The sage who
had said
that the East and the West shall never meet
has been proved to be wrong as the 21st
century is thought to belong to Asia with
China becoming the largest economy in the
world and India closely following behind. The US will of course remain the strongest and one of the
wealthiest powers on the international
scene.
But European Union and Russia will be
relegated to the second rung of the ladder
in terms of their contribution to the global
GDP. Brazil has already outranked the UK as
the fifth largest global economy
reflecting the increased importance of
BRIC countries in the management of the
politico-economic affairs of the world.
The retention of the post of IMF Managing Director by
Europe ( with the World Bank safely in
the hands of the US) does not necessarily
indicate the inevitable continuation
of the situation when the victors of the
Second World War had distributed among
themselves the spoils of war in
the post-War period including the permanent
seats of the UNSC.
The situation that evolved after the Second World War
produced the Cold War between the US and the Soviet
Union
along with
their allies suddenly came to an end with the
dissolution of the Soviet empire and thereby
more or less ending the great debate of the
20th century about the suitability of free
market system or Marxism as the ideology to
be followed by the international community.
Before the fall of the Berlin Wall many decolonized
countries joined to the socialist camp as
their destination perhaps because their
erstwhile masters belonged to the capitalist
camp. During the Cold War era Pandit Nehru
of India along with Egyptian President
Nasser and Indonesian President Sukarno
created a group called the Non-aligned
Movement
(NAM) that sought an equidistant
position between the US and the USSR. While
the Soviets were tolerant the Americans were
not as US Secretary of State John Foster
Dulles abhorred neutrality in international
politics. But NAM caught the imagination of
great number of newly freed nations till its
necessity ceased to exist with the withering
of the Soviet camp and now it exists as a
moral force.
The dissolution of the Soviet empire and more accurately
the end of the Cold War , according to
Robert Kagan, resulted for
Europe the loss of its centrality
in the conflict ridden world and the
attention of the US though NATO continued
to exist with a new mission, most
recently demonstrated in the Libyan crisis.
Whether this is another interpretation of
the Doctrine of Preemption, regime
change or the action expected of the
responsibility to protect expected of
the international community is open to
interpretation.
At this stage one may recall the report of the
International Commission on Intervention and
State Sovereignty(2001) that provides that
states’ sovereignty is not only a right but
also a responsibility to look after and
protect its own citizens, and if it fails or
the state is unwilling to perform its duties
then the principle of non-intervention gives
way to the international responsibility to
protect.
While this debate can go on the Arab Spring has
contested the condescending belief of
intellectuals like Bernard Lewis and some
others that practice of democracy is purely
a Western way of dealing public affairs that
may or may not be suitable for others. From
Tunisia to Egypt to Yemen to Bahrain and
currently in Syria the people are
demonstrating for a change from
authoritarian to democratic system. In the
process the victory of Muslim Brotherhood in
freely held elections may not suit the
West who had propped up tin soldiers along
with their coercive instruments to
stifle the free expression of the people for
decades for the selfish Western end for
oil and military bases in these countries.
Now that the bases have become less
important as the perceived threat from the
erstwhile Soviet Union has disappeared
the Western media happily telecasts the well
deserved trial of Hosni Mubarak lying on a
stretcher, the death of Mummer Gaddafi and
the discomfort of the Arab dictators.
Meanwhile the recession of 2008 that struck
the Western economies, has bankrupted
several nations, has put a question mark on
the continuity of Euro zone in its present
form , produced unemployment at record
figure, and raised the possibility of double
dip recession looming on the horizon.
While the effects of this recession are being felt in the
developing countries as well because of
reduced consumption in the West, China,
India and many developing countries have
continued to soar resuming once again the
dormant debate of the applicability of the
Western or the Chinese model as panacea to
bring economies to even keel. In the
ultimate analysis the adoption of
substantive democracy(economic
redistribution) as opposed to procedural democracy (multi party
elections) that,
according to Francis Fukuyama( The Future
of
History-Foreign Affairs-Jan/Feb 2012)
generated
century long competition for leadership
between Marxism and liberal democracy, and
was thought to have disappeared with the
demise of the Soviet Empire, has come
to fore. Such a choice cannot be stark or
unambiguous as varying degrees of
authoritarianism is lurking behind to
mislead the people by promising to deliver
economic goods (more urgently needed) with a
veiled promise to hold elections at a later
date ( such elections being of abstract
value to the hungry and destitute).
Primarily the US fighting wars in Iraq, Afghanistan
and in the badlands of Pakistan has produced
historian Paul Kennedy’s “imperial
overstretch” along with the end of unipolar
moment for the US. While it is too early to
write the epitaph on the unassailable
American power Harvard Professor Niall
Ferguson cites Italian philosopher Giambattista Vico’s
description of all
civilizations passing through three phases: the divine,
the heroic, and the human finally dissolving
into what Vico called “the barbarism of
reflection”. Anthropologist Jared Diamond explained the
extinction of Mayan civilization by
the application of Malthusian theory of
overpopulation unable to sustain a growing
demand for food that resulted in
deforestation, erosion, drought and finally
into civil war for scant resources leading
to extinction.
