Remarks to the 2019 Saudi Aramco Management
Development Seminar
By Ambassador Chas W. Freeman, Jr. (USFS, Ret.)
October 04, 2019 "Information
Clearing House" -
There is currently a
good deal of hysteria here in Washington about
something called “authoritarianism” allegedly taking
the offensive against democratic systems of
government. A century ago, imperialists,
colonialists, fascists, and communists did indeed
articulate theories about their superiority to
democracy and seek to impose autocratic systems of
government on others. In World War II and the Cold
War, ideology played almost as large a role as
geopolitics.
Today there are plenty of countries in the grips
of autocratic regimes, but there are none
propagandizing on behalf of autocracy or
“authoritarianism.” The international appeal of
authoritarian systems of government, if any, derives
from the extent to which they deliver prosperity and
domestic tranquility to their citizens. In the case
of China, this is considerable – vastly superior so
far to democratic India, for example. In the case
of Russia, not so much.
Present-day systems of government in countries
with authoritarian governments are specific to their
birthplaces. They are not exportable. They have
little in common with each other and, despite the
way Americans lump them together, they don’t seem to
feel a bond.
What is happening is not the advance of some sort
of united front of the world’s many incompatible
varieties of authoritarianism, but the retreat of
representative democracy, constitutionalism,
secularism, the rule of law, and the rule-bound
international order. We are witnessing the erosion
of systems built on the values of the European
Enlightenment and implemented most radically here in
the United States. The West disseminated these
values and imposed them on the world over the past
two centuries. They have been the foundation of
global peace and development and remain the most
widely accepted standards of good government.
As the Cold Peace that followed the Cold War ends
in renewed hostility between great powers, it is not
clear what values will shape a new world order, when
and if one emerges. This is deeply disquieting –
especially when one acknowledges the active role of
the present U.S. administration in unraveling the
world order American hegemony invented, sustained,
and managed throughout the last half of the last
century.
Democracy is contracting, not because it is under
pressure from foreign foes, but because citizens in
democratic countries have diminished confidence in
it. They increasingly regard their elected leaders
as incompetent, indecisive, self-serving, corrupt,
contemptuous of them, and ineffectual or indifferent
to their interests and needs. Dissatisfaction with
what democratic governments now actually deliver to
their citizens fuels “populism” and empowers
demagoguery.
Resistance to ethnic and cultural change takes
the form of phenomena like “white nationalism” and
fury at “political correctness” that appears to
privilege previously despised minorities over those
previously favored. We are being reminded that
populism has historically found its highest
expression in various forms of ethno-cultural
“fascism.” Disillusionment with democracy creates
fissures that geopolitical adversaries inevitably
exploit.
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Given citizen disenchantment with
democratic dysfunction, democracy
advocates are at a clear disadvantage in
making the case against non-democratic
systems. It does not help that many
democratic governments have deviated
from their own constitutional traditions
and entered various stages of
constitutional crisis.
Three years ago, in the United Kingdom, direct
democracy by referendum displaced parliamentary
sovereignty in deciding which way to go on Brexit.
Today, Boris Johnson’s effort to preempt further
parliamentary involvement in determining Britain’s
relationship with Europe or its place in a world of
shifting power balances has thrown British politics
into a dispiriting muddle.
Meanwhile, in the United States, the checks and
balances of the separation of powers and bill of
rights no longer effectively constrain government.
Despite the clear language of the U.S. constitution,
the presidency has wrested the power to authorize
wars of choice from the congress. The current
president has gone farther than any before in
arrogating congressional power to himself. Donald
Trump has even managed in some respects to override
the congress’s power of the purse – its exclusive
right to impose taxes, including tariffs, and to
authorize or withhold the release of public funds
for specific purposes, like building a wall on the
Mexican border. These constitutional changes are no
trivial matter. Consider their impact on war.
