DODGE RAM
Rosch

ADVERTORIAL

OLD MUTUAL

FAMILY BUSINESS

How the World Will Look After the Coronavirus Pandemic

The pandemic will strengthen the state and reinforce nationalism. Governments of all types will adopt emergency measures to manage the crisis, and many will be loath to relinquish these new powers when the crisis is over.

by Stephen M. Walt

COVID-19 will also accelerate the shift in power and influence from West to East.  South Korea and Singapore have responded best, and China has reacted well after its early mistakes. The response in Europe and America has been slow and haphazard by comparison, further tarnishing the aura of the Western “brand.”

What won’t change is the fundamentally conflictive nature of world politics. Previous plagues did not end great-power rivalry nor usher in a new era of global cooperation.Previous plagues—including the influenza epidemic of 1918-1919—did not end great-power rivalry nor usher in a new era of global cooperation. Neither will COVID-19. We will see a further retreat from hyperglobalization, as citizens look to national governments to protect them and as states and firms seek to reduce future vulnerabilities.

In short, COVID-19 will create a world that is less open, less prosperous, and less free. It did not have to be this way, but the combination of a deadly virus, inadequate planning, and incompetent leadership has placed humanity on a new and worrisome path.

The coronavirus pandemic could be the straw that breaks the camel’s back of economic globalization.   China’s growing economic and military power had already provoked a bipartisan determination in the United States to decouple China from U.S.-sourced high technology and intellectual property and try to force allies to follow suit. Increasing public and political pressure to meet carbon emissions reduction targets had already called into question many companies’ reliance on long-distance supply chains. Now, COVID-19 is forcing governments, companies, and societies to strengthen their capacity to cope with extended periods of economic self-isolation.

It seems highly unlikely in this context that the world will return to the idea of mutually beneficial globalization that defined the early 21st century. And without the incentive to protect the shared gains from global economic integration, the architecture of global economic governance established in the 20th century will quickly atrophy. It will then take enormous self-discipline for political leaders to sustain international cooperation and not retreat into overt geopolitical competition.

Proving to their citizens that they can manage the COVID-19 crisis will buy leaders some political capital. But those who fail will find it hard to resist the temptation to blame others for their failure.

The COVID-19 pandemic will not fundamentally alter global economic directions. It will only accelerate a change that had already begun: a move away from U.S.-centric globalization to a more China-centric globalization.Why will this trend continue?

The American population has lost faith in globalization and international trade. Free trade agreements are toxic, with or without U.S. President Donald Trump. By contrast, China has not lost faith. Why not? There are deeper historical reasons. Chinese leaders now know well that China’s century of humiliation from 1842 to 1949 was a result of its own complacency and a futile effort by its leaders to cut it off from the world. By contrast, the past few decades of economic resurgence were a result of global engagement. The Chinese people have also experienced an explosion of cultural confidence. They believe they can compete anywhere.

Consequently, as I document in my new book, Has China Won?, the United States has two choices. If its primary goal is to maintain global primacy, it will have to engage in a zero-sum geopolitical contest, politically and economically, with China. However, if the goal of the United States is to improve the well-being of the American people—whose social condition has deteriorated—it should cooperate with China. Wiser counsel would suggest that cooperation would be the better choice. However, given the toxic U.S. political environment toward China, wiser counsel may not prevail.

In the short term, the crisis will give fuel to all the various camps in the Western grand strategy debate. The nationalists and anti-globalists, the China hawks, and even the liberal internationalists will all see new evidence for the urgency of their views. Given the economic damage and social collapse that is unfolding, it is hard to see anything other than a reinforcement of the movement toward nationalism, great-power rivalry, strategic decoupling, and the like.

Just like in the 1930s and ’40s, there might also be a slower-evolving countercurrent.But just like in the 1930s and ’40s, there might also be a slower-evolving countercurrent, a sort of hardheaded internationalism similar to the one that Franklin D. Roosevelt and a few other statesmen began to articulate before and during the war. The 1930s collapse of the world economy showed how connected modern societies were and how vulnerable they were to what FDR called contagion. The United States was less threatened by other great powers than by the deep forces—and Dr. Jekyll and Mr. Hyde character—of modernity. What FDR and other internationalists conjured was a postwar order that would rebuild an open system with new forms of protection and capacities to manage interdependence. The United States couldn’t simply hide within its borders, but to operate in an open postwar order required the building of a global infrastructure of multilateral cooperation.

So the United States and other Western democracies might travel through this same sequence of reactions driven by a cascading sense of vulnerability; the response might be more nationalist at first, but over the longer term, the democracies will come out of their shells to find a new type of pragmatic and protective internationalism.

READ MORE ON THE LINK ABOVE - 


ADVERTORIAL

OLD MUTUAL

CORONA VIRUS

Farming Diary

Jul
15

07.15.2020 - 07.17.2020

Aug
11

08.11.2020 - 08.14.2020

Sep
9

10:00 am 09.09.2020 - 11:00 am 09.11.2020

Marketing Video