CHAPTER 1 Global Issues: Challenges of Globalization A growing worldwide interconnectedness in the age of globalization has weakened the ability of authoritarian governments to control their citizens. Egypt exploded with joy when pro-democracy protesters ended President Hosni Mubarak’s three-decade rule. INTRODUCTION Revolutions in technology, transportation, and communication and the different ways of thinking that characterize interdependence and globalization are exerting pressures on nation-states that strengthen them in some ways but weaken them in others. States that played leading roles in international affairs must now deal with their declining power as global power is more diffused with the rise of China, Brazil, India, and other emerging market countries. Global communications, including social media, pose significant challenges to states. The publication of hundreds of thousands of secret government documents on the Internet by WikiLeaks in 2010 undermined the traditional practice of states to safeguard their secrets and to control information available to their citizens and others. Social networks such as Facebook and Twitter were instrumental in spreading popular revolts in favor of achieving democratic transitions in Tunisia, Egypt, Libya, and Syria, and throughout the Middle East and North Africa. Globalization—especially economic, financial, cultural, and environmental globalization—has spawned debates around the world. These debates illustrate both the significant resistance to and the widespread acceptance of globalization. Although some aspects of globalization are embraced as positive, others are rejected as destructive to cultures, the environment, and political and economic institutions, especially in poorer countries. This chapter examines the economic, political, and cultural aspects of globalization. Like all the chapters in this book, it demonstrates how politics, economics, and culture are intricately linked in an increasingly complex global society. It also examines the causes of globalization, various forms of globalization, periods of globalization, and the debates about globalization. Given the significance of religion in global affairs, the chapter concludes with a detailed case study on challenges facing the Catholic Church. FROM INTERNATIONAL RELATIONS TO GLOBAL ISSUES International relations is concerned with the interaction of states. The modern state emerged in Western Europe in 1648, following the Peace of Westphalia, which ended thirty years of war among various groups of princes and between political leaders and the Catholic Church. International relations, international politics, and world politics, which are all closely related, focus on states as the main actors. States are often referred to as nations, and most students of international relations use the terms states and nations interchangeably. They also use the term nation-state. The terms state and nation are related, but they are not exactly the same. A state is essentially a political unit composed of people, a well-defined territory, and a set of governing institutions. It is regarded as sovereign. This means that it is recognized by other states as having the exclusive right to make its own domestic and foreign policies. In other words, it is an independent actor in world politics. The United States is composed of diverse populations and is based on primarily an ideology. All states have ideologies, or systems of values, beliefs, and ideas. A nation is generally defined as a group of people who have strong emotional, cultural, linguistic, religious, and historical ties. The two concepts have become linked in everyday usage, and many scholars and practitioners of international relations use the term nation-state to capture this linkage.1 International relations focuses on three main questions: international relations The relations among the world’s state governments and other actors Peace of Westphalia The treaty that concluded the Thirty Years’ War in 1648 state A legal and political unit that must be internationally recognized, be politically organized, and be a populated geographic area that has sovereignty sovereign The ability of a state to be independent and free from the control of another state ideology A system of values, beliefs, and ideas nation A group of people who identify as a political community based on common territory, culture, and other similar bonds • • • 1. What are the contexts in which states operate, and how do these contexts shape or influence the decisions governments make? 2. What are the major objectives and interests of states in international politics, and what strategies do they employ to achieve them? 3. How are the choices made by states explained?2 At the heart of these questions is the concept of power. Power is defined as the ability to get others to do things they would not ordinarily do or to behave in ways they would prefer to avoid. Central to an understanding of international relations is the view that the interactions among countries are characterized by a struggle for power.3 This emphasis on states as the dominant, almost exclusive, actors in world politics is referred to as the state-centric model. state-centric model The view that world politics is dominated almost exclusively by state actors All fields of study are concerned with theories. The general purpose of a theory is to describe, explain, and predict how humans behave or how things work in the real world under certain circumstances. A theory is generally defined as an orderly, logical, integrated set of ideas or statements about human behavior or things in our environment. All theories provide conceptual frameworks and simplify complex realities. theory Predicts how humans behave or how things work in the real world under specific circumstances PLURALISM AND INTERDEPENDENCE A theory marking the transition from traditional international relations to global issues is that of pluralism and interdependence. Although this approach views states as the most important actors in world politics, it takes nonstate actors (i.e., organizations that are not formally associated with governments) into consideration. Its main concern is with how human activities are intertwined and interconnected across national boundaries. New and far-reaching forces of globalization are having such profound effects on the world that how we approach international relations must also be significantly transformed. James N. Rosenau and Mary Durfee have concluded that “daily occurrences of complex and uncertain developments in every region of the world are so pervasive as to cast doubt on the viability of the long-established ways in which international affairs have been conducted and analyzed.”4 The rapid proliferation of states as well as nonstate actors, revolutions in technology and communications, the growing sophistication and global views of many ordinary citizens, and the changing nature of conflicts are all contributing to the complex environments in which we live.5 State failure and the inability of governments to effectively address a wide range of global issues reinforce this transformation of international relations. nonstate actors Organizations that