Comparative Regional Economy <Lecture Note 7 > 13.12.05 CRE: (Economic) Power and Geopolitics * Most parts of this note are borrowed from the references for teaching purpose only. Semester: Fall 2013 Time: Thursday 9:00-12:00 am Class Room: 114 Professor: Yoo Soo Hong Office Hour: By appointment Mobile: 010-4001-8060 E-mail: yshong123@gmail.com 1 Basics 2 Introduction Nations and states are different things, and often coexist uneasily Political tension is common around an enclave or exclave, particularly if the population is culturally similar to the majority in a neighboring state Geopolitics is the study of power relations between states for nationalistic (patriotic) or scholarly purposes (the latter being critical of the former) Geopolitics also involves the effort to understand diverse elements of other cultures as these shape and interact with political elements at the nation and state level. Transnational political entities are growing in number and importance. Countries have both nations and states. Countries become friends and enemies, depending on the relational interests. Since these interests change overtime, the friend and enemy relations may change over time. 3 National Power • • • Foundation of National Diplomacy Essential element of diplomacy in a system based on state sovereignty Power is the ability of actor A to get actor B to perform A’s wishes. Politics is based on power. The Nature of Power National capabilities plus attributes Multifaceted: Tangible and intangible elements Power as money: A ‘political currenc’y, sometimes used in a charitable way, most often used to further self-interest 4 Power in International Relations • • Hard Power Coerce with political, economic or military power. (Realism: force, military capability) • • Soft Power Ability to get what you want though attraction and not coercion (Nye, 2004). (Liberalism: education, art, sports, values) 5 Hard and Soft Power Hard Power Ability to make someone else do something, or suffer the consequences Rests on negative incentives (“sticks”) and positive Soft Power Ability to persuade others to follow your lead by being an attractive example Iraq may have damaged U.S. soft power Realists dismiss soft power Measuring Power − Difficulties in creating a formula for what counts toward national power: Weighing military power might versus economic capacity and leadership capability versus national infrastructure, and easy to identify criteria but hard to weight − Difficulties in quantifying some aspects of power: e.g. leadership or perceptions (and misperceptions of power) 6 Characteristics and Diplomatic Application of Power Characteristics of Power (Measurement is difficult) Dynamic, constantly in flux: Coercive power, and persuasive power Both objective and subjective Relative: In comparison to whom?: Zero-sum game Situational: Power that can realistically be brought to bear varies depending on the situation Multidimensional: Need to consider all facets and context The Nature of Diplomacy: Diplomacy as Applied Power − Direct diplomatic application of power Includes the use or threat of economic sanctions and the threat of military force − Indirect diplomatic application of power Involves a communications process of a country skillfully advancing its policy preferences, arguing the merits of its position, and persuading others to join it in promoting those goals or at least to accede to them 7 State and Nation State • A state is an independent country (though the term indicates a part of a country in common speech) . An independent country is afforded sovereignty by international laws, agreements, and precedents. Internationally recognized boundaries • States supply public goods (like roads and education), regulate economic relations, seek legitimacy in the eyes of citizens and others, and direct relations with other states Nation • A nation is a group of people with a claim to a shared past, common culture, and collective destiny – Some nations are virtually coextensive with states, forming nation-states (e.g. Japan, Sweden, Mongolia) – Some nations are struggling for autonomy/sovereignty and may lie entirely within a state (Quebec's situation in Canada) or across state borders (Kurdistan's situation in Iraq, Iran, Turkey, Syria region) • Nationalism – The passionate defense of national interests, either in a nation-state framework (where it is also called patriotism) or outside of such framework (where it is called by various names such as treason and terrorism, and usually suppressed violently) 8 Theories and Approaches Isolationism /Nationalism vs. Internationalism Realism Idealism liberalism Wilsonianism Balance of power Hegemonic realism 9 Alliances Positive • Two or more states combine military capabilities; formal agreements to coordinate behavior • Increase deterrence • Increased defense capabilities • Allies don’t ally with enemies • • • • • • • Negative Can increase capabilities of aggressive states Provoke formation of counter-alliances Can draw in otherwise neutral states Must try to control behavior of allies Today’s ally may be tomorrow’s enemy Entangle states in disputes of allies Stimulate envy of states outside the alliance 10 Balance of Power • Peace most likely to be maintained when military power is distributed so that no single power or bloc can dominate • An ambiguous concept • Weakness invites attack, so countervailing power must be used to deter potential aggressors • Size principle: competing alliances are roughly equal in power • Stay vigilant—identify potential threats and opportunities • Seek allies when you cannot match the armaments of an adversary • Remain flexible in making alliances • Oppose any state that seeks hegemony • Be moderate in victory 11 Criticisms of Balance of Power Theory • • • • • The theory’s rules are contradictory It assumes that policymakers possess accurate, timely information about other states The tendency of defense planners to engage in worst-case scenario planning can spark an arms race. It assumes that decision makers are risk averse It has not been effective Alternatives to Balance of Power • • Hegemonic Stability Theory A concert of great powers – Common sense of duty – Normative consensus is fragile 12 Balance of Power Models • Uni-polarity – United States just after World War II – United States now?—Bush doctrine • Bipolarity – United States/Soviet Union 1949–1989 – NATO–Warsaw Pact – Extended deterrence • Multi-polarity 13 (Super)powers • • • “The Big Three” (Empires/Superpowers) - The United States - The European Union - China The “Swing States” (Balancers) - Russia - India - Japan “Regional Powers”: Brazil, Saudi Arabia, Iran, South Africa, Nigeria, Australia 14 Economic Power of Three Powers (%) US EU China Global GDP (PPP) 21 23 11 Military spending 48 20 8 R&D 30 24 18 Foreign reserves holdings 64 27 3.1 Tril. USD* Goods exports 14 42 8 Goods imports 21 43 7 FDI inflows 13 41 5 FDI outflows 18 47 1 Population 5 7 20 * 2012 Source: Adapted from Parag Khanna. 