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Neoliberalism in Chile and the cost of human life

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Henry Kissinger meeting with Pinochet

Neoliberalism in Chile has a long history of failed promises, repressive policies, and authoritarian ideologies that cost the lives of thousands of Chilean citizens. Chile was praised for its new reforms and adoption of neoliberalism that promised more equality for everyone. In reality, an oppressive regime was born on the back of these promises that terrorized the people of Chile for seventeen years. Neoliberalism was born in Chile in 1973 and it died the same day, when human rights and human dignity were sacrificed in the name of economy and for the ideas of a few people that decided to overlook the terrorizing situation in Chile, just to prove a point about their economic thoughts. There is no miracle in Chile, and the thousands that died and suffered in Chile are the proof.

The Downfall of Salvador Allende

On September 4, 1970, presidential elections were held in Chile. Salvador Allende, the candidate of the Popular Unity coalition won with 36.2% of the votes. Upon assuming the presidency, Allende carried on a socialist platform that aimed to nationalize large-scale businesses in Chile, such as copper mining, telecommunications, and banking. Besides that, Allende wanted to drastically improve the socio-economic situation of the poorest people of Chile by implementing new policies to support socio-economic welfare, provide employment in new public work projects or the newly nationalized industries. Salvador Allende served as the President of Chile from 1970 until the military coup d’etat in 1973. He was the first Marxist elected President in a liberal democracy in Latin America. He was described by his friend Fernando Alegria as a tireless fighter and a bold president that was defeated by a two-headed enemy: The United States of America and local military saboteurs (Alegria, 1994).

The local military saboteurs were under the command of Augusto Pinochet. Augusto Pinochet was the Commander-in-Chief of the Chilean Armed forces. On September 11, 1973, he overthrew the democratically elected President Salvador Allende. The presidential palace was shelled while Allende was in it. It is believed that Salvador Allende committed suicide. Pinochet was the lead plotter of the coup while his position as Commander-in-Chief allowed him to coordinate with both the military and the national police. Following the coup, a military junta, with the help of the U.S was established that exercised both legislative and executive power in the new government of Chile. The constitution and the Congress of the country were suspended, all political parties and activities were banned and a curfew and strict censorship were imposed. Augusto Pinochet self-declared himself as the President of the Republic, becoming de facto dictator of Chile until 1990. The U.S backed military coup and Pinochet’s seventeen-year dictatorship, are seen as aberrations in Chile’s twentieth-century history of multiparty democracy and institutional stability, two parameters that were very unusual in Latin America (Joseph & Grandin, 2010, pp.121-122).

The Implementation of Neoliberalism

The new military junta under the influence of foreign third parties and individuals implemented a new economic liberalization. Chile was the first country where its citizens were forcefully subjected to a new economic system that was called neoliberalism. Neoliberalism was first mentioned by the Austrian-British economist Friedrich Hayek. Hayek’s ideas were divided into two parts. In the first part, Hayek suggested that the concept of free markets responds to the needs of every individual. As a result, markets had to be operated freely, while the government would be limited to allow order to arise spontaneously in society. In the second part, which is depicted in his book The Road to Serfdom (1944), Hayek suggested that central planning of an economy does not respond to the needs of the individual. The two parts are interconnected and result in only one possibility according to Hayek. A totalitarian regime. Hayek believed that the government should have its limitations. He promoted the idea that the central role of the government should be to maintain the rule of law with as little intervention as possible. It must be projected as a civil association that provides a framework for every individual to follow their own projects (Hayek, 1960).

Friedrich Hayek’s remarks and ideas were highly influential for politicians like the President of the United States of America, Ronald Reagan, and the Prime Minister of the United Kingdom, Margaret Thatcher. Thatcher, in particular, based the ideology of the British Conservative Party on the ideas of Friedrich Hayek. She championed the ideas of unfettered free markets, the idea of shrinking the government and cutting taxes alongside state-provided services. However, the ideas of Friedrich Hayek about the implementation of free markets and his opposition towards totalitarian regimes made him a controversial figure. Naomi Klein, a Canadian author, and journalist describes his ideas as a shock doctrine, where people are forced to accept a new reality for their own good either through economic hardship or brutal government policies (Klein, 2007). His free-market ideology is associated directly with the totalitarian regime of Augusto Pinochet, since he was one of the key economic advisors, together with Milton Friedman that was close to Augusto Pinochet. He always thought that no one is qualified to have unlimited power, yet he was standing behind a dictator. While he is championed by many right-wing politicians as a defender of liberty, he is despised by many left-wing politicians who see him as a hypocrite that stood behind a murderous dictator whose forced economic implementations brought misery and pain to thousands of Chilean citizens.

The Involvement of the United States of America

It is important to remember that the situation in Chile did not happen without the help of the U.S. The involvement of the U.S in Chile happened for two reasons. To implement the idea of the domino theory and to protect the interests of U.S companies in Chile. The domino theory was the predominant Cold War theory for the U.S. It suggested that if one country in a region would eventually become communist, then the surrounding countries and regions would follow up in a domino effect. The first time that the domino theory was mentioned was back in 1954 in a press conference when the U.S President Dwight D. Eisenhower referred to communism in Indochina.

“You have broader considerations that might follow what you would call the “falling domino” principle. You have a row of dominoes set up, you knock over the first one, and what will happen to the last one is the certainty that it will go over very quickly. So you could have a beginning of a disintegration that would have the most profound influences”. Dwight D. Eisenhower.

The domino theory was used by various U.S administrations to justify and American intervention around the world. Richard Nixon used the same theory for his foreign policy and to justify his intervention in Chile. In 1977, he defended the U.S actions to destabilize Allende’s Chile. In an interview with British journalist David Frost, Nixon stated that a communist Chile and Cuba would create a “red sandwich” that could entrap Latin America between them (Qureshi, 2010, p.56). After Richard Nixon, Ronald Reagan followed the same rhetoric to justify the situation in Chile while he expanded in Central America and the Caribbean region.

