Beijing presents a clear and gathering threat to Washington—but not for the reasons you think. China's challenge to the West stems from its transformative brand of capitalism and an entirely different conception of the international community. Taking us on a whirlwind tour of China in the world—from dictators in Africa to oligarchs in Southeast Asia to South American strongmen—Halper demonstrates that China's illiberal vision is rapidly replacing that of the so-called Washington Consensus. Instead of promoting democracy through economic aid, as does the West, China offers no-strings-attached gifts and loans, a policy designed to build a new Beijing Consensus. The autonomy China offers, together with the appeal of its illiberal capitalism, have become the dual engines for the diffusion of power away from the West. The Beijing Consensus is the one book to read to understand this new Great Game in all its complexity.
A common school of thought regarding China and its future is that it will either look at dominating the world militarily or that it literally will own the United States through its holding of U.S. debt and through other various acquisitions. Stefan Halper looks to debunk these trains of thought by making the case that while neither is the end goal of China, China is slowly expanding its global sphere of influence (and consequently weakening the "soft power" of the United States) which is an indirect function of the ruling elite seeking to maintain its own power within China. Halper effectively is able to break down this argument by laying the groundwork of the history of the United States' foreign policy and China's cultural foundation. Additionally, he discusses how many nations (rogue or otherwise) may see a benefit of working with China versus working with the U.S. as well as the inability of the United States' government to identify the variables that has given China an edge in the foreign relations game. Not all hope is lost, however. Halper provides some solutions that can be utilized for the United States to maintain its "lever" in the international diplomacy game. Ultimately, its not about buying the United States, its not about war, its about China's intense desire to maintain its domestic political status quo through the promotion of "authoritarian capitalism" to ensure internal stability.
Excellent, in-depth analysis of Beijing-Washington relations and China's strategy for the 21st century. A bit academic in it's wording at times (lots of ism's), but nevertheless a great read. Would recommend to anyone interested in international affairs, as the Beijing Consensus is one of the primary concepts shaping world power in the 21st century.
An excellent book wherein Halper looks at the position of China in today's world (2010), and the impact on trade and Western ideals.
1 - China and the Global Shift
A new era of global convergence around the Western model of free-market democracy has failed to emerge. New centers of economic development have developed, many of which do not support liberal politics. After World War II, the U.S. became the most powerful country in the world. Since then, interventions into countries such as Iraq, heavy-handed work by the U.S. intelligence services and the Wall Street crash of 2008, have reduced confidence in Western values and capabilities.
2 - The Rise and Fall of the Washington Consensus
Milton Friedman's economic theories emphasizing free market principles gained much traction in the 1970's, leading the World Bank and the IMF to make loans conditional on the country adopting "structural adjustment programs" which required market deregulation, elimination of subsidies, reduction in size of the public sector and other market oriented initiatives that together became known as the Washington Consensus. In many cases, these measures did not work in the developing countries, resulting in price hikes, currency devaluation and violent protests. These problems have lead Western development packages to lose both legitimacy and appeal.
Since 1980 the growth of international markets and the failure of the Soviet Union have only reinforced the belief of the West in the need for free markets. However, resource-rich and export driven governments have shown that strong economic growth can exist in illiberal situations. An emphasis on economic growth rather than political rights has allowed very strong economic performance.
3 - The China Effect
Beijing does not seek to export communism. However it offers autocrats and illiberal governments an alternative when they fall out with the West. Halper looks at specific cases including Cambodia, the Central African Republic, Venezuela and Iran. China says programs are not a form of charity, but designed to establish relationships of mutual benefit. Unfortunately, it is often the country's leaders and elites that enjoy the benefits of such programs, with the ordinary citizens often seeing the downside such as increased competition.
4 - The Competitive Edge
Typical of the African experience, Senegal's President Wade in 2008 declared a preference for China's approach to contracts as they could be made in three months, while contracts with the World Bank would take five years. Moreover the Chinese contracts are without conditions, while the Western contracts often require structural changes. This difference provides a competitive edge for China.
