Christian Harbulot, director and founder of the Paris School of Economic Warfare, has devoted much of his work to the study of economic warfare and the role it has played in the conflict dynamic of this century. But alongside the economic war, an instrument of similar importance that has allowed the achievement of American hegemony in the so-called multipolar world is certainly soft power.
Posing as the flagship country of free competition, the United States has achieved the best influence operation of the twentieth century. They were able to disguise their economic aggression by calling attention to the denunciation of European colonial empires. This rhetorical trick worked well. The stigmatization of the major ruling powers allowed them to disguise their own conquest initiatives as happened with the colonization of Hawaii. It is in the same spirit that they were able to trivialize their multiple external military interventions for operations to protect their citizens during the crucial period between the nineteenth and twentieth centuries.
America’s economic soft power was built around this misconception. The United States supported the emancipation of people from colonial oppression and, at the same time, supported the “open door” and free trade. One of their main criticisms of European colonial empires was the privileged exchanges between those empires and their metropolises. The Commonwealth was particularly targeted during the GATT negotiations (1947) and Washington refused to sign the Charter of Havana (1948) which it had desired but which maintained the principle of “imperial preferences” between European countries and their colonies.
By presenting itself as the guarantor of the discourse on free competition and open markets, the United States has built an image of itself as a “justice of the peace” in international trade. This cognitive advantage allowed them to mask their conquest initiatives. The US grip on oil fields in the Middle East and Iran has been the most visible illustration of the US economic war machine. The State Department, intelligence agencies and oil companies have worked together to impose their will on interested countries and potential competitors. The means of action used were often based on the use of force (indirect and then direct participation in armed conflicts in the Middle East, coups d’etat such as the overthrow of Mossadegh in Iran in 1953, destabilization of regimes that supported Arab nationalism.).
The economic soft power of the United States took shape in the aftermath of World War II. Armed with its decisive military superiority, the United States seeks to establish a process of domination in some vital markets. The Marshall Plan planners encouraged European agriculture to buy American soybeans for animal feed. This desire to establish a relationship of dependence on the United States will later spread to other key sectors such as the computer industry and then information technology. Data storage (Big Data) is one of the areas in which the American system is most determined to maintain its primacy and dominance. To “mask” these logic of domination and dependence, the American elites have resorted to two types of action.
1) The formatting of knowledge. Major American universities have gradually imposed their views on how world trade works, taking great care not to talk about geo-economic power struggles. This omission was fraught with consequences as it deprived European elites of a critical view of the nature of American corporate aggression in foreign markets. Academic disciplines such as management sciences or economics have banned any analysis of the phenomenon of economic warfare from their field of vision, which the United States nonetheless practiced with discretion.
2) The capture of knowledge. To avoid being overwhelmed by competing innovation dynamics, the United States has over time developed a very sophisticated monitoring system to identify the sources of innovation in the world in order to contact foreign researchers and engineers as soon as possible and offer them expatriation or financing solutions. through private funds. If this type of knowledge acquisition fails, the use of espionage is not excluded.
3) Misinformation and manipulation
The rise to power of the European and Asian economies since the 1970s has forced defenders of American economic interests to adapt their economic warfare techniques to the post-Cold War context. The allies of the main opponents faced before the decisive phase of the emergence of the Chinese economy.
In the 1990s, the United States opened several fronts. The most visible was the economic security policy implemented by Bill Clinton under the pretext that overseas companies were victims of “unfair competition”. Europeans were the first targets. Exposing corruption has become a favorite weapon of US economic diplomacy. But behind this principle there were much more offensive operations. In 1998 the Alcatel group suffered a series of information attacks carried out on the Internet, through media rumors regarding the lack of financial transparency of the general management. This campaign led to the historic fall of a share on the Paris Stock Exchange. To address this question, American industrialists financially supported the creation of NGOs such as Transparency International. These advocates of business moralization stigmatized countries that did not abide by global rules. On the other hand, no subject of this movement was interested in the opacity of the payment methods of the main players of the large auditing firms heavily involved in the signing of large international contracts. The exploitation of a moralizing discourse is now experiencing its operational peak with the extra-territoriality of law.
But the main transformation of American soft power in the last twenty years is the total exploitation of the information society. Everyone remembers the importance of the Echelon system or Snowden’s statements about the size of American espionage through the Internet and social media. By contrast, information warfare techniques applied in economics are still unfamiliar to the general public. The United States is now at war over how to use civil society actors to destabilize or weaken their adversaries.