The protection of the interests of U.S companies in Chile was the second reason why the U.S intervened in Chile and why it was supporting the Pinochet regime. Back in 1970, before the presidential elections, neither the Richard Nixon administration, nor the current Chilean government, nor U.S. companies with businesses in Chile such as the Anaconda Copper Mining Company or the International Telephone & Telegraph, wished to see an Allende presidency because of his alleged communist sympathies. Threatened by the nationalized acts of Salvador Allende, the two major U.S companies, the Anaconda Copper Mining Company and the International Telephone & Telegraph expressed their dissatisfaction for the Allende government through the Nixon administration. Henry Kissinger was the national security advisor to Richard Nixon. According to declassified files from the CIA, Kissinger met with high-level officials to discuss the future of Chile that depended on the 1970 elections. The elections represented the potential for important economic relations to collapse or continue. After the complaints of the U.S companies that had economic interests in Chile, Richard Nixon was left with two choices: political maneuvering or brute force. He chose the first option. Based on the declassified notes that were given from Richard Nixon to Richard Helms the director of CIA, there were direct orders to “make the Chilean economy scream” during the Allende presidency by conducting a campaign to create a deep inflation crisis, funding opposition leaders and encouraging the Chilean military to overthrow Allende. In the end, the U.S achieved its goal and Salvador Allende was overthrown and a more American friendly government was installed. From that point, the neoliberal policies were implemented and Chile was used as an experimental country for radical economic reforms.

The Role of the Chicago Boys

These economic reforms were imposed by a group of Chilean economists known as The Chicago Boys. They were all educated at the Department of Economics of the University of Chicago under the guidance of the neoliberal economist Milton Friedman. Friedrich Hayek was also a member of the Chicago Boys helping them implement his neoliberal ideas. After the coup in 1973, many of them returned to Chile and were appointed in high government positions by Augusto Pinochet as economic advisors. They are credited with transforming the economy of Chile into the best performing economies in Latin America and into one of the most business-friendly in the world. However, there is also a lot of criticism against them. Some economists, such as the Indian economist and philosopher Amartya Jumar Sen have argued that their policies did not provide any help to the population of Chile but were intended to serve the interests of U.S companies in Chile and Latina America.

The neoliberal reforms of the Chicago Boys can be divided into two phases. The first phase expanded from 1973 until 1982 and has been described by the author Naomi Klein as the Shock Therapy period. At this phase, most of the radical reforms were implemented. The Chicago Boys adopted a laissez-faire economic system, where transactions between private parties did not have any economic intervention from the state (regulations and subsidies). They promoted the idea of a free, neoliberal market in contrast to the centrally-planned economy and nationalization plans that were advocated by Salvador Allende. As a result, Chile was transformed into a liberal and world-integrated economy. Besides that, businesses were re-privatized, price controls were abolished and the capital flows were deregulated. Their main objective was to lower the inflation rates at the expense of a sharp recession. They met their objective as they managed to lower the inflation rate from 508.1% in 1973, to 20.7% in 1982. The economy expanded for a while from 1977 up until 1980. Milton Friedman described this reorientation of the Chilean economy as the Miracle of Chile in 1982. In an interview back in 2000, Milton Friedman said:

 “The Chilean economy did very well, but more importantly, in the end, the central government, the military junta was replaced by a democratic society. So the really important thing about the Chilean business is that free markets did work their way in bringing about a free society”. Milton Friedman.

However, his remarks regarding the Chilean economy did not represent the reality of a miracle. From 1975 up until 1980, the economic growth rate was below the potential growth rate of Chile (Ffrench-Davis, 2002). In the early 1980s, Latin America was hit with a devastating debt crisis that paralyzed all the Latin American countries. Chile was hit the hardest with a GDP decline by 14% in comparison to other Latin American countries that had a GDP decline by 3.2%. This debt crisis led to a bank run which led to the devastating economic crisis of 1982. It was clear that the economic shock therapy did not work, and the miracle that Friedman was cheering for was not that real after all.

The second phase of the neoliberal reforms is described as Pragmatic Neoliberalism that expanded from 1982 up until the end of the dictatorship in 1990. With the ongoing crisis, the Chicago Boys’ radical economic rhetoric was replaced by a pragmatic approach. The new economists had to apply pragmatic measures to reverse the situation. They socialized two major Chilean banks and seven more that were at the edge of collapse. The Central bank of Chile socialized much of the foreign debt. Many critics of this policy compared these actions with the presidency of Salvador Allende. However, this pragmatic policy brought economic growth, questioning the radical methods of the Chicago Boys. The GDP growth went higher after the 1982 crisis and continued to surpass other economies in Latin America. The Chilean economist Ricardo Ffrench-Davis has a critical evaluation of the situation:

“The unnecessary radicalism of the shock therapy in the 1970s caused mass unemployment, purchasing power losses, extreme inequalities in the distribution of income, and severe socio-economic damage. The 1982 crisis as well as the success of the pragmatic economic policy after 1982, proves that the 1973–1981 radical economic policy of the Chicago boys harmed the Chilean economy” Ricardo Ffrench-Davis.

