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Sino-American relations: Origins of its future history

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Americans performed three very different policies on the People’s Republic: From a total negation (and the Mao-time mutual annihilation assurances), to Nixon’s sudden cohabitation. Finally, a Copernican-turn: the US spotted no real ideological differences between them and the post-Deng China. This signalled a ‘new opening’: West imaginedChina’s coastal areas as its own industrial suburbia. Soon after, both countries easily agreed on interdependence (in this marriage of convenience): Americans pleased their corporate (machine and tech) sector and unrestrained its greed, while Chinese in return offered a cheap labour, no environmental considerations and submissiveness in imitation. Both spiced it by nearly religious approach to trade.

However, for each of the twothis was far more than economy, it was a policy – Washington read it as interdependence for transformative containment and Beijing sow it as interdependence for a (global) penetration. In the meantime, Chinese acquired more sophisticated technology, and the American Big tech sophisticated itself in digital authoritarianism –‘technological monoculture’ met the political one.

But now with a tidal wave of Covid-19, the honeymoon is over.

(These days, many argue that our C-19 response is a planetary fiasco, whose size is yet to surface with its mounting disproportionate and enduring secondary effects, casing tremendous socio-economic, political and psychosomatic contractions and convulsions. But, worse than our response is our silence about it.

It is an established fact that the quintessence of Nazism was not Hitler and the circle of darkness around him. It was rather a commonly shared ‘banality of crime’ atmosphere: an acceptance of ordinary village people living next to Auschwitz, Treblinka, Dachau … The day when questioning stops and silent acceptance becomes a ‘new normal’ is a day when fascism walks in big time. So, our C-19 response illustrates –the argument goes– nothing else but a social pathology: the non-transparent concentration of power and our overall democracy recession; lasting consequences of cutbacks, environmental holocaust, privatisation of key intergovernmental and vital national institutions, ill-fated globalisation on (overly allopathic, mandated drugs -centred) healthcare, and luck of public data commons. Pandemic or plundermic …

Following a simple ratio that the one’s level of health is genetic expression of life-style choices made, there are also growing speculations if the lockdown – as the most notorious expression of monofocal perspective and rejection to any integrated judgment, is invasion or protection: Whether the aim is a herd-immunity or herd loyalty. And,if is there any back-to-normal exit from the crisis or this disaster ‘turned into planetary terror, through global coup d’état’ will be exploited to further something already pre-designed (with a fear, not as a side-effect, but rather as a manufactured tool to gain control) – more related to biotronics and demographics, than to health and economics or any common social purpose.

E.g. Le Monde Diplomatique – while examining the possible merge between tech oligopoly and political monopoly – claims: “Political decisions have been central in shaping this tragedy — from the destruction of animal habitats, to the asymmetric funding of medical research, to the management of the crisis itself. They will also determine the world into which we emerge after the worst is over.” Over the past 30 years, every critical conjecture had a similar epilogue: pardon and enhancement for the capital, a burden and suppression for the labour. The C-19 is no exception to it: Ever since early lockdowns of March 2020, the capital flows unhindered while the labour, ideas and humans are under the house arrest. The XXI century frontline is the right to health and labour, privacy and human rights. (LMD, IV20))

Still to be precise, the so-called virus pandemic brought nothing truly new to the already overheated Sino-American relations and to the increasing binarization of world affairs: It only amplified and accelerated what was present for quite some time – a rift between alienated power centres, each on its side of Pacific, and the rest. Would it be about an expansion of techno-totalitarian model of government as an alternative to liberal democracy? And, is now a time to return to the nation-state, a great moment for all dictators-in-waiting to finally build a cult of personality? Hence, will our democracy be electro-magnetised and vaccinated for a greater good (or greedier ‘god’)?

This text examines a prehistory of that rift; and suggests possible outcomes past the current crisis.

Origins of Future

Does our history only appear overheated, while it is essentially calmly predetermined? Is it directional or conceivable, dialectic and eclectic or cyclical, and therefore cynical? Surely, our history warns(no matter if the Past is seen as a destination or resource). Does it also provide for a hope? Hence, what is in front of us: destiny or future?[1]

Theory loves to teach us that extensive debates on what kind of economic system is most conductive to human wellbeing is what consumed most of our civilizational vertical. However, our history has a different say: It seems that the manipulation of the global political economy (and usage of fear as the currency of control) – far more than the introduction of ideologies – is the dominant and arguably more durable way that human elites usually conspired to build or break civilizations, as planned projects. Somewhere down the process, it deceived us, becoming the self-entrapment. How?

*                            *                            *                            *            

One of the biggest (nearly schizophrenic) dilemmas of liberalism, ever since David Hume and Adam Smith, was an insight into reality: Whether the world is essentially Hobbesian or Kantian. As postulated, the main task of any liberal state is to enable and maintain wealth of its nation, which of course rests upon wealthy individuals inhabiting the particular state. That imperative brought about another dilemma: if wealthy individual, the state will rob you, but in absence of it, the pauperized masses will mob you.

The invisible hand of Smith’s followers have found the satisfactory answer – sovereign debt. That ‘invention’ meant: relatively strong central government of the state. Instead of popular control through the democratic checks-&-balance mechanism, such a state should be rather heavily indebted. Debt – firstly to local merchants, than to foreigners – is a far more powerful deterrent, as it resides outside the popular check domain.

With such a mixed blessing, no empire can easily demonetize its legitimacy, and abandon its hierarchical but invisible and unconstitutional controls. This is how a debtor empire was born. A blessing or totalitarian curse? Let us briefly examine it.