War is legalized murder. Its currency is men’s
souls. No authoritarian leader abroad now has as
much power to kill as many men and women in as many
places or does so as the American president. A
self-sustaining professional military relieves
ordinary Americans of any connection to America’s
wars other than that of spectators in a televised
sport or employment by the military-industrial
complex. This assures a high level of apathy that
discourages public debate and frees the president to
order and conduct wars as he wills for as long as he
wants. As a result, America has become by far the
most opposed of all the industrial democracies to
rule-bound resolution of disputes. Washington
habitually uses coercive measures, including
warfare, to conduct its relations with foreign
countries.
Similar trends toward the removal of longstanding
checks and balances on the arbitrary exercise of
state power are evident in non-democratic systems,
including in your own region of West Asia and North
Africa. Impatience with the pace of change is
removing the traditional constraints on government
decision-making that both parliamentary democracies
and shura-governed societies have relied upon to
avoid erroneous policies. Authority is becoming
concentrated in the hands of a very few, sometimes a
single person. And it is increasingly intolerant of
heterodox beliefs.
Secularism is the foundation of religious
tolerance in Western society. Rejected by Pakistan
and Israel after World War II and then by the
Islamic revolution in Iran, it is now under overt
attack in India, with Muslims the greatest losers
from this. Demonstrative religiosity is gnawing
away at tolerance here in the United States. The
conflation of Islam with terrorism has entrenched
Islamophobia in much of the West. Judaism,
Christianity, Islam, and Hinduism alike all seem to
be in the process of sponsoring violent prejudices
against those of other faiths.
Due process is the conviction that it is not the
outcome but the fairness of the way it is determined
that legitimizes a decision and demands its
acceptance. This has been the essential theory of
justice in the West for at least three centuries.
Due process fails when those making decisions
exhibit conflicts of interest, corruption,
amorality, or prejudice. Voters now attribute
government neglect of their needs and aspirations to
these very moral failings on the part of their
leaders.
With people increasingly doubting the integrity
of democratic governance and the rule of law,
conspiracy theories spread with the speed of dark.
In this atmosphere, allegations of foreign influence
in elections, as in the United States in 2016,
produce hysteria that threatens to discredit the
results of any and all electoral processes. This
further erodes confidence in democracy.
Meanwhile, impatience with international dispute
resolution mechanisms that cannot guarantee desired
outcomes reinforces disdain for multilateralism,
promotes unilateralism, and rationalizes actions
based on the idea that might can make right. The
growing lack of confidence in due process in the
United States undermines the rule of law at home.
It also facilitates the rejection of international
law and the institutions that implement it abroad –
the United Nations, the World Trade Organization,
the multilateral development banks. These pillars
of the world order represent signal American
diplomatic achievements facilitated by U.S. global
primacy. We are now learning that America’s
maintenance of a liberal constitutional order at
home is the prerequisite for its preservation of an
open, and cooperative order abroad.
In this context, the Trump trade wars mark an
historic break with the past. The single world
order formerly secured by the (mostly) benevolent
hegemony of the United States is fracturing into
multiple functional and regional architectures. It
is becoming an open question whether, in the absence
of a hegemon, a unified order of any kind can exist
at either the global or regional levels
In recent decades, the norm has been ever freer
trade regulated by the market within parameters set
by multilateral compacts and collegial dispute
resolution mechanisms. The United States now seeks
to replace this system and its rules with
neo-mercantilism in the form of government-managed
bilateral trade balances and dispute resolution
through economic attacks on opponents. Supply
chains have been the sinews of global economic
growth based on comparative advantage. American
politicians have now decided to treat them as
leverage with which to punish or coerce trading
partners. As Japan and south Korea are currently
demonstrating, America’s deviation from past
deference to rules and international comity is
proving contagious.
Interdependence was once seen as a highly
desirable way of stabilizing bilateral and coalition
relationships and assuring market access. It is now
viewed as a vulnerability. Countries are hedging
against reliance on long-established trading and
investment partners by diversifying and indigenizing
their sources of imported commodities, technology,
and services. As the unpredictability of U.S. and
other nations’ policies increases, so do perceived
risk and the volatility of capital and commodity
markets. Expanding uncertainty causes businesses to
defer investment decisions and consumers to delay
purchases. This phenomenon is now visibly reducing
economic efficiency and depressing growth across the
globe.