The Dark Side of Economic Liberalization

The history of neoliberalism in Chile is not just about economic reforms. Unfortunately, it is also a history of state terrorism and human rights violations by the Pinochet regime. The forced economic reforms and the intervention from the U.S allowed Augusto Pinochet to promote his state terrorism towards the people of Chile. According to a 2004 report from the National Commission on Political Imprisonment and Torture or Valech Commission, the number of victims of human rights violations accounts for around 30.000 people that were tortured while at least 2.500 were executed. Also, almost 200.000 people were forced to exile while many people experienced illegal detaining from the regime forces. Prisoners of the regime were exposed to different methods of torture, like electric shocks, waterboarding, beatings, and sexual abuse. The central instrument of terror was the disappearing subversives, where people were disappeared by the Pinochet regime. People that were considered leftists, socialists, or communists were the main target. In addition to the horrors, Pinochet was infamous for detaining people and throwing them out of helicopters. Around 1300 people disappeared, and still even today hundreds of them are yet to be found. The systematic suppression of any political ideology that went against the regime was described by historian Steve J. Stern as political genocide, as a systematic project aiming to destroy an entire way of doing and understanding politics and governance (Stern, 2010). The regime was extremely brutal to leftists and often portrayed them as the enemies of the state. The fake portrayal of leftists as dangerous revolutionaries resulted in the legitimization of the Pinochet regime. For seventeen years, Augusto Pinochet with the support of the U.S managed to use effective brainwashing propaganda to portray leftists as criminals and as the enemies of Chile. Unfortunately, Augusto Pinochet was never formally convicted for his crimes against humanity, as he died in 2006 before he was tried. Today the portraits of the victims of the brutality of Augusto Pinochet and the people that disappeared and still haven’t been found are displayed in the Museum of Memory and Human Rights, in Santiago Chile.

The Long Road of Democracy 

In 1990, when the regime fell and democracy was restored, the people of Chile were promised that this time the economic reforms will benefit the people. The citizens of Chile believed their government and waited patiently for a more equal distribution of the wealth of Chile. Thirty years later, Chile is in flames, and it seems that the neoliberal model has once again failed the people of Chile. On October 18, 2019, the largest and most extensive citizen mobilizations took place in Santiago, the capital of Chile. The mobilization began when the President of Chile Sebastián Piñera, announced that the fare for a metro ticket in Santiago would rise from 800 Chilean Pesos to 830 (USD 1.15). The news hit Chilean people, and they took to the streets to protest against the decision. “This is not just about 30 pesos, it is about the last 30 years,” said an angry protester. Thousands of protests share the same view. For the last thirty years, while Chile’s GDP has grown, making the country the wealthiest in South America, people wonder why the situation in the country remains the same. In a country where the minimum wage of at least 70% of the population barely reaches USD 700 and where it is estimated that almost 36% of the population in the cities lives in poverty, people question their government and the implementation of neoliberal policies. While the wealth is growing for the large corporations and foreign companies with interests in Chile, protesters come to realize that neoliberalism was born and will die in Chile.

The history and the progress of neoliberalism in Chile is a controversial concept. Many economists praise the efforts of the Chicago Boys and follow the same rhetoric as Milton Friedman, calling for a Miracle in Chile. However, thousands of people that suffered under the regime of Augusto Pinochet, people that lost their jobs and their land due to privatization processes, people that could not feed their families, victims of the brutal state terrorism, and families that still have not found their relatives after so many years, strongly disagree with the opinions of a few privileged economists that see people as statistics and not human beings. In reality, there is no miracle in Chile. While the country is wealthy, the people are poor and social unrest is rising in the country. Neoliberalism in Chile was born on a dark October day in 1973, on the back of a ruthless dictator and bureaucratic economists, and it died on a stormy October day in 2020, filled with rage, frustration, and disappointment. The future lies in the hands of the Chilean people.

Bachelor's Degree in International Relations & Political Science. Columnist focusing on Global Affairs

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Americas

Perils of Belligerent Nationalism: The Urgent Obligations of Planetary Community

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“…the worst are full of passionate intensity, while the best lack all conviction.”-William Butler Yeats, The Second Coming

By definition, former President Donald J. Trump’s doctrinal emphasis on “America First” signified a rejection of human community and universal cooperation.[1] The enduring effect of this rejection has been palpable acceleration of global chaos, a dissembling speedup that includes corollary risks of war, terrorism and genocide. To the extent that these more-or-less plausible risks might sometime display a nuclear dimension,[2] any further continuity of belligerent nationalism could propel the United States and other countries toward certain irretrievable forms of human catastrophe..

                Ultimately, whatever the particular outcomes, truth will likely win out over shortsighted expressions of political wizardry.[3] A core component of any such truth is that American survival and prosperity are inextricably linked with a much wider global vulnerability. In essence, it would be foolish to suppose that the American nation – or, indeed, any individual nation – could meaningfully secure itself at the expense of other nations.

                For an especially timely example of such profound intellectual error, one need look no further than the now-persistent “plague” of worldwide disease pandemic. As in cases of belligerent nationalism regarding military security matters, the effective management or conquest of Covid19 will require full scale rejections of zero-sum thinking. Here, where it is understood as a metaphor of much wider problems, authentic planetary community is indispensable.

               There is more. Learning must always be theory-based.[4] With its inherently self-deceiving nature, however, belligerent nationalism is gratuitously crude and injurious. Going forward, the only sensible posture for a sitting U.S. president must express some determinedly coherent variant of “all in the soup together.”

               Such an improved mantra need not be all that difficult to operationalize. It is usefully discoverable in the succinctly prescient writings of Pierre Teilhard De Chardin: “The egocentric ideal of a future reserved for those who have managed to attain egoistically the extremity of everyone for himself,” summarizes the late Jesuit scientist and philosopher, “is false and against nature. No element can move and grow except with and by all the others with itself.”

               Prima facie, the core message here is both simple and incontestable. It is that no single country’s individual security can ever be achieved at the tangible expense of other countries. Moreover, no such individual state security is conceivably sustainable if the world as a whole must thereby expect a reciprocally diminished future.[5]

               There is more, No conceivably gainful configuration of Planet Earth can ever prove “secure” if the conspicuously vast human legions which comprise it remain morally, spiritually, and intellectually adrift. It is, of course, precisely such a willful detachment from stable national and international moorings that was openly fostered by Donald Trump’s “America First.”