15 Current Trillion US $ Growth and the Development Experience: GDP of Major Economies: 1960-2010 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 China Germany Japan United States 1960 1965 1970 1975 1980 1985 Source: World Development Report 1990 1995 2000 2005 2010 16 Growth and the Development Experience: Major OECD Economies’ GDP Per Capita: 1970-2010 50 45 Current Thousand US $ 40 France 35 30 Germany 25 20 Japan 15 United States 10 5 0 1970 1975 1980 1985 1990 Source: World Development Report 1995 2000 2005 2010 17 Growth and the Development Experience: Major OECD Economies’ GDP Per Capita: 1970-2010 50 45 Current Thousand US $ 40 United Kingdom 35 30 United States 25 Canada 20 15 Italy 10 5 0 1970 1975 1980 1985 1990 Source: World Development Report 1995 2000 2005 2010 18 Growth and the Development Experience GDP Per Capita of BRICI: 1970-2010 12 Current Thousand US $ 10 China 8 India 6 Russian Federation Brazil 4 Indonesia 2 0 1970 1975 1980 1985 1990 Source: World Development Report 1995 2000 2005 2010 19 Growth and the Development Experience Major Traders’ International Trade in Goods Merchandise Trade (X+M): 1990-2010 4500 Current US$ billions 4000 China 3500 3000 Rep. of Korea 2500 Japan 2000 US 1500 Germany 1000 500 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Sources: IMF (1990-2008), World Bank (2009-2010) 20 6 7 5 6 Current US $ (Thousands) Current US $ (Trillions) Growth and the Development Experience Chinese and Indian Growth: 1990-2010 5 4 4 3 3 2 2 1 1 0 0 1990 1992 1994 1996 1998 China Total GDP China GDP per Capita 2000 2002 2004 2006 2008 2010 India Total GDP India GDP per Capita Sources: World Development Report, World Bank (2009), IMF(2010) 21 annual % Chinese and Indian Annual Growth Rates 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 1990 1992 1994 1996 1998 2000 China Source: World Development Report 2002 2004 2006 2008 2010 India 22 Globalization • Economic Integration - U.S.-China: U.S. is China’s largest export market - Transatlantic area: World’s largest trading zone - China - E.U.: E.U. is China’s largest trading partner • Political Integration - Democratization - 123 electoral democracies in 2007 vs. fewer than 70 in the 1980s • Demographic Integration - Blending - U.S.-Latin America: Latinos are 14% of the total U.S. population (expected to grow to 29% by 2050) - E.U.-Arab world: 50% of first-generation Arab emigrants go to Europe - China - Asia: 35 million overseas Chinese across East Asia, with disproportionate wealth and influence (e.g. 1% of Philippines population, but control 60% of the economy) 23 Competing for “The Second World” • Eastern Europe: Russia, Ukraine, Balkans, Turkey, Caucasus • Central Asia: Kazakhstan, Uzbekistan, Afghanistan, Pakistan • Latin America: Mexico, Venezuela, Colombia, Brazil, Chile • Middle East: Morocco, Libya, Egypt, Levant, Iraq, Saudi Arabia, UAE, Iran • South/East Asia: Malaysia, Indonesia, Thailand, Vietnam, India 24 Competition for Regional Power Eastern Europe: Russia, Ukraine, Balkans, Turkey, Caucasus • Russia: EU member or Chinese petro-vassal • Ukraine: Mitteleuropa or Osteuropa • Turkey: “Marching east to west” or neo-Ottomanism • Balkans: Member-state-building • Caucasus: The cork in the Caspian Central Asia: Kazakhstan, Uzbekistan, Afghanistan, Pakistan • Kazakhstan: “Happiness is multiple pipelines” • Uzbekistan: The Silk Road’s blocked artery • Afghanistan: Taming south-central Asia • Pakistan: “The most dangerous country in the world” 25 Latin America: Mexico, Venezuela, Colombia, Brazil, Chile • Mexico: NAFTA plus • Venezuela: Bolivar’s revenge • Colombia: The Andean Balkans • Brazil: The Southern Pole • Chile: Entering the First World Middle East: Morocco, Libya, Egypt, Levant, Iraq, Saudi Arabia, UAE, Iran • Morocco: Greater Mediterranean Union • Libya: From green to blue • Egypt: Bureaucrats and theocrats • Levant: Road maps • Iraq: Buffer, black hole, and broken boundary • Saudi Arabia: Gulf streams • UAE: Las Vegas meets Singapore • Iran: Virtues and vices 26 South/East Asia: Malaysia, Indonesia, Thailand, Vietnam, India, Japan, Korea • Malaysia and Indonesia: Playing all sides • Thailand and Vietnam: The inner triangle • India: Looking east • Japan, Korea, and Australia: China’s first world seduction • • • • • • • Hot Spots Iraq Iran/Straits of Hormuz Israel/Palestine Gulf of Aden Afghan-Pakistan border North Korea Straits of Malacca 27 International Issues and Approaches • • • • • • • Hot Issues Economic imbalances Terrorism Energy security Climate Sovereign Wealth Funds Poverty Failed States • • • • • Approches Bottom-up, then scale-up Comparative advantage and division of labor Global network governance Mutual accountability “People Power" 28 The New Global Governance • • • • • The New Geo-Psychology From Non-alignment to Multi-alignment Doing it “Our Way” The New Regionalism The Anti-imperial Belt South-South cooperation The New Global Governance • Adjusting to geopolitical dynamics • Globalization and the diffusion of power • Where dot.gov meets dot.com meets dot.org 29 United Nations • Security Council: Reform, expansion, legitimacy • Peacekeeping • Specialized Agencies: UNDP, OCHA, UNHCR, WFP, UNICEF, etc. • Bretton Woods: IMF, World Bank, IFC, ILO • New Partnerships: Global Fund to Fight AIDS, Tuberculosis, and Malaria; Global Compact • The Millennium Development Goals (MDGs) 30 Multilateral Organizations • Financial Stability Forum • Bank for International Settlements (BIS) • G8 • G20 • OECD • International Criminal Court • Interpol • Organization of American States (OAS) • Asia-Pacific Economic Cooperation (APEC) • European Bank for Reconstruction and Development (EBRD) 31 Modern History and Geopolitics 32 Imperialism • Late 1400s: Europe used transportation and military technology to conquer colonies • Mercantilism: Trade should increase state wealth; increase exports, decrease imports; used to take advantage of colonies • 1880s: Final burst colonizes most of Africa • China divided into spheres of influence 33 Imperialism Declines: 20th Century • Self-determination: Woodrow Wilson, Treaty of Versailles • League of Nations mandates • World War II saps strength of colonial powers, demonstrates that colonial powers can be defeated • Decolonization from 1947–1960s • Neocolonialism: Continued domination of the Global South by the Global North through economic means 34 European Control of the Globe 1800 One-third 1915 Four-fifths 1878 Two-thirds 35 Global Imperialism 1914 36 Towards World War II • Japan – Global conflict began with Japanese invasion of Manchuria, 1931 • League of Nations condemned action; Japan simply withdrew from league • 1937, Japan launched full-scale invasion of China – 1937 War