By Sergei Karaganov
MOSCOW – The world is currently being shaken by tectonic changes almost too
numerous to count: the ongoing economic crisis is accelerating the degradation
of international governance and supranational institutions, and both are
occurring alongside a massive shift of economic and political power to Asia.
Less than a quarter-century after Francis Fukuyama declared “the end of
history,” we seem to have arrived at the dawn of a new age of social and
geopolitical upheaval. Dramatically, the Arab world has been swept by a revolutionary spring,
though one that is rapidly becoming a chilly winter. Indeed, for the most part,
the new regimes are combining the old authoritarianism with Islamism, resulting
in further social stagnation, resentment, and instability.
Even more remarkable, however, are the social (and antisocial) grassroots
demonstrations that are mushrooming in affluent Western societies. These
protests have two major causes.
First, social inequality has grown unabated in the West over the last
quarter-century, owing in part to the disappearance of the Soviet Union and,
with it, the threat of expansionist communism. The specter of revolution had
forced Western elites to use the power of the state to redistribute wealth and
nurture the growth of loyal middle classes. But, when communism collapsed in
its Eurasian heartland, the West’s rich, believing that they had nothing more
to fear, pressed to roll back the welfare state, causing inequality to rise
rapidly. This was tolerable as long as the overall pie was expanding, but the
global financial crisis in 2008 ended that.
Second, over the past 15 years, hundreds of millions of jobs shifted to
Asia, which offered inexpensive and often highly skilled labor. The West,
euphoric from its victory over communism and its seemingly unstoppable economic
growth, failed to implement necessary structural reforms (Germany and Sweden
were rare exceptions). Instead, Western prosperity relied increasingly on debt.
But the economic crisis has made it impossible to maintain a good life on
borrowed money. Americans and Europeans are beginning to understand that
neither they, nor their children, can assume that they will become wealthier
over time.
Governments now face the difficult task of implementing reforms that will
hit the majority of voters hardest. In the meantime, the minority that has
benefited financially over the past two decades is unlikely to give up its
advantages without a fight.
All of this cannot fail but to weaken Western democracy’s allure in
countries like Russia, where, unlike in the West or to a large extent the Arab
world, those who are organizing the massive demonstrations against the
government belong to the economic elite. Theirs is a movement of political
reform – demanding more freedom and government accountability – not of social
protest, at least not yet.
A few years ago, it was fashionable to worry about the challenge that
authoritarian-style capitalism (for example, in China, Singapore, Malaysia, or
Russia) presented to Western democratic capitalism. Today, the problem is not
only economic.
Western capitalism’s model of a society based on near-universal affluence
and liberal democracy looks increasingly ineffective compared to the
competition. Authoritarian countries’ middle classes may push their leaders
toward greater democracy, as in Russia, but Western democracies will also
likely become more authoritarian.
Indeed, measured against today’s standards, Charles De Gaulle, Winston
Churchill, and Dwight Eisenhower were comparatively authoritarian leaders. The
West will have to re-adopt such an approach, or risk losing out globally as its
ultra-right and ultra-left political forces consolidate their positions and its
middle classes begin to dissolve.
We must find ways to prevent the political polarization that gave rise to
totalitarian systems – communist and fascist – in the twentieth century.
Fortunately, this is possible. Communism and fascism were born and took root in
societies demoralized by war, which is why all steps should be taken now to
prevent the outbreak of war.
This is becoming particularly relevant today, as the smell of war hangs
over Iran. Israel, which is facing a surge of hostile sentiment among its
neighbors in the wake of their “democratic” upheavals, is not the only
interested party. Many people in the advanced countries, and even some in
Russia, look increasingly supportive of a war with Iran, despite – or perhaps
owing to – the need to address the ongoing global economic crisis and failure
of international governance.
At the same time, huge opportunities beckon in times of far-reaching
change. Billions of people in Asia have extricated themselves from poverty. New
markets and spheres for applying one’s intellect, education, and talents are
appearing constantly. The world’s power centers are beginning to counterbalance
each other, undermining hegemonic ambitions and heralding a creative
instability based on genuine multipolarity, with people gaining greater freedom
to define their fate in the global arena.
Paradoxically, today’s global changes and challenges offer the potential
for both peaceful coexistence and violent conflict. Whether fortunately or not,
it is up to us – alone – to determine which future it will be.
Sergei A.
Karaganov is Dean of the School of World Economics and International Affairs at
Russia’s National Research University Higher School of Economics.
Copyright:
Project Syndicate, 2012.
www.project-syndicate.org
www.project-syndicate.org
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