Friday, September 22, 2023

 

The Quadrilateral Conflicts: US, China, India, Pakistan, and Global Instability

Conflict with Pakistan began with the differing interpretation of the two nations theory between Mohammed Ali Jinnah and Mahatma Gandhi, Sardar Ballav Bhai Patel, and Pandit Jawaharlal Nehru.

  
10 mins read
 
At a Shanghai Cooperation Organisation summit recently in Goa, External Affairs Minister S. Jaishankar gave Pakistani Foreign Minister Bilawal Bhutto Zardari a "Namastey" in greeting. [Photo: Special Arrangement]

QUADRILATERAL TENSIONS AND INDIA’S GLOBAL POLITICS

Tensions borne out of quadrilateral conflicts have once again pushed India to the forefront of global politics. WPR remarks that hosting the G-20 summit in New Delhi further cemented India’s centrality to global politics and multilateralism and caps a year in which PM Narendra Modi strengthened his and the country’s image abroad, including high-profile visits to the U.S. and France. But that strengthened image has obscured some of India’s flaws, starting with the illiberal slide the country has taken under Modi, whose brand of Hindu nationalism has accentuated divisions within the country. Similarly, the poorest Indians were largely hidden from view this weekend in an attempt to project a better image of New Delhi during the summit. The fact that the summit declaration addressed debt relief and climate financing for the Global South—two of India’s priorities during its G-20 presidency—highlights the increasingly prominent role the Global South’s needs are playing in multilateralism as well as the degree to which multilateralism has increasingly become “multipolar.” But the amount of bandwidth expended in seeking consensus for the summit declaration on the war in Ukraine, as well as several side agreements clearly targeting China, underscored the degree to which the G-20 has shifted from being a platform for collective action to addressing global challenges to becoming an arena for geopolitical competition.

NARENDRA MODI WOOED BY JOE BIDEN

Finally, U.S. President Joe Biden’s bilateral meeting with Modi in New Delhi and his ongoing visit to Hanoi highlight how states like India and Vietnam, among others, are continuing to boost their ties with the U.S. in unprecedented ways, largely due to concerns about China’s regional ambitions. But even as they boost ties with Washington, those same states are not necessarily aligning with the U.S. in its competition with China and Russia, nor are they downgrading ties with Beijing and Moscow. Despite the fact that ASEAN nations have been economically close to China and have remained entwined with the Chinese economic web Richard Javed Heydarian of WPR  in an article ( 11th September 2023) has remarked that The Roots of ASEAN’s Dysfunction it is hard to understand the mini-miracle that ASEAN represents. Born in the cauldron of the Cold War, what started as a diverse group of postcolonial nations managed to build an economic community, despite bitter territorial and maritime disputes between them. Moreover, in a region historically committed to non-interference in the internal affairs of its neighbors, the grouping has since evolved into a de facto security community.

The secret sauce of Southeast Asia’s regional integration was the adoption of an inclusive decision-making process among the founding members—Thailand, Malaysia, Indonesia, Singapore, and the Philippines—which were all led by authoritarian regimes in the mid-20th century. In particular, ASEAN adopted the principle of consensus, to ensure that no single member-state dominates the organization and that there is maximum consultation on all collective decisions. Against all odds, despite multiple superpowers jostling for influence in Southeast Asia, ASEAN proved unusually effective in its formative years. But in later decades, its major successes were mainly due to a cocktail of institutional flexibility and decisive leadership that, ironically, at times sidestepped the grouping’s central tenet of consensus.

CHINESE MUSCLE FLEXING EXPOSES FAULT LINES IN ASEAN

 The South China Sea territorial disputes have exposed deep fault lines within ASEAN that have allowed China to veto any robust collective response effectively. Two historical episodes illustrate how ASEAN effectively embraced this minilateral decision-making led by particular member states, rather than insisting on unanimity. In the late 1990s, Indonesia and Malaysia played a critical role in coaxing Cambodia’s leadership to embrace more democratic politics as a precondition for membership. This explains why, in the face of Cambodia’s subsequent democratic backsliding, the country’s embattled progressive opposition leaders continue to look to ASEAN for respite today. Just a few years later, ASEAN was also pivotal in stabilizing East Timor after its years-long struggle for independence from Indonesia, Southeast Asia’s largest nation. Unsure of whether it could count on Jakarta’s cooperation, Thailand, then acting as ASEAN’s rotational chairman, called on member states to assist East Timor’s democratization without the need for consensus.

