Thursday, 11 June 2020

HOW THE USA & THE WEST LOST ITS LEADERSHIP PLOT

The pandemic is just a trigger that is sweeping the globe and has done much more than take lives and livelihoods across the length & breadth of the world. The current virus crisis given is much deeper than that.

It has shaken the fundamental assumptions that the peaceful capitalism of the USA constitutes exceptionalism that it played for decades as global leader and an example to the world but its fabric started to change in last four decades.

Despite the warnings that have been sounded for decades, USA looked the other way while its corporations, always looking for cheaper labour and short-term profits, outsourced their production overseas, devastating own manufacturing & basic service industries.

Job loss is not a new phenomenon out of this pandemic, but has been a deep rooted problem in USA & Europe due to its policies, which is now getting blindsided by supplicant motives where profit is the only concern that matters.

Blatant capitalism is no more a panacea that would repair the social markers in USA- or help stopping immigration and trade embargoes.

Instead of spending money on infrastructure and investing in a more robust health system, massive tax cuts were given to the big corporations that used it to suit their purposes, largely for share buy backs, profligate purposes and unwanted eye popping bonuses.

It seems USA has lost the plot faster than anyone had contemplated.

Global orders have a tendency to change gradually at first and then all at once. In 1956, a botched intervention in the Suez laid bare the decay in British power and breakup of USSR in 1991 marked the end of the United Kingdom’s & Soviet Union’s reign as a global power.

Today, U.S. policymakers should recognize that if it does not rise to meet the moment, the pandemic could take another deep stab at its global leadership.

Missteps by key US Institutions have undermined confidence in the competence of U.S. governance and exposed its flanks to the world visibly.

Public statements by US President have largely served to sow confusion and spread uncertainty. Internationally, the pandemic has amplified its display that how unprepared USA is to lead a global response under a shaky leadership.

The status of the USA as a global leader over the past seven decades has been built not just on wealth and power, but also on the legitimacy that flows from the its domestic governance, provision of global public goods, and ability and willingness to muster and coordinate a global response to crises.

The virus pandemic is testing all possible elements of US leadership. So far, it has failed the test.

US President’s recent actions on WHO & UNO could, at best, would be seen as an egotistical and irrational decision that not only weakened those global bodies, but also seriously puts world at its wits end to judge American Leadership wisdom.

We are living in an era of Collaboratism where leadership is not by dominance of military hardware or damaging software, but by leading with examples by building an enduring goodwill by right actions and in right time for larger goods.

Leadership isn’t altruism. It is seeing beyond the horizon. A dominant power must endure costs to achieve a collective benefit. America, since 1945 has often fitted that description, from supporting NATO to setting up international institutions like the World Bank or funding others like the United Nations, WHO & others that for last few years USA had undermined them at every step.

China had astutely taken advantage of the opening created by USA’s mistakes, filling the vacuum to position itself as the global leader in pandemic response. It is working to push its own system, provide material assistance to other countries when the desperation is visible. The sheer conceit of its move is hard to overstate it was China’s own missteps, and especially its efforts to glaze the severity and spread of the outbreak that helped create the very crisis now afflicting much of the world. Yet it understands that if it is seen as leading, then USA is seen as unwilling to do so. Curiously, it is positioning itself as binary.

This mind game perception that China is playing could fundamentally alter the USA position in global politics and hence leadership in coming decades.

It is painful to observe that follies of a person at helm has made the global leadership issue a binary and China is happy playing ball along that it currently is winning.

China wants to turn these early signs of success into a narrative to tell the world brushing asides its downside of authoritarian regime. It has learnt that providing global goods can burnish a rising power’s leadership credentials globally.

When no European state answered Italy’s urgent appeal for medical equipment and protective gear, China publicly committed resources to Italy & to EU to fight the pandemic to the worst affected countries in the union.

China’s advantage in material assistance is enhanced by the simple fact that most of what the world depends on to fight the virus & otherwise is made in China. Asides, medicines & antibiotics those are critical for major diseases, including for COVID 19, it produces the vast majority of active pharmaceutical ingredients necessary to make them and fulfils majority of global demands in medicine raw materials.

The USA, by contrast today, lacks the supply and capacity to meet many of its own demands, let alone to provide aid in crisis zones elsewhere. Profit motives of US companies moved manufacturing them to China in last thirty years.

China’s share of the U.S. antibiotics market is more than 95 percent. Beijing, in contrast, is offering aid precisely when the global need is greatest that USA is unable to fulfil and extend. Howsoever opportunistic it may be, it gets optics.

During the 2014–15 Ebola crises, USA led a coalition of dozens of countries to counter the spread of the disease. The Trump administration has so far shunned a similar leadership effort to respond to the coronavirus. Even coordination with allies has been lacking.

China, by contrast, has undertaken a robust diplomatic campaign and it is working hard to publicize such initiatives. Every story on the front page of its party line organs shouts of its efforts to help different countries underscoring the superiority of its approach.

The ultimate success of China’s pursuit to global leadership will depend as much on what happens in USA and it can still turn the tide, if it proves capable of doing what is expected of a leader; managing the problems at home, supplying global public goods, and coordinating a global response. 

Every misstep by USA is a steppingstone for China towards the pedestal.

A few global events post China’s liberalisation abased USA’s global leadership to begin with & let us look at these chronologies to get a feel of it-

·        Breaking up of USSR in 1991 that USA was celebrating as end of cold war & its global dominance, China quietly expanded its market in the world by offering basic goods at cheaper cost than any that systematically killed competitions across globe and gaining scales unmatched globally.

 

·        While USA was busy after 9/11 in hunting the terrorists & weapons of mass destructions, China quietly got surefooted by joining WTO in 2001, thereby accepting the world order and only to change the competitive matrix of the world to become a dominant player by becoming “Factories to the world”.  

 

·        While in 2007/2008, USA was grappling with financial market meltdown; China quietly started acquiring listed companies in USA & began its technology dominance journey emulating Silicon Valley story and created a matching niche over the decade in Guangzhou in Pearl River Delta. 

 

·        The Paris Agreement of 2016 is a historic accord that brings almost 200 countries together in setting a common target an effort to fight climate change, USA decided to walk out of the deal and instead was busy exploding MOAB on the borders of Afghanistan and Pakistan in 2017.

All these pivot events above gradually allowed China to get a grip over the world, while US lost its grip by its own motives.

Ultimately, the virus would serve as a wake-up call, spurring progress on other global challenges requiring USA- Global cooperation without excluding China. US cannot do well by chanting America First alone.

The leadership in democracies are tricky till the true worth of leaders are known and a wrong choice means rapid to dominance in the world pecking orders that the world is unwilling to accept today by being what one was.

To be a leader at global stage, to do more for the world shall be the key and then also do some more when one has already done a bit more.

Leadership of a nation cannot be transactional and has to look beyond the immediate consequences and larger public goods. Nor it is a binary of “them versus us”. Leadership is defined by results not by features.

Characters and strategies both matter in global leadership, but when it is hard to choose between the two- world must choose character, but right now the world is in a quagmire where it must find sanity by sidestepping a megalomaniac and an arrogant selfish.

The world leadership is changing- it will- it should and it must; pandemic just provided the gateway as a facilitator.

 

11 June 2020


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