In return, many of those countries contracting with China express support for a unified China and some even cut diplomatic ties with Taiwan. With one-third of the U.N. General Assembly being African, China has the opportunity to influence votes by essentially creating a voting bloc. Support for Chinese positions on human rights has jumped, while it has dropped for the U.S./E.U. bloc. Meanwhile, the conflict in the Middle East has eroded faith in Western ideals and capabilities.
5 - The Myth of Inevitability
Western politicians and commentators have believed that greater international trade would lead to China becoming "a responsible stakeholder", embracing liberal and democratic ideals at home and in its trading partners. The Tiananmen Square revolt and the collapse of Russia led to self-analysis concluding that the causes were dogmatic ideology, entrenched elites, a stagnant, isolated economy and the viewpoint that their system was the most advanced and admired in the world. Since then the party has become more ideologically flexible and progressive, but has no intentions of becoming a democratic state. A concentration on economic development has been seen to be key to improving the living standards of the people.
The CCP draws legitimacy from the Confucian roots of a role based system of ethics where the governed and governors respect each other so long as each fulfills its side of the bargain. The rulers are expected to ensure livelihood, shelter, education and security. These ideas are strengthened in the schools where the narrative includes strong elements of Chinese nationalism and exceptionalism.
Increased flexibility has become an issue with the internet which has allowed citizens to debate and voice displeasure, and in some cases expose government corruption. However, it is policed to avoid more subversive content. Similarly religion has been accepted so long as it does not encourage "splittism" and challenge party authority. Those sects that have, including the Falun Gong, the Tibetan Buddhists and the Muslim Uighurs, have been strongly suppressed. Social stratification is apparent where the migrant rural workers have become a less privileged class. To date, these social problems seem to have been offset by the improvements in the economy.
6 - The Problem in Washington
Washington hosts a number of single-issue interest groups that fixate on one aspect of China. These include the hawks club which focuses on China as a rising military threat, the trade watchers who are concerned that China is trying to buy the U.S. through foreign investment, those that are concerned with the loss of jobs to China, and the panda huggers who believe that with increased trade China will conform to the norms of Western liberal behaviour.
The U.S. view of China is largely rooted in the American view of themselves as an exceptional nation. Two basic framing ideas largely shape foreign policy. The first is the notion of a zero sum, win-or-lose struggle which will lead to either China or the U.S. prevailing. This results in the view that China wants nothing less than to displace the U.S. as the world's sole superpower. The second concept is the idea that the U.S. is the leading proponent of liberty, freedom and human progress, leading to the oversimplification that in the future China will either be with the U.S. or against it.
7 - Conclusions
China is ruled by an elite that has successfully adapted to change and adjusted its strategy over the past twenty years (book written in 2010). However, China's actions are various and it is therefore a mistake to view China from any specific viewpoint, be it trade, military or human rights.
Developing nations no longer have to abide by Western conditions of financial engagement. They no longer have to choose between emulating the Western model and rejecting capitalism. The Washington Consensus, where assistance hinged upon adopting more liberal social policies and free market fundamentalism, has not worked out for many developing countries. A Pew Research study of 47 countries showed a loss in favour of democracy from 2002 to 2007. Many countries are looking toward China's model of state capitalism. China has a large and growing influence in Africa and Latin America, where it is viewed in widely favourable terms.
The author believes that China's aversion to isolation or exclusion would allow the U.S. to cooperate with China by building larger multilateral initiatives. Halper feels the U.S. should be trying to work with India and Russia. He notes China's fear of international criticism as in the cases of Tibet and Taiwan. The U.S. advantage has historically been its economic competitiveness and its levels of education, productivity and ingenuity. Halper notes that this edge is deteriorating, most noticeably in the huge budget deficit, loss of heavy industry and the poor education system.
Finally, Halper notes that many of the world organizations are out of date in that they do not include the developing countries. He mentions the Security Council, the G8, the IMF and the World Bank specifically. The U.S. could take a lead in working to expand these organizations thereby promoting globalization.