are not formally associated with governments and play a crucial role in setting the international agenda The violence and threat of violence that accompanied the emergence of modern states led to the pervasive emphasis on military power as the highest priority of states. The fear of losing territory or being eliminated was very real. It is estimated that 95 percent of the state-units in Europe at the beginning of the sixteenth century have been destroyed or combined to make other countries.6 The devastating effectiveness of military force and the development of nuclear weapons that threaten the extinction of most of the world make countries extremely reluctant to use military force. In addition to terrorism, there are other nontraditional threats to national security. Economic competition, the global financial crisis, population growth and migration, organized crime, drug trafficking, environmental problems, poverty, inequality, the globalization of diseases, piracy, and ethnic conflicts are among the threats to security. Recognition of these threats is strengthening the concept of human security in an increasingly global society. Human security is viewed as being linked to challenges that human beings face every day, most of which are not primarily related to military power. The concept of human security focuses on seven categories of threats.7 They are human security A concept of security that deals with the everyday challenges humans face that don’t involve military issues • • • • • • • ▪ Economic security (an assured basic income) ▪ Food security (access to an adequate supply of food) ▪ Health security (access to basic health care) ▪ Environmental security (access to clean water, clean air, etc.) ▪ Personal security (safety from physical violence and threats) ▪ Community security (safety from ethnic cleansing and genocide) ▪ Political security (protection of basic human rights and freedoms) The growing complexity of our world is generally viewed as giving rise to a new period in international relations, or postinternational politics.8 This transition is characterized by greater attention to interdependence and globalization, and a stronger emphasis on global politics in particular and global issues in general. Global politics refers to political issues and activities by states and nonstate actors that extend across national boundaries and that have implications for most of the world. But the concept of global politics inadequately portrays how economic, cultural, environmental, and demographic factors, among others, are creating a global society with global norms (i.e., a set of basic values that are increasingly common to human societies). This book focuses on global issues. Stressing global issues indicates a recognition of how globalization intertwines many aspects of human activities and how essential it is to adopt an interdisciplinary approach in order to understand our world and its impact on our daily lives. global politics Political issues and activities that have implications for most of the world global norms A set of basic values that are increasingly common to human societies global issues Encompass traditional international relations and worldwide politics Generational change is profoundly influencing global issues. Young people have grown up in a world characterized by globalization. Their perceptions and access to communications technologies challenge many traditional concepts and practices in relation to states. THE GROWTH OF THE MODERN STATE The state emerged over several centuries through struggles for power among institutions, groups, and individuals with military, economic, cultural, religious, and political interests. As we will see, the power of ideas played a pivotal role in the process. The spread of humanism—with its emphasis on the study of ancient Greek and Hebrew texts, which concentrated on the Bible—strengthened individualism and critical thinking. Humanism was accompanied by the Renaissance, which evolved in Italy in the fourteenth century and marked the transition from the Middle Ages to modern times. Like humanism, the Renaissance concentrated on the individual, selfconsciousness, creativity, exploration, and science. The combination of ideas, technological developments, ambition, the quest for freedom, and the constant struggle for power radically altered accepted practices, institutions, and patterns of authority. Because the Catholic Church was the dominant institution in Western Europe following the decline and fall of the Roman Empire, it was inevitably the target of those advocating change. Challenges to the Catholic Church were strengthened by the development of technology, namely, the printing press. Johann Gutenberg (1397– 1468) invented the printing press around 1436. humanism A system of thought that centers on human beings and their values, capacities, and worth Renaissance The humanistic revival in Europe of classical art, architecture, literature, and learning Johann Gutenberg (1397–1468); German inventor of the printing press As the Church’s influence eroded, queens, princes, and kings in Europe attempted to enhance their own power by promoting national consciousness and territorial independence. They were assisted in their efforts to consolidate their secular authority within their territories by the Protestant Reformation. This does not mean that European royalty emerged with an antireligious character. In fact, a clear separation of church and state within European countries is still a subject of debate today. This religious transformation was gradual. The most outspoken critic of the Catholic Church was Martin Luther (1483–1546), a professor of theology at the University of Wittenberg who had been motivated to act by the campaign for selling indulgences (i.e., pardons of temporal or secular punishment due to sin) in Germany.9 European monarchs also formed alliances with merchants to weaken the Catholic Church and the Holy Roman Empire. Small political units made it extremely difficult to engage in profitable trade and other economic transactions beyond their limited boundaries. Larger, unified political systems were beneficial to businesses because of uniform regulations and fewer taxing jurisdictions, and the enhanced ability of larger areas to enforce the laws. These economic interests coincided with the various monarchs’ desire to collect more taxes in order to acquire military technology and build larger armies. Martin Luther (1483–1546); German theologian and Reformation leader Traveling through Europe, one notices that many towns are dominated by old castles. These castles symbolized not only military strength but also the political and economic independence of local barons. Refinement of cannons and the availability of gunpowder enabled Europe’s kings and queens to effectively challenge barons and others and to consolidate their power over increasingly larger areas. Between 1400 and 1600, large numbers of the smaller political entities lost their independence.10 An excellent example of how Europe’s monarchs strengthened internal control as they tried to weaken the power of the Catholic Church is provided by England’s King Henry VIII in 1534. Named Defender of the