These exceptions to ASEAN’s commitment to the consensus had become necessary due to the group’s rapid expansion in the 1990s when it hastily absorbed a host of war-torn, post-communist states—such as Laos, Cambodia, and Vietnam—without proper preparations. The result was a more inflexible, conservative turn in ASEAN’s decision-making process toward the absolute insistence on unanimity, in order to hold what had become a motley crew of disparate regimes together. It also didn’t help that ASEAN’s founding generation of leaders were largely supplanted by unstable regimes and/or mediocre successors who lacked a deeper sense of regional unity.

 FROM CENTRALITY TO PERIPHERALITY THE SAD STORY OF ASEAN

 The sorry state of ASEAN has been on full display in recent years. To begin with, the regional body has been embarrassingly ineffectual in dealing with Myanmar’s horrific civil war. Because of ASEAN’s insistence on unanimity, the regional body has failed to agree on any decisive mechanism to hold the military junta in Naypyidaw to account for its escalating brutality against the pro-democracy armed opposition and ethnic militias. On the contrary, member states such as Thailand have continued to maintain robust economic and strategic ties with Myanmar’s regime, which has unleashed unfathomable violence on its own people since toppling the democratically elected government two years ago. In the words of former Indonesian Foreign Minister Marty Natalegawa, ASEAN has been “at a loss” over Myanmar, haplessly wavering over whether or not to expel the junta and engage with the opposition government-in-exile.

CHINESE POWER TO VETO SOUTH CHINA SEA TERRITORIAL DISPUTE

Meanwhile, the South China Sea territorial disputes have exposed deep fault lines within ASEAN that have allowed China to veto any robust collective response effectively. In particular, Cambodia, which deeply relies on Chinese largesse, has consistently sought to block even the discussion of the maritime disputes at ASEAN gatherings and publicly lambasted the Philippines for bringing an arbitration case against China over them in 2016. More recently, Cambodia also blocked proposals to hold all-ASEAN naval drills near the South China Sea. This largely explains why China’s brazen harassment of Philippine vessels in recent months drew condemnation from a whole host of nations, including neutral powers such as India and South Korea, but not from ASEAN, which remained largely missing in action.

As expected, last week’s summit fell short of even slapping China on the wrist for its systematic harassment of the fishing fleets and oil exploration vessels of multiple Southeast Asian claimant states in the South China Sea. Even worse, Beijing got away with once again dragging its feet on negotiating a legally binding maritime Code of Conduct, in accordance with the United Nations Convention on the Law of the Sea, or UNCLOS, to address the South China Sea disputes. To put things into perspective, as early as the 1980s, the Philippines had proposed such a legal regime following violent clashes between Vietnam and China in the Spratly Islands. A full generation later, China has only agreed to a draft of guidelines for such a Code of Conduct, with a vague promise to finalize the decades-old negotiations by the middle of this decade.

Frustrated by ASEAN’s inaction on China’s behavior, key member states have embraced a range of unilateral strategies. For its part, the Philippines has been solidifying its defense ties with the U.S., in particular, and the West more broadly, while Indonesia and Vietnam have been ramping up their defense spending to keep China’s naval ambitions in check. A better way forward, however, would be a return to multilateral diplomacy, in the form of issue-focused cooperation among like-minded regional states. As a start, the Philippines, Malaysia, and Vietnam could begin negotiating a maritime Code of Conduct among themselves based on the UNCLOS, while also seeking to resolve their own overlapping claims in the South China Sea based on the 2016 arbitral tribunal’s ruling in the case brought by the Philippines against China.

POINTS OF CONFLICT BETWEEN INDIA AND CHINA

There are many points of conflict between India and China. One of the main reasons for the current tensions is The Masood Azhar issue: Masood Azhar is the founder and leader of Jaish-e-Mohammed, an Islamic militant group that is highly active in Pakistan-occupied Kashmir. India has accused him of being behind several terrorist attacks on its soil and has sought to designate him as a global terrorist by the United Nations Security Council. members. The NSG issue: China has also been opposed to India’s entry into the Nuclear Suppliers Group (NSG), a group of 48 countries that control the export of nuclear materials and technology.