Multilateralism Without the USA
It has already done so for a long time. As I have described earlier: “Nobody waits for Biden” (or the USA). The World is everywhere moving fast around the USA – leaving an ever more bewildered USA behind. US President Biden doesn’t get it. Biden still lives in his inner past experiences of the Cold War and the subsequent American World Order – both gone worlds.
Developments of the past three years
Here are some recent events, which highlight this strategic development:
1. The CPTPP was driven through by the other countries in 2018, after Trump putting “America First” jumped it. This now leaves Biden in a dilemma with his Trump mimic of Buy American (first).
2. The EU-MERCOSUR trade agreement was agreed in June 2019. A true multilateral agreement, not between countries, but between blocks of countries, two of the World’s Mega-Regions.
3. The Brazil-China trade pact in 2019, a result of over 10 years of strategic partnership. Brazil-China is an indicative case of a growing Mega-Region to Mega-Region multilateral cooperation as it involves most of South America. For example, it drives ambitious transcontinental South American infrastructure plans, which include to connect Brazil, Paraguay, and Bolivia with the growing Pacific shipping between Peru and China. Speak of “BRI Latino”.
4. The RCEP was initiated and in 2020 driven to conclusion by the ASEAN – not by China. The US is out. RCEP unites a complex of relationships between ASEAN, China, Japan, Korea, and Australia.
5. The Comprehensive Agreement on Investment (CAI) was driven through by the EU with China in the very last days of 2020, on 28 December – directly against the USA. China opens opportunities with the CAI agreement, while the USA diminishes with “Buy American”. Cars are a good illustration. China is a far bigger car market than the USA. With 25 million cars sold in 2019, China’s car market is nearly 50% bigger than the US car market. This perfectly illustrates China’s trade potential vs. the USA. China’s car market is not only so much bigger – China may double. In contrast, the USA car market completely stagnates. No, China did not just “drive a wedge” between the EU and the USA with the CAI agreement – the EU wants it. To be competitive in products like cars, the EU needs to be in China. The US loses out by staying out. The EU wants factories in China.
6. China, Russia, and Turkey make big agreements without the USA. Russia and Turkey decide on peace and the whole future of places like Syria and Nagorno-Karabakh, leaving the USA in the cold. They deal with Iran very much as they want.
7. India this year presses harder for an EU trade agreement. That the EU recently made the CAI agreement with China does not keep India away from seeking business with the EU. We see complex multilateral relations develop, not involving the USA.
8. The EU just decided (with China surely agreeing) to make the Euro a world-currency everywhere outside the USA. Here, the EU acts in direct contradiction to the American “Longer Telegram” which is clearly US President Biden’s China strategy. In Biden’s “Longer Telegram” China strategy, Biden wants a supreme dollar hegemony. Biden also wants dollar hegemony to run mammoth US deficits. Nobody else needs that. The EU wants to protect itself financially against the USA, including the possible US takeovers of leading EU tech companies. China is on – USA falls off.
More examples – a long-term trend
On top of the recent eight examples above, there is a range of multilateral developments which for several years have been running, fully independently of the USA. A good example is the complex EU-Russia-China cooperation the past decade which has created an exceptionally efficient railroad corridor of over 11,000 km from Chongqing to Duisburg. Not just without the US – even against the US. The Eurasian Landbridge railroad system is a great example of the emerging new multilateralism not involving the USA. It started in the early 2010’s and a decade later, it now involves more than the Mega-Region to Mega-Region level of EU, Eurasia, and China. It spreads out to individual EU and Central Asian countries. It furthers sprawling public as well as private business. And it is increasingly multitiered, involving Mega-Regional, Regional, national, and subnational authorities like Chinese province governments. We also have the Nord Stream gas cooperation Germany-Russia. Even against US sanctions. Imagine US reactions, if the EU for “climate-security” had tried to sanction against the US-Canada Keystone XL pipeline. Coming up, we have the strategic multilateral Africa-Europe partnership between the EU and the African Union (the AU). This is a growing multi-sectoral Mega-Regional cooperation involving trade, jobs, security, immigration, digital development, green transition etc. The USA is not involved. These examples all confirm the fast proliferation of successful multilateral agreements, cooperation, and understandings actively involving several of the World’s Regions – except the USA.