Faith in 1521 for his strong support of the Catholic Church, the king clashed with Rome when he decided to divorce his first wife, Catherine of Aragon, on the grounds that she could not produce a son. Instead of retreating after being excommunicated by the pope, King Henry VIII persuaded England’s Parliament to make him Protector and Only Supreme Head of the Church and Clergy of England, thereby creating the Anglican Church. The king ignited the spark of English nationalism and increased his own economic, political, and religious power. Religious, cultural, political, economic, and technological developments ultimately led to the outbreak of the Thirty Years’ War in 1618. The German Protestant princes, who also fought each other, were allied with France, Sweden, Denmark, and England against the Holy Roman Empire, represented by the Hapsburgs of Spain and the Catholic princes. The Hapsburgs, also concerned about maintaining their own power, often clashed with each other.11 The Thirty Years’ War had devastating consequences for Germany. Two thirds of the population perished, and five sixths of the villages in the empire were destroyed. Those who survived experienced great hardship.12 SOVEREIGNTY Pressures for change that spread across Europe were accompanied by the formulation of new philosophies. The interaction of the power of ideas and change is demonstrated by Jean Bodin (1530–1596) and his major contribution to the modern idea of sovereignty. Bodin was a French social and political philosopher and lawyer. During the last half of the sixteenth century, France was experiencing severe disorder, caused primarily by conflicts between Roman Catholics and the Huguenots (i.e., French Protestants who were followers of John Calvin). Bodin believed that order could be restored through a combination of greater religious tolerance and the establishment of a fully sovereign monarch. In his Six Books on the Commonwealth (or state), Bodin stressed that the state, represented by the king, was sovereign. Jean Bodin (1530–1596); French social and political philosopher and lawyer Huguenots French Protestants who were followers of John Calvin Universal Catholic laws that governed Europe were replaced by international law. Leaders and scholars realized that states also needed a system of rules and norms to govern their interaction and to establish order and predictability. This view was articulated by Hugo Grotius (1583–1645). Grotius was a Dutch lawyer, author, and strong advocate of natural law, and is regarded as the father of international law. Grotius stressed that sovereign states were governed by natural law because they were composed of human beings who were ruled by nature and because it was in the interest of sovereign states to support an international legal system. A second component of the new international system was diplomacy. Diplomats, their possessions, and their embassies were regarded as extensions of sovereign states and accorded extraordinary legal protections. A third component of the system for maintaining international order was the balance of power, which attempted to prevent a state or group of states from becoming strong enough to dominate Europe. Finally, the new international system would rely on common cultural values and family connections to avoid disorder.13 international law An international system of rules created to govern the interaction of states and to establish order Hugo Grotius (1583–1645); Dutch lawyer, author, strong advocate of natural law, and the father of international law There has always been a gap between the ideal of sovereignty and the actual realization of sovereignty. There are four types of sovereignty: • • • • 1. International legal sovereignty, which focuses on the recognition of a state’s independence by other states and respect for its territorial boundaries. 2. Westphalian sovereignty, which focuses on the exclusion of other states from the affairs of the government that exists within a given territory. 3. Internal or domestic sovereignty, which refers to the rights of the government or formal organization of political authority within a state to exercise a monopoly of power over social, economic, political, and other activities within its borders. 4. Interdependence sovereignty, which reflects the realities of globalization. It is concerned with the ability of governments to control or regulate the flow of people, money, trade, environmental hazards, information, and ideas across national boundaries.14 The Decline of Sovereignty Information and technological revolutions and the ease of international travel are contributing to the erosion of a state’s control over its population as well as to the decline of citizens’ identification with the state, two of the key components of sovereignty. Social networks enable individuals to interact globally. The Internet has eroded secrecy of all kinds, including government secrecy. Although most governments continue to exert significant influence over their domestic economies, many governments are perceived as “mere salesmen, promoting the fortunes of their own multinational corporations in the hope that this will provide a core prosperity that keeps everyone afloat.”15 THE EUROPEAN UNION: REDEFINING SOVEREIGNTY European states are voluntarily relinquishing some of their sovereignty to achieve political and economic objectives. European leaders redrew the map of Europe by extending the fifteen-member European Union (EU) eastward to include twelve additional countries, most of them former Communist bloc countries. This unprecedented European expansion created a new Europe that has a population of 491 million and the world’s largest economy. The Euro is the common currency of most countries in the EU. The general view is that European countries are modifying their sovereignty on a scale not seen since the Emperor Charlemagne tried to unify Europe twelve hundred years ago.16 Many Europeans began to believe that excessive sovereignty and nationalism were leading causes of wars that engulfed the Continent and destroyed the most basic aspects of security and independence. This was especially the case in World War II. Statesmen such as Jean Monnet and Robert Schuman of France and Paul Henri Spaak of Belgium were visionaries who believed that a united Europe, in which traditional sovereignty would be redefined, was essential to preserving peace and security and preventing another European holocaust. The basic idea was that controlling coal and steel (materials essential for war) would ultimately result in the reconciliation of Europe. France and Germany, the two principal antagonists, would combine their coal and steel production. In 1957, France, Germany, Italy, Belgium, the Netherlands, and Luxembourg signed a treaty that led to the creation of the Coal and Steel Community, the first major European institution. The Europeans signed the Treaty of Rome in 1957, which established both the European Economic Community and the European Atomic Energy Community (EURATOM). Since then, in many areas of political and economic life, power has been gradually transferred from the state level to the European Union and its various institutions.17 For example, the European