               Earlier, observed William Butler Yeats, in what represented a more broadly metaphorical indictment of chaos, “Theblood-dimmed tide is loosed.”  But just as it appeared for the empathetic Irish poet, today’s still-expanding global chaos is really just a symptom. It is, as the professional philosophers would likely claim, “merely epiphenomenal.”[6]

               The philosophers would be “on course.” For the world as a whole, chaos and belligerent nationalism are never themost truly underlying “disease.”[7] Always, that more determinative pathology remains rooted in certain seemingly great and powerful states that stubbornly fail to recognize the remorseless imperatives of human interrelatedness or community. This core failure has been a long-term problem, and is not one that is particular to any particular American president or to the United States in its decisional entirety.[8]

               Following former President Donald Trump’s “America First,” world politics will increasingly encourage an already lethal human deficit. This deficit is the reluctance of individual citizens and their respective states to discover authentic self-worth as individual persons, within themselves. Precisely such a significant deficit had already been foreseen in the eighteenth century by America’s then-leading person of letters, Ralph Waldo Emerson. Today, revealingly, the still-vital insights of “American Transcendentalists” remain recognizable and meaningful to only an excruciatingly tiny minority. Unsurprisingly, especially after Trump, the “life of the mind in America” is a very shallow narrative.

               Despite their impressive intellectual antecedents, including some earlier occupants of the White House, Americans almost never read seriously challenging books. Such a cryptic observation is not offered here in an offhanded or gratuitously mean spirited fashion. Quite the contrary, it is presented as an unassailable fact of American life, one famously commented upon during the first third of the nineteenth century by French visitor Alexis de Tocqueville in his Democracy in America. This same fact led the Founding Fathers of the United States, including Thomas Jefferson (the most identifiably democratic figure among them), to rail against uneducated mass participation in the new republic.[9]

               As the necessary corrective, Jefferson set forth in his Notes on Virginia a plan of elementary schooling by which, he argued, “twenty of the best geniuses will be raked from the rubbish annually.”

               Somehow, whatever we might now think of Jefferson’s earlier expectations for “The People,” former president Trump managed to defile what is most urgently important to our common future. This factor is the critical inner horizon to world politics and whatever it implies. In literature, this subtle horizon is not in any fashion conspicuous. Nor is it “practically” oriented toward commerce or personal wealth aggrandizement. It can be encountered and clarified in the “inner horizon” writings of Sören Kierkegaard, Sigmund Freud, Friedrich Nietzsche, Hermann Hesse, Carl Jung,[10] Jose Ortega y’Gassett and Pierre Teilhard de Chardin.

               Here on earth, the tribe, in at least one form or another, is always the determinative microcosm. From the beginning, from the muddled primal promiscuity of our very earliest global politics, determinative behavior in world affairs has been driven by some kind or other of individual group elevation and resultant inter-group conflict. From the identifiable human origins of all our so-called “civilizations,”[11] and from the pitiably aggregated totals of individual human souls seeking some ultimately satisfying forms of redemption, most people have felt themselves utterly lost or hideously abandoned outside the warmth of a “protective” tribe.

               Today, it is precisely this degrading and potentially lethal inclination that is fostered by any and all forms of belligerent nationalism.

               The veneer of human civilization remains razor thin. Oddly, certain whole swaths of humankind remain dedicated to certain ancient and grotesque sacrificial practices. In this connection, shamelessly linking violence and the sacred, most terrorist murders are now reassuringly justified as “holy war” or as “freedom fighting.” But their net effect is always plainly insidious and thoroughly dissembling.

               As a stipulated response to these serious challenges, belligerent nationalism remains wholly misconceived. Left unchallenged, this atavistic mantra would only further harden the hearts of humankind’s most recalcitrant enemies, and thereby exacerbate the indispensable search for some truly viable American remedies. What we need, instead, is broadening support for a much more enduring impulse of global solidarity and human interconnectedness.

                From the seventeenth-century Peace of Westphalia, which in 1648 ended the last of the great religious wars sparked by the Reformation, to the present precarious moment, international relations and international law[12] have been shaped by a protean “balance of power,” and by the evident corollaries of war,[13] terror, and genocide.[14] To be sure,  hope still exists, but now, it must sing softly, in an undertone, that is, with circumspection, inconspicuously, almost sotto voce. Although counter-intuitive, the time for visceral celebrations of science, modernization, technology, and even social media is already partially over.  Now, to survive, together, on an imperiled planet, all of us must energetically seek to rediscover an individual life that is consciously detached from nationally patterned conformance, cheap entertainments, shallow optimism, and disingenuously contrived visages of tribal happiness.

               With such refreshingly candid expressions of the awakened human spirit, we Americans may yet learn something that is both useful and redemptive. We may learn, even during the declension “Time of Trump,” that a commonly felt agony is more important than astrophysics; that a ubiquitous mortality is more consequential than any transient financial “success;” and that shared human tears may reveal much deeper meanings and opportunities than narrowly self-serving tax reductions or imbecilic border walls.

               In his landmark work, The Decline of the West, first published during World War I, Oswald Spengler inquired: “Can a desperate faith in knowledge free us from the nightmare of the grand questions?” It remains a noteworthy query, one that will likely never be raised in our universities, let alone on Wall Street or in the White House.  We may, however, still learn something about these “grand questions”  by studying American responsibility for the still-expanding chaos in world politics.

               At that time, we might finally learn that the most suffocating insecurities of life on earth can never be undone by militarizing global economics, by building larger missiles, by abrogating international treaties, or by replacing one abundantly sordid regime with another in the naively presumed interests of “national security.”

               In the end, even amid an endlessly squalid American politics, truth is exculpatory. Accordingly, in a promising paradox, Trump’s “America First” expressed a lie that could still help to see the truth. This cosmopolitan truth, worldwide in scope, is that Americans require above all else a consciousness of unity and relatedness between human beings and their particular nation-states. Always, as this essay has expressly underscored, this indispensable consciousness must be rooted in pertinent international law.[15]

               Though widely unrecognized, such an elementary consciousness is integral to all meaningful possibilities of both American security and planetary well-being. Now, before it is too late, represents the human community’s literally last chance to replace the “passionate intensity” of Realpolitik[16] with a vitally revised “conviction.” At this point, armed with a vision that rejects zero-sum or “everyone for himself” thinking in world politics,[17] the grave dangers of belligerent nationalism could finally collapse under the unsustainable weight of their own contradictions.[18]

               No other conceivable replacement could prove more necessary.


