonstrated that without the G20 there would be no global leadership platform which could bring together a finite number of major actors in global affairs from an eclectic array of regions and regime types to address the war in Ukraine, US-China relations, and global systemic challenges. 

What Alan Beattie gets wrong in both 2009 and now more recently just prior to the Bali Summit is to fail to see that “domestic  constituencies “do indeed drive the “domestic calculus”.  The dynamics of global summitry are intended to push the frontiers of public discourses in order to mainstream ambition as good governance rather than to be an exercise in fancy pants diplomacy.  The term “gabfest” trivializes the efforts by global leaders and their officials, advisers and experts to provide societies with the vocabulary for understanding global risks and with vision for global solutions.   

What has gone on all year before the Leaders’ Bali gathering is the tedious developments of policy proposals that will work and the quest for pushing  feasibility frontiers to the maximum that domestic  and financial constraints will bear.   

The  G20 process is essential for global survival and for guiding global systems toward sustainability instead of disaster. The Indonesian Summit has underlined this critical point.

Image Credit: SMA Negeri 1 Singaraja

By Guest Blogger Colin Bradford who is lead-co-chair of the China-West Dialogue (CWD), co-chair of the Vision20, global fellow of the Berlin Global Solutions Initiative (GSI), and non-resident senior fellow of the Brookings Institution.

 

Competing and Collaborating – Dealing with Today’s Geopolitics and Global Governance

It is an eventful several weeks. Most dramatically the 20th Party Congress of the Chinese Communist Party has launched – indeed it is approaching its conclusion. There is little doubt that Xi Jinping will claim a third term ending the effort by earlier leaders to limit leadership to two terms. His statements will likely be our best guide to Chinese foreign policy for the immediate future. But more on that in a future blog post.

And then there’s the Biden Administration’s release of the National Security Strategy (NSS). The NSS explains the security priorities of the administration to both Congress and the American public and is a legislatively mandated document.This strategic document was about to be released in February of this year but was delayed as the Russia-Ukraine war loomed. With its release just a few days ago, we get some big picture framing for Biden Administration security and foreign policy. Indeed, the advance press call held by Jake Sullivan, the United States National Security Advisor to President Joe Biden, on the day of the document’s release provides an interesting summary and insight of current US policy. Jake sets it out:

The fundamental premise of the strategy is that we have entered a decisive decade with respect to two fundamental strategic challenges. The first is the competition between the major powers to shape the future of the international order. And the second is that while this competition is underway, we need to deal with a set of transnational challenges that are affecting people everywhere, including here in the United States — from climate change to food insecurity, to communicable diseases, to terrorism, to the energy transition, to inflation.

 

And this strategy makes clear that these shared challenges are not marginal issues, they are not secondary to geopolitics, but they operate on a plane alongside the competition — the geopolitical competition with major powers.

 

Now, of course, there are tensions between trying to rally cooperation to solve these shared challenges and trying to position ourselves effectively to prevail in strategic competition. But there are also ways in which these are reinforcing. And we believe fundamentally that the core elements of what the United States must do in the years ahead is — are the same for both sets of challenges.

 

Specifically, we need to invest in the underlying sources and tools of American power and influence, especially our strength here at home, both for the purpose of effective competition and for the purpose of being set up to rally the world to solve shared challenges.

 

Second, we need to build the strongest possible coalition of nations to enhance our collective influence, both to shape the global strategic environment and to address these transnational threats that require cooperation to succeed. And finally, we need to set the rules of the road for the 21st century in critical areas — from emerging technologies in cyberspace, to trade, economics, investment, and more — both so that the international order continues to reflect our values and our interests and so that the international order is better designed to be able to take on the challenges ahead.

 

So this decisive decade is critical both for defining the terms of competition, particularly with the PRC, and for getting ahead of massive challenges that if we lose the time in this decade, we will not be able to keep pace with most notably the climate crisis, but other challenges as well.

 

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