The Soviet Union – much as (the pre-Deng’s) China itself – was far more of a classic continental military empire (overtly brutal; rigid, authoritative, anti-individual, apparent, secretive), while the US was more a financial-trading empire (covertly coercive; hierarchical, yet asocial, exploitive, pervasive, polarizing). On opposite sides of the globe and cognition, to each other they remained enigmatic, mysterious and incalculable: Bear of permafrost vs. Fish of the warm seas. Sparta vs. Athens. Rome vs. Phoenicia… However, common for the both(as much as for China today) was a super-appetite for omnipresence. Along with the price to pay for it.

Consequently, the Soviets went bankrupt by mid 1980s – they cracked under its own weight, imperially overstretched. So did the Americans – the ‘white man burden’ fractured them already by the Vietnam war, with the Nixon shock only officializing it. However, the US imperium managed to survive and to outlive the Soviets. How?

The United States, with its financial capital (or an outfoxing illusion of it), evolved into a debtor empire through the Wall Street guaranties. Titanium-made Sputnik vs. gold mine of printed-paper… Nothing epitomizes this better than the words of the longest serving US Federal Reserve’s boss, Alan Greenspan, who famously quoted J.B. Connally to then French President Jacques Chirac: “True, the dollar is our currency, but your problem”. Hegemony vs. hegemoney.

House of Cards (Forever r>g) 

Conventional economic theory teaches us that money is a universal equivalent to all goods. Historically, currencies were a space and time-related, to say locality-dependent. However, like no currency ever before, the US dollar became – past the WWII – the universal equivalent to all other moneys of the world. According to history of currencies, the core component of the non-precious metals’ money is a so-called promissory note – intangible belief that, by any given point in future, a particular shiny paper (self-styled as money) will be smoothly exchanged for real goods.

Thus, roughly speaking, money is nothing else but a civilizational construct about imagined/projected tomorrow – that the next day (which nobody has ever seen in the history of humankind, but everybody operates with) definitely comes (i), and that this tomorrow will certainly be a better day then our yesterday or even our today (ii).

This and similar types of collective constructs (horizontal and vertical) over our social contractshold society together as much as its economy keeps it alive and evolving. Hence, it is money that powers economy, but our blind faith in constructed (imagined) tomorrows and its alleged certainty is what empowers money.

Tellingly, the universal equivalent of all equivalents – the US dollar – follows the same pattern: Bold and widely accepted promise. For the US, it almost instantly substan-tiates extraterritorial economic projection: American can print (any sum of) money without fear of inflation. (Quantitative easing is always exported; value is kept home.)

(Empire’s currency loses its status when other nations lose confidence in ability of that imperial power to remain solvent. For the pre-modern and modern history, it happened with 5 powers – two Iberian, Dutch, France and the UK – before the US dollar took the role of world reserve currency. Interestingly, each of the empires held it for roughly a century. The US century is just about to expire, and there are already contesters, territorial and non-territorial, symmetric and asymmetric ones. On offer are tangibles and intangibles: gold, cryptocurrencies, and biotronics/nano-chemoelectricals.)

But, what does the US dollar promise when there is no gold cover attached to it ever since the time of Nixon shock of 1971?

Pentagon promises that the oceanic sea-lanes will remain opened (read: controlled by the US Navy), pathways unhindered, and that the most traded world’s commodity – oil, will be delivered. So, it is not a crude or its delivery what is a cover to the US dollar – it is a promise that oil of tomorrow will be deliverable. That is a real might of the US dollar, which in return finances Pentagon’s massive expenditures and shoulders its supremacy.

Admired and feared, Pentagon further fans our planetary belief in tomorrow’s deliverability – if we only keep our faith in dollar (and hydrocarbons’ energized economy), and so on and on in perpetuated circle of mutual reinforcements.

(Supplementing the Monroe Doctrine, President Howard Taft introduced the so-called ‘dollar diplomacy’ – in early XX c. – that “substitutes dollars for bullets”. This was one of the first official acknowledgements of the Wall Street – Pentagon symbiotic link.)

These two pillars of the US might from the East coast (the US Treasury/Wall Street and Pentagon) together with the two pillars of the West coast – both financed and amplified by the US dollar, and spread through the open sea-routs (Silicone Valley and Hollywood), are an essence of the US posture. Country that hosts such a dream factory, as the US does Hollywood, is easy to romanticize – though other 3 pillars are to take and to coerce.

This very nature of power explains why the Americans have missed to take the mankind into completely other direction; towards the non-confrontational, decarbonized, de-monetized/de-financialized and de-psychologized, the self-realizing and green humankind. In short, to turn history into a moral success story. They had such a chance when, past the Gorbachev’s unconditional surrender of the Soviet bloc, and the Deng’s Copernicus-shift of China, the US – unconstrained as a lonely superpower – solely dictated terms of reference; our common destiny and direction/s to our future/s.

Winner is rarely a game-changer

Sadly enough, that was not the first missed opportunity for the US to soften and delay its forthcoming, imminent multidimensional imperial retreat. The very epilogue of the WWII meant a full security guaranty for the US: Geo-economically – 54% of anything manufactured in the world was carrying the Made in USA label, and geostrategically – the US had uninterruptedly enjoyed nearly a decade of the ‘nuclear monopoly’. Up to this very day, the US scores the biggest number of N-tests conducted, the largest stockpile of nuclear weaponry, and it represents the only power ever deploying this ‘ultimate weapon’ on other nation.

To complete the irony, Americans enjoy geographic advantage like no other empire before. Save the US, as Ikenberry notes: “…every major power in the world lives in a crowded geopolitical neighborhood where shifts in power routinely provoke counterbalancing”. Look the map, at Russia or China and their packed surroundings. The US is blessed with its insular position, by neighboring oceans. All that should harbor tranquility, peace and prosperity, foresightedness.