[1] The legal principle of “universal cooperation” is founded upon a presumption of solidarity between states in their common struggle against criminality.  It is mentioned in the CORPUS JURIS CIVILIS; in Hugo Grotius’s DE JURE BELLI AC PACIS LIBRI TRES (Book II, Ch. 20); and in Emmerich de Vattel’s LE DROIT DES GENS (Book I, Ch. 19). 

[2] For authoritative early accounts of nuclear war effects  by this author, see: Louis René Beres, Apocalypse: Nuclear Catastrophe in World Politics (Chicago: University of Chicago Press, 1980); Louis René Beres, Mimicking Sisyphus: America’s Countervailing Nuclear Strategy (Lexington, Mass., Lexington Books, 1983); Louis René Beres, Reason and Realpolitik: U.S. Foreign Policy and World Order (Lexington, Mass., Lexington Books, 1984); and Louis René Beres, Security or Armageddon: Israel’s Nuclear Strategy (Lexington, Mass., Lexington Books, 1986). Most recently, by Professor Beres, see: Surviving amid Chaos: Israel’s Nuclear Strategy (New York, Rowman & Littlefield, 2016; 2nd ed. 2018).

[3] “Reason,” warns Karl Jaspers, “is confronted again and again with the fact of a mass of believers who have lost all ability to listen, who can absorb no logical argument, and who hold unshakably fast to the Absurd….” See the 20th century philosopher’s Reason and Anti-Reason in Our Time, Archon Books, 1971, p. 78.

[4] “Theory is a net,” observes the German poet Novalis, “and only those who cast, can catch.” This apt metaphor was embraced by philosopher of science Karl Popper as the epigraph to his classic Logic of Scientific Discovery (1934).

[5] In both logic and law, the rights assured by the Declaration and Constitution can never be confined to the people of the United States. This is because both documents were conceived by their authors as the indisputable codifications of pre-existing Natural Law. Though generally unrecognized, the United States was expressly founded upon the Natural Rights philosophies of the 18th century Enlightenment, especially Locke, Hobbes, Montesquieu and Rousseau. Thomas Jefferson was well acquainted with the classical writings of political philosophy from Plato to Diderot. In those early days of the Republic. an American president could not only read serious books, but also write them.

[6] The classical example is Plato’s parable of the cave in The Republic.

[7] Although composed in the seventeenth century, Thomas Hobbes’ Leviathan offers a still- illuminating vision of chaos in world politics. Says the English philosopher in Chapter XIII, “Of the Naturall Condition of Mankind, as concerning their Felicity, and Misery:”  “During such chaos,” a condition which Hobbes identifies as a ‘time of War,’  it is a time “…where every man is Enemy to every man… and where the life of man is solitary, poor, nasty, brutish, and short.” At the time of writing, Hobbes believed that the condition of “nature” in world politics was less chaotic than that same condition existing among individual human beings. This owed to what he called the “dreadful equality” of individual men in nature concerning ability to kill others, but this once-relevant differentiation has now effectively disappeared together with the global spread of nuclear weapons. More precisely, today, “weaker” states that are nonetheless nuclear can still bring insufferable harms to the “stronger” states.

[8] Early on, William Blackstone, the jurist upon whose work the United States owes its own basic system of law, remarks at Book 4 of his Commentaries on the Law of England: “The law of nations (international law) is always binding upon all individuals and all states. Each state is expected, perpetually, to aid and enforce the law of nations as part of the common law, by inflicting an adequate punishment upon the offenses against that universal law.”

[9] See by this writer, Louis René Beres, at Oxford University Press:  https://blog.oup.com/2011/09/the-people/ See also, by Professor Beres, at The National Interest, https://nationalinterest.org/feature/america-becomes-what-its-founders-feared-16000?nopaging=1

[10]The term “mass,” favored by Swiss psychologist Carl G. Jung, is roughly identical in meaning to Sigmund Freud’s  term “horde” (itself derived from Friedrich Nietzsche’s “herd”) and to Danish philosopher Soren Kierkegaard’s “crowd.” Always, warns Kierkegaard insightfully, “The crowd is untruth.”

[11] “Civilization,” adds Lewis Mumford, “is the never-ending process of creating one world and one humanity.” Still the best syntheses of contemporary creative outlines for a world civilization are W. Warren Wagar The City of Man (1967) and W. Warren Wagar, Building the City of Man (1971).

[12] For the authoritative sources of international law, see art. 38 of the Statute of the International Court of Justice; done at San Francisco, June 26, 1945. Entered into force, Oct. 24, 1945; for the United States, Oct. 24, 1945.  59 Stat. 1031, T.S. No. 993, 3 Bevans 1153, 1976 Y.B.U.N., 1052.

[13] Under international law, the question of whether or not a true “state of war” exists between countries remains ambiguous. Traditionally, it was held that a formal declaration of war was necessary before a true state of war could be said to exist. Hugo Grotius divided wars into declared wars, which were legal, and undeclared wars, which were not. (See Hugo Grotius: The Law of War and Peace, Bk. III, Chs. III, IV, and XI.) By the start of the twentieth century, the position that war obtains only after a conclusive declaration of war by one of the parties was codified by Hague Convention III. This treaty stipulated that hostilities must never commence without a “previous and explicit warning” in the form of a declaration of war or an ultimatum. (See Hague Convention III Relative to the Opening of Hostilities, 1907, 3 NRGT, 3 series, 437, article 1.) Currently, declarations of war may be tantamount to admissions of international criminality, because of the express criminalization of aggression by authoritative international law, and it could therefore represent a clear jurisprudential absurdity to tie any true state of war to formal and prior declarations of belligerency. It follows that a state of war may now exist without any formal declarations, but only if there exists an actual armed conflict between two or more stat and/or at least one of these affected states considers itself “at war.”

