As 2016 begins, an historic contest is underway, largely hidden from public view, over competing Chinese and Western strategies to promote economic growth. The outcome of this struggle will determine the fate of much of Eurasia in the decades to come.…Project Syndicate
At the same time, the de facto division of the world into two poles of self-interest is consolidated by overarching competing ideologies. The ideologies are not as comprehensive as the Communism/Free World ideologies of the Cold War. But they are crisply defined and effective rallying points nonetheless. And like the ideologies that were supposedly made irrelevant with the Cold War’s demise in 1989 and the fall of the Soviet Union in 1992, the new ideologies deal with how human society shall be organized and what are its highest values.
On the side of the EU and the USA, democracy, precisely as practiced in America, neo-liberal economics, and human rights in their latest and most expansive edition that has barely taken root among US and European progressives, are the defining elements of what constitutes a good society. By definition, only such societies are stable and peace-loving. Those countries which differ with the golden standard must be brought into line to ensure a peaceful world. This can be done any which way: by subversion or non-military coercion to bring about regime change, or by pure military force if non-military methods fail to bring about the desired results.
On the side of Russia and China, there is the belief that for nation-states true freedom means freedom to follow their own development course and to organize their societies in keeping with national traditions. Moreover, they staunchly defend the principles of Westphalia, meaning the equality of sovereign states and non-intervention in the internal affairs of other states.
For all of these reasons, the Concert of Powers that the global leading minds have been invited to discuss by the Valdai Club this week is an irrelevancy. We are well and truly back on track to a bipolar world, which, in any case, many IR experts have long believed is more stable, hence more promising of global peace, than an ever shifting balance of power among five or six major players.…This is an assessment of international relations and geopolitics that I basically agree with. Good history lesson as backgrounder, too.
We should be considering the Greece and Ukraine crises together. If only the news media would allow that…
There is something tragically irrational driving both of these crises. The genesis of each, at least nominally, is the question of whether markets serve society or it is the other way around. Economic conflict, then, has been transformed into humanitarian disasters. This is what Greece and Ukraine have most fundamentally in common.
It is in search of a logical explanation of the illogic at work in these two crises that something else, something larger, emerges to bring them into a coherent whole. Washington has so many wars going now, none declared, one can hardly keep the list current. But the most sustained and havoc-wreaking of them is unreported. This is the war for neoliberal supremacy across the planet. Greece and Ukraine are best viewed as two hot fronts in this war, a sort of World War III none of us ever imagined.
Neoliberalism is our Frankenstein. The thought holds for two reasons. At its core it is profoundly undemocratic, never mind that the English and American variants of democracy are the mulch from which it arises. It is also unrelentingly absolutist: Because it is intimately related to the myth of America’s providential exception, neoliberalism can tolerate no alternative. Were another idea of political economy to flourish it would expose premodern myth as premodern myth.…Good snapshot of the birth and development of liberalism from classical to progressive on one hand and neoliberal on the other. Smith is well-informed both about history and current affairs, and he summarizes the essentials.
There were two important articles in Foreign Affairs, the quarterly journal and associated website run by the Council on Foreign Relations.…
The first article two weeks ago, "America in Decay," was written by Francis Fukuyama, the neo-conservative economics and political science professor whose 1992 book The End of History and the Last Man provided unceasing thrills and pleasure to USA elites by arguing that the collapse of communism in the Soviet Union and Eastern Europe marked not only America's victory in the Cold War, "but the end of history as such: that is, the end point of mankind's ideological evolution and the universalization of Western liberal democracy as the final form of human government."…
The gist of Fukuyama's article is that it has turned out that Western liberal democracy is not the end point of human political development, and there seems to be more history in the offing, because it has been replaced by - holy unforeseen development, Batman! - oligarchy and plutocracy. Of course, Fukuyama does not use these words, but the idea is clear enough: his subtitle is "The Sources of Political Dysfunction."…
But it gets even more interesting, because at the same time, another article appeared in Foreign Affairs, entitled Print Less but Transfer More. This one was written by Mark Blyth, a professor of international political economy at Brown University and author of Austerity: The History of a Dangerous Idea; and Eric Lonergan, a hedge fund manager living in London and the author of - what else? - Money. The gist of their article is pretty well captured by their subtitle - and no, I am not making this up - "Why Central Banks Should Give Money Directly to the People."…
Make no mistake: the articles in Foreign Affairs are clear signs that USA elites are starting to worry that more and more of us are beginning to demand solutions that will, inevitably, have to either take away the wealth of the rich, or take away the power of the rich to create and allocate new money and credit.Lots more than this. Read the whole thing. It contains a good critique of "Keynesianism"as fundamentally oriented to saving the capitalist class, to which Keynes belonged, from it own overreach. The world needs more.
Wouldn't it be nice, Francis Fukuyama writes in an article called "The Future of History" in the current issue of Foreign Affairs, if some "obscure scribbler ... in a garret somewhere" would "outline an ideology of the future that could provide a realistic path toward a world with healthy middle-class societies and robust democracies."
This ideology, Fukuyama goes on:
"could not begin with a denunciation of capitalism as such, as if old-fashioned socialism were still a viable alternative. It is more the variety of capitalism that is at stake and the degree to which governments should help societies adjust to change. Globalization need be seen not as an inexorable fact of life but rather as a challenge and an opportunity that must be carefully controlled politically. The new ideology would not see markets as an end in themselves; instead, it would value global trade and investment to the extent that they contributed to a flourishing middle class, not just to greater aggregate national wealth.
"It is not possible to get to that point, however, without providing a serious and sustained critique of much of the edifice of modern neoclassical economics, beginning with fundamental assumptions such as the sovereignty of individual preferences and that aggregate income is an accurate measure of national well-being."