India, which is not a signatory to the Nuclear Non-Proliferation Treaty, has been seeking membership in the NSG since 2008, with the support of the United States and other major powers. However, China argued that India does not meet the criteria for joining the NSG and has insisted on a two-step criteria for joining the NSG  for India to sign NPT first.  The Dalai Lama issue: Dalai Lama is the spiritual leader of Tibetan Buddhism, who fled from Tibet to India in 1959 after a failed uprising against Chinese rule. He has been living in exile in India ever since and is regarded by China as a separatist leader who seeks to split Tibet from China. India, on the other hand, has granted him asylum and allowed him to carry out his religious and cultural activities.   The border between China and India is disputed at multiple locations, especially along the Line of Actual Control (LAC), which is a de facto boundary that separates the two countries in the Himalayan region.

LINE OF ACTUAL CONTROL BETWEEN INDIA AND CHINA

 The LAC is not clearly demarcated, and both sides have different perceptions of where it lies. This leads to frequent incidents of transgressions and stand-offs between the Chinese and Indian troops, who patrol the border areas. The most recent and serious clash occurred on June 15th, 2020 in the Galwan Valley causing death to both Indian and Chinese soldiers. Additionally, both China and India have been competing to build infrastructure along the border areas, such as roads, bridges, airstrips, and military bases. These projects are aimed at improving the connectivity and mobility of their forces, as well as asserting their claims over the disputed territories.

However, they also increase the chances of confrontation and escalation between the two sides. Additionally, Chinese claim of the Indian state of Arunachal Pradesh as part of China in the land claim in a newly published map ahead of the G-20 summit has irked India. India’s Foreign Minister Jaishankar Subhramanyam also dismissed China’s claim as  “Making absurd claims on India’s territory does not make it China’s territory” . If the US wants to retain its primacy in global politics China wants to claim its uncontested supremacy in Asia Pacific region. In August this year Indian Prime Minister Narendra Modi informally spoke to China’s President Xi on the sidelines of the BRICS summit in Johannesburg, where the premier highlighted New Delhi’s concerns about their unresolved border issues.

India’s foreign ministry said the two leaders agreed to intensify efforts to de-escalate tensions at the disputed border and bring home thousands of their troops deployed there. The disputed boundary has led to a three-year standoff between tens of thousands of Indian and Chinese soldiers in the Ladakh area. A clash three years ago in the region killed 20 Indian soldiers and four Chinese. “The two sides should bear in mind the overall interests of their bilateral relations and handle properly the border issue so as to jointly safeguard peace and tranquility in the border region,” the Chinese Foreign Ministry said after the two leaders’ meeting. Indian and Chinese military commanders had met earlier this month in an apparent effort to stabilize the situation. A border, dubbed the “Line of Actual Control,” separates Chinese and Indian-held territories from Ladakh in the west to India’s eastern state of Arunachal Pradesh, which China claims in its entirety. India and China had fought a war over their border in 1962. China claims some 90,000 square kilometers (35,000 square miles) of territory in India’s northeast, including Arunachal Pradesh with its mainly Buddhist population. India says China occupies 38,000 square kilometers (15,000 square miles) of its territory in the Aksai Chin Plateau, which India considers part of Ladakh, where the current faceoff is happening.

BIRTH OF INDIA AND PAKISTAN

 Conflict with Pakistan began with the differing interpretation of the two nations theory between Mohammed Ali Jinnah and Mahatma Gandhi, Sardar Ballav Bhai Patel, and Pandit Jawaharlal Nehru. Since no solution could be found India and Pakistan were born as two separate states. The Galwan episode convinced Indian foreign policy architects that dependence on China has to be reduced and promote free trade negotiations with the European Union and the United Kingdom, as well as the Resilient Supply Chain Initiative with Japan and Australia. These changes to its economic engagement with China have also been buttressed by India’s deepening strategic relationship with Western democracies.