[14] This balance creates a “vigilante” system of “Westphalian” law. See: Treaty of Peace of Munster, Oct. 1648, 1 Consol. T.S. 271; and Treaty of Peace of Osnabruck, Oct. 1648, 1., Consol. T.S. 119, Together, these two treaties comprise the Peace of Westphalia.

[15] International law is an integral part of United States jurisprudence. In the words of Mr. Justice Gray, delivering the judgment of the US Supreme Court in Paquete Habana (1900): “International law is part of our law, and must be ascertained and administered by the courts of justice of appropriate jurisdiction….” (175 U.S. 677(1900))  See also: Opinion in Tel-Oren vs. Libyan Arab Republic (726 F. 2d 774 (1984)).The specific incorporation of treaty law into US municipal law is codified at Art. 6 of the US Constitution, the so-called “Supremacy Clause.”

[16] Throughout history, geopolitics or Realpolitik has been associated withpromises of personal immortality. To wit, in his posthumously published lecture on Politics (1896), German historian Heinrich von Treitschke observed: “Individual man sees in his own country the realization of his earthly immortality.” Earlier, German philosopher Georg Friedrich Hegel opined, in Philosophy of Right (1820), that the state represents “the march of God in the world.” The “deification” of Realpolitik, a transformation from mere principle of action to a sacred end unto itself, drew originating strength from the doctrine of sovereignty advanced in the sixteenth and seventeenth centuries. Initially conceived as a principle of internal order, this doctrine underwent a specific metamorphosis, whence it became the formal or justifying rationale for international anarchy –  that is, for the global “state of nature.” First established by Jean Bodin as a juristic concept in De Republica (1576), sovereignty came to be regarded as a power absolute and above the law. Understood in terms of modern international relations, this doctrine encouraged the notion that states lie above and beyond any form of tangible legal regulation in their interactions.

[17] This brings to mind a comment by Italian film director Federico Fellini: “The visionary is the only realist.”

[18] One such contradiction concerns the crime of “aggression” under international law. Punishment of aggression is a firm and longstanding expectation of international criminal law.  The peremptory principle of Nullum Crimen sine poena, “No crime without a punishment,” has its origins in the Code of Hammurabi (c. 1728 – 1686 B.C.E.);  the Laws of Eshnunna (c. 2000 B.C.E.);  the even earlier Code of Ur-Nammu (c. 2100 B.C.E.) and the law of exact retaliation, or Lex Talionis, presented in three separate passages of the Jewish Torah.  Punishment of aggression is a firm and longstanding expectation of international criminal law.  The peremptory principle of Nullum Crimen sine poena, “No crime without a punishment,” has its origins in the Code of Hammurabi (c. 1728 – 1686 B.C.E.);  the Laws of Eshnunna (c. 2000 B.C.E.);  the even earlier Code of Ur-Nammu (c. 2100 B.C.E.) and the law of exact retaliation, or Lex Talionis, presented in three separate passages of the Jewish Torah.  Since World War II, aggression has typically been defined as a military attack, not justified by international law, when directed against the territory of another state. The question of defining aggression first acquired legal significance with the Draft Treaty of Mutual Assistance of 1923. One year later, the Geneva Protocol of 1924 provided that any state that failed to comply with the obligation to employ procedures of peaceful settlement in the Protocol or the Covenant was an aggressor. Much later, an authoritative definition of aggression was finally adopted without vote by the UN General Assembly on December 14, 1974.

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Sino-American confrontation and the Re-binarized world

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USA China Trade War

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 imagined China’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 two this 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 and binary blame-game, the honeymoon is over. While the US-led west becomes disappointment, China provoked backlash instead of gaining global support and adoration. Is any new form of global centrality in sight?

(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, causing tremendous socio-economic, political and psychosomatic contractions and convulsions. But, worse than our response is our silence about it.)

Still to be precise, the C-19 calamity 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. No wonder that the work on the C-19 vaccine is more an arms race that it is a collaborative humanistics.

This text examines prehistory of that rift; and suggests possible outcomes past the current crisis. It also discusses location and locality (absence of it, too). This since,  geography is a destiny only for those who see their own history as faith.

Origins of Future

Does our history only appear overheated – as rearly monocausal, 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 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 contracts hold 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.[2]  

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. (Thus, the main battle is traditionally between the television and the refrigerator.) 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. (Our ‘mainstream’ narrative is thus full of questionable counterfactuals.)

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 (over-)emasculation and consequent retreat brought the painful hangovers to Washington, the most noticeably, by the last two presidential elections.[3]

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. In that light the recent Saigon II – withdrawal from Afghanistan, too. The pullout was not a miscalculation or ill-made move but a long overdue shift to realism in American foreign policy.[4] 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.[5] 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 jobs and communities. Its political system is unable to decouple and deconcentrate wealth and power which suffocates the very social fabrics.[6]

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 (GCC, Israel, Poland, Baltics, Taiwan soon too) – to mention but a few. Violence as a source of social cohesion is dying out. This explains why Americans nowadays nearly obsessively turn to promise of technology. Still, what the US plans to do becomes overshadowed by what others are already doing.

*                    *                            *                            *                           

When the Soviets lost their own indigenous ideological matrix and maverick confrontational stance,[7]  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.[8]

American strategy to westernize [xihva] and split up [fenhva] China failed short there, but worked well for Yugoslavia and Soviet Union – weakening and delegitimizing central government by antagonizing nationalities, and demonizing party and army. Hence, a Copernican-turn: While offshore balancing Asian continent, 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:[9]  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 dicatums of this Bismarck of Asia 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. (Although heavily criticising Trump in past years, the Biden administration – along with the leading Democrat’s foreign policy intellectuals, is more of the Trumpistic continuity than of a departure from it. It especially refers to the Sino-American relations.)