Stefan Halper’s work The Beijing Consensus offers a somewhat ominous world future and the US position in it. The title of his book, a play on the term “Washington Consensus” coined in the late 80s and early 90s refers to how the west, specifically the United States, represented by Washington is losing ground in the Third World community and how Beijing (China) is picking up the slack and gaining ground where America is failing. The problem he argues is that the Washington is looking at Beijing much like it used to look at Moscow during the Cold War. Halper’s argument is that America’s touting of western values and ideologies, democratic governments and capitalism has not boded well for those underdeveloped nations that it has coerced into accepting them in order to be on its “good side” and receive aid. Often the US sets a difficult standard of reforms and provisions that must be attempted or met before it is willing to delve out foreign aid and resources. Halper argues that this has actually done more harm than good to the nation-state’s that have employed such measures at the west’s forceful urgings. China however has given the Third World an example of economic and political might to emulate and learn from. With a liberal economy, among other things, China has shown the poor world how to develop effectively, efficiently and quickly, all without sacrificing its Communist values and state-controlled system of government. Furthermore, as it increasingly becomes a powerful presence on the world stage, more and more developing nations are abandoning the seemingly ineffective, outdated or difficult “western ways” of democracy and capitalism in favor of growth and stability that is on par with China. Assuming Realist Theory applies to this global situation, which states in part that a state’s main objective is survival and continuity in a rational manner it is no wonder why so many struggling states are jumping on China’s economic and political reforms bandwagon to partake of its explosive growth and success in the last few years. To look at it rationally, when faced with a struggling, uneducated, poverty-stricken population and seeking to alleviate such state suffering, which state, again acting rationally, would not do what appears to be working in China? Especially after similar measures mandated by the US have been met with stunted growth, slow success and a continued dependence on Washington? China knows from its own history that militarily it may not be a match for the western powers. Its other option then is to employ a “soft power” approach of bearing the economic, social and political standard of international relations and influence to achieve its ends of being a global super power and perhaps unseating the United States as the nation-state to mimic, support or learn from.
I wanted to read the Beijing consensus to see what it said about the role of China in Central Asia. The answer is that it depends. There is very little in the book that talks about the region. In fact there were only two or three mentions of the Shanghai Cooperation Organization (SCO) at all - and these were really just in passing.
The more complicated answer is that the overall thesis of the book is about the ways that Beijing is circumventing the west's ideal of linking liberal economies with liberal polities. The appeal of the China model is great for the autocratic rulers in the Central Asian states who face some similar issues as the Chinese. The primary motivator for these states is a need for stability. This is shared by all the states in the region. China and Russia are at the top of the list of states that have based their foreign policy on the stance that internal stability is the trump card.
For leaders around the world that look at the aftermath and continuing problems of the Arab Spring and the Euromaiden revolution brewing in Ukraine, the ideal of stability is attractive. The adherence of these states to the Westphalian ideal of sovereignty is a key to understanding Russian foreign policy and its positions in the UN.
This book is an important read for those that are interested in nuanced narratives of the way the world works. It is important for reminding academics and policy wonks alike that there is a competing market in the world for ideas, and that there are powerful states that are backing a different set of ideas and ideals.
6/10. Interesting perspective on the rising soft power of China, though not without problems. Lots of evidence, case studies, and clear thesis. However, in my opinion the viewpoint taken by the author is somewhat biased. Yes, China has been employing a variety of strategies to increase its international power (hard and soft), and sometimes Chinese interests don't exactly complement American interests. However, power is not a zero-sum game, and China's rise doesn't necessarily equate America's fall. China is not out to sabotage the U.S. Nevertheless, this book presents an interesting case.
The book discusses China's government-business model but fails to sufficiently address that it is not not unique. State-owned enterprise has existed in the Middle East (UAE), South America (Brazil) and Europe (Norway) for decades. The book lacks focus, skips across time periods without reason, and includes extraneous details. Ultimately, the book is not worth the read. As an alternative, I strongly recommend 'The End of Free Markets' by Ian Bremmer.
A relatively straightforward book which is reasonably objective (except in the basic assumption of why US/Western views should go unchallenged). The book is quick although repetitive in tone. Some of the details on China's influence on various policymakers globally are likely to be informative for most.
Succinctly argues that Western values are losing their currency in world politics as China rises and prioritizes national sovereignty over democracy, human rights, and free market economies. A well written wake up call for those who think the world is converging under a Western framework of values and institutions.