In China Resumed • Nationalists and communists formed "united front" against Japanese • Unable to effectively work together, they conducted guerilla attacks – Japan, Germany, Italy ally 1940; neutrality pact with USSR, 1941 • Italy, Germany, and Russia – Italy after the Great War • Italians felt slighted at the Paris Peace Conference • Mussolini promised national glory, empire • Invaded Ethiopia (1935-1936), killed 250,000 Ethiopians; annexed Albania 37 – Germany: deep resentment at Treaty of Versailles • Harsh terms: reparations, economic restrictions, depression helped Nazis • Hitler blamed Jews, communists, liberals for losing war, Versailles Treaty – After 1933, Hitler moved to ignore terms of peace settlement • Withdrew from League, 1933; Rebuilt military, air force; reinstated draft • Militarized Rhineland, 1936; Austria, 1938; France and Britain did nothing – Spanish Civil War 1936 - 1939 • Spanish fascists stage coup against republic; socialists, communists fight • Italians, Germans, Russians helped each side but fascists won – The Munich Conference: Peace for our time? • In 1938, Germany "appeased" by taking Sudetenland • Britain and France desperate to avoid war, appeased Hitler • Russian-German Non-Aggression Treaty, 1939, shocked world 38 War Leaders Vs. 39 GDP Trends in WWII Country 1938 1939 1940 1941 1942 1943 1944 1945 Austria 24 27 27 29 27 28 29 12 France 186 199 164 130 116 110 93 101 Germany 351 384 387 412 417 426 437 310 Italy[ 141 151 147 144 145 137 117 92 Japan 169 184 192 196 197 194 189 144 Soviet Union 359 366 417 359 274 305 362 343 UK 284 287 316 344 353 361 346 331 USA 800 869 943 1 094 1 235 1 399 1 499 1 474 Allied Total 1 629 1 600 1 331 1 596 1 862 2 065 2 363 2 341 Axis Total 685 746 845 911 902 895 826 466 Allied/Axis GDP 2.38 2.15 1.58 1.75 2.06 2.31 2.86 5.02 40 Towards the Cold War The origins of the cold war (1947-1990) Unlikely alliance between Britain, USSR, USA held up for duration of war Not without tensions: Soviet resented U.S.-British delays in European invasion Postwar settlement established at Yalta and Potsdam Each Allied power to occupy and control territories liberated by its armed forces Stalin agreed to support United States against Japan Stalin's plans prevailed; Poland and east Europe became communist allies President Truman took hard line at Potsdam, widened differences Postwar territorial divisions reflected growing schism between USA, USSR Soviets took east Germany, while United States, Britain, and France took west Germany Berlin also divided four ways; by 1950 division seemed permanent Churchill spoke of an "iron curtain" across Europe, separating east and west 41 Similar division in Korea: Soviets occupied north and United States the south Truman doctrine, 1947: USA would support "free peoples resisting subjugation" Perception of world divided between so-called free and enslaved peoples Interventionist policy, dedicated to "containment" of communism The Marshall Plan, 1948: U.S. aid for the recovery of Europe Idea to rebuild European economies and strengthen capitalism Soviet response: Council for Mutual Economic Assistance (COMECON) for its satellites NATO and the Warsaw Pact: militarization of the cold war 1949, United States created NATO, a regional military alliance against Soviet aggression 1955, Soviets formed the Warsaw Pact in response Two global superpowers protecting hegemony with alliances United Nations, established 1945 to maintain international peace and security 42 Beginning of the Cold War • • • Postwar Europe – Divided into competing political, military, economic blocs • NATO, European Economic Communities; Warsaw Pact, COMECON – Western Europe • U.S. allies supported by permanent presence of American army • Parliamentary governments, capitalist economies – Eastern Europe • Dominated by Soviet Union, Red Army, secret police • Communist governments modeled after USSR dominate countries Germany divided east and west in 1949 – Soviets refused to withdraw from eastern Germany after World War II – Allied sectors reunited 1947-1948, Berlin remained divided as well – Berlin blockade and airlift, 1948-1949 – The Berlin Wall, 1961 In Asia – Turkey, Greece, Iran pressured by USSR, allies: US responds with Truman Doctrine – Communist Chinese armed by USSR, drive Nationalists out of China by 1949 – Korea divided into Communist North, Pro-Western South: North invades South in 1950 – Communists influence Viet Minh in Indo-China 43 International Organizations • • • Post-1945 – – Nongovernmental organizations (NGOs) – – – Red Cross, an international humanitarian agency, founded 1964 Greenpeace, an environmental organization, founded in 1970 Amnesty International and Human Rights Watch The United Nations – – – – • Era of international cooperation Many global problems cannot be solved by national governments Founded 1945 "to maintain international peace and security" Security Council • • • Permanent Veto Nations: UK, US, France, Russia, China Not successful at preventing wars, for example, Iran-Iraq war Often can diffuse tense situations General Assembly • • • Each nation has one vote; poor, 3rd world nations dominate Cannot legislate, but has influence in international community Often used as a sounding board for world concerns, ignored by West ECOSOC, UN Commission of Refugees, WHO • • • More successful in health and educational goals Eradication of smallpox and other diseases Decrease in child mortality, increase in female literacy Human rights: an ancient concept, gaining wider acceptance – Nuremberg Trials of Nazis – UN Universal Declaration of Human Rights • • • • Established concept of "crimes against humanity“ Permanent court sits in Hague, Netherlands for war crimes trials Forbids slavery, torture, discrimination Guarantees basic human rights, freedoms 44 Global Military Spending SIPRI data http://www.sipri.org/research/armaments/milex/factsheet2010 45 Soviet Union and Communism 46 US Strategy 1. Nuclear Deterrence 2. Forward Presence 3. Peacetime Military Buildup 4. Own the sea 5. NATO 6. Limited War 47 Forward Presence 48 Limited War Korean War 1950-1953 – Fight locally – Prevent escalation • Geography • Weapons • Objectives • Negotiate and fight 49 50 JFK: Renewed Focus on “Wars of Liberation” 51 1979-1981 Redefinition of Threat • Iranian Revolution • Soviet Invasion of Afghanistan 52 “Arc of Crisis” 53 The Cold War Ends 54 US role: Balancer in Regional Relationships 55 US Role: Crush Regional Aggressors; Reestablish Regional Balance of Power 56 Strategy • Balance of power politics, globally and regionally • Strategic deterrence and missile defense • Maintain forward presence and allies • Ability to fight regional wars • Base force and Reconstitution 57 Threats • Regional Instability • Proliferation of WMD (asymmetric threats) • Transnational problems (terrorism, drug trafficking, organized crime) • Threats to democratic transitions • “Wild cards” (overthrow of ally, revolution in ally, new technological breakthrough) 58 The Realist Road to Security Assumptions and Policy Recommendations 59 60 New Rivals • • Nation-state rivalries Hegemon vs. Rising Challenger VS. 61 Demographic Future: European Declining Population estimates and projections, selected countries 1950-2050. UN 2008-based medium variant projections 2000 Brazil China India Sub-Saharan Africa Europe Northern America Japan 1800 1600 1400 1200 Estimates Projections 1000 800 600 400 200 2050 2045 2040 2035 2030 2025 2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 1955 1950 0 62 The Coming Eclipse and New Rise Diminution of Europe, and the ‘West’ more broadly, on the world stage Demographic ‘decline’ and welfare/ageing burdens • Military security; energy security; geopolitical ‘clout’. • Marginalisation of EU by US • Marginalisation of EU and US by ‘The Rest’ Economic/geopolitical future is Chinese. Or Indian? Latin American? African? 