Why the lonely might, an empire by invitation did not evolve into empire of relaxation, a generator of harmony? Why does it hold (extra-judicially) captive more political prisoners on Cuban soil than the badmouthed Cuban regime has ever had? Why does it remain obsessed with armament for at home and abroad? Why existential anxieties for at home and security challenges for abroad? Eg. 78% of all weaponry at disposal in the wider MENA theater is manufactured in the US, while domestically Americans – only for their civilian purpose – have 1,2 small arms pieces per capita.)

Why the fall of Berlin Wall 30 years ago marked a beginning of decades of stagnant or failing incomes in the US (and elsewhere in the OECD world) coupled with alarming inequalities. What are we talking about here; the inadequate intensity of our tireless confrontational push or about the false course of our civilizational direction? 

Indeed, no successful and enduring empire does merely rely on coercion, be it abroad or at home. The grand design of every empire in past rested on a skillful calibration between obedience and initiative – at home, and between bandwagoning and engagement – abroad. In XXI century, one wins when one convinces not when one coerces. Hence, if unable to escape its inner logics and deeply rooted appeal of confrontational nostalgia, the prevailing archrival is only a winner, rarely a game-changer.

How did we miss to notice it before? Simply, economy –right after history– is the ideologically most ‘colored’ scientific discipline of all.

To sum up; After the collapse of the Soviet Union, Americans accelerated expansion while waiting for (real or imagined) adversaries to further decline, ‘liberalize’ and bandwagon behind the US. One of the instruments was to aggressively push for a greater economic integration between regional and distant states, which – as we see now, passed the ‘End-of-History’ euphoria of 1990s – brought about (irreversible) socio-political disintegration within each of these states.

A Country or a Cause, Both or None?

Expansion is the path to security dictatum, of the post-Cold War socio-political and (hyper-liberal) economic mantra, only exacerbated the problems afflicting the Pax Americana, which acidified global stewardship; hence oceans, populations and the relations to the unbearable levels. That is why and that is how the capability of the US to maintain its order started to erode faster than the capacity of its opponents to challenge it. A classical imperial self-entrapment (by the so-called bicycle theory: keep pedalling same way or topple over).

Clearly, the US post-Cold War preponderance is now challenged in virtually every domain: America can no longer operate unrestrained in the traditional spheres of land, sea and air, not in newer ones like the (near and deeper) outer space and cyberspace. The repeated failure to notice and recalibrate such an imperial emasculation and retreat brought the painful hangovers to Washington, the most noticeably, by the last presidential elections.[2]Inability to manage the rising costs of sustaining the imperial order only increased the domestic popular revolt and political pressure to abandon its ‘mission’ altogether. (E.g. during the peak times of its longest – still ongoing – foreign intervention, the US was spending some $110 billion per annum in Afghanistan, roughly 50% more than annual American federal spending on education.) Perfectly hitting the target to miss everything else …

In short, past the Soviet collapse Americans intervened too much abroad, regulated too little at home, and delivered less than ever – both at home and abroad.  Such model attracts none. No wonder that today all around the globe many do question if the States would be appealing ever again. Domestically, growing number of people perceive foreign policy mostly as an expensive destruction, divinized trade and immigration as destroyers of jobsand communities. Its political system is unable to decouple and deconcentrate wealth and power which suffocates the very social fabrics.

Hence, Americans are not fixing the world anymore. They are only managing its decline. Look at their footprint in former Yugoslavia, Afghanistan, Iraq, Pakistan, Georgia, Libya, Syria, Ukraine or Yemen – to mention but a few. Violence as a source of social cohesion is dying out.                             

When the Soviets lost their own indigenous ideological matrix and maverick confrontational stance, and when the US dominated West missed to triumph although winning the Cold War, how to expect from the imitator to score the lasting moral or even a temporary economic victory?

Dislike the relationship with the Soviets Union which was on one clear confrontational acceptance line from a start until its very last day, Americans performed three very different policies on the People’s Republic: From a total negation (and the Mao-time mutual annihilation assurances), to Nixon’s sudden cohabitation.(Withdrawal of recognition from Formosa to Beijing formally opened relations between the two on 1 January 1979. On a celebratory tour to America later that very month, Deng Xiaoping recommended that China and the US were ‘duty bound to work together [and unite] to place curbs on the polar bear’).

Finally, a Copernican-turn: the US spotted no real ideological differences between them and the post-Deng China. This signalled a ‘new opening’ – China’s coastal areas to become West’s industrial suburbia. Soon after, both countries easily agreed on interdependence: Americans pleased their corporate (machine and tech) sector and unrestrained its greed, while Chinese in return offered a cheap labour, no environmental considerations and submissiveness in imitation. However, for both it was far more than economy lubricated by sanctified free trade, it was a policy – Washington read it as interdependence for transformative containment and Beijing sow it as interdependence for (global) penetration.American were left in a growing illusion that the Sino growth is on terms defined by them, and Chinese – on their side – grew confident that these terms of economic growth are only accepted by them.

The so-called Financial crisis 2008/09 (or better to say the peak time of Casino economy) undermined positions of the largest consumer of Chinese goods (US), and simultaneously boosted confidence of the biggest manufacturer of American products (PRC). Consequently, soon after; by 2012, Beijing got the first out-of-Deng’s-line leadership. (One of the famous Asia’s Bismarck dictatums was ‘hide the capabilities, bide your time’ – a pure Bismarckian wisdom to deter any domestic imperialism in hurry.) 

However, in the process of past few decades, Chinese acquired more sophisticated technology, and the American Big tech sophisticated itself in digital authoritarianism.

But,as America (suddenly) returns home, the honeymoon seems over now.

Why does it come now? Washington is not any more able to afford treating China as just another trading partner. Also, the US is not well situated to capitalize on Beijing’s eventual belligerence (especially with Russia closer to China than it was ever before).

The typical line of western neo-narrative goes as: ‘The CCP exploited the openness of liberal societies and particularly its freedom of speech as to plunder, penetrate and divert’. And; ‘Beijing has to bear the reputational costs of its exploitative practices’.

