The battles of political ideology have not ended.

After the Cold War, the West had assumed the contest of ideologies had been settled and that the last man had emerged. Political liberalism was victorious and non-democratic regimes were on “the wrong side of history,” as President Bill Clinton told the Chinese. The world seemed to agree as it experienced the third democratic wave. It was expected that alternatives to open markets, democracy, and individual human rights would not be welcomed but imposed.

Yet, in 2018, this is no longer true as both China and Russia offer alternative political models which are both gaining appeal around of the world.

What does Russia offer? Mostly a response to the social costs of liberalism. The cultural consequences of open markets and respecting civil liberties are not welcomed by all of society. The multiculturalism which results from respecting individual rights often challenges the traditional foundations of society. What Russia offers is a model to confronts these trends. Under Putin, Russia  is the defender of “the values of traditional families, real human life, including religious life” against those that “revise their moral values and ethical norms.” To pursue these goals, Russia offers a semi-autocratic state with leadership not subject to the rule of law or a critical press. In place of a rule bound, consensus driven executive, Russia offers a democratically elected leader yet one not obligated to respect individual rights. Once in power, the majority can impose what it wants on the non-majority. Such a model is usually referred to as illiberal democracy and is arguably the most powerful political trend in the Western world at the moment, recently planting roots in Poland and Hungary.

What China offers is something similar in spirit but with different motives. While Russia promotes a democratically elected head of state tasked to combat the erosion of traditional values, China offers an authoritarian political model responsible for economic growth. The common narrative that emerged after 1989 was that economic development was only possible when state interference was minimal. Free trade, private property, and democratic participation were all thought to be essential ingredients for a healthy economy. China demonstrated that this isn’t entirely true and that an alternative path exists, consisting of state own industries, politically controlled capital, and deep participation in the global supply chain. The political component of this model is an autocratic state with strict one-party political rule. Human rights are not respected nor is public criticism tolerated, and democracy is out of the question.

And the China model has its fans. Before his death in 2012, Ethiopian president Meles Zenawi routinely lauded the Chinese growth model and stated he sought to imitate it in Ethiopia. It is obvious why the ruling elites in Africa and Central America find such a model appealing. They get the economic growth but are also allowed to retain their positions of power. But there is a good amount of admiration for the China model among the governed as well. In 2017, Canadians viewed China more favorable than the United States by 5 percentage points. While it does not offer human rights or political participation, the China model is appealing because experiments with democracy and free markets have failed in other parts of the world. According to the World Bank, in 1980, the gdp per person in the worlds largest democracy (India) was 263 dollars. China’s was 194. In 2016, India has a gdp per person of 1,709 and China 8,123. You can see why there is no “India model.” Many view free markets as chaotic and the democratic process slow and inept. Such beliefs were confirmed by the financial crisis of 2007 and chronic political gridlock in America. Not only did China’s economy grow during the great recession, but they have maintained a relatively high degree of social and class cohesion in the process (albeit with a steep cost to human freedom).

What are China and Russia motivated by? They want deference from their neighbors and it is expected that states that share their politics will be more likely to do this. Some of the desire for deference is security driven and some by prestige, but either way, the West should allow it to occur. The principal reason why the Putin model is so popular is because of liberalism overextending itself. The more that Brussels and D.C. pushed their politics into Eastern Europe the more appealing the Putin model became. While not ideal from a human rights perspective, it would be better to find a compromise with the reactionary elements than stubbornly impose on them values they do not want. In regard to the China model, the United States should want to know if alternatives to the Washington Consensus are available. The traditional path to growth has not worked everywhere, as observed with Argentina in the 2000s. Unlike the Western model which is highly ideological, the China model is flexible and pragmatic, and could perhaps better suit the needs of a developing country than Western orthodoxy. Frankly, what the West should do is act more Western, and allow the market place of ideas to determine which model is more suitable for developing countries.

Ian Bremmer on Russia

What has Putin really won? Today’s Russia has an economy smaller than that of Canada. Its entire military budget is less than the extra money President Donald Trump wants Congress to spend on U.S. defense. It has no NATO allies, and it counts countries like Venezuela, Cuba, Sudan, North Korea, Syria and Serbia among its few reliable friends. China makes occasional deals with Russia but only at a Chinese price.

You can read the rest at Time here.

America risks an “Ottoman slap” in Syria.

That is the warning given by our “ally,” Erdogan. You can read more at CNN here.

The reasoning behind the Turkish-American alliance has two parts. One is a relic of the Cold War and was meant to produce Turkish security against the real threat of Soviet expansion. Today there is still probably a threat as Russia still covets access to the black sea, yet the Turks can figure this out for themselves at this point, perhaps by employing an Ottoman slap(?). The second reason why the United States has included Turkey into it’s security umbrella is to provide the security to allow the democratic process to further take root. Yet no other country has regressed politically as much as Turkey has in the past 15 years.

 

Russian Offshore Wealth Likely Equal To Country’s Entire Household Wealth

WASHINGTON — Capital flight from Russia is now likely equal to the collective wealth of all Russian households, according to a new report by a respected U.S. research firm, a trend that has helped to drive the country’s income inequality to extreme levels.

 

The National Bureau of Economic Research says in a paper being published this month that the top 1 percent of Russians now hold up to 25 percent of the country’s wealth, a function of capital flight that has accelerated in recent years.