For example, U.S.-India defense trade has grown from “near zero in 2008 to over 20 billion USD in 2020.” Most recently, Washington and New Delhi launched the Initiative on Critical and Emerging Technologies to expand their strategic technology partnership and industrial defense cooperation. The two militaries have also regularized several exercises, which now bring together the navies of Australia, India, Japan, and the United States, collectively known as the Quad. As New Delhi has hardened on Beijing, it has deepened its relationship with the United States and other Indo-Pacific partners. This also comes at a time of growing economic challenges and mutual mistrust between India and China. Inevitably, New Delhi’s new foreign policy direction will clash with Chinese interests and could likely lead to new challenges for managing the border disputes in 2023.

CONCLUSION

It is the impression of the writer that given the undying enmity of Pakistan and China’s aim to be the supremo in Global South India despite its desire to remain non-aligned would have no alternative but to join organizations like QUAD, a   free trade negotiations with the European Union and the United Kingdom, as well as the Resilient Supply Chain Initiative with Japan and Australia. These changes to its economic engagement with China have also been buttressed by India’s deepening strategic relationship with Western democracies.

For example, U.S.-India defense trade has grown from “near zero in 2008 to over 20 billion USD in 2020.” Most recently, Washington and New Delhi launched the Initiative on Critical and Emerging Technologies to expand their strategic technology partnership and industrial defense cooperation. The two militaries have also regularized several exercises which now bring together the navies of Australia, India, Japan and the United States, collectively known as the Quad. As New Delhi has hardened on Beijing, it has deepened its relationship with the United States and other Indo-Pacific partners. This also comes at a time of growing economic challenges and mutual mistrust between India and China. Inevitably, New Delhi’s new foreign policy direction will clash with Chinese interests and could likely lead to new challenges for managing the border disputes in 2023.

Friday, September 15, 2023

 flags china russia United States European Union

Cost Of Non-Negotiation With Russia Over Ukraine – OpEd 

By 

US President Joe Biden has been very firm with countries that have politico-economic relations with Russia. Equally, Vladimir Putin has been very firm in his warning to the US and the Western bloc not to cross his undefined “red line”. Russian President Vladimir Putin has warned the West not to cross a “red line” with Russia, saying such a move would trigger an “asymmetrical, rapid and harsh” response.

The warning came in his annual State of the Nation address, amid heightened tension with the West over Ukraine and jailed Putin critic Alexei Navalny. The tension increased when President Joe Biden in an interview with the American Broadcasting Corporation described Vladimir Putin as a “ killer”. Russians commented Joe Biden’s statement was unprecedented coming as it did from a sitting US President. Russia does not feel that it can be blamed for its attitude towards the Western bloc as Vladimir Putin has been repeatedly asking the West to respect her security perimeters, particularly on the issue of Ukraine. 

As reported by BBC President Putin said that some Western countries were like jackals trying to please the US, just as a jackal behaves with the tiger Shere Khan in Kipling’s tale The Jungle Book. “We don’t want to burn bridges, but if somebody interprets our good intentions as weakness, our reaction will be asymmetrical, rapid, and harsh,” he said. “We’ll decide for ourselves in each case where the red line is.” Such an undefined red line might have encouraged some countries to test American determination to punish those who have dared to deal with Russia.

In an article (August 23, 2330- Jonathan Fenton-Harvey- The New Yorker) gave the example of the UAE and commented that the war in Ukraine has continued to test nations’ global allegiances, and the countries of the Gulf Cooperation Council significantly embody this trend. In particular, the United Arab Emirates has worked proactively to embrace Russian business while hoping to evade pressure from the United States and its Western partners. 

Yet amid growing scrutiny over Russian ties, Abu Dhabi may have to adapt. Despite narratives of the UAE and Saudi Arabia drifting from the U.S. orbit, the Gulf states continue to recognize their dependency on U.S. security ties. In May this year the UAE announced it would withdraw from the U.S.-led maritime coalition, a 34-nation force aimed at counterterrorism and anti-piracy in the Red Sea and Persian Gulf. However, just days later, it confirmed its desire to continue working together with Washington on regional security. Indeed, Washington’s recently renewed naval activities in the Middle East may serve as a reminder to Abu Dhabi of the benefits of security cooperation with the United States.  Similarly, the US is unlikely to lose its dependable arms-buying market in Saudi Arabia despite the murder of a now universally known Saudi news reporter allegedly on the orders of the Saudi Crown Prince. 