Accelerating collision course already leads to the subsequent calls for a strategic decupling (at best, gradual disengagements) of the two world’s largest economies and of those in their orbits. Besides marking the end of global capitalism which exploded since the fall of Berlin Wall, this may finally trigger a global realignment. The rest of the world would end up – willingly or not – in the rival (trade) blocks. It would not be a return to 1950s and 1960s, but to the pre-WWI constellations.

Epilog is plain to see: Neither more confrontation and more carbons nor more weaponized trade and traded weapons will save our day. It failed in our past; it will fail again any given day.

Entrapment in Imitation

Interestingly, China opposed the I World, left the II in rift, and ever since Bandung of 1955 it neither won over nor (truly) joined the III Way. Today, many see it as a main contestant, a leader from the global South. But, where is a lasting success?

There is a near consensus among the economists that China owes its economic success to three fundamental factors. Firstly, it is that the People’s Republic embraced an imitative economic policy (much like Japan, Singapore, Taiwan or ROK did before) through Deng-proclaimed opening. Second goes to a modest domestic consumption, and German-like thick home savings. Finally, as the third factor that the economists attribute to Chinese miracle, is a low production costs of Sino nation – mostly on expenses of its aging demography, and on expenses of its own labor force and country’s environment.[3](And that Beijing mixes up its nearly obsessive social control, environmental negligence and its dismal human and minority rights with the right to development.)

Therefore, many observers would agree that the so-called China’s miracle is a textbook example of a highly extractive state that generates enormous hidden costs of its development, those being social, environmental and health ones as much as expanding and lasting. And indeed, energy-intensive exports (especially carbon footprint) from China as well as its highly polluting industrial practices (overall ecological footprint) were introduced to and then for a long while tolerated in People’s Republic by the West.

Further on, China accepted a principled relation with the US (Russia, too), but insists on transactional one with its neighbors and BRI (Belt and Road Initiative) clients.

None of the above has an international appeal, nor it holds promise to an attainable future. Therefore, no wonder that the Imitative power fights – for at home and abroad – a defensive ideological battle and politics of cultural reaction. Such a reactive status quo has no intellectual appeal to attract and inspire beyond its borders.

So, if for China the XIX was a “century of humiliation”, XX “century of emancipation”, should it be that the XXI gets labeled as a “century of imitation”?

(The BRI is what the most attribute as an instrument of the Chinese planetary posture. Chinese leaders promised massive infrastructure projects all around by burning trillions of dollars. Still, numbers are more moderate. As the 2019The II BRI Summit has shown (and the forthcoming BRI Summit of November 2020 may confirm), so far, Chinese companies had invested USD 90 billion worldwide. Seems, neither People’s Republic is as rich as many (wish to) think nor it will be able to finance its promised projects without seeking for a global private capital. Such a capital –if ever – will not flow without conditionalities. The Asian Infrastructure Investment Bank (AIIB) and the BRICS or ‘New Development’ – Bank have some $150 billion at hand, and the Silk Road Infrastructure Fund (SRIF) has up to $40 billion. Chinese state and semi-private companies can access – according to the OECD estimates – just another $600 billion (much of it tight) from the home, state-controlled financial sector. That means that China runs short on the BRI deliveries worldwide. Ergo, either bad news to the (BRI) world or the conditionalities’ constrained China.)

How to behave in the world in which economy is made to service trade (as it is defined by the Sino-American high priests of globalization),while (preservation of domestic jobs and) trade increasingly constitutes a significant part of the big power’s national security strategy? And, how to define (and measure) the existential threat: by inferiority of ideological narrative – like during the Cold War; or by a size of a lagging gap in total manufacturing output – like in the Cold War aftermath. Or something third? Perhaps a return to an inclusive growth.

If our civilizational course is still the same – the self-realization of mankind; than the deglobalization would be a final price to pay for re-humanization of labor and overall planetary greening. Are we there yet?

Promise of the Schumann Resonance

Earlier in this text, we already elaborated on imperial fictions and frictions: Empires and superpowers create their own realities, as they are not bound to ‘situation on ground’. For them, the main question is never what they can but what they want in international conduct.

For sure, there is no intellectual appeal in a growth without well-being, education that does not translate into fair opportunity, lives without dignity, liberalization without personal freedom. Greening international relations along with a greening of social fabrics and its economy – geopolitical and environmental understanding, de-acidification and relaxation is that missing, third, way for tomorrow.

This necessitates both at once: less confrontation over the art-of-day technology and their de-monopolized redistribution as well as the resolute work on the so-called Tesla-ian implosive/fusion-holistic systems. That would include the free-transfer non-Hertzian energy technologies (able to avoid life in electromagnetic technologically generated soup of unbearable radiation toxicity, actually able to de-toxicate our troposphere from dangerous fields, waves and frequencies emittance- drawingus closer to Schumann resonance);carbon-sequestration; antigravity and self-navigational solutions;bioinformatics and nanorobotics. Surely, with the bioinformatics and nanorobotics being free from any usage for eugenics’ ends (including the vaccination for microchipping purpose).

In short, more of initiative than of obedience (including more public control over data hoovering). More effort to excellence (creation) than a struggle for preeminence (partition).Leader of the world needs to offer more than just money and intimidation.

‘Do like your neighbor’ is a Biblical-sounding economic prophecy that the circles close to the IMF love to tirelessly repeat. Indeed, it is hard to imagine a formidable national economic prosperity, if the good neighborly relations are not built and maintained.[4] Clearly, no global leader has ever in history emerged from a shaky and distrustful neighborhood, or by offering a little bit more of the same in lieu of an innovative technological advancement.