Court of Justice has powers that are similar to those of the U.S. Supreme Court. euro Common European currency established by the European Union Jean Monnet French statesman and distinguished economist Robert Schuman French prime minister after World War II who proposed the Schuman plan for pooling the coal and steel resources of Western Europe Paul Henri Spaak Foreign minister of Belgium who was elected first president of the General Assembly of the United Nations Treaty of Rome Established the European Economic Community as an economic alliance European Court of Justice A judicial arm of the European Union, based in Luxembourg THE RISE OF NONSTATE ACTORS Nonstate actors, or nongovernmental organizations (NGOs), are not formally associated with states or the authority structures of states, although they often cooperate with the government to achieve their goals. Transnational NGOs operate across national boundaries and have achieved significant influence in world affairs. Their wide range of activities have led many observers to conclude that their emergence is almost as important as the rise of the nation-state. NGOs Organizations that are not part of a government There are several types of NGOs. These include • • • • • Economic organizations, such as transnational corporations; Advocacy organizations/, such as Greenpeace and Amnesty International; Service organizations, such as the International Red Cross and Doctors Without Borders; Transnational terrorist organizations that seek to undermine governments; and Transnational criminal organizations that focus on profiting from illegal activities. With the exception of terrorist and criminal NGOs, nonstate actors have played four main roles that are generally accepted by states and international governmental institutions: • • • • 1. Setting Agendas: NGOs often force national policymakers to include certain issues on their agendas. 2. Negotiating Outcomes: NGOs work with governments and business groups to solve global problems. 3. Conferring Legitimacy: Organizations, such as the World Bank, and transnational corporations derive legitimacy from the support or approval of various NGOs. 4. Making Solutions Work: Many governments and intergovernmental organizations rely on NGOs to implement their decisions in areas such as humanitarian relief and economic development.18 Two of the oldest and most significant nonstate actors are the Catholic Church and transnational corporations. The Catholic Church On the streets outside the Palazzo Montecitorio, where the lower house of Italy’s Parliament meets, crowds gathered to participate in a historic event on November 14, 2002. Pope John Paul II was scheduled to address eight hundred lawmakers and national leaders, including Prime Minister Silvio Berlusconi. Given the fact that Italy is predominantly Catholic, you are probably wondering why such an address would be significant. The pope’s speech marked the first time a head of the Catholic Church had ever made an appearance in the Italian Parliament.19 Much of Italy, unlike the rest of Europe, continued to be ruled by popes until the middle of the nineteenth century. In 1871, Italy was largely free of control by the papal authorities, and popes were deprived of almost all their land. A compromise between the Vatican and the Italian government was reached in 1929, when the Lateran Treaty, negotiated with Benito Mussolini, the Italian dictator and leader of the Fascist movement, was signed. The Italian government recognized Vatican City as fully sovereign and independent, and the Vatican recognized the Italian government. Lateran Treaty A compromise between the Vatican and the Italian government Benito Mussolini Italian Fascist dictator and prime minister from 1922 to 1943 The Vatican has voiced strong opinions on social, economic, political, and military issues, especially under the leadership of Pope John Paul II. For many years the Catholic Church strongly opposed Communism and reached out to Catholics in Poland and other Communist bloc countries in an effort to undermine Communist rule. Pope John Paul II, a native of Poland, played a major role in the fall of Communism in Eastern Europe. But the pope also criticized the West for its extreme materialism and individualism, as well as for its tolerance of poverty and inequality in the developing countries. The Catholic Church condemned the proliferation of nuclear weapons in the United States, Russia, and other countries and opposed America’s military action against Iraq. But as the case study shows, the Catholic Church is facing its own challenges. Transnational Corporations A multinational corporation (MNC) is generally defined as a national company that has many foreign subsidiaries. These subsidiaries are basically self-contained, making what they sell in a particular country, buying their supplies from that country, and employing that country’s citizens. Transnational corporations are structurally different from MNCs. A transnational corporation is organized as a global entity. Although selling, servicing, public relations, and legal matters are local, planning, research, finance, pricing, marketing, and management are conducted with the world market in mind.20 Companies were instrumental in the conquest and settlement of North America, India, Southern Africa, and elsewhere. The British East India Company was, in effect, the government of British-controlled areas of India for a long time. The Dutch West India Company was granted a charter that allowed it to make agreements and alliances with leaders of conquered areas, to construct fortifications, to appoint and discharge governors, to raise armies, to provide administrative services, and to maintain order.21 British East India Company Established under a royal charter of Queen Elizabeth I for the purposes of spice trading; it launched British rule of India. Dutch West India Company Trading and colonizing company, chartered by the States-General of the Dutch Republic in 1621 and organized in 1623 INTERDEPENDENCE AND GLOBALIZATION Interdependence in world affairs, as it is in private life, involves mutual dependence and cooperation. This means that what happens in one place usually has consequences elsewhere. A war in Iraq, for example, drives up the price of gas at your neighborhood gas station. Countries rely on each other for raw materials, security, trade, and environmental protection. Their fates are intertwined, and they share a sense of mutual vulnerability, although some states are clearly more vulnerable than others in some areas. At the heart of the concept of interdependence is reciprocity.22 Globalization refers to shrinking distances among the continents, a wider geographic sense of vulnerability, and a worldwide interconnectedness of important aspects of human life, including religion, migration, war, finance, trade, diseases, drugs, and music. Globalization implies a significant and obvious blurring of distinctions between the internal and external affairs of countries and the weakening of differences among countries. Although globalization is generally regarded as the Americanization of the world, America itself was, and continues to be, profoundly shaped by the forces of