In addition to its sudden embrace of coercive
protectionism, Washington has weaponized its
currency to project American extraterritorial power.
The United States now routinely uses its grip on
the dollar – the de facto universal currency – to
override the sovereignty of other governments by
compelling them to comply with regime change
projects or other policies they and their domestic
publics oppose. This places politics instead of
markets in command of economic transactions,
devalues supplier reliability, and discourages
continued reliance on imports of goods and services
from the United States.
The dollar has long been the most convenient and
secure currency in which to do business
internationally. It gained this status as a result
of the global dominance of the United States after
World War II. The dollar retains its global
supremacy in no small measure because oil and other
commodities are still priced in it. But it is a
fiat currency in which there is declining faith.
Governments are coming to see transactions in
dollars as risky. Quite aside from concerns about
U.S. fiscal policy, transactions in the U.S.
currency can be curtailed or punished by arbitrary
and capricious decisions in Washington against which
there is no recourse. Practices that all but their
perpetrator find intolerable cannot last. Sooner or
later they will be challenged and put to an end.
A search for ways to end dollar dominance of
international transactions is now underway in a
lengthening list of countries. Some look for the
Chinese yuan to replace the dollar. But no nation –
not even one as economically powerful as China – can
hope to match the global dominance of the United
States after World War II. Whatever replaces the
dollar-based international monetary system will not
be a national currency, but a patchwork of currency
swaps or a global reference currency created by
multilateral agreement.
In a world in which alliances are loosening or
disintegrating and bilateral antagonisms are
multiplying and deepening, government regulation of
trade and investment increasingly reflects national
security judgments rather than efforts to promote
prosperity or efficiency. Some of these judgments
verge on the paranoid. Controls on scientific
exchange and technology transfers are tightening.
Countries are banning or limiting foreign
participation in ever more sectors of their
economies. The United States is demanding that
others align with it against Russia and, especially,
China. The academy is being penetrated by
gumshoes. There is more than a whiff of McCarthyism
in the air.
For the most part, both individuals and countries
want to do business with whomever can produce the
best goods and services at the lowest cost and
deliver them on the fastest and most reliable
schedule. They do not want to subject their
commercial choices to control by their security
partners. But the American effort to rollback
China’s global influence and confine the use of
Chinese technology is dividing the world into at
least two distinct technological ecosystems. The
implications of this are potentially far-reaching.
No country wants to be forced to choose between
the United States and its actual or potential
international rivals. The goal of most countries is
to keep the bidding open. But as technology and
standards diverge in a world divided by contention
between great powers, it will become progressively
harder for smaller economies to avoid deciding with
which techno-realm they should align themselves.
Each will embody its own set of interdependent
economies, a dominant scientific educational system
and language, and evolving standards that
differentiate it from others.
If, as may be expected, countries opt for the
zone in which their access to technology is least
impeded by political posturing and export and travel
controls, the realm in which China is preeminent
could end up significantly larger than the American
one. It is entirely possible that, within such
“techno-realms,” Chinese and other tongues will
increasingly compete effectively with English as the
dominant language of science. That, in itself,
would have a significant impact on world affairs.
Great and middle-ranking powers alike are
substituting military confrontation and contention
for the negotiation of differences with other
countries. Rising tensions and concerns about
national security are walling up science and
technology in sub-global “techno-realms.” Again,
the United States has led the trend. It has largely
abandoned diplomacy in favor of the adoption of
maximalist positions that ignore the interests of
other parties, reject dialogue, lack negotiating
strategies, threaten the use of force, and demand
unconditional surrender. The result is escalating
confrontation between America and a growing list of
other countries. So far, this approach has produced
no agreed adjustments in relations. America’s wars
and those of its major security partners like Israel
and Saudi Arabia no longer have fixed or feasible
objectives or terms for their termination, so they
never end.