Other analysts include Samuel Charap a senior political scientist at the RAND Corporation with research interests including the foreign policies of Russia and the former Soviet states; European and Eurasian regional security; and U.S.-Russia deterrence, strategic stability, and arms control. Charap’s book on the Ukraine crisis, Everyone Loses: The Ukraine Crisis and the Ruinous Contest for Post-Soviet Eurasia (coauthored with Timothy Colton), published in January 2017 has been widely acclaimed. In Samuel Charap’s words “The idea of sticks in international relations is not just for beating other countries.  It’s for achieving a better outcome.” He used the example of the long-standing Iran sanctions, which had finally compelled Iran to come to the negotiating table and vastly limit its nuclear program. The sanctions on Russia, he went on, were not like that. “Sanctions are only effective at changing another country’s behavior if they can be rolled back,” he said. He found Russian demands as prohibitive and remarked that Putin was asking the world’s most powerful military alliance to strip naked and run laps while holding a gun to Ukraine’s head.

One must, however, not lose sight of the back channel talks being held between Russia and the US so that either one or both do not fall into the Thucydides Trap. To explain the Thucydides Trap one has to refer to Professor Graham Allison of the Harvard Kennedy School who popularized the phrase “Thucydides’ trap,” to explain the likelihood of conflict between a rising power and a currently dominant one. This is based on the famous quote from Thucydides: “It was the rise of Athens and the fear that this inspired in Sparta that made war inevitable.” This usage has even spread to Chinese President Xi Jinping who said, “We all need to work together to avoid the Thucydides trap – destructive tensions between an emerging power and established powers … Our aim is to foster a new model of major country relations”.

 Any discussion on Russia and the Western bloc inevitably draws the discussionsits into modern China which today claims its place at the table framing the rules the rest of the world is expected to follow. Such expectations given the complexity of the global politico-economic situation prevailing today would be highly unrealistic. Famous British magazine The Economist has described the acute economic distress that China’s economy is presently going through. In the words of US President Joe Biden

The Economist has reported that China’s economy is a “ticking time bomb” because of its aging workers and unemployed young. The magazine also reported that others think it is suffering from “long COVID” because of the private sector’s “immune response” to Xi Jinping’s meddlesome rule. Many worry that China faces “Japanification”—a combination of debt, deflation, and demographic decline—in the long term and a “Lehman moment” in the more immediate future, as defaults cascade through the shadow-banking system. Even level-headed observers are shaken. The mood is the worst it has been for years if not decades.  The magazine adds that foreign direct investment all but vanished in the second quarter, falling by 87% year-on-year to $4.9bn, as multinationals repatriated their earnings rather than reinvesting them. The Shanghai Composite, a benchmark stock index, is down by about 5% compared with a year ago when the memory of Shanghai’s torturous lockdown was still fresh.

Prices for existing properties in China’s 100 biggest cities have dropped by 14% compared with their 2021 peaks.  In the smaller cities, where price information remains patchy, things are probably worse. An old trick many economists now expect growth to meet the government’s target of “around 5%” only because the word “around” gives it some wriggle room. Slowing growth has also been accompanied by declining prices and a weaker currency. The combined effect could wipe trillions off the dollar value of China’s GDP. In the past four months, for example, Goldman Sachs, a bank, has slashed its forecast for this year and next by a combined $3trn . For some observers, there is little hope of improvement. 

Adam Posen of the Peterson Institute for International Economics, a think-tank, has suggested that China’s economy is suffering from something akin to “long covid”. Draconian and arbitrary lockdowns in 2020-22 ruptured people’s faith in  Xi-Jinping’s meddlesome party. Households and entrepreneurs can no longer assume that the party will not bother them if they do not bother it.  Therefore private investment is tentative, purchases of consumer durables are weak and bank deposits are unusually high, as people self-insure against an uncertain future. Confidence has also suffered as a result of the “regulatory storm” that struck after 2020, humbling China’s online platform companies, such as Alibaba and Meituan, and all but killing the ed-tech industry.  Households may be despondent because employment is insecure, wages are stagnant and assets, especially houses, are losing value. If so, morale should pick up if the job and housing markets improve. The animal spirits of private entrepreneurs should also revive if their sales regain momentum.