globalization.23 interdependence A political and economic situation in which two states are simultaneously dependent on each other for their well-being globalization The integration of markets, politics, values, and environmental concerns across borders CAUSES OF GLOBALIZATION The causes of globalization are inseparable from the human desire to explore, to gain greater physical and economic security, to be creative and curious, and to move from one place to another. The movement of large numbers of people from one part of the world to another over a relatively short time was facilitated by improvements in transportation. Canal building, the development of navigational equipment (such as the compass), the ability to construct stable oceangoing vessels, and the development and improvement of railways helped to speed up migration. Improved transportation also made it easier to conduct trade over long distances and to colonize new areas. Advances in military and medical technologies have also driven globalization. The ability to mount a cannon on a ship gave a country a decisive advantage over its opponents and also allowed the countries possessing them to expand commerce and to acquire territories. Perhaps nothing reminds us more about our interdependence than nuclear weapons and other weapons of mass destruction. Our security is still greatly determined by the ability of nuclear powers to preserve the strategic balance and to prevent the use of nuclear weapons. Our sensitivity to how military weapons link our fates was heightened during the Cold War (i.e., the competition between the United States and the Soviet Union that occurred after World War II). We have entered into an age of uncertainty heralded in by the use of both conventional and unconventional weapons by terrorist organizations. Cold War The hostile relations between the two superpowers, the United States and the Soviet Union, from 1945 to 1990 As Table 1.1 indicates, commerce and finance provided the foundation for many of these advances. A major cause of globalization is financial market expansion. The availability of finance encouraged more economic interactions, innovation, entrepreneurship, and the development of new technologies. As Chapter 7 demonstrates, the global financial crisis affects nearly all aspects of globalization. New technologies made it easier to conduct trade, migrate, conquer territories, and resist diseases. These new technologies have now spread around the world, speeding up innovation and strengthening competition. financial market expansion The global expansion of national markets Demographic changes marked political transformation when President Hosni Mubarak was brought down in Egypt. Graffiti on a Tahir Square barricade shows the impact of young people using social networks on transitions to democracy. Global communications have been facilitated by the spread of the English language around the world during an earlier period of globalization. America’s dominant technological, economic, military, and cultural position in the world helps to reinforce the centrality of English in all aspects of global life. Roughly half of the world’s population has access to some combination of cell phones and the Internet, enabling people to communicate within and across national borders.24 The communications revolution is regarded as the major cause of globalization because it directly affects economic, financial, military, cultural, environmental, and criminal globalization. TABLE 1.1 Periods of Monetary Expansion and Globalization Period New Technologies and Commercial Applications 1807– Extensive canal building, railway boom, steam power used in manufacturing, improved machine tool 1844 design, invention of McCormick’s reaper, commercial gas-lighting, and development of the telegraph 1851– Advances in mining, railways and shipping, and rapid growth of corporations 1873 Increased productivity in Europe and the United States, improvements in steel production and heavy 1881– chemical manufacturing, first power station, spread of electricity, development of the internal combusti 1914 engine, and developments in canning and refrigeration 1922– Commercialization of automobiles and aircraft, spread of artificial fibers and plastics, new electrical 1930 appliances invented, and telephone ownership grows 1960– Development and application of transistor technology, advances in commercial flying and shipping, and 1973 the spread of telecommunications and software 1985– Rapid growth in computer memory and information processing, advances in biotechnology and medica Present technologies, and commercial use of the Internet Source: Michael Pettis, “Will Globalization Go Bankrupt?” Foreign Policy, No. 126 (September/October 2001), 56–57. FORMS OF GLOBALIZATION Among the most important forms of globalization are (1) economic and trade globalization, (2) financial globalization, (3) political globalization, (4) military globalization, (5) cultural globalization, (6) environmental globalization, and (7) criminal globalization. Although we will discuss each of these forms separately, they cannot be neatly separated from each other in the real world. Economic Globalization Economic globalization may be defined as the intercontinental exchange of products, services, and labor. This form of globalization has a long history and has intensified with the emergence of new technologies and their diffusion to major parts of the world. MNCs have been instrumental in globalization of both production and distribution networks. Consumers worldwide use similar products made by the same corporations. Economies around the world develop greater capability to produce and export goods as they obtain capital, technology, and access to distribution networks. As trade increases, competition intensifies, leading to lower prices and the elimination of companies that cannot effectively compete in the global market.25 economic globalization Free trade, open markets, and competition in the world economy Economic globalization also includes the movement of people and the exchange of ideas. The most innovative companies encourage the formation of global teams that operate across national borders. Multinationals usually have training camps that help to create a common corporate culture. Engineers from India, Japan, Germany, Australia, and elsewhere who work for Hewlett-Packard, for example, work with their American counterparts in Los Gatos, California. Economic globalization has also stimulated the development of global cities, such as New York, London, Tokyo, Shanghai, Hong Kong, Milan, Sidney, Zurich, and Chicago. Companies put their headquarters in major cities to take advantage of the services of lawyers, accountants, consultants, and advertising firms. The implications of economic globalizations were obvious following the 2011 earthquake and tsunami that destroyed business and ports in Japan and damaged a nuclear power plant, releasing significant amounts of radiation. Many products could not be shipped to or from Japan.26 Financial Globalization Terrorist attacks on the World Trade Center and the Pentagon on September 11, 2001, sent shock waves through financial markets worldwide, painfully demonstrating