In military terms, the United States retains
unchallenged offensive power. Other great powers
may be improving their ability to defend themselves
against attack by the United States, but they lack
the capacity to take the offensive against it.
Russia retains a nuclear deterrent sized to
extinguish all life on this planet. China has a
credible ability to conduct a devastating nuclear
counterattack on the continental U.S. as well as to
destroy U.S. bases in Asia. In the age of regime
change wars, some smaller countries, like north
Korea, have concluded that the only effective
guarantee of their security is acquisition of a
nuclear deterrent. Many suspect that Iran has come
or will come to the same conclusion. If so, others
in the region will also seek to acquire nuclear
deterrents. India and Pakistan are already at
nuclear daggers drawn. The risk that nuclear
weapons could be used to decide the outcome of a
desperate conflict is growing.
The unique ability of the United States to
project power throughout the globe has led many
countries to seek American protection against more
powerful or bellicose neighbors. It has caused
others to arm themselves against possible American
attack. As American reliability has come into
question, those countries reliant on U.S. protection
have stepped up their efforts to bolster their own
defense capabilities, while those who feel
threatened have done the same. The result is the
rebirth of arms races and explosive growth in the
international trade in arms.
Meanwhile, many abroad see American statecraft as
increasingly erratic, self-centered, and rash. This
is provoking reconsideration by U.S. allies of the
costs and benefits of military dependence on the
United States. Alliances are broad commitments to
mutual aid. Those contracted by the United States
during the Cold War are evolving toward the narrow
and conditional partnerships characteristic of
entente (diplomatic jargon for a limited commitment
for limited purposes, perhaps for a limited time).
In these circumstances, even a substantial military
presence in any given region or country no longer
assures the United States decisive political or
economic influence there.
Washington’s disparagement of the European Union
and European NATO members has strained Euro-American
solidarity. Brexit, when and if it takes place,
will add to the strain. U.S. schizophrenia about
Russia, with the president enamored of its leader
and Congress determined to confront and isolate it,
is a less visible but real threat to transatlantic
politico-military unity and cooperation.
Differences over how to deal with Iran’s nuclear
program continue to fester. Europeans do not share
the American obsession with the rise of China and do
not agree with Washington’s something-for-nothing
appeasement of Israel.
U.S. bilateral defense cooperation with key
allies is deteriorating. Turkey is disengaging from
America, looking away from Europe, and redefining
itself as a mainly Middle Eastern power with
independent ties to Russia. Japan remains committed
to the framework of its post-occupation alliance
with the United States but is beginning to act
outside it, courting Russia and exploring
accommodation with China. Japan’s US-brokered
defense cooperation with south Korea is breaking
down. Meanwhile, the abiding U.S. preference for
military rather than political approaches to
defanging north Korea has strained relations between
Washington and Seoul. The Philippines has
substituted appeasement of China for a role in
American confrontation with it. Australia is
struggling to find a secure place for itself in an
increasingly Sino-centric Asia.
In the Middle East, Israel, Saudi Arabia, the
U.A.E., and Egypt no longer follow American guidance
but act on their own independent judgments of their
national interests and are working to diversify
their international relationships. India remains
determinedly non-aligned even as it seeks to exploit
American interest in recruiting it as an ally. The
United States has officially decided that China and
Russia are enemies.
In short, politically, economically, and
militarily a great deal is in motion. Broken at the
top, a new world order is being invented from the
bottom up by people who are immersed in the
artificial universes that the
information-entertainment industry, social media,
and political spin-doctors create. Knowledge of
current events now arrives via media that reinforce
rather than challenge prejudices. It is hard to
think clearly about what’s happening and what it
means when news of it arrives accompanied by
“politically correct” interpretations designed to
appeal to established narratives and exclude
uncongenial interpretations. “Alternative facts”
trump real ones.
If current trends continue, the world of the
future seems likely to be one in which:
-
-
- Both governments and surveillance
capitalist corporations will enhance
their ability to monitor and manipulate
the societies in which they operate and
those with which they compete.
International cyber-attacks will grow in
both frequency and severity.