(Eg. many see Chinese 5G – besides the hazardous electrosmog of IoT that this technology emits on Earth’s biota – as an illiberal innovation, which may end up servicing authoritarianism, anywhere.[5]And indeed, the AI deep learning inspired by biological neurons (neural science) including its three methods: supervised, unsupervised and reinforced learning can end up by being used for the diffusion of digital authoritarianism, predictive policing and manufactured social governance based on the bonus-malus behavioral social credits.)

Ergo, it all starts from within, from at home; socio-economically and environmentally. Without support from a home base (including that of Hong Kong, Xinjiang and Tibet), there is no game changer. China’s home is Asia. Its size and its centrality along with its impressive output is constraining it enough.

Conclusively, it is not only a new, non-imitative, turn of socioeconomics and technology what is needed. Without truly and sincerely embracing mechanisms such as the NAM, ASEAN and SAARC (eventually even the OSCE) and the main champions of multilateralism in Asia, those being India Indonesia and Japan first of all, China has no future of what is planetary awaited – the third force, a game-changer, discursive power, lasting visionary and trusted global leader.[6]

If there was ever in history a lasting triumph, this is over now. In the multipolar world of XXI century dominated by multifaceted challenges and multidimensional rivalries, there is no conventional victory.  Revolution or restauration?

Post Scriptum:

To varying degrees, but all throughout a premodern and modern history, nearly every world’s major foreign policy originator was dependent (and still depends) on what happens in, and to, Russia.So, neither a structure, nor content or overall direction of world affairs for the past 300 years has been done without Russia. It is not only a size, but also a centrality of Russia that matters. That is important as much (if not even more), as it is an omnipresence of the US ora hyperproduction of the PR China. Ergo, that is anuninterrupted flow of manufactured goods to the whole world, it is a balancing of the oversized and centrally positioned one, and it is the ability to controllably corrode the way in and insert itself of the peripheral one. The oscillatory interplay of these three is what characterizes our days.

Therefore, reducing the world affairs to the constellation of only two super-players – China and the US is inadequate – to say least. Itis usually done while superficially measuring Russia’s overall standing by merely checking its current GDP, and comparing its volume and PPP, and finding it e.g. equal to one of Italy. Through such ‘quick-fix’, Russia is automatically downgraded to a second-rank power status. This practice is as dangerous as it is highly misleading. Still, that ill-conceived argument is one of the most favored narratives which authors in the West are tirelessly peddling. What many analysts miss to understand, is in fact plain to see; throughout the entire history of Russia: For such a big country the only way to survive – irrespectively from its relative weaknesses by many ‘economic’ parameters – is to always make an extra effort and remain great power.

To this end, let us quickly contrast the above narrative with some key facts: Russia holds the key positions in the UN and its Agencies as one of its founding members (including the Security Council veto right as one of the P5); it has a highly skilled and mobilized population; its society has deeply rooted sense of a special historic mission (that notion is there for already several centuries – among its intellectuals and enhanced elites, probably well before the US has even appeared as a political entity in the first place). Additionally and tellingly, Moscow possesses the world’s largest gold reserves (on surface and underground; in mines and its treasury bars); for decades, it masters its own GPS system and the most credible outer space delivery systems (including the only remaining working connection with the ISS), and has an elaborate turn-key-ready alternative internet, too. 

Finally, as the US Council of Foreign Relations’ Thomas Graham fairly admits: “with the exception of China, no country affects more issues of strategic and economic importance to the US than Russia. And no other country, it must be said, is capable of destroying the US in 30 minutes.” (FAM, 98-6-19, pg.134)


[1]Flow and irreversibility (as well as the non-directionality and the Boltzmann’s unfolding) of time is one of the fundamental principles that governs visible (to say; comprehensible) universe. If and when so, the Future itself must be certain, but unshaped. Hence, Future is a manifestation of the second law of thermodynamics (one of the fundamental principles of chemo-physics that governs us), but it also has to be (a net sum of) our collective projection onto the next: Collapse of the (multivectoral) probability and its realisation into (a four dimensional) possible tomorrow.

[2]Average American worker is unprotected, unorganised/disunionised, disoriented, and pauperised. Due to (the US corporate sector induced) colossal growth of China, relative purchasing power of American and Chinese labourer now equals. At present, the median US worker would frictionlessly accept miserable work conditions and dismal pay, not too different from the one of the Chinese labourers – just to get a job.The first to spot that and then wonderfully exploited it was the Trump team.

[3]High tech and know-how appropriation via mandated/forced technology transfers and copy-cats, joint ventures, discriminatory patent-licencing practices and cross-sectoral state-led industrial modernisation have lifted China up the value chain. No wonder that its GDP per capita has jumped from $194 (1980) to over $9,000(2019). Beijing is modernising its navy, and is engaged in international economic expansion and geopolitical projection via its Belt and Road Initiative, and so far has bought, built or is operating 42 ports in 34 countries. In the meantime, Washington is publicly lamenting return to a ‘worker-focused trade policy’ – as the US Trade Representative Robert E. Lighthizer calls it – and openly objecting to both ‘market-distorting state capitalism in China and a dysfunctional WTO’. “No trade policy decision since the end of WWII proved more devastating to working people than the extension of permanent normal trade relations to China in 2000. Despite President Clinton’s predictions… , the opposite occurred” – he concludes. (FAM, 99/04/20)

[4]Fully aware of it, China and Russia (in their historical and yet still ongoing rapprochement) are pushing on a new Asian continental/regional security organisation. Building on the best legacy of comprehensive pan-European security mechanism – that of the Vienna-based OSCE (Organisation for Security and Cooperation in Europe), these two are committing themselves to and inviting their neighbours to join with the CICBMA (Conference on Interaction and Confidence Building Measures in Asia), architecting the CSTO (Collective Security Treaty Organisation) and the QCCM (Quadrilateral Cooperation and Coordination Mechanism). It is on a top of already elaborate SCO (Shanghai Cooperation Organisation) and well-functioning economic FORAs – China-run AIIB (Asian Infrastructure Investment Bank) and Russia-backed EAEU (Eurasian Economic Union). Hence, in a matter of just two decades the central section of Eurasian continent became the most multilateralised – and therefore stabile, region of the world. The collective one is far better than the bilateral or selective/Ad Hoc security arrangement preferred by the US in the Asia-Pacific. Alliances are built on shared interested, solidified by formulated principles and maintained on reliability and predictability – hence, are structural stabilisers. 