63 Who are ‘The Rest’? BRICs no longer a coherent concept Russia: demographic (etc.) basket case South Africa: disappointed expectations Core members: Brazil, India, China In the wings: Mexico, Turkey, Indonesia NE and SE Asia Gulf states – rentier economies: small, rich, peculiar. Africa (increasingly an extension of Chinese mineral resources?) 64 Bipolar System: 1945-1991 • US and USSR eye each other as enemies even before WW II end • East-West axis established; Cold War runs its course – U.S. pursued Containment Doctrine—globalization of policy – NATO v. Warsaw Pact – Third world lobbied for support; nonalignment movement – Confrontations do occur--Cuban missile crisis – Proxy Wars (Nixon Doctrine)—Middle East, Vietnam, Afghanistan – Détente: SALT I/II, Nixon “Plays China Card” – Reagan largely credited for knockout blow: SDI – Gorbachev undermines Soviet system with glasnost and perestroika – The fall of the USSR ends bipolar system 65 The 21st Century: The Genesis of a New System • One power pole-U.S. hegemony. Will this last? • U.S. stronger military than any other hegemon in history • But U.S. military power has 3 problems: Better at deterring than compelling, built to fight other militaries, and other states still possess power • Multipolar urges--regional powers such as the European Union • Imperial Overstretch/Decline? (Paul Kennedy) • Limited unipolarity?--power of U.S. restrained by international organizations, international law, and interdependence • Future polarity--highly contested • U.S. must lead actively but not too aggressively • U.S. problem isn’t overstretch, it’s government paralysis • But for now, let’s soak up the “unipolar moment” 66 Charles Krauthammer: The Unipolar Moment (1990) (2002) (2006) • • • • • • • • • • Thinking about post-Cold War US foreign policy has been led astray by three conventionally-accepted but mistaken assumptions about the character of the post-Cold War environment. (1) that the world is now multipolar, whereas it is in fact unipolar, with the USA the sole superpower, at least for present policy purposes (2) that the US domestic consensus favors internationalism rather than isolationism—Krauthammer admits he was wrong here (3) that in consequence of the Soviet collapse, the threat of war has substantially diminished. Dangers may be smaller, but more widespread. Krauthammer thought this unipolarity would last 30 years or so. Revisited in 2002 and 2006 “Apogee” Halfway through the 30 years, still no alliances against U.S. Some trouble being made by Iran, assisted by Russia/China Economic concerns, debt, EU emerging, China But no clear end in sight. Fewer state-on-state conflicts. Why? 67 World Division • Global South: Less-developed countries • Global North: Wealthy industrialized countries • Third World: Cold War term for Global South • First World: Cold War term for Global North democracies • Second World: Cold War term for Soviet Union and other communist countries • Fourth World: Indigenous peoples 68 Economic Power by Region and Implications 69 Global South 85% of the World’s People 20% of the world’s wealth 70 Global North, Global South 71 Global North–South Divide in Wealth and Population 72 • • • • • Global North Democratic Technologically inventive Wealthy Aging populations Low population growth Global South • Most states: – Not democratic – Low technology use – Poor – Rapid population growth – Overstrained social and ecological systems • 80 percent global population • 15 percent global wealth 73 Poverty 74 Dependency Theory Reasons for underdevelopment are external Capitalist world economy is based on a division of labor between the industrialized core and underdeveloped periphery Global North keeps Global South poor through: – Terms of trade and finance – Exploitation by multinational corporations – Dualism—rural impoverished sector and urban modernizing sector Has trouble explaining the NICs 75 Global South’s Search for Economic Power Import-substitution industrialization Switch to export-led industrialization New International Economic Order (1974) – Pushed by Group of 77 – Called for changes in the international economic system that would benefit development in the Global South and redistribute some global wealth to it – Most were rejected by the Global North Regional trade regimes: – NAFTA: North American Free Trade Agreement – Mercosur: Argentina, Brazil, Paraguay, Uruguay – APEC: Asia-Pacific Economic Cooperation – ASEAN: Association of Southeast Asian Nations – SADC: Southern African Development Community 76 Trade, Aid, Investment, Debt Relief – Bilateral aid: official development assistance – Multilateral aid: World Bank • Conditionality – Foreign direct investment (FDI) – Multinational corporations (MNCs) – Heavily indebted poor countries (HIPCs) The Washington Consensus (Free market approach is optimal) Other approaches: – Developmental state – Transitional economies (Ex-socialist economies) Emerging Consensus: – Embraces both the developmental state and the free market 77 Current Day Power Competition 78 Clash of Civilizations: Samuel Huntington (1991) After the Cold War, what are we going to fight about? Democracies generally have same western values, rarely fight each other. People's cultural and religious identities will be the primary source of conflict in the post-Cold War world. Jihad vs. McWorld: Benjamin Barber (1992) Fragmentation and globalization compete McDonalds and MNCs now have global operations - produce and sell products around the world. World becomes smaller than ever - interconnected by internet, telecommunications Tribal enclaves lure members These two forces collide to produce catastrophe and anomie “Glocalization” 79 Challenges to Authority of States External challenges--McWorld • Political integration: – Increase in number and importance of international actors • Economic interdependence • Social integration • Weakening Western Orientation Internal challenges— Jihad • Ethnic rivalries and tribalism: – State disintegration –i.e., former Yugoslavia, East Timor, Turkey, and Rwanda • Increased number of refugees • Movement toward autonomy (i.e., Kosovo) 80 Superpowers Superpowers are countries, or grouping of countries, with global influence and power They have economic, cultural, military and geo-political influence Economic wealth (see graph) is only one aspect of superpower status One way to group the world's most powerful is: •The following 15 slides are adapted from Pearson Company (see references). 