- The domestic and international
eclipse of Western values will lead to a
reduction in transnational advocacy of
human rights, as Europe pursues the
benefits of expanded economic relations
with China, India, Indonesia, and other
rising non-Western powers and joins the
Trump administration in downgrading the
importance it assigns to the promotion
of democratic constitutionalism.
- There will be little, if any,
recovery of markets lost in the current
trade wars. Apparently temporary shifts
in trade patterns will persist. Nations
will strive to diversify markets and
suppliers to minimize vulnerability to
politically dictated interruptions of
supply and demand.
- Some regional blocs will lose
members or break up entirely. The GCC
and EU are currently endangered by
internal disagreements. NAFTA has been
weakened. NATO may be in the process of
being flanked by European defense
initiatives that could divide it.
Differences over how to deal with
Sino-American rivalry threaten the unity
of ASEAN.
- Competing “techno-realms” have begun
to divide the world between them.
Incompatible technological standards and
systems will take root in the countries
affiliated with these realms. Huawei
and 5G are just the beginning of this
partitioning process. Scientific
collaboration will be increasingly
deglobalized and limited to interaction
within compatible transnational
communities. Competition between
“techno-realms” will speed the
development of technology but slow its
global diffusion.
- Functional and regional institutions
created by sub-global national
communities will increasingly displace
20th century global
institutions like the United Nations,
the World Trade Organization, the IMF,
the World Bank, and so forth. We see
this already in the growing role of
regional groupings like the Organization
for Islamic Cooperation, the
Comprehensive and Progressive Agreement
for Trans-Pacific Partnership, the New
Development Bank, and the Asian
Infrastructure Investment Bank, to cite
just a few examples.
- The devolution of collective
decision-making and capabilities to the
sub-global level will reduce capacity to
coordinate or muster worldwide responses
to issues like global warming, sea level
rise, nuclear proliferation, the need to
enforce existing precepts of
international law or for standard
setting.
- Shifting patterns of competition and
cooperation between the political
economies of nations and trading blocs
will replace long-term bilateral
commitments. Spot markets and
multinational intra-company transfers
will increasingly supplant both supply
chains and long-term contracts for trade
in commodities like oil. (Saudi Aramco
is wise to be securing markets by
acquiring refineries abroad.)
- As the global role of the dollar
declines, currency risk will rise. New
capital markets will be established to
enable financial transactions to take
place without the involvement of
traditional financial centers like New
York.
- Longstanding bilateral alliance
relationships will decay. Some will
disappear, to be succeeded by a mixture
of rivalry on some issues and
cooperation on others. So-called
“special relationships” – whether in
Europe, the Middle East, or East Asia –
will attenuate and be replaced by a much
heavier reliance on transactionalism.
No U.S. relationships will be exempt
from change, including those with the
United Kingdom, Turkey, Israel, and
Saudi Arabia, which is the oldest U.S.
security partner in the Middle East,
dating to February 1945.
- The United States will not abandon
its efforts to sustain global stability,
including in the Persian Gulf, but it
will increasingly demand burden sharing
by others even as they up their own
defense capabilities, including by
acquiring nuclear deterrents. Neither
the United States nor any other great
power can any longer guarantee the
safety of client states. If they choose
to pursue military solutions to their
disputes with neighbors, they will have
to live with the consequences of
retaliation for doing so.
- The global arms trade will flourish
even as countries strive for greater
self-sufficiency in the indigenous
manufacture of weaponry. Competition
between vendors will intensify as new
centers of military manufacturing join
America, Europe, China, Russia, Brazil,
Israel, South Africa, and the Koreas in
vying for sales. Candidate countries
include India, Iran, Japan, Pakistan,
Saudi Arabia, and Turkey.
- If the 19th century was
Britain’s and the 20th
America’s, the 21st century
will be nobody’s.
Ambassador Freeman chairs Projects
International, Inc. He is a retired U.S. defense
official, diplomat, and interpreter, the recipient
of numerous high honors and awards, a popular public
speaker, and the author of five books.
https://chasfreeman.net
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