Monday, March 30, 2009
The secret behind China's global rise, #45870458
Ignorant American politicians who are incapable of intelligently engaging in timely and necessary debates.
Congresswoman Michelle Bachmann is clueless about the dollar’s role as the world’s reserve currency. In fact, it seems she’s clueless about what a reserve currency is. That’s why, in reaction to China’s SDR proposal, she’s introducing legislation to “bar the dollar from being replaced by any foreign currency.” And apparently a lot of people are similarly confused and need a quick explanation of the difference between legal tender and currency reserves.
If Rep. Bachmann’s office needs some assistance with international economics, I’d be happy to provide some advice over the phone at a reasonable price.
Having had my fair share of economic discussions with Jonathan, I can readily vouch for his expertise.
Having had their fair share of international gaffes in recent weeks, too (see here and here, for instance), I would urge U.S. politicians to do engage in greater background research before making future pronouncements (pertaining to anything, really) or attempting gestures of goodwill. Unfortunately, things in this department do not appear especially promising: standing in front of the Basilica of Our Lady of Guadalupe, which was "miraculously imprinted by Mary on the tilma, or cloak, or Juan Diego in 1531," Hilary Clinton on her recent trip to Mexico turned to the priest who was showing her the Basilica and asked, "Who painted it?"
Quite frankly I don't know how anyone is to take the U.S. seriously if such blunders continue to be made. Of course such slips of the tongue occur frequently in the wonderful world that is international relations, but one would hope that politicians in the world's superpower would be sufficiently knowledgeable on what really are commonplace matters. Even I understand the difference between legal tender and currency reserves, and I will be the first to admit that economics is not my forte.
While on the surface such slips may not appear to be a big deal, they do go a long way in discrediting the United States in the global arena, and are likewise utilized by leaders in countries who are interested in asserting their superiority over (or equality to) the U.S. in doing precisely that. China is no exception.
[HT: Andrew Sullivan]
One China, indeed
It really is amazing, isn't it: you step away for a few days and the world seemingly shifts beneath you. Having returned from what was a beautiful wedding in Nashville, I sat down this morning for my daily perusal of the news to discover that the Chinese are running a cyber spying ring (this is admittedly not at all surprising); Jeffrey Herbst and Greg Mills are arguing that the DRC does not exist; having refused the entry of the Dalai Lama, South Africa is now awarding Fidel Castro the country's highest honor; El Salvador is switching its diplomatic ties from Taiwan to China; the United States is becoming the new China; and, as if such news wasn't sufficiently overwhelming, it would appear that things are looking up in Zimbabwe. My goodness!
There's a unifying theme underlying at least two of these stories, which is worth teasing out in greater detail. With China now prominent on the global stage, attention tends to focus primarily on its economic and military activities (a very Western paradigm through which to examine international relations), often failing to account for the continued centrality of the "One China" policy in Beijing's dealings with the world. The recent happenings in El Salvador and South Africa are cases in point. Writing on South Africa's decision, the CS Monitor's Scott Baldauf notes:
A nation that freed itself from an apartheid government, South Africa would seem to have much in common with leading liberation figures like the Dalai Lama, who speaks for about 5.4 million Tibetans, who live under Chinese rule.But as a nation that depends heavily on Chinese markets for buying its rich natural resources, South Africa has given the appearance of having chosen commerce over principle. It's a decision that could cost South Africa its moral voice on the global stage.
Todd Moss, quoting Nelson Mandela's grandson, organizer of the peace conference which was to host the Dalai Lama, observes:
This rejection by the government, to not issue a visa, is really tainting our efforts at democracy. It’s a sad day for South Africa. It’s a sad day for Africa…Where are we heading in the future?
Straight into the open arms of the Chinese, I would argue. Indeed, they must be quite pleased with themselves in Beijing, what with a growing number of countries wrapped around their finger - in Africa and beyond. While many countries are quick to pledge their allegiance to the Chinese for purely economic purposes, in some cases the reasoning is rooted in greater historical motivations, as appears to be the case in El Salvador:
The FMLN has never forgotten that ARENA founder Roberto D'Aubuisson, who organized and led the death squads which tortured and killed thousands of civilians and who directly ordered the assassination of Archbishop of San Salvador Monsignor Oscar Romero on March 24, 1980 that sparked the civil war, was trained in "police techniques" in Taiwan.
Moreover, unlike Nicaragua, Guatemala or Paraguay, Taiwan has been unable to develop solid political dialogue with the FMLN even under DPP President Chen Shui-bian.
Dual recognition appears to be out of the question for El Salvador, handing another diplomatic win (of sorts) to the Chinese. Indeed, it's important to recall that for the leaders in Beijing, national unity is of utmost importance, second only to economic growth. And for developing countries struggling to sustain their growth rates in the face of an ongoing economic crisis, acknowledging Chinese national integrity is a small price to pay for the goods handed in return. While scholars and policymakers alike sometimes tend to bypass the centrality of the "One China" principle, it remains a central tenet of Chinese foreign policy, not to be overlooked.
As for South Africa awarding Castro the Order of Companions of O.R. Tambo in Gold award... your guess is as good as mine.
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