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 – be it compliance or containment (especially with Russia closer to China than it was ever before).[10]  

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, or VietNam does now) through Deng-proclaimed opening aided by the tiny middle class of political police and the national army of working class. Second goes to a modest domestic consumption, and German-like thick home savings (steered by the Neo-Mandarin cast of Communist apparatchiks in higher echelons of Beijing ruling court).

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.[11]

In short, its growth was neither green, nor inclusive, nor sustainable. Additionally, many would say – while quantifying the negative externalities of Chinese authorita-rianism – 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. This reduces the choice (offered by the two protagonists) on selection between the colonial democracy and authoritarian paternalism.   

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.[12]  

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 2019 The II BRI Summit has shown – and the BRI Summits of November 2020 and of 2021 confirmed, 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. However, the (illiberal) bipartisan democracy or one-party autocracy is a false dilemma, both of nearly the same dead end.

Currently, Party slogans call for China to “take center stage” on the world stage and architecture “a community of common destiny for mankind”. But despite heated rhetoric, 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, achievement without opinionisation.

Greening international relations along with a greening of socio-economic fabrics (including the shift to blue and white, sea and wind, energy) – geopolitical and environmental understanding, de-acidification and relaxation is that missing, third, way for tomorrow.

(Judging the countries’ PEM /Primary Energy Mix/ and the manufacturing footprint, the American e-cars are actually run on the tar sands and fracked oil/gas, while Chinese electric vehicles are powered by coal.)

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 an electromagnetic, technologically generated soup of unbearable radiation toxicity, actually able to de-toxicate our troposphere from dangerous fields, waves and frequencies emittance – drawing us closer to a harmony of 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.[13]  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.[14] 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.[15])

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.[16]  

If there was ever in history a lasting triumph, this is over by 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 or a hyperproduction of the PR China. Ergo, that is an uninterrupted 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. It is 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 (including colossal military expenditures).

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.”


[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, (directionality of time towards) Future is nothing else but a manifestation of the second law of thermodynamics (one of the fundamental principles of chemo-physics that governs us). At the same time, 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. For a clerical reason, we tend to deduce future events from human constructs (known as the theoretical principles) or to induce them from deeply rooted/commonly shared visions (known as past experience).

[2] Complementing 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.  

[3] 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 a Trump team.

[4] E.g. during the peak times of its longest – and fiasco ending – foreign intervention, the US was spending some $110 billion per annum in Afghanistan, roughly 50% more than annual American federal spending on education.)

[5] “A rogue superpower … colossus lacking moral commitments … aggressive, heavily armed, and entirely out for itself. … some US security guaranties have started to look like protection rackets. … participates in international institutions but threatens to leave them when they act against US narrow interests; and promotes democracy and human rights, but mainly to destabilize geopolitical rivals” – enumerates some in the long list of contemporary US sins prof. Beckley (Beckley, M. (2018) Unrivaled: Why America Will Remain the world’s Sole Superpower, Cornell University Press).  

[6] Abandoning a traditional bipartisan system, the US is already by now a one-party (illiberal) democracy. Many within the corporate world would accept (even overt) extensive socio-economic reengineering as to transform the system into the one-party autocracy.  

[7] It will forever remain unknown what the MAD (Mutual Destruction Assurances) in the Cold War prevented and deterred: Aggregation of these events is a history (of probabilities) that didn’t unfold. 

[8] 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’. 

[9] Non-interference promise between China and the US brought about 3 decades of colossal interdependence between the two: The internal order was in hands of CCP and the international order was in American hands. Neither party was to interfere the affairs of the other. But the paradox of inversion was sudden and severe – the internal order has been strengthened by the US (authoritarian) technology and the international (liberal) order à la Americana has been running on cheap Chinese goods. Changed roles urge for fundamental readjustment of positions.  

[10] The most favoured tool for containment or compliance of the US foreign policy – economic sanctions do not only reveal American decline but accelerate it, too. Instead of being imposed to defend commonly accepted universal principles, they are increasingly imposed for national security reasons – as a stalking horse for trade protectionism. Despite its simplicity of conception and flexibility of application, in retrospect, the crippling potency of sanctions is still sound but historically their effectiveness remains rather modest.

[11] 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 Trump’s US Trade Representative Robert E. Lighthizer called 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)

[12] Undeniably, China managed to expand its economic presence, but so far is short of any prevailing and lasting strategic influence despite weaponization of trade and overseas aid. Simply, Beijing achieved some short-term objectives, but China’s long-term strategic influence remains limited and reversable. People’s Republic did not secure major shifts in geopolitical alignments. Beijing still has to learn how its grand strategy might play in different geographic and socio-political contexts. While the US-led west becomes disappointment, China provoked backlash instead of gaining global support and adoration. Clearly, political control, economic growth, surveillance and transport infrastructure alone do not necessarily make a durable nation. Having all that without psychological attachment and moral sentiment cannot sustain cohesion of nation on long run.   

[13] 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. 

[14] 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.

[15] Technology, its innovation and to it related norm-setting institutions are not a fancy item for round-tables’ discussions – it is a central element of contemporary global and regional geopolitical competition. Finally, data is nonrival, but data is also disruptive if not encapsulated in clear rules of engagement. 

[16] Over the past perido, 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 professor Rapp-Hooper recently in her book. That of course triggers constant shockwaves all over Asia. While Indonesia is contemplating the NAM’s reload as well as the ASEAN block strengthening, others are reactive. India and Japan, two other Asian heavyweights (and champions of multilateralism), are lately pushed to sign up on the so-called Indo-Pacific maritime strategy with the United States (balancing the recent Pacific trade deal of RCEP). 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.