81 Geography of Power In terms of superpower status, size is not everything Some ‘demographic superpowers’ have relatively little economic power Military spending (see table) is one form of power, as it allows superpowers such as the USA to have global military reach The USA is a highly influential power in economic, military, geopolitical and cultural terms Only the EU comes close to the influence of the USA, but the EU is a federation of 27 nation states who do not always agree 2008/09 data Total Population (millions) Total military spending ($ billions) China 1,334 84 India 1,174 30 EU 500 280 USA 308 607 Indonesia 231 4 Brazil 192 15 Pakistan 168 4 Bangladesh 162 1 Nigeria 154 1 Russia 141 59 Japan 127 46 Mexico 107 4 Gulf States 40 40 82 Changing Patterns of Power Superpowers shift over time; the Uni-polar world of the British Empire gave way to the Bipolar cold war world. In 1990, as the USSR collapsed, a new USA dominated Uni-polar world was ushered in; the EU has grown to be increasingly powerful also. It is expected that the future will be a more complex, fragmented and regional multi-polar world. Power can decline as well as grow. 83 The BRICs and Emerging Powers The BRICs (Brazil, Russia, India and China) are the emerging super powers Mexico and the Gulf States could lay claim to be in this group also This group of countries is very different, with perhaps only China capable of challenging the USA in the near future. China Communist one-party state which has become the ‘workshop of the world’; rapid economic growth based on manufacturing and trade; significant military and demographic power Russia Russia is what is left of the USSR; it has a huge nuclear weapons arsenal, and vast oil and gas reserves making it globally important. It has an ageing, unhealthy population and weak economy. India A huge, and very youthful, population give India enormous potential for growth. It has some world class industry such as IT, but very poor infrastructure and 100s millions of very poor people Brazil Increasingly influential in Latin America, with a strong, diversified economy and growing middle class. It tends to punch below its weight internationally. It is sometimes referred to as an ‘agricultural superpower’. Mexico An influential country with strong ties to the USA; Mexico’s economy is often shaky and it has problems with crime and corruption. Gulf States Increasingly important in terms of remaining global oil and gas reserves; has attempted to diversify and become a hub between Europe and Asia, with some success. 84 The BRICs, and NICs, have developed in recent decades. This suggests some countries have broken free from dependency and developed. Wallerstein’s World Systems Theory seeks to model this ‘three sided world’ (see right figure). Wallerstein’s ideas are partly related to the economic theory of Long-term cycles (Kondratiev waves - see right table). These suggest economic growth passes through phases based on key new technologies. These new technologies bring growth to particular geographical regions. Date and Cycle Technology Location 1770-1850 Industrial Revolution Cotton, steam engines UK 1850-1920 Industrialization Rail, steam ships, iron and steel, Increased involvement of Europe and USA 1920-1945 Motorization Petrochemicals, cars, electricity Increasing dominance of the USA 1945– 1990 Cold war era White goods, consumer goods Rise of Japan and Asian Tigers 1990 onwards Internet, wireless, biotechnology Shifts in production toward India and China 2020 onwards? ???? Asia? 85 The Role of Superpowers In the past, superpowers such as the British Empire and other Imperial powers maintained direct control over territories. This era of colonialism ended in the period 1945-1980 when colonies gained independence. A characteristic of a superpower is the ability to take control, through war, of troublesome regions believed to threaten superpower security. Whilst rare, superpowers still take direct military control over territory. Direct military conquest / occupation of territory Imposition of an Ethnic cleansing alien legal of difficult system and groups ownership rights Mechanisms of Colonial Control Cultural Economic imperialism imperialism e.g. through art, exporting to the religion and home country language Government by Invasion of Afghanistan 1980, USSR Invasion of Panama 1989, USA First Gulf War (Kuwait, Iraq) 1990, USA, UK, Egypt , Saudi Arabia and others Bombing of Bosnia 1995, NATO War in Afghanistan 2001, NATO led coalition dictat, through colonial administrators 86 Neo-colonialism? Superpowers use subtle, indirect ways to maintain power today (see right map). These ways are often termed neocolonialism. Aid is often given to allies and ‘friends’ rather than the most needy countries (see table), and much aid is ‘tied’ in various ways. Debt repayments channel money from the developing to the developed world. Even debt relief schemes, such as the HIPC (heavily indebted poor countries) scheme (see map) have been criticized . For HIPC countries to qualify for debt relief, they must follow the economic policies of bankers in the developed world. (e.g. Mexico, Korea and IMF) Top 10 Recipients of USA foreign aid Israel Egypt Columbia Jordan 2006 ($ millions) 2,520 1,795 558 461 Pakistan 698 Peru 133 Indonesia Kenya 158 213 Bolivia 122 Ukraine 115 87 International Trade The world trade system is essentially based on the western free trade system. The USA and EU have been very influential at the World Trade Organisation (WTO) in the past. The World’s two major stock markets (London and New York) are all in the ‘west’. In a globalized world, TNCs play a crucial role in world trade, and most TNCs originate in the EU and USA. Emerging superpowers, especially China, have taken advantage of global trade to develop and grow. 88 International Decision Making WTO member IMF (over 5% of votes) • G20 • G8 • Membership of Inter-gover nmental organisations NATO • Global decision making revolves around inter-governmental organisation (IGOs) Some IGOs involve all nations, such as the U.N. – others are more exclusive such as the G8, or regional such as NATO. Membership and voting rights may give key players disproportionate