[5] Seems that China leads but is not alone with its much-criticised bonus-malus social credit system powered by facial recognition technology. Human Rights monitory agencies (including the US Carnegie Endowment’s AI Global Surveillance Index) report that practically each and every of the G-20 countries extensively uses the AI-enabled surveillance appliances, including variety of facial recognition programs, aimed at social ‘predictability’. Not to mention that such new technologies are particularly dangerous for weak democracies since many of their digital tools are dual use technology.

[6]Over the past few months, People’s Republic has upped the ante in nearly all of its many territorial disputes and even provoked new ones, in another departure from past practice. Beijing has also reversed course when it comes to its national periphery. “Past Chinese leaders, notably Deng Xiaoping and Jiang Zemin, believed in the institutionalized processes of collective leadership. Xi has disabled or neutralized many of these channels. The world may now be getting a sense of what China’s decision-making looks like when a singularly strong leader acts more or less on his own -noted Campbell-Rapp-Hooper recently (FAM, 4/2020). That of course triggers constant shockwaves all over Asia. While Indonesia is contemplating the NAM’s reload and the ASEAN block strengthening, others are reactive. India and Japan, two other Asian heavyweights, are lately pushed to sign up on the so-called Indo-Pacific maritime strategy with the United States. However, none of these three has any coherent plan on what to do on the Asian mainland. They all three differ on passions, drives and priorities. This is so since the truly pan-continental organization is nonexistent in Asia.

Modern Diplomacy Advisory Board, Chairman Geopolitics of Energy Editorial Member Professor and Chairperson for Intl. Law & Global Pol. Studies contact: anis@bajrektarevic.eu

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Americas

Maximizing Biden’s Plan to Combat Corruption and Promote Good Governance in Central America

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Authors: Lauren Mooney and Eguiar Lizundia*

To tackle enduring political, economic and security challenges in the Northern Triangle countries of El Salvador, Guatemala and Honduras, the Biden administration is attempting to revitalize its commitment to the region, including through a four-year, $4 billion plan submitted in a bill to Congress.

In its plan, the White House has rightly identified the root causes of migration, including limited economic opportunity, climate change, inequality, and violence. Systemic corruption resulting from the weak rule of law connects and entrenches the root causes of migration, while the increased devastation brought about by climate change exacerbates economic hardship and citizen insecurity. 

The renewed investment holds promise: previous foreign assistance in the Northern Triangle has shown results, including by contributing to a reduction in the expected level of violence. As the Biden Administration finalizes and begins implementing its Central America strategy, it should include three pillars—rooted in lessons learned from within and outside the region—to maximize the probability that the proposed spending in U.S. taxpayer funds has its intended impact. 

First, the Biden administration should deliver on its promise to make the fight against corruption its number one priority in Central America by supporting local anti-graft actors. The sanctions against officials which the United States is considering  are a step in the right direction, but lasting reform is best accomplished through a partnership involving regional or multilateral organizations. Guatemala’s international commission against impunity (CICIG) model was relatively successful until internal pushback and dwindling U.S. advocacy resulted in its dismantlement in 2019. Though Honduras’ equivalent was largely ineffective, and El Salvador’s recently launched version is marred by President Bukele’s campaign against judicial independence, there is room for learning from past mistakes and propose a more robust and mutually beneficial arrangement. The experience of Ukraine shows that while external engagement is no silver bullet in eliminating corruption, the role of foreign actors can lead to tangible improvements in the anti-corruption ecosystem, including more transparent public procurement and increased accountability for corrupt politicians.

In tandem with direct diplomatic pressure and helping stand up CICIG-like structures, the U.S. can harness lessons from prior anticorruption efforts to fund programs that address other aspects of graft in each country. This should involve empowering civil society in each country to monitor government compliance with anti-corruption laws and putting pressure on elected officials to uphold their commitments. While reducing impunity and improving transparency might not automatically persuade Central Americans to stay, better democratic governance will allow the three Northern Triangle nations to pursue policies that will end up expanding economic opportunities for residents. As Vice President Harris recently noted, any progress on addressing violence or food insecurity would be undermined if the environment for enabling corruption remains unchanged.

Second, the United States should support local initiatives to help reverse the deterioration of the social fabric in the region by expanding access to community decision-making. Given the high levels of mistrust of government institutions, any efforts to support reform-minded actors and stamp out corruption at the national level must be paired with efforts to promote social cohesion and revitalize confidence in subnational leaders and opportunities. In the Northern Triangle countries, violence and economic deprivation erode social cohesion and undermine trust in democratic institutions. The U.S. government and practitioners should support civic efforts to build trust among community members and open opportunities for collective action, particularly in marginalized areas. A key component of this is expanding sociopolitical reintegration opportunities for returning migrants. In so doing, it is possible to help improve perceptions of quality of life, sense of belonging, and vision for the future. While evidence should underpin all elements of a U.S. Strategy for Central America, it is particularly important to ensure social cohesion initiatives are locally-owned, respond to the most salient issues, and are systematically evaluated in order to understand their effects on migration.