direct linkages among American, European, Asian, and Latin American economies. The financial world reacted in a synchronized manner, with each market that opened the day following the attacks falling precipitously in the first few minutes. A flood of sell orders inundated the Tokyo Stock Exchange, delaying the opening and pushing the benchmark Nikkei index down 6 percent. All of the major stock markets declined dramatically in the week after the terrorist attacks, as Figure 1.1 shows. Financial problems spread across the world almost instantaneously, reflecting how revolutions in telecommunications and computers have linked financial institutions. The financial crisis of 2008 and 2009 reflected this reality. Similarly, the earthquake and tsunami that caused widespread destruction in Japan in 2011 caused the Nikkei (the Japanese stock market) to fall by 12 percent. The G-7 (the seven leading industrialized countries) intervened to prevent the yen, the Japanese currency, from rising too much against other currencies.27 FIGURE 1.1 Financial Market Response to Terrorists’ Attack on September 11, 2001 Source: The New York Times, 18 September 2001, C3 Four basic developments drive financial globalization, leading to the expansion and deepening of global finance. The first is the consolidation of financial institutions in most countries. Local banks were, until about two decades ago, largely locally owned and operated. The second development is the globalization of operations, which is evident everywhere as banking conglomerates extend their reach by forming strategic alliances with similar institutions in different countries. The third development is the emergence of new technologies that are familiar to all of us. Money moves across national boundaries at the touch of a button. The fourth development is the universalization of banking. Growing competition in financial markets, the increasing irrelevance of national borders, and the increasingly complex relationships among businesses have contributed to a blurring of bank and nonbank financial services.28 Other forms of globalization have strengthened financial globalization. When the British Empire stretched across much of the world, the British pound became the strongest and most desirable currency. As British power receded, America rose to international prominence and the U.S. dollar became the leading global currency. In 1944, the United States, Britain, and other countries held a conference at Bretton Woods, New Hampshire, to determine the international financial order. The conference established the Bretton Woods System, which required the currencies of other countries to have an exchange rate fixed to the dollar, with the dollar fixed in terms of gold at $35 an ounce. This arrangement gave the United States significant influence over the international money supply. Bretton Woods System A post–World War II arrangement for managing the world economy; its main components are the World Bank and the International Monetary Fund. The Bretton Woods System set up the World Bank (also known as the International Bank for Reconstruction and Development) to help stimulate Europe’s economic recovery after the devastation of World War II. It also created the International Monetary Fund (IMF) to implement the rules of the international financial system and to help countries experiencing short-term balance-of-payment and liquidity problems. IMF loans, which now go primarily to developing countries, are given with certain conditions attached (e.g., reducing government spending, eliminating trade barriers, cutting social subsidies, devaluing currencies, and removing artificial barriers to foreign investment). As Europe recovered, and as the Soviet Union and other countries deposited their dollar holdings in Western European banks, European banks receiving deposits in dollars simply kept them instead of changing them into the national currencies. The practice resulted in the growth of Eurodollar funds. Large U.S. budget deficits—caused partly by the Vietnam War, domestic inflation, and the practice of many American companies of depositing their foreign currency earnings in European banks—weakened the U.S. dollar and strengthened the Eurodollar. These developments eventually contributed to the collapse of the Bretton Woods System. On August 15, 1971, President Richard M. Nixon decided that the dollar no longer was to be freely convertible into gold, thereby ending fixed exchange rates. Furthermore, large financial surpluses accumulated by oil-exporting countries as a result of the quadrupling of oil prices by the Organization of Petroleum Exporting Countries (OPEC) in 1973 increased the liquidity of international banks. These financial institutions had approximately $50 billion to recycle through the world economy. Given the failure of global institutions to effectively deal with contemporary challenges such as financial instability, fluctuating commodity prices, and the diffusion of global economic and political power, currency reforms are viewed as essential.29 In 2011, European countries using the euro grappled with their responsibility to shore up or bail out failing banks and nations in the “euro zone.” The world watched as euro zone countries dealt with questions of integration of European Union countries, ultimate survival of the euro, and potential repercussions to the global economy. World Bank A UN agency that deals with monetary aid transfers to developing nations, usually via a loan program varying from nation to nation IMF Established in 1944 to prevent countries from defaulting on their loans and to make financing available Eurodollar The process of European banks accepting dollars and not changing them into national currency OPEC Formed by major oil-producing nations in response to the control of the world oil market by seven major oil companies Political Globalization Political globalization is characterized by the acceptance of states, the relative power of states, the proliferation of international and regional organizations composed of states, and the spread of nonstate political actors. The competition that dominated relations between the United States and the Soviet Union during the Cold War is an example of political globalization. Most of the emphasis on political globalization is concentrated on the spread of multilateral institutions. These are organizations composed of many states pursuing common objectives and include international intergovernmental organizations (IGOs), such as the United Nations, the European Union, the Organization of American States, and the British Commonwealth. political globalization The proliferation of international and regional organizations composed of states and the spread of nonstate political actors multilateral institutions Organizations composed of many states pursuing common objectives Many policies that were once considered to be primarily of local or national concern are now global, which suggests the strengthening of policy interdependence. In other words, national policies of one country are intertwined with those of other countries, and many national problems can be solved only through global cooperation. States form international