power. Some influential organisations such as the World Economic Forum (Davos Group) are not-for-profit organisations outside government control. IGOs do change over time; the G20 has become more influential in recent years, reflecting the increasing power of the BRICs UN Security Council • USA EU China Russia India Brazil Japan 89 Cultural Influence • • • • Superpowers exert a cultural influence – the widespread use of English, tea drinking and cricket are a cultural legacy of the British Empire Today, the most influential culture is that of the USA ‘Americanisation’ suggests that this culture is spreading. This spread is made easier by: - Global brands and logos - The Global media e.g. Disney and CNN - Globalised transport and communications connections - American based TNCs - Widespread use of English Is ‘Mcdonaldisation’ or ‘Cocacolonisation’ a positive or negative development? - The issue tends to be divisive; some anti-globalisation campaigners accuse the USA of cultural imperialism, and blame US consumer culture for the erosion of local cultural traditions. On the other hand, many Chinese see Americanisation as positive, as it shows progress and development. 90 Superpower Futures • • • • • • As the primary emerging superpower, China has much to gain from its growing global status. Poverty reduction in China (see graph) has been staggering. China has become motorised, with over 170 million vehicles at the end of 2008; some estimates suggest there were only 3000 cars in Beijing in 1978. Inequality in China is a growing issue, although in general the population is much better off. In Brazil and India there is a growing middle class of consumers. In India by 2009 there were 500 million mobile phones in use and over 700 million in China. 91 Superpower Resources • Growth, wealth and the status that accompanies it brings new problems to the emerging powers. • Chief among these is pollution; as resources consumption and ecofootprints grow, so does pollution . • What if eco-footprints in the BRICs (see graph) begin to approach those of the developed world? 92 Declining Superpowers? • • • • The emergence of the BRICs does challenge the hegemony of the USA The USA is not about to enter precipitous decline, but its influence may lessen There is evidence that the BRICs are catching up, as the number of largest TNCs based in the USA falls, but rises in the BRICs (see graph) There is also some unease among the BRICs that IGOs such as the G8 and UN Security Council are dominated by the USA and EU 93 Development or Dependency? • Does the rise of the BRICs represent an opportunity for the least developed countries to develop new relationships with wealthy countries? • China’s interest in the developing world, especially Africa, has grown in the last 10 years • China has invested in infrastructure such as road and rail, which Africa desperately needs. • In some ways any investment is good investment • Critics argue that Africa is still exporting its raw materials cheaply, and that the investment brings few jobs – Chinese workers are often used instead of local labour. China’s trade with Africa increased 10-fold between 1999 and 2009, to $110 billion Most trade is with oil exporters – Sudan, Congo, Equatorial Guinea, Nigeria, Angola China approved $10 billion in loans to African nations in 2009 China has invested in Zambian copper mines, iron ore mines in GabonChina has gifted $150 to build a new African Union headquarters in Addis Adaba 94 Superpower Conflict • • Would a multi-polar global future increase tension and conflict? Sources of tension might be considered in terms of three global agendas: Strategic Agenda • The USA dominates global foreign policy, but its ‘War or Terror’ brings it into conflict with the Islamic world and potentially the oil rich Gulf States. China and Russia tend to support Iran and opposed the two Gulf Wars, whereas the USA strongly opposes Iran’s nuclear ambitions. Iraq, Yemen and Afghanistan are still unresolved problems and the USA is ‘stretched’ in terms of international involvement. Economic Agenda • Global economic growth and globalisation place increased pressure on natural resources (land for food, water, fossil fuels, ores and minerals); conflict over resources is possible in the future and locations such as Africa, the Gulf States and Russia are likely to become increasingly important as areas with large remaining reserves of resources. This could increase tensions as the Superpowers and emerging powers squabble over access to resources. Climate Agenda • The difficult and protracted Climate negotiations in Copenhagen in Dec 2009 showed that the USA, EU and BRICs do not share the same views on environmental issues; relations between China and the USA were chilly to say the least; environmental (and human rights) issues have some potential to sour international relations. 95 Economic Interdependence • Transnational flow of trade, investment capital, and currencies have economically entwined all countries. • Creation and strengthening of global and regional economic organizations (i.e., the World Bank, IMF, WTO, and EU) • Emphasis on free trade, particularly within regional alliances (NAFTA, EU, ASEAN, and Mercosur) • Trade and monetary tensions particularly when state sovereignty is at stake. • Problem areas: surrendering sovereignty, lack of corporate regulation/differing regulations between states, protecting worker rights 96 Economic Disparity: The Growing Gap between North and South • GNP disparity between Economically Developed Countries (EDCs) and Less Developed Countries (LDCs). Most EDCs in North. • Less developed countries demand new international economic order--one with an equal distribution of wealth • EDCs must recognize the complex link between poverty and political violence • NICs and BRICs also common terms 97 The Quality of Life: Changes and Choices • • Increasing importance of human rights – Women’s rights – Recognition of Genocide (Darfur v. Rwanda) – International Criminal Court – International Court of Justice Emphasis on the environment – Idea of sustainable development 98 BTI 2010 Management Index Political Management in International Comparison Political leadership toward democracy and a market economy successful successful with weaknesses moderate weak failed or non-existent 99 Globalization and Geopolitics • • • • New Threat Paradigm – Traditional state-oriented model necessary but not sufficient – International boundaries less restrictive – Networks transcending international borders pose great threats to our national interests, security, and homeland Many view all globalization as Pro-United States – Fear the dominance of Western ideas, culture, institutions, and power “Rogues, Renegades, and Outlaws” – Blame United States for their problems—easy way to divert attention “Have-nots” – Poverty makes them vulnerable