It may, in fact, be property that is at the heart of the problem. In manufacturing, by contrast, private investment has been respectable, growing by 8% in June compared with a year earlier. Weak spending on consumer durables may also reflect property-market woes, which have depressed furniture and white-goods sales. Purchases of other consumer durables have shown more signs of life. Sales of cars surged in the first half of this year, helped by the exemption of electric vehicles from a 10% sales tax. China’s households are not so worried by their government that they will miss out on a bargain. 

The renewed weakness in China’s property market has certainly contributed to fears of deflation and default. The price of building materials fell by 5.6% in July compared with a year earlier, and the price of household appliances fell by 1.8%. The “deterioration in sales” was one reason Country Garden gave for failing to pay its bondholders on its deadline of August 6th this year.

The Economist concludes that China will still have to contend with demographic decline and diplomatic dangers. Its workforce will begin to shrink more rapidly in the 2030s.  And America’s restrictions on semiconductor exports will bite more keenly as technology advances. The second concerns the political dynamics at play. If China’s government acts with urgency, it has the tools it requires in order to engineer a recovery in the latter part of this year. But will it use them? Xi-Jinping lacks the credibility or focus of previous leaders. He now prizes greatness over growth, security over efficiency, and resilience over comfort. He wants to fortify the economy, not gratify consumers. These competing priorities may prevent China’s rulers from doing whatever it takes to revive demand. Xi-Jinping no longer wants growth at all costs. And so the country has not had it. At a growing cost.

 

India’s Presidency of G-20

 India is not a signatory to the Rome Statute and would not be required to arrest Vladimir Putin.  Relations between India and Russia are clearly not the problem, however.

  
5 mins read
 
Prime Minister Narendra Modi [Source: X]

INDIA’S ECONOMIC GROWTH COULD BEST THAT OF CHINA

Washington Post’s Adam Chandler has expressed the opinion that India’s taking over the Presidency of G-20 is propitious for the country. He writes “Last year, it overtook its neighboring giant, China, to become the world’s most populous nation, according to estimates from the United Nations. Its future looks comparatively brighter, too: India’s population is far younger than China’s, and the government expects its economy to grow by 7 percent this year — besting China. Under Prime Minister Narendra Modi, the country’s ambitions are becoming loftier: India last month succeeded in becoming the first nation to land a spacecraft on the moon’s south pole. This all is coupled with a growing geopolitical divide between the United States and China that is seeing Washington pull New Delhi closer — despite its concerns about Narendra Modi’s nationalist bent.

NARENDRA MODI WOOED BY THE USA

In June, Modi was greeted by President Biden for an official state dinner during a trip to Washington, where he addressed Congress for the second time, joining an elite group of world leaders such as Winston Churchill, Nelson Mandela, and Benjamin Netanyahu. More notable than who will be in New Delhi for the event is who will not be there: Russia’s Vladimir Putin and China’s Xi Jinping. Putin has not specified specifically why he will not attend the G-20 summit. Though he faces an arrest warrant from the International Criminal Court due to alleged oppression during the invasion of Ukraine.  India is not a signatory to the Rome Statute and would not be required to arrest Vladimir Putin.  Relations between India and Russia are clearly not the problem, however.

INDIA-RUSSIA FORGED IN BLOOD

Modi spoke with Putin on the phone just last week, with a warm-sounding statement from the Indian government saying that the prime minister thanked his Russian counterpart for “Russia’s consistent support to all initiatives under India’s G-20 Presidency,” and that the two leaders “reviewed progress on a number of issues of bilateral cooperation.”These are good words indeed. But India is unlikely to have a smooth sail in her Presidency of the group.