Many historians believe in the cycle of rise and fall of
civilizations. But Ferguson asks “what if
history is not cyclical and slow moving but
arrhythmicat times almost stationary but
also capable of accelerating like sports
car? What if the collapse does not arrive
over a number of centuries, but comes suddenly
like a thief in
the night”( Foreign Affairs-March/April 2010)? Like
the Greek, Roman, Ottoman and other great civilizations the Western
civilization one day will
no, longer be there. But while there can be no end of
such conjectures except the inevitability of
climate change a multipolar world has come
to stay, a desire long held by the French
but frustrated when George W Bush
decided to go it alone to invade Iraq on
assumptions now proved wrong i.e. Saddam
Hussein’s alleged ties with the Taliban and his alleged
possession of
WMD ready
to fire on the West.
The invasion of
Iraq,
according to Dr. Hans Koechler, brought about two
interesting phenomenon. The first was the
inability of the global hegemon to persuade
the UNSC to agree to the invasion while the
other was that the US felt emboldened enough
to go it alone in violation of the UN
Charter and without the apparent fear of
repercussion.
As the global power
structure evolves so will the distribution
of management of global affairs, if for
no other reason but that India and China, apart from their increased
economic and
military strength, will account
for a sizeable portion of the world’s
population. Many among the multitude
will remain poor and restive
posing
internal threat and potential threat to the
international community. Can the rich and
the powerful remain undeterred and unmindful
to the asymmetry in the distribution of wealth
and consequent
advantages that accrue to the wealthy in
the form of higher standard of living
through better education, health care,
income and leisure while the great
majority of the underprivileged continue to
remain on the other side of the divide?
The Great Divide in the Global Village, wrote Harvard
Professor Bruce Scott, did not produce
the desired results for the poor countries
through globalization that effectively
integrated the international markets into
one thus fading away national boundaries
into a global village due to barriers in
immigration and unhindered import of
poor countries’ products (Foreign
Affairs-Jan/Feb 2001). Neo-classical
economists’ prediction of greater flow
of capital from rich countries to the poorer
ones due to cheap labor did not materialize
as rich countries continued to trade among
themselves and the meager trade with the poorer
countries whose main exports consist of primary
products continued to have adverse terms of trade
as the main importers –US, Europe and Japan
have high trade barriers-- and hence
less income. Additionally FDI from rich
countries went overwhelmingly to other rich
countries on the arguments that the
developing nations lacked adequate
safety for the FDI and investors.
Few Asian
countries that posted strong growth like
Singapore and now China did it not because
of FDI from rich countries( though it was a
factor) but because of high domestic rate of
saving which in the case of China is 40%.
Bruce Scott points out that the Western
supremacy was not due to their adherence to
Washington Consensus but to the
emergence of strong nation state following
the Treaty of Westphalia (1648) and
subsequent colonization leading to the
transference of goods from the periphery to
the metropolis.
In addition to colonialism
an African-American Professor Eric Williams
in his book Capitalism and Slavery (1944)
posited that British industrial revolution
owed its origins fundamentally from the
surplus capital generated by the
trans-Atlantic slave trade and supply of
slave labor to American agricultural
market( Professor Sirajul Islam-Asiatic
Society of Bangladesh who posited that
American industrialization got impetus from
India trade like the slave trade did in
generating huge surplus capital).
Since
the days of gaining surplus capital through
colonialism or slave trade are over the
developing countries in particular have to
generate capital through savings and
attracting FDI. Export led growth is another
option as China has demonstrated in recent
past. But persistent trade imbalance can be
an irritant for the importing country
leading her to put up tariff and non-tariff
barriers forcing domestic consumers to
purchase commodities produced
domestically than the imported cheap ones.
In the past infant industry protection policy
was followed by
some counties of East Asia and Latin America
with success. But in today’s globalized
world such protection can breed inefficiency
and retaliation by countries
disadvantaged by protection and can invite
reciprocal tariff measures against country
putting up protection measures. But then
some degree of protection are followed by
almost all countries.
For example, free flow
of labor, both skilled and unskilled, face
various barriers in the form of language,
culture or religion. Though not officially
admitted the campaign against Islam in the
West of Islam’s perceived intolerance of
other religions have virtually constricted
the immigration of Muslims to the West
and has forced Muslim Diaspora in
those countries to negotiate a perilous
existence in the midst of veiled animosity
faced from the society in general.
The social discrimination inevitably leads
to economic deprivation furthered by
recession in developed economies where
immigrants are thought to have stolen the
jobs of the citizens. This irrational
prejudice becomes acute when directed
towards third generation immigrants who have
never visited the land of their
forefathers and consider their country of
birth as their own but are forced out of
the core of the society where important
decisions are taken. But then
discriminations are made not only relating
to the immigrants but on caste, creed and
religious grounds more widely practiced
in developing than in developed world.
Professor Timothy Besley( of London School
of Economics) states “One of the central
challenges in developing states is getting the
government to direct public resources toward
public goods rather than towards
special interestsin the form of corruption,
white elephants, or narrowly targeted
transfer for the benefit of the elites…If
governments build tax and legal systems and
direct public spending toward the needs of
their populations, then they will be able to
foster growth and human and social
development” ( Foreign Affairs-Jan/Feb
2012).
China is a shining example of transformation into a
development state
funneling significant resources into public
goods such as education and
infrastructure and in the process, estimates
World Bank, 600 million fewer Chinese live
in chronic poverty today than in
1980.Chinese model, however, is vulnerable
as more and more people are likely to demand
greater say in the affairs of governance as
middle class would grow with growing
prosperity.
In the ultimate analysis democracy with all its
perfections remains the
best form of government that humankind
have known since the advent of history. It
should be the endeavor of all sides of the
divides to lower the height of the wall so
that gated communities of prosperity do not
have to be built to save the residents of
those communities from the contagion of
poverty and destitution of the rest of the
world.
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