to extremism 100 North vs. South • The Cold War/East-West conflict is gone, replaced by a “North-South Estrangement” • Economic rift between the “Haves” (North) and the “Have-Nots” (South) widens • Consider: – 1.4 billion live on less than $1.25 a day – 1.75 billion acutely deprived in health, education, and/or standard of living 101 North vs. South • Consider: – Afghanistan’s GNI/capita is 1,419 compared to the US rate of 47,094—33 times greater! – 884 million lack access to safe water and 3.6 million die each year from water-related diseases – 2.5 billion lack access to improved sanitation, including 1.2 billion who have no facilities at all • Consider: – From 1990 to 2009, global child mortality dropped by 30% – However, in 2009, over 8 million children died before age 5 • 80 percent in Sub-Saharan Africa and South Asia 102 North vs. South • Consider: – Child born in Zimbabwe today has the approximate life expectancy (47 years) of someone born in United States in 1900 – World average for education is 7.4 years • 12.4 years in United States • 4.5 years Sub-Saharan Africa These horrors—particularly in poverty—lead to hopelessness, which fuels extremism; and often, extremism leads to terrorism. 103 Religious Conflicts • Religion can be a powerful force in warfare by reinforcing ethnicity in making a conflict more intractable and cruel • Not usually the only reason for conflict, but frequently plays a pivotal role (i.e., Shia-Sunni conflict) – Share fundamental beliefs/practices – Difference originally political, involving who should lead after Muhammad’s death 104 Religious Conflicts • Despite religious conflicts, many similarities exist between Christianity, Judaism, and Islam… – Are monotheistic (believe in one god) – Descendents of Abraham – Accept concept of sin, the value of prayer, and necessity of repentance – Find meaning in life through deep, personal relationship with God • Religion and violence – Belief of belonging to a chosen people – Belief in aggressive missionarism – Religion as symbolic structure of conflict • Religion can become the invoked ideology or “social cleavage along which other struggles become mapped” – Example: Sunni-Shia conflict in Iraq - Political struggle or spiritual? 105 Ethnic Conflicts Definitions: – Ethnic cleansing: Expulsion of an “undesirable” population from a given territory due to religion, ethnicity, political, strategic or ideological factors – Genocide: Deliberate and systematic destruction of a group of people because of their ethnicity, nationality, religion, or race According to the UN Commission of Experts, “ethnic cleansing” covers a host of criminal offenses, including: – Use of human shields – Mass murder – Mistreatment of civilian prisoners – Destruction of cultural property Individuals enabling “ethnic cleansing” face criminal prosecution for crimes against humanity, etc. 106 Future Multi-polarity • United States • China • Russia • European Union • Japan • Brazil • India 107 Wallerstein’s World-Systems Theory 1. The world economy has one market and a global division of labor. 2. Although the world has multiple states, almost everything takes place within the context of the world economy. 3. The world economy has a three-tier structure. European nations and those settled by European migrants established colonies throughout the world to extract wealth. This period of colonialism established the current imbalance in world economic and political power 108 Three Tier Structure Core Processes that incorporate higher levels of education, higher salaries, and more technology * Generate more wealth in the world economy Periphery Processes that incorporate lower levels of education, lower salaries, and less technology * Generate less wealth in the world economy Semi-periphery Places where core and periphery processes are both occurring. Places that are exploited by the core but then exploit the periphery. * Serves as a buffer between core and periphery 109 Three-Tier Structure of the World 110 Asia’s View on China’s Military Power Source: PEW Research Center 111 Preference for Ties with US and/or China Source: PEW Research Center 112 Rise and Fall of Powers Over Time Share of Global GDP as a % of World Total 1990 PPP 40.00% 35.00% France Germany 30.00% Italy United Kingdom United States 20.00% Napoleonic Wars Axis Title 25.00% 15.00% 10.00% Western Europe Colonial Expansion European Powers W W I W W II Japan Cold War China India Former USSR 5.00% 0.00% 0 1000 1500 1600 1700 1820 1870 1913 1950 1973 1998 113 China SWOT Strengths Weaknesses Strong and capable government Large, growing unsaturated market Large skilled labor force Rapid increase in educational attainment Very high savings rate Rapidly increasing technological capabilities Strong manufactured goods exporter Strong military Natural resource poor Rising income and regional inequality Rapid deterioration of the environment Poor rule of law Real estate bubble Limited English ability constrain IT enabled service exports Opportunities Threats Large investments in green technology may make it a market leader Development of strong service economy built on knowledge rather than natural resources Global warming threatens drought and rising sea levels Risk of global protectionist backlash to its strong export orientation Risk of pushback from established powers to its rapid rise 114 India SWOT Strengths Weaknesses Increasing savings rate Strong rule of law on paper (but not so much in practice) Core of English speaking technical workforce Strong information enabled service export Young and growing labor force will give demography dividend if can be productively employed Weak coalition governments with limited capacity to implement change Corruption Natural Resource poor Weak physical infrastructure Very low educational attainment Weak military Weak and over bloated government Relatively weak technological capabilities Opportunities Threats Strong potential to build on exports of information enabled services Strong need to strengthen education and develop stronger economic social system Unstable neighborhood Global warming threatens drought and rising sea levels Risk of spreading Naxalite insurgence because benefits of growth have not trickled down to rural population Risk of water war with China 115 Geopolitical • China’s successful authoritarian cum socialist economy model is gaining adherents – Has performed remarkably well for 30 years, plus much less affected by crisis – Offers an alternative to Washington Consensus development model for other developing countries • Concerns about security in access to natural resources leads it to – Trade with natural resource rich rogue regimes – Strengthen its military capability to ensure supply of natural resources and project military power to defend its interests 116 Increasing Frictions Trade & Environment Trade War