India and Russia consider their relations as forged in blood. But for Russia’s repeated veto in 1971 Bangladesh’s war of liberation could have been delayed for an indefinite period. Wikipedia informs that the G20 is the latest in a series of post–World War Two initiatives aimed at international coordination of economic policy, which include institutions such as the ‘Bretton Woods twins”, the International Monetary Fund, and the World Bank, and what is now the World Trade Organization would not have been born. The G20 was foreshadowed at the Cologne summit of the G7 in June 1999 and formally established at the G7 Finance Ministers’ meeting on 26 September 1999 with an inaugural meeting on 15–16 December 1999 in Berlin. As of 2023, there are 20 members in the group: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, South Korea, Japan, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union. Guest invitees include, amongst others, Spain, the United Nations, the World Bank, the African Union, and ASEAN.

ADB PREDICTS CHINA AND INDIA WILL PLAY IMPORTANT ROLES IN GLOBAL ECONOMY

A 2011 report released by the Asian Development Bank (ADB) predicted that large Asian economies such as China and India would play a more important role in global economic governance in the future. The report claimed that the rise of emerging market economies heralded a new world order, in which the G20 would become the global economic steering committee. The ADB furthermore noted that Asian countries had led the global recovery following the late 2ooo recession. It predicted that the region would have a greater presence on the global stage, shaping the G20’s agenda for balanced and sustainable growth through strengthening intraregional trade and stimulating domestic demand.

CRITICISM OF G-20’S EXCLUSIVITY

Criticism by the Danish Institute of International Studies of the G20’s exclusivity, particularly highlighting its underrepresentation of African countries and its practice of inviting observers from non-member states as a mere “concession at the margins”, which does not grant the organization representational legitimacy. Concerning the membership issue, US President Barack Obama noted the difficulty of pleasing everyone: “Everybody wants the smallest possible group that includes them. So, if they’re the 21st largest nation in the world, they want the G21, and think it’s highly unfair if they have been cut out.” Others stated in 2011 that exclusivity is not an insurmountable problem and proposed mechanisms by which it could become more inclusive. Things however has changed for China.

XI-JINPING’S AGE OF STAGNATION

In an article titled Xi’s Age of Stagnation The Great Walling-Off of China by Ian Johnson September/October 2023 published on August 22, 2023has written about the youth unemployment rate is over 20 percent, and many people wonder how their children will be able to get married if they cannot afford to buy an apartment. Figures for the second quarter were slightly better, but only compared with the second quarter of last year, when the economy was nearly brought to a standstill by COVID lockdowns. A variety of indicators show growing vulnerabilities in a range of sectors, and many Chinese feel they are in a recession.

The authors have also pointed out the asphyxiant style of government under Xi-Jinping. In comparing to this predecessor’s style of governance they wrote in decades past, if accidents or disasters occurred that reflected poorly on the party, leaders such as former president Hu Jintao and former prime minister Wen Jiabao visited the locales in question to show they cared, drawing on much the same playbook as their Western counterparts in such situations.

Xi also travels often around China, but rarely to express condolences, let alone to take implicit government responsibility for failures. Instead, he mostly visits local communities to exhort them to comply with party doctrine and government policy. This feeds into the impression among many Chinese people of an increasingly remote leadership that allows few dissenting viewpoints, shuns internal debate, and feels no compulsion to explain itself to the public.

DIFFERENCE BETWEEN XI-JINPING’S CHINA AND FORMER EASTERN BLOC

The differences between Xi’s China today and the Eastern bloc of the 1960s and 1970s are many. In those years, the countries in the Soviet sphere experienced a shortage of economy, with lines for bread and years-long waits to buy automobiles.

There are no signs of such privation in China today. Nonetheless, the government’s pursuit of total control has set the country on a path of slower growth and created multiplying pockets of dissatisfaction. Critics of the regime point out that Beijing’s restrictions on information very likely created the conditions that led to the COVID-19 crisis: in late 2019, local officials hushed up early warnings of the virus because they feared that bad news would reflect poorly on them. That silence allowed the virus to gain a foothold and spread around the world.

Although censorship keeps these and other government-induced problems out of the public eye, it also cuts off some of the smartest citizens from global trends and the latest research. The authoritarian style of governance cannot be but act as a bottleneck in the path of China’s growth and ultimately bring it down to the level of most G-20 countries from the pinnacle of being the richest country in the world.