Lastly, the U.S. should take a human-rights based approach to managing migration and learn from the pitfalls associated with hardline approaches to stem migration. Policies rooted in a securitized vision have a demonstrable bad record. For example, since 2015, the European Union undertook significant measures to prevent irregular migration from Niger, including by criminalizing many previously legitimate businesses associated with migration and enforced the imposition of legal restrictions to dissuade open and legal migration. Not only did this violate freedom of movement and create adverse economic consequences, but it also pushed migration underground, with individuals still making the journey and encountering significant threats to their lives, security and human rights.

A welcome realignment

Acknowledging the role of push factors is key to responding to migration effectively. Most importantly, putting political inclusion and responsive governance at the center is critical for ensuring vulnerable populations feel rooted in their community. A more secure, prosperous, and democratic Central America will pay dividends to the United States not only in terms of border security, but also in the form of improved cooperation to tackle global challenges, from climate change to the rise of China. 

*Eguiar Lizundia is the Deputy Director for Technical Advancement and Governance Advisor at IRI

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Sinophobia grows in Argentina: The relations still the crucial one

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Since COVID-19 came up in Wuhan, China followed by the growth of anti-sentiment China especially in Argentina. In late November 2020, the crowds happened in the capital of Argentina, Buenos Aires that involved the two Chinese entrepreneurs who have a supermarket chain and the customers speak loudly if the owners spread COVID-19 pandemic. According to a recent article, the slogan of ‘China out’ is available to speak up against the government.

At the same time, the Representative of the United States expressed similar concerns over the increasingly close relationship between China and Argentina, which come on top of attacks against Chinese immigrants whose country is blamed for the COVID-19 pandemic. The US also concerns that ‘the close relationship’ would limit Argentina’s economic autonomy.

Despite the troubles and the response from the US, the Argentine government still has incredible ties with China on several sides such as economic, military, and politics.

Economic side is crucial with Chinese government. Since President Xi introduced the ambitious project, Belt and Road Initiative, he imagined it can lift China’s economy. One of the developing countries and a member of G20, Argentina. During 2005-2019, Argentina received a maximum investment from China $ 30.6 billion, which accounted for 39 per cent of total Chinese investment in South America. Besides, the Chinese corporations also gave the proposal to build 25 industrial pig farms in Argentina, which will significantly increase pork exports to China. The project involving investment of $3.8 billion, is expected to generate annual production of 900,000 tons amounting to $2.5 million in annual exports.

Even captured by COVID-19 that caused an economic and health crisis, the government has several agreements within China. At least, Argentina has 15 infrastructure projects on the list that can be presented to Chinese corporations. The projects that Argentina prioritizes for investment from China are the rehabilitation plan of the San Martín Railway system, improvements to the Roca Railway line, infrastructure works on the Miter and Urquiza railway, and the redefinition of the Belgrano Cargas railway network.

A Marco Press reported Chinese government and Argentine government discussed the possibility of selling to Argentina the Sino-Pakistan’s resultant force, JF-17 fighter jets. In the history of both countries noted it was not the first time to have an arms deal. In 2015, the two countries signed a deal for Argentina’s purchase of several weapons systems. Estimated at US$1 billion, the deal included warships, armoured vehicles and fighter jets. These agreements were signed during the presidency of Cristina Fernandez de Kirchner (2008–2015), the left-wing and Peronist leader who built close ties with China. Despite, the retired right-leaning, Mauricio Macri in 2015 having cancelled these projects, the Peronist government in 2019 tried to revive it.

In late May 2021, The Argentinian government have announced an Ascention Technologies SA will have a collaboration with China’s counterpart, Satellite Hard to install a satellite ground station at an industrial park, The Southern city of Rio Gallegos. But before, since 2017, Argentina also hosted a Chinese military-run space station in Neuquen province. The facility signed between the PRC and the prior government of Cristina Fernandez, is largely operated by Chinese military personnel.

The station’s location and known dish characteristics appear consistent with China’s need for facilities in the hemisphere capable of continuously tracking objects in space, in support of its lunar and planetary space program. While the telescope facility does not have an overtly military purpose, the head of the U.S. Southern Command has mentioned it as an item of concern, as it is conceivably capable of intercepting signals from American or other overflying satellites, or supporting other Chinese strategic missions.

The Chinese space radar telescope is not, however, the only instance of China collaboration with Argentina on issues related to space. Great Wall Industrial Corporation has helped to build and launch 13 satellites for the commercial Argentine company Satellogic. Additionally, the state satellite company ARSAT also maintains commercial service contract relations with Chinese-based firms.

The several relations led by the Argentine government depend on China’s potensial. Instead of the protests that have grown up in Argentina, the government needs to upgrade their economic growth. But, for some reasons, the government should set an alarm if China steps up their acceleration. Besides, the government should be careful and must have more consideration to Chinese firms because the West analysts have stated that China’s foreign policy has an unseen reciprocal, the debt-trap. It had been proven that Sri-Lanka’s port, the Hambantota, went to the China side.

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The Gendered Effects of COVID-19 in Mexico

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Authors: Andi Dahmer, Kerby Gilstrap, Timothy S. Rich*

The Covid-19 pandemic has exacerbated many existing problems and inequalities in societies around the world. Informal labor, loosely defined as “productive activities that are not taxed or registered by the government” has suffered more job losses due to the pandemic. These jobs, such as fruit market vendors or hospitality workers among other lower-paying professions, are less likely to have remote working options which increases the exposure of their employees to COVID-19. According to the International Labor Organization, Latin America and the Caribbean region saw the largest reduction in hours worked in the labor market, estimated at a 20.9% loss in hours. In Mexico, women have experienced unemployment at higher rates than men. In March 2020, the unemployment rate was just under 3 percent, but due to shutdowns during the course of the pandemic, the unemployment rate has fluctuated between 4 and 5.5 percent since then. COVID-19 also largely accounts for a GDP decline of 8% in 2020.