regimes to cope with problems generated by complex interdependence. Regimes are essentially institutions designed to regulate the behavior of their members. The basic goal is to establish orderly and predictable interactions to secure the interests of those participating in these international institutions. At the heart of most international regimes is the concept of global governance, which refers to collective actions taken to establish international institutions and norms to deal with national and global issues.30 policy interdependence National policies of one country are intertwined with those of other countries international regimes International institutions designed to regulate the behavior of their members global governance Collective actions taken to establish international institutions and norms to deal with national and global issues Military Globalization Military globalization is characterized by extensive as well as intensive networks of military force. This includes both the actual use of force and threats to use violence. The most obvious example of military globalization is the nuclear age and the proliferation of weapons of mass destruction. The balance of terror created by nuclear weapons threatens the future not only of the countries that have them but also of all human existence on the earth. Military globalization is demonstrated by several developments in modern history. These include military globalization Networks of military force that operate internationally • • • • 1. The competition among European powers and territorial expansion that resulted in the colonization of Asia, Africa, and the Americas; 2. The emergence of international alliances and international security regimes, such as the Concert of Europe and the North Atlantic Treaty Organization (NATO); 3. The proliferation of weapons and military technologies worldwide; and 4. The creation of global institutions to deal with military issues, such as the nuclear nonproliferation regime.31 Cultural Globalization As we will discuss in Chapter 2, cultural influences usually accompany the expansion of economic and military power. In other words, cultural globalization—which involves the exchange of food, music, people, products, ideas, and technology across national boundaries—has very deep roots. Few people in Europe stop to think that potatoes came from South America, and few Americans realize that their cattle came from Europe and their corn came from Mexico. The spread of ideas, technology, and products from China and other parts of Asia through the Middle East to Western Europe profoundly influenced the development of Western civilization. Imagine America without Christianity. Christianity, like Islam, originated in the Middle East and later spread across the world. Although cultural globalization is often equated with Americanization, it is a very complex development.32 Sports, which have generally been associated with nationalism, are one of the most obvious and emotional aspects of cultural globalization. World Cup soccer (football), watched by billions of people around the world, demonstrates the global passion for sport. cultural globalization The spread of one culture across national borders Environmental Globalization Visitors to Boston generally observe that extremely valuable land in the center of the city has been preserved as a public park. The Boston Common was originally used by the city’s residents as a place where their cattle could graze. When discussing the environment, it is useful to think of our planet as a common. We are all affected by what happens to it, and the problems can be solved only through the cooperation of the global community. Environmental globalization focuses on the interdependence among countries in relation to problems such as global warming, the spread of infectious diseases, air and water pollution, deforestation, the loss of biodiversity, and threats to endangered species. environmental globalization The interdependence of countries to work together to solve environmental problems Criminal Globalization Terrorist attacks in the United States on September 11, 2001, represented an extreme form of criminal globalization and diminished the attention given to less dramatic but almost equally dangerous transnational criminal activities. The terrorists used the instruments of globalization to achieve their objectives. Criminal globalization is the intercontinental spread of global crime and its impact on governments and individuals. As Chapter 12 shows, criminal globalization includes transborder crimes, such as drug trafficking, money laundering, prostitution, alien smuggling, arms trafficking, piracy, and counterfeiting. National boundaries have never been effective barriers to the conduct of transnational crimes. As globalization has expanded, criminal organizations have deepened and widened their activities. Furthermore, globalization has imposed on governments certain burdens, such as smaller public budgets, decentralization, privatization, deregulation, and an open environment that is more conducive to criminal globalization.33 PERIODS OF GLOBALIZATION Because globalization is a process that advances and retreats, and that is more intense at some points than at others, it is artificial to divide it into distinct periods. However, for discussion, we can identify five waves of globalization in the constant sea of change that defines human experience. The first wave of globalization is as old as human civilization. For more than five thousand years, human beings from different places have interacted, mostly through trade, migration, and conquest. Globalization was occurring long before the language of globalization came into existence.34 The second wave of globalization is closely associated with the Western European conquest of Asia, Latin America, and Africa and the spread of capitalism to these areas. This wave of globalization continues to influence developments within and among societies today. Dependency theorists view this period of globalization as being profoundly influential on global politics and trade. dependency Belief that industrialized countries benefit from the present capitalist economic system at the expense of poor countries The third wave of globalization, which began around 1870 and declined around 1914, was marked by breakthroughs in technological development, the global production of primary commodities as well as manufactured products, and mass migration. Lessexpensive transportation costs, the switch from sails to steam power, the development of railways, the availability of capital, and the reduction of trade barriers combined to fuel global economic growth. Vast areas of land in North America, Argentina, Australia, and elsewhere were cultivated, and agricultural products were exported. The production of primary products led to the demand for labor. In addition to the Africans and others who were already providing labor, about 60 million Europeans migrated to North America and Australia to work on farms. Argentina, Australia, New Zealand, and the United States became some of the richest countries in the world by exporting primary commodities and importing people, institutions, capital, and