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Americas

The Forgotten Analogy: World War II

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Pundits are searching for adequate analogies to explain the growing China-U.S. rivalry and predict its future direction. Two main ones appear: the pre-World War I era and the Cold War. Both have their merits. The early twentieth century pitted Germany, a rising power, against status quo Britain and France. The Cold War also shares similarities to the current situation. The United States engaged in a prolonged struggle to contain a nuclear-armed great power. However, neither the Cold War nor the First World War offers an entirely appropriate analogy to make sense of the current world order.

Wilhelmine Germany was a formidable power but it largely stood alone, cornered in the center of Europe. London, Paris, and Saint Petersburg had an easy time concentrating their forces to balance against Berlin. Although it had Asia as secondary and the rest of the globe as tertiary theaters, the heart of the Cold War was also Central Europe. There were only two great powers, the Soviet Union and the United States, wholly occupied checkmating each other. 

Today’s international politics differs by the number and locations of the main protagonists. Although China legitimately attracts most of the attention, Russia remains a great power. Both China and Russia are the sole great powers of their respective regions — Asia and Europe. Both are bent on correcting the balance of power to their advantage and pushing the United States out of their neighborhood. On its side, Washington has a deep-seated interest in making sure that no great power competitor dominates Asia or Europe because both regions concentrate a big share of the world’s wealth and advanced industries. Indeed, a regional hegemon in possession of such resources would be strong enough to potentially overpower the United States. 

Washington found itself in the same position during the late 1930s and early 1940s. Nazi Germany had become the strongest power on the European continent and seemed bound to dominate all of it. Imperial Japan’s bid for Asian hegemony was unfolding unabated. The Americans had a vested interest in ensuring that neither Berlin nor Tokyo would seize control of their neighborhood because local powers were unlikely to get the job done on their own. It is now Beijing and Moscow occupying these roles.

Asia and China

China is the strongest state in Asia by a wide margin. No regional state can counterbalance Beijing on its own. Even a coalition of current U.S. partners — say Australia, Japan, the Philippines, Taiwan, and South Korea — would likely be too weak to seriously deter China without America’s support and strength. If Washington wants to prevent a Chinese bid for regional hegemony, it needs to throw its weight behind the balancing effort.

During the World War II era, America had to work alongside allies with widely divergent interests (notably Britain, Free France, and the Soviet Union) against the would-be German and Japanese hegemons. In a similar vein, the United States needs to help repair the relations between Japan and South Korea and accommodate those who have had rocky relations with Washington (India, Vietnam) or that are non-democracies (Singapore). The sheer power of China and the challenge of putting together a working balancing coalition imposes to the United States an “Asia First” strategy in the same way that the Third Reich’s superior military and industrial capabilities forced “Europe First” during World War II.

Another similarity with the World War II era is that power dynamics are rapidly changing. In Europe, the primary focus of American planners, Germany was with little doubt the strongest power on the continent. But the balance of power was evolving and the Soviet Union, still reeling from its civil war and Stalin’s purges, appeared to the Germans as a rising threat. Today, Beijing is growingly wary of India, a state as populous as (and very soon, probably more than) China and enjoying economic growth rates superior to China’s.

Europe and Russia

While most Asian states are directly exposed to Chinese military power, the states of Western and Southern Europe are separated from Russia by several other states in-between. Therefore, many European states feel less threatened by Russia and have been slow to balance against Moscow. Although France has been increasing its military spending and Britain vowed to redeploy heavy forces to Germany, these small incremental changes do little to correct the overwhelming military superiority of Moscow. No Western European state is ready or willing to confront Russian power head-on. Europe needs American leadership for that. It is not unlike the late 1930s, when the Soviet Union, separated from Germany by Poland, readily passed the buck of containing Berlin to London and Paris, with disastrous results.

On paper, European states — most notably Britain, France, and Germany — have enough latent capabilities to counterbalance Russian power. But geography and the collective action problem stand in the way. Indeed, Russia is not an immediate threat to Western Europe like the Soviet Union was. Today’s Russian army is unable to threaten the survival of France or Germany due to the East-Central European states acting as a buffer. Even if the Western Europeans acknowledge the resurgence of Russian power and are slowly rearming, they just do not feel the same sense of urgency as in Eastern Europe.

Collective action is difficult when many actors have to provide for a common good. An instinct is to do as little balancing as possible and wait for others to take the mantle of deterring Russia. Also, with no clear leader, effective decision-making is unlikely. Berlin, London, Paris, and others will push for their own preferences, thus resulting in lowest-common-denominator policies and under-balancing. Russia would then be free to cherry-pick its small neighbors and subjugate opposition. Eventually, Western Europeans would balance more effectively; but by the time they do so, Russia will have grown its power base and will already dominate Eastern Europe, thus representing a far more formidable challenge.

NATO is a powerful but imperfect tool to contain a Russian aspirant hegemon. The misaligned interest between many western and southern states and those closest to Russia stands in the way of effective balancing. A potential cure would be to form an additional smaller and more focused alliance system of Poland as the main bulwark, the Czech Republic, Romania, the three Baltic states, and maybe Sweden. In any case, to overcome buck-passing tendencies and problems of coordination, American political leadership is inescapable.

No Easy Fix

Historical analogies are always risky and no situation ever recurs in the exact same way. Yet, if we are to compare the current international situation with a past example, the World War II analogy appears more powerful than the World War I and Cold War ones.

Indeed, the United States faces the same conundrum of having to deal with two formidable rivals on two different continents. World War II had Germany as the most powerful opponent and Europe as the theater concentrating the most resources. Now, both the strongest competitor and the main loot are in Asia. During World War II, U.S. policymakers wanted to focus their forces on taking down Germany but they also had to cope with Japan out of fear that Tokyo would successfully absorb much of East and Southeast Asia and become a far greater threat than it already was. Today, although Russia lacks the power potential of China and Asia has now more wealth than Europe, with potential hegemons in both Asia and Europe, Washington is forced into a gigantic act of dual containment. Therefore, the same dilemma that plagued the United States eight decades ago plagues the Americans of today. 

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