North American developments
The deepening of Canada’s multilateral cooperation to EU with the CETA trade deal in 2017 is also indicative of global cooperations increasing all the way round the USA – leaving the US rather alone. Instead of strengthening North American relations, the USA repeatedly sinks relations with its only two neighbors. The new North American free trade agreement USMCA has harder “local content” requirements and is thus substantially less favorable to Canada and Mexico than the NAFTA which is replaced. For instance, auto parts must now have 75% North American content. The USMCA also widely mandates a minimum wage in Mexico and Canada of 16 dollars/hour – the current US minimum wage is only 7.25 dollars. Even President Biden’s proposed minimum wage of 15 dollars/hour will still be one dollar less than what the USMCA mandates US neighbors – making unskilled Mexican workers uncompetitive. Canada’s steel exports are the biggest victim of US steel-sanctions aimed at China, ostensibly for “security reasons”. A hard hit on Canadian (and S.Korean) steel workers, which are military partners with the USA. And there is no sign that President Biden will reverse US protectionism. Recently, US President Biden with the stroke of his pen on a presidential order, unilaterally makes lost money out of 30 billions which Canada has at stake in the Keystone XL pipeline to the USA. Biden delivers a gut punch to Canada. President Biden’s “Buy America” order forbids not only allied EU, Japanese and Korean suppliers, but also Canadian and Mexican companies to supply the US government. Biden breaks multilateral commitments to the Government Procurement Agreement (GPA) under the WTO. Canada and Mexico are consistently being alienated by the USA and will increasingly need multilateral ties with others: The EU – and China.
Multilateralism without a hegemonic power (USA) has not only been happening for a long time – it even accelerates enormously, independently of the USA. The World is NOT waiting for newly elected US President Biden and his national security advisor Jake Sullivan with his “Longer Telegram” misconceptions. We see the emergence of the Mega-Regions, which I identified and described last year.
The World’s Mega-Regions integrate internally – and they make deals with each other externally. The USA is a single exemption to the development of Mega-Regions. Instead of integrating North America into a Mega-Region of shared governance, a “Buy America First” USA continues to consistently split itself from its two neighbors Mexico and Canada. The World of Regions is much-much more geopolitically complex than the bipolar or unipolar World ever were. The rules have changed – again. It is an entirely different reality from the obsolete imaginations of US President Biden and his team. As I stated in an interview of 7 January, published 21 January 2021 – Biden and the USA have much narrower space for maneuver than Biden and his team understand. The previous examples demonstrate how the new Regional World structure is radically more composite and multitiered than the bipolar or unipolar worlds were. Inside Mega-Regions you have other Regions. And in them even smaller Regions (sometimes criss-crossing). It is like the dolls inside dolls of the smiling Babushka nesting dolls, which I used in the picture with the USA marching off to its own perfect storm. (correctly, Matryoshka dolls, see picture below).
Africa, for example, is a Mega-Region. But inside, Africa’s Mega-Region is organized into 8 official Regional Economic Communities (RECs), generally with regional parliaments under the Africa Union (AU) Parliament. And most of these 8 African Regions are criss-crossing each other. Africa illustrates the fractal World structure (regions-within-and-across-regions) which we see today. In the Mega-Region of the EU, Spain with its own internal Regions is also an example of fractal geopolitical structures of regions-within-regions.
Expect to see a growth in multilateralism not only between Mega-Regions (ref. above) but also inside Mega-Regions and across tiers (levels of authority).
I saw these tendencies and wrote on them more than 5 years ago – see my 2016 paper The Future of Security
My work-paper 2016 on the Future of Security concludes with a chapter on China. Countries around China must increasingly find their own modus-vivendi with China, as US power there inexorably recedes. President Biden believes he can reverse that long-term trend – he cannot. The Future of Security is a work-paper still in progress. Mega-Regions add to my theory, and the examples in this paper add more pieces for a whole theory. We need that – to manage the World. We must intensely observe structures as the Multilateral Regional World develops – increasingly structures not involving the USA.
From our partner RIAC
Chinese-style soft power
US soft power once meant that the rest of the world dreamt of living like Americans. Recently, soft power is something attributed to China as well, but as much as all of us use Chinese-produced goods, no one really wishes to live in China. Upon closer inspection, China’s soft power is nothing more than lazily hidden strong power, i.e. attempts to achieve economic, political and military dominance through the use of force.
In response to China’s rapid economic growth, the establishment of networks of economic cooperation and its increased role on the global political stage, many political experts are tempted to talk about China’s soft power. However, most often they must talk about aggressive tactics employed by China that has nothing to do with the true meaning of soft power.