Subsumes: -exchange rate -global imbalances -FDI China and rest of world India and rest of world Between China and India Friction because of China’s exchange rate undervaluation and large trade surpluses. Not as likely as China since it has trade deficits. Compete in many product areas. May have diverging position s in Doha trade Concern about China buying natural resources and technology firms. Like China, although Indian state-owned firms are not as active. Some competition -Intellectual piracy Extensive complaints about Fewer complaints about IP Chinese IP piracy. piracy than with China. Resource Wars Possibly over energy and resources, such as over islands in East and South China Seas. Climate Change Not controlling emissions will lead to global warming China argues that it’s unfair Same argument as China, plus to make it pay for CO2 the fact that it is smaller since problem was created emitter and a poorer country. by earlier emissions of now-developed countries. Risk of geo-engineering attempts with unknown consequences if mitigation efforts fail China may go for geoengineering if it begins to experience negative consequences of climate change. Possibly over energy in general, and water with neighbors, including China. India may go for geoengineering if begins to suffer costs of climate change. May become more problematic as they compete more in trade. Yes, especially over water from Himalayan Glaciers that feed main rivers in Asia Perhaps, because China is already above global average per capita energy consumption and CO2 emissions, while India will be below global averages even up to 2035. 117 Increasing Frictions-Geopolitical/Security China and rest of world India and rest of world Between China and India Geopolitical Competition and Ideological War Note this is also over human rights, nuclear nonproliferation, and form of government. Yes with respect to Western democracies and Japan. Not so likely with Western democracies and Japan because India’s democratic government and marketoriented system are more consistent with those countries. Yes because of different ideologies combined with frictions on borders, water, and possibly trade. Security Conflicts Cyber warfare Many current cyber India potentially has great attacks are traced to China. capability in this area, but there is little evidence that it is active. Possible if frictions between them increase. Military Conflict Possibly over Taiwan or Possibly with Pakistan other neighbors in South because of old rivalries and China Seas. China’s support unstable region. of N. Korea is also a potential problem. Limited to border frictions in short run. Hegemonic War Perhaps with U.S. in long term. Less likely since India is Hegemonic war between ideologically closer to existing them unlikely until both powers and not considered as become dominant powers. big a security threat as muchlarger China. 118 Prospects Over the coming decade, the international community will struggle to manage the accelerating pace of change and turmoil stemming from globalization. Widening economic inequality and the global jihadist insurgency with its anti-Western ideology will remain particularly vexing challenges to a stable world order for the foreseeable future. Countering weapons of mass destruction or mass effect will prove increasingly difficult, and the probability of such weapons coming into the hands of terrorists will increase significantly. Climate change and resource scarcity will be growing causes of humanitarian crises and instability. 119 • Increasing globalization with both beneficial and disruptive side effects • The continued rise of China and India • The quickening pace of technological innovation • The accelerating proliferation of mass disruption/destruction technologies • The growing power and capacity of nonstate actors relative to nationstates • The persistence of corrosive regional, ethnic and religious conflicts • Increasing resource scarcity and environment degradation 120 Definition of Soft Power-Left as the Future Topic • Soft power is an ability to attract others; such an attraction serves to persuade others to accept one’s purposes without explicit threat or violent exchange (Nye, 2004) • • • • Three ways to transform soft power resources into soft power effectiveness. Ability to shape the preferences of other Ability to legitimate one’s values, cultures and policies Capacity to construct rules and norms which limit other’s activities 121 Tools of Soft Power: Public Diplomacy v. Cultural Diplomacy Public Diplomacy • • • Government sponsored programs intended to inform or influence public opinion in other countries: its chief instruments are publications, motion pictures, cultural exchanges radio and TV. (One way communication) Sponsored by the government Embassies and diplomats play a major role Cultural Diplomacy • Cultural diplomacy establishes a two-way communication with other countries. • Primary focus is not merely political but also cultural (athletic, education, art) • The actor can take on his/her own agenda independently of the government. • More high culture and education focused (less popular culture, publications, radio or TV) • Can be sponsored by the government but also by private institutions or NGO. • Embassies play a major role but not the only role 122 Soft Power Index Result 2010 • • • • • • • • • • • • • 1 France 1 UK 3 USA 4 Germany 5 Switzerland 6 Sweden 7 Denmark 8 Australia 9 Finland 10 Netherlands 11 Spain 12 Canada 13 Singapore Source: Unknown • • • • • • • • • • • • • 14 Norway 15 Japan 16 Italy 17 China 18 Israel 19 Korea 20 South Africa 20 Brazil 22 Mexico 23 India 24 UAE 25 Turkey 26 Russia 123 Soft Power Index Business/Innovation: • International Patents; Business Competitiveness. Corruption. Level of Corruption: Transparenc.y International Corruption Perception Index, Innovation Education: • Think Tank Presence, Quality of Universities, Foreign Students Government: • UN HDI Score Index, Good Governance Index, Freedom Score Index of Political Freedom and Personal Liberty, Trust in Government, Life Satisfaction Culture: • Tourism, Reach of State Sponsored Media Outlet, Foreign Correspondents, Language, Influential Languages, Sporting Success Diplomacy: • Foreign Aid Overseas, Languages Spoken by Leader, Visa Freedom, Strength of National Brand, Number of Cultural Missions 124 References A Pearson Company. “6GEO3: Contested Planet Topic 4: Superpower Geographies” (PPT. Google. Accessed. 2013) Khanna , Parag. “Geopolitics and Globalization in the 21st Century”. New America Foundation. (PPT. Google. Accessed. 2013) Nye, Joseph Jr. 2004. “Soft Power: The Means to Success in World Politics. Public Affairs: New York. Nye, Joseph Jr. 2011. “The Future of Power” Public Affairs: New York. PEW Research Center. 2013. “America’s Global Image Remains More Positive than China’s”. 125