Due to the pandemic and the rise of working remotely from home, many workers have found the lines between work and home blurred. According to Pew Research Center, in a survey about how Covid-19 has impacted working Americans, one third of respondents who work from home all or most of the time now work longer hours than before the pandemic. Results are similar for those who rarely or never work from home (23%) and for those whose work cannot be done from home (21%). In total, 24% of respondents said they are working more hours, 59% said about the same or did not know, and 17% said they are working fewer hours than before the pandemic.

This disparity is also true in Latin America, where women have been disproportionately impacted by the pandemic. Already, men were more likely than women to both participate in the labor market and hold jobs in “high-paying sectors”; however, even before the pandemic, women in Latin America and the Caribbean faced high levels of unemployment.

Women who did work often did so in sectors most affected by the pandemic (e.g. tourism, restaurants) and in which one could not work remotely, which exacerbated already high levels of unemployment across the region.

According to the LAC COVID-19 High Frequency Monitoring project, 56 percent of women lost their jobs either temporarily or permanently between May and August 2020, a rate 44 percent higher than that of men. Even as men began returning to the workforce in 2021, the gap in job losses by gender remained. Two of the largest factors to blame for this include: childcare and household responsibilities in combination with gender norms, and reliance on work in industries that require face-to-face interaction and are thus vulnerable to social distancing measures. Many could not transition to work from home, and those who could often did so while balancing traditional caregiving responsibilities for children and family members which ultimately became too burdensome to successfully balance, and contributed to an exit from the workforce.

To assess both views of the government’s response to COVID-19, but more importantly the shifts in work and household responsibilities due to the pandemic, we conducted an original web survey June 22-24 via Qualtrics, using quota sampling. First, we asked respondents to evaluate the statement “I am satisfied with the national government’s response to COVID-19”. Overall, 45.44% agreed with the statement, compared to 42.4% disagreeing. Men were slightly more likely than women to state they were satisfied with the response. Broken down by party, only supporters of the ruling MORENA party had a majority of respondents satisfied, consistent with the broader public opinion literature on the role of partisan lenses.

Next, we randomly assigned respondents to one of two prompts regarding responsibilities since COVID-19.

Version 1: Since the outbreak of COVID-19 in 2020, would you say that your work responsibilities have decreased, increased, or stayed about the same?

Version 2: Since the outbreak of COVID-19 in 2020, would you say that your household responsibilities have decreased, increased, or stayed about the same?

In terms of the work responsibilities version, we see that men were far more likely to say responsibilities had increased rather than decreased (41.52% vs. 16.96%), whereas women were more evenly divided (36.05% vs. 34.01%) However, when asked to evaluate the increase of household responsibilities, we see almost identical responses between men and women, with nearly two thirds of both (64.71% of men, 66.27% of women) stating responses increased.

These findings on their face may seem odd at first glance, when considering that household responsibilities, especially childcare, tend to fall disproportionately on women. However, this may be a case of men overestimating the time spent on housework, as seen elsewhere prior to the pandemic. Likewise, our survey cannot capture the extent to which household responsibilities increased, only that male and female respondents claimed increases. For example, according to a 2015 study, after the birth of their first child, a woman’s total house work (including unpaid labor and childcare) increases 21 hours per week whereas men’s increases to slightly more than 12 hours. It is not unreasonable to assume similar differential increases due to the pandemic, especially in light of gender role expectations in Mexico.

Finally, this analysis does not take into account the single mothers who are barred from re-entering the workforce as they are unable to find sufficient childcare to monitor their children when they work outside of the home. This is especially true of the gig economy and informal labor sectors which cannot be completed virtually. For example, according to the United Nations, women in Mexico before the pandemic performed 39 hours per week of unpaid labor (nearly the same amount as a full-time job) and the number is increasing due to COVID. This does not include increased homeschooling responsibilities as public schools In Mexico closed. Men, by contrast, performed only 13 hours of unpaid labor, and the inequity was especially stark for single mothers. In Mexico City, for example, record numbers of women have been forced to enter the sex trade in order to afford food, rent, and provisions for their families. The Associated Press estimates that nearly 40 % of the women new to sex work are single mothers who lack any other alternative.

How to reintegrate millions of women forced to exit the workforce during the pandemic will be a challenge to Mexico, but one faced by most developing and developed countries alike. The New York Times has labeled this mass exodus of women as a “shecession” and foreshadows long term implications of women’s exit throughout the global economy. There are many possible policy solutions to the inclusion of women in the workforce but none of them are short-term fixes. A simple start would be ensuring that women have access to childcare. If children are home alone, it is impossible for low-wage workers to return to informal labor sectors outside of the home. The second and third are increasing access to higher education for women around the world and closing the gender pay gap so that women’s rates of unemployment and employment in low-wage sectors are not substantially higher than men’s. While, during the 2010’s, Mexico implemented a Federal Daycare Program for working mothers, this program still did not have the capacity to address the rampant need in all parts of the country. Then, in February of 2019, citing austerity measures, President López Obrador permanently ended the program, resulting in more than 1.8 million parents living without access to childcare. Moreover, Mexico has one of the largest gender employment gaps as well as gender pay gaps in the OECD. Though policies are enacted to alleviate these economic stressors, policy rollbacks, like those listed above, have consistently communicated to women and indigienous women that their needs are not prioritized. The pandemic has exacerbated this gap and it is unclear to what extent the government will act to offer solutions.

Andi Dahmer is the Exchange Program Manager at the World Affairs Council of Kentucky. She is a 2019 Honors graduate of Western Kentucky University and a 2018 Truman Scholar.

Kerby Gilstrap is an Honors Undergraduate Researcher at Western Kentucky University. She is majoring in International Affairs, Arabic, and Sustainable Development

Timothy S. Rich is an Associate Professor of Political Science and Director of the International Public Opinion Lab (IPOL) at Western Kentucky University.

Funding for this survey work was provided by the Mahurin Honors College at Western Kentucky University.

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