The wealth acquired by the Chinese through hard work began to worry the West when it became clear that China has aspirations to become a global superpower. China has the second largest defense budget, although it makes up only a third of that of the US. China has many trade partners, but they often complain that China tries to force unfair rules. Former US president Donald Trump began a trade war with China, and the EU has also accused China of favoring protectionism instead of a competition-based system. When in 2018 Canada, after a request by the US, detained Huawei’s chief financial officer Meng Wanzhou, China responded by detaining several Canadians, although Huawei denied having any ties to the Chinese government.
China has territorial claims in the South China Sea, of which it reminds by holding military exercises and causing tensions in the region.
What concerns China’s soft power, the usual suspects are the Confucius Institutes, which have been established all over the globe, and the Belt and Road Initiative. Another soft outlet of influence is China’s participation in international organization. However, if we look closer at each of them, none can be considered soft power instruments.
The Confucius Institutes teach not only the Chinese language, but also the Chinese government’s worldview. Professors in the US, Canada and Europe have urged to close the Confucius Institutes that operate in their universities, saying that they restrict academic freedom.
There have also been allegations that the Chinese Embassy has attempted to disrupt meetings between Latvian and Tibetan representatives. Former head of the Foreign Affairs Committee of the Latvian Saeima (parliament) Ojārs Ēriks Kalniņš revealed that in 2015, after a protest phone call from the Chinese ambassador, he tried to convince his colleagues not to welcome the Tibetan delegation in the Saeima. In 2013, after “instructions from higher authorities” posters advertising Dalai Lama’s lectures were removed from Riga International Airport, and since 2010 Latvia’s highest officials – president and the prime minister – have not officially met with Dalai Lama. The Latvian Ministry of Foreign Affairs advises officials not to meet with Dalai Lama or ministers of the Central Tibetan Administration, as confirmed by Latvian Minister of Foreign Affairs Edgars Rinkēvičs.
Many nations cooperate with China, but quite often they complain about China enforcing unfair conditions. This is a state-level policy – to further economic relations with numerous countries, at the same time imposing different restrictions and obstacles against them in order to tip the scales economic benefit in China’s favor.
Nevertheless, none of this can hide the ugliness of China’s communist regime in the eyes of other nations, especially at a time when China is suspected of withholding information on the true extent of the Covid-19 pandemic in the country, after the outbreak in Wuhan in 2019. Moreover, China is also being accused of Uyghur genocide, with more and more information on this issue coming to light in recent years.
Authoritarian regimes in their essence are incompatible with true soft power, as it’s three main pillars are an attractive culture, political values and a morally just foreign policy, and the only thing China has is an attractive culture. To compensate for the lack of benign political values and foreign policy, China employs means that cannot be considered part of the arsenal of soft power.
Cutting Distances with a Cricket Stump
Sports are the common threads that bind people and countries together. The interlocking rings of the Olympics rings symbolize the coming together of all nations. The former US President Nixon successfully used “ping-pong diplomacy” to open the US-China relationship leading the US to lift embargo against China on June 10, 1971. Cricket has been used in a similar manner to bring together the people of different countries, especially South Asians. Sport in South Asia is a significant part of culture. For South Asians, it is not only a sport but part of their collective identity. Some legends of Cricket in South Asia like Imran Khan, Sachin Tendulkar, Waseem Akram, Sunil Gavaskar, Kumar Sangakkara, Shahid Afridi, Shakaib Al Hasan, Shoaib Akhtar and Virat Kohli are the household names. Though, Pakistan is known as the manufacturer of the official FIFA World Cup ball, football is not popular in Pakistan. Pakistan has remained world champions in Squash, Hockey, Cricket, Snookers, Kabaddi and many other individual events of athletics, yet cricket is the most sought-after sport in Pakistan despite bottlenecks like terrorism and COVID-19.
While the overall sports spectrum went down, Pakistani cricket maintained its presence in cricketing world. Since last few years, Pakistani cricket team has been able to revive and reinvent itself internationally. I remember one of the slogans during Independence Cup 2017 in Lahore that said “It is not Pakistan vs. World, it is Pakistan vs. Terrorism”. In Pakistan, cricket is also a measure of national strength. Pakistan’s cricket teams take part in domestic competitions such as the Quaid-e-Azam Trophy, the Patron’s Trophy, ABN-AMRO Twenty-20 Cup, and the ABN-AMRO Champions Trophy. In 2015, Pakistan Cricket Board (PCB) organized a franchise based T20 cricket league known as the Pakistan Super League (PSL). The two seasons of PSL, 2020 and 2021 are held entirely by PCB. Additionally, Mr. Imran Khan, incumbent Prime Minister of Pakistan has conceived the new basic structure of the game in country.
