The U.S. says it’s fighting for values such as democracy and honor, but America needs to live by those words at home if it wants anyone to stand with it
America’s deranged political system is hardly the envy of the world.
GETTY IMAGES
Last Updated: June 18, 2022
By Joseph E. Stiglitz
By Joseph E. Stiglitz
Such hypocrisy suggests that it is at least partly global hegemony, not values, that is really at stake.
For nearly two decades after the fall of the Iron Curtain, the U.S. was clearly No. 1. But then came disastrously misguided wars in the Middle East, the 2008 financial crash, rising inequality, the opioid epidemic and other crises that seemed to cast doubt on the superiority of America’s economic model.
Cold wars ultimately are won with the soft power of attraction and persuasion. To come out on top, we must convince the rest of the world to buy not just our products, but also the social, political and economic system we’re selling.
Deeply pathological
Moreover, between Donald Trump’s election; the attempted coup at the U.S. Capitol; numerous mass shootings; a Republican Party bent on voter suppression; and the rise of conspiracy cults, such as QAnon, there is more than enough evidence to suggest that some aspects of American political and social life have become deeply pathological.
Of course, America does not want to be dethroned. But it is simply inevitable that China will outstrip the U.S. economically, regardless of what official indicator one uses. Not only is its population four times larger than America’s; its economy also has been growing three times faster for many years (indeed, it already surpassed the U.S. in purchasing-power-parity terms back in 2015).
The West must once again make our economic, social and political systems the envy of the world.
While China has not done anything to declare itself as a strategic threat to America, the writing is on the wall. In Washington, there is a bipartisan consensus that China could pose a strategic threat, and that the least the U.S. should do to mitigate the risk is to stop helping the Chinese economy grow. According to this view, pre-emptive action is warranted, even if it means violating the World Trade Organization rules that the U.S. itself did so much to write and promote.
This front in the new cold war opened well before Russia invaded Ukraine. And senior U.S. officials have since warned that the Ukraine war must not divert attention from the real long-term threat: China. Given that Russia’s economy is around the same size as Spain’s, its “no limits” partnership with China hardly seems to matter economically (though its willingness to engage in disruptive activities around the world could prove useful to its larger southern neighbor).
Winning hearts and minds
But a country at “war” needs a strategy, and the U.S. cannot win a new great-power contest by itself; it needs friends. Its natural allies are Europe and the other developed democracies around the world. But Trump did everything he could to alienate those countries, and the Republicans — still wholly beholden to him — have provided ample reason to question whether the U.S. is a reliable partner.
Moreover, the U.S. also must win the hearts and minds of billions of people in the world’s developing countries and emerging markets — not just to have numbers on its side, but also to secure access to critical resources.
In seeking the world’s favor, the U.S. will have to make up a lot of lost ground. Its long history of exploiting other countries does not help, and nor does its deeply embedded racism — a force that Trump expertly and cynically channels. Most recently, U.S. policy makers contributed to global “vaccine apartheid,” whereby rich countries got all the shots they needed while people in poorer countries were left to their fates. Meanwhile, America’s new cold war opponents have made their vaccines readily available to abroad at or below cost, while also helping countries develop their own vaccine-production facilities.
Credibility gap
The credibility gap is even wider when it comes to climate change, which disproportionately affects those in the Global South who have the least ability to cope. While major emerging markets have become the leading sources of greenhouse-gas emissions today, U.S. cumulative emissions are still the largest by far. Developed countries continue to add to them, and, worse, have not even delivered on their meager promises to help poor countries manage the effects of the climate crisis that the rich world caused.
Instead, U.S. banks contribute to looming debt crises in many countries, often revealing a depraved indifference to the suffering that results.
Do what I say, not what I do
Europe and America excel at lecturing others on what is morally right and economically sensible. But the message that usually comes through—as the persistence of U.S. and European agricultural subsidies makes clear—is “do what I say, not what I do.”
Especially after the Trump years, America no longer holds any claim to the moral high ground, nor does it have the credibility to dispense advice. Neoliberalism and trickle-down economics were never widely embraced in the Global South, and now they are going out of fashion everywhere.
At the same time, China has excelled not at delivering lectures but at furnishing poor countries with hard infrastructure. Yes, these countries are often left deeply in debt; but, given Western banks’ own behavior as creditors in the developing world, the U.S. and others are hardly in a position to point the finger.
I could go on, but the point should be clear: If the U.S. is going to embark on a new cold war, it had better understand what it will take to win. Cold wars ultimately are won with the soft power of attraction and persuasion. To come out on top, we must convince the rest of the world to buy not just our products, but also the social, political, and economic system we’re selling.
The U.S. might know how to make the world’s best bombers and missile systems, but they will not help us here. Instead, we must offer concrete help to developing and emerging-market countries, starting with a waiver on all COVID-related intellectual property so that they can produce vaccines and treatments for themselves.
Equally important, the West must once again make our economic, social, and political systems the envy of the world. In the U.S., that starts with reducing gun violence, improving environmental regulations, combating inequality and racism, and protecting women’s reproductive rights. Until we have proven ourselves worthy to lead, we cannot expect others to march to our drum.
This commentary was published with permission of Project Syndicate: How the U.S. Could Lose the New Cold War
Joseph E. Stiglitz, a Nobel laureate in economics and University Professor at Columbia University, is a former chief economist of the World Bank (1997-2000), chair of the president’s Council of Economic Advisers, and co-chair of the High-Level Commission on Carbon Prices. He is a member of the Independent Commission for the Reform of International Corporate Taxation and was lead author of the 1995 IPCC Climate Assessment.
More Stiglitz columns on MarketWatch
Globalization failed for emerging markets. And now deglobalization will be put to the test
The Ukraine war and the pandemic prove that markets alone cannot manage the risks to our well-being
We need a balanced response to inflation, one that won’t ruin working people’s lives
No comments:
Post a Comment