You can read the rest here.

Iraq was not the first illegal US-led attack on a sovereign state in recent times. The precedent was set in 1999 in Yugoslavia.

The legality of the war against Iraq remains the focus of intense debate – as is the challenge it poses to the post-second-world-war order, based on the inviolability of sovereign states. That challenge, however, is not a new one. The precursor is without doubt Nato’s 1999 attack on Yugoslavia, also carried out without UN support. Look again at how the US and its allies behaved then, and the pattern is unmistakable.

Yugoslavia was a sovereign state with internationally recognised borders; an unsolicited intervention in its internal affairs was excluded by international law. The US-led onslaught was therefore justified as a humanitarian war – a concept that most international lawyers regarded as having no legal standing (the Commons foreign affairs select committee described it as of “dubious legality”). The attack was also outside Nato’s own remit as a defensive organisation – its mission statement was later rewritten to allow for such actions.

This article is old (it was first published in 2003) but is relevant for understanding current Chinese suspicions of American hegemony.

You can read the rest here.

Do Economic Sanctions Cause a Rally Around the Flag?

Sanctions are usually the first option in coercive diplomacy considering that the use of force is so morally tainted. But how effective they are is highly contested. There are costs and benefits to their use and one of the most notable cost is the “rally around the flag effect.”

Timothy Frye looks at this very aspect of Russian sanctions and writes,

I studied this issue in a recent working paper and found little evidence that economic sanctions influenced levels of support for the Russian leadership.6 To reach this conclusion, I conducted a nationally representative survey of 2,000 respondents in Russia in November 2016 just following the US presidential election, in which I randomly assigned respondents to receive questions with different prompts.7 In the baseline condition, respondents were asked, “To what extent do you support the Russian leadership (rukovodstvo) on a 5-point scale where 1 equals very negative and 5 equals very positive?” In the baseline condition where respondents received no additional information, the average level of support for the Russian government was 3.52.

Prior to receiving this question, one group of respondents was reminded that “since 2014 the United States has levied sanctions against Russia,” and another group of respondents were told that “since 2014 the European Union has levied economic sanctions against Russia.” If the “rally around the flag” argument was correct, we would expect support for the Russian government in these two groups to be higher on average than in the baseline group. Instead, in these groups the level of support for the Russian government was 3.40 and 3.46, respectively—lower than the support in the control group. Reminding respondents that the United States and the European Union had levied economic sanctions against Russia produced no discernible effect on the respondents’ support for the Russian government.

Short read and you can access the rest here.

“NATO allies boost defense spending in the wake of Trump criticism.”

From the WaPo

NATO allies of the United States plan to boost their defense spending by 4.3 percent this year, Secretary General Jens Stoltenberg said Wednesday, a response in part to intense pressure from President Trump that the nations invest more in their militaries.

The rest can be found here.

The Forgotten War

All told, the conflict has displaced between two million and three and a half million people. According to the United Nations High Commissioner for Refugees, at least 1.6 million Ukrainians moved west toward Ukraine’s capital, Kiev as a result of the fighting. Russia says that 2.6 million Ukrainians moved east. In its report ending March 12, the refugee agency also estimated that from mid-April 2014 to mid-March 2017, at least 9,940 people have been killed and 23,455 wounded.

That is from a June 20th NYT piece titled The War No One Notices In Ukraine.

 

Europe may no longer be able to rely on the US for defense against Russia. Here are its options

This is at Quartz.

Options discussed include

  1. European Army
  2. Increase spending and pool resources
  3. “Get good at what’s actually possible without the US”
  4. Convince the US it needs Europe
  5. “Don’t do anything drastic”

The issue with NATO isn’t that the allies are free riding. Don’t get me wrong, NATO is “welfare for the rich” and its utterly stupid that Americans are arguably paying more for European security than Europeans do, but to me the issue is that the alliance has been extended into areas into territories that produce the security dilemma from a Russian perspective.

Taking political stock of the past 18 months, It is becoming clear that 1) the original NATO is becoming more essential than we realized and 2) it needs the United States to lead. There is too much latent populism and nationalism on the continent to let Germany rise without some sort of outside check to manage it. And frankly, NATO can’t survive without the United States. You have clear evidence of shrieking now. If the United States were to transfer power to NATO and the alliance was actually somehow needed, why would we assume buckpassing wouldn’t emerge as the dominant response?

Is Macron Delusional?

First there was the handshake with a message. We are still not sure what the message is, but apparently it’s serious.

Now Macron is taking on Putin’s policy in Syria informing him that if chemical weapons are used again, Russia will have France to deal with.

I’m not sure if he is serious or if this is just sour grapes because both supported his rival. But if there is any country that needs to look at itself before beyond its borders it is France. At one point it was a regional hegemony, but France today doesn’t get much correct.

Below are two indicators of its economy, unemployment and GDP growth. Both are from FRED and both speak for themselves.

 

 

There is also the seemingly perpetual issue of integration and terrorism. France more than the United States, the U.K. or Germany seems to have a unique problem integrating members of foreign cultures into their society.

But regarding foreign policy, France should  be mostly concerned with Germany’s apparent willingness to chart a more independent path. The biggest long term concern for France is still Germany.  NATO was just as much designed to keep the Soviets out as it was to keep control over a recovering German.