Pakistan has won international cricket events, which include the 1992 Cricket World Cup, the 2009 ICC World Twenty20 and the 2017 ICC Champions Trophy besides finishing as runner-up in the 1999 Cricket World Cup and the 2007 ICC World Twenty20. Women’s cricket is also very popular, with KiranBaluch holding the current record of the highest score in a women’s test match with her innings of 242. Mr. Imran Khan has the honour of leading Pakistan national cricket team which won the 1992 Cricket World Cup. In 2010, he was also inducted into International Cricket Council’s Hall of Fame.
Hitting Balls not Borders
In South Asia, cricket and politics are interwoven. Wars have been fought and conflicts have been de-escalated alongside the bat hitting ball. The history of India-Pakistan relations did not inspire confidence in rebuilding relations through non-political means. However, the cricket matches between them are loaded with deeper political and diplomatic meaning.
From 1947 to 1965 only three test series were played between India and Pakistan. The 1965 and 1971 wars led to complete stoppage of cricket exchanges between two countries and there was a very little window to use cricket as a tool to maintain goodwill. After a gap of 17 years, cricket was resumed between them in 1978. The first instance of cricket diplomacy was in 1987 when General Zia-Ul-Haq visited India to attend a test match in Jaipur, and the resulting diplomatic dialogue cooled relations. In 2004, Prime Minister of India, Atal Bihari Vajpayee, went to Pakistan to attend the South Asian Association for Regional Cooperation (SAARC) summit. He also allowed Indian cricket team to visit Pakistan to play and advised the cricketers to not only win the matches, but also the hearts of Pakistani public. Over the next three years, the two countries played each other three times. Cricket diplomacy again emerged when then-Indian Prime Minister Manmohan Singh and his Pakistani counterpart, Yousuf Raza Gilani, met each other for the World Cup 2011 semifinal between India and Pakistan. Peace talks started again and Pakistan toured India in December 2012 for a T20 and three One Day Internationals (ODIs). The efficacy of cricket diplomacy in Indo-Pak relations can also be gauged from the fact that it brought both states to the negotiating table to manage the issue of Jammu & Kashmir (J&K).
All for One and One for All
Any major international sporting event like a World Cup gives one a sense of belonging to a larger global community. Sportsmen have always been successful goodwill ambassadors for any country and have admirers across borders. Fans’ love for cricket break all barriers that is why the peacekeepers see cricket as a tool to bind people together. Despite tensions, Pakistani fans recently celebrated India’s historic win over Australia. Nelson Mandela also believed that “Sport can create hope where once there was only despair. It is more powerful than government in breaking down racial barriers.”In short, a link between international cricket’s revival and national resilience need to be established. Restarting international cricket in South Asia would enhance the opportunity to establish aspired will of peace and prosperity.
Who pulls the strings of the government of India?
While talking to a Cornell college professor, Rahul Gandhi lamented (March 2, 2021) that the RSS was making use of...
Multilateralism Without the USA
It has already done so for a long time. As I have described earlier: “Nobody waits for Biden” (or the...
Reversing the Impact of the Pandemic on Female Workers in Latin America
Working women in Latin America and the Caribbean were disproportionately affected by the Covid-19 pandemic compared to men. This fact...
Chinese Diplomacy: Xi’s “Twin” Victory over Biden, Modi?
On China, the US public stands apart and India’s Hindu majority population is described by Beijing as “self-deceptive.” In the...
Zangazur corridor will stimulate regional cooperation
The trilateral declaration signed between the Presidents of the Russian Federation and Azerbaijan and the Prime Minister of Armenia on...
Smarter Food Policy Could Boost Health and Economic Recovery of Asian Cities
Across the world, the COVID-19 pandemic has highlighted the critical importance of reliable food systems that provide healthy and affordable...
Calibrating Vietnam’s role in ASEAN in 2021
Vietnam handed over the ASEAN chairmanship baton to Brunei in November 2020, but at the same time also handed over...
Americas3 days ago
Witnessing Social Racism And Domestic Terrorism In Democratic America
Reports3 days ago
Sustainable infrastructure can drive development and COVID-19 recovery
Green Planet3 days ago
The global plastic problem
Africa2 days ago
South Sudan’s transition from conflict to recovery ‘inching forward’
Finance3 days ago
Innovative finance mechanism to support Uruguay’s energy transition
Americas2 days ago
Implications of Right-Wing Politics in United States
Middle East2 days ago
Iraq Opens Hands to the Pope Francis’ Historic Visit
Americas2 days ago
New US Administration Approach to Syria: How Different Could It Be?