manufactured products.35 This explosion of global activities was followed by a retreat into nationalism from 1914 to 1945. World War I was followed by the Great Depression and a wave of protectionism, led by the United States. America attempted to protect its economy by enacting the Smoot-Hawley Tariff Act in 1930, a move that led to retaliation abroad. Between 1929 and 1933, U.S. imports fell by 30 percent and exports fell by almost 40 percent.36 Smoot-Hawley Tariff Act Act that brought the U.S. tariff to the highest protective level in the history of the United States The fourth wave of globalization, from 1945 to 1980, was spurred by the retreat of nationalism and protectionism and the strengthening of internationalism and global cooperation, led by the United States. The removal of trade barriers was selective, but institutions—such as the World Bank, the IMF, and the General Agreement on Tariffs and Trade (GATT)—were formed to encourage global trade and development. Many developing countries, relying on the exports of primary commodities, continued to be marginalized and disadvantaged in the global economy. This period of globalization was characterized by both cooperation and conflict. Efforts to encourage nations to work together in the United Nations were weakened by the rivalry between the United States and the Soviet Union. Although the economic aspects of globalization are usually emphasized, the most important form of globalization during this period was military globalization, dominated by the constant threat of a nuclear war between the superpowers. The fifth wave of globalization, which is the current period, is characterized by unprecedented interdependence among nations and the explosive growth of powerful nonstate actors. RESISTANCE TO GLOBALIZATION Overall, many countries, groups, and individuals who resist globalization do so because they equate it with Westernization in general and Americanization in particular. Many see such problems as global inequality and conflict as direct results of globalization. However, much resistance to globalization comes from France and the United States, two countries that play a pivotal role in the process of globalization. France’s opposition to globalization is strongly linked to its desire to retain control over its borders and to preserve its culture. Although France has been instrumental in creating European organizations that clearly diminish national sovereignty, it also sees a weakening of sovereignty as a factor that facilitates the invasion of France by immigrants, most of whom are Muslims from North Africa. France also resists globalization because it perceives it as an Anglo-Saxon threat to the French cultural model, which is portrayed as a “high-brow” culture of philosophers, fine dining, and intellectual films. Globalization is equated with the “low-brow” uniformity of American culture—fast food, bad clothing, and, even worse, sitcoms.37 Globalization is also seen as promoting American individualism. France, on the other hand, values a strong centralized government that can provide essential benefits for the people as a whole. Consider America’s resistance to globalization. On several fronts, Americans are increasingly embracing a view of sovereignty that rejects participation in a number of international regimes. Many American intellectuals and policymakers defend American institutions from the encroachment of international institutions.38At a more general level, many regard globalization as a threat to their jobs, wages, and culture. The Catholic Church is a nonstate actor with significant influence in world affairs. Saudi Arabia’s King Abdullah Bin Abdulaziz Al Saud met with Pope Benedict XVI at the Vatican to discuss religious freedom in Saudi Arabia, an issue in the relationship between the Catholic Church and the Arab kingdom. DEBATING GLOBALIZATION There is disagreement about the extent to which globalization exists. The three dominant positions in this debate are assumed by (1) the hyperglobalizers and transformationalists, (2) the weak globalizers, and (3) the skeptics and rejectionists. The hyperglobalizers and transformationalists see profound changes in the international system, such as the erosion of sovereignty and the weakening of nationstates, a borderless economy that integrates people everywhere in the global marketplace, and the emergence of new forms of social and economic organizations that challenge traditional states. The weak globalizers argue that this increased internationalization is not altering the world to the extent claimed by the hyperglobalizers and transformationalists. States remain sovereign, and people around the world, while living in the “global village,” continue to jealously guard their own huts. Finally, the skeptics and rejectionists basically argue that globalization is largely a myth that disguises the reality of the existence of powerful sovereign states and major economic divisions in the world. National governments remain in control of their domestic economies as well as the regulation of international economic activities. National governments determine the nature of global interactions. Inequality continues to fuel nationalism, and, instead of cultural homogenization, the world is dividing into cultures that remain suspicious of each other.39 CASE STUDY Challenges Facing the Catholic Church The Catholic Church, the oldest and most widely known and powerful global nonstate actor, predated the rise of the modern state in Western Europe and continues to exert tremendous influence in global affairs and in the lives of more than a billion people worldwide. While the Catholic Church remains largely conservative and is the epitome of traditionalism and hierarchy, globalization is undermining traditional and hierarchical institutions everywhere and transferring power from centralized authority to individuals and groups. Cultural globalization, especially America’s culture of secularism, is changing values globally and challenging old ideas and behavior. Patriarchal institutions including the Catholic Church confront global demands for gender equality and the growing number of women in leadership positions in virtually all areas of society. The global information age empowers individuals with communications technologies that weaken secrecy and strengthen demands for transparency and the free flow of ideas and information globally. Furthermore, generational change and globalization have combined to transform how people think about a wide range of issues over which the Catholic Church exerted almost unquestioned authority. Since the 1960s, there has been profound social change, with individuals embracing autonomy and freedom of choice. Finally, the Catholic Church has weakened itself by its own behavior, especially pervasive sexual abuse of children and blatant attempts to cover it up and protect abusers from prosecution, while condemning as immoral behavior which many Catholics regard as normal. The Catholic Church has also been weakened by its traditional opposition to artificial contraceptives, despite use by most Catholics. Opposition to using condoms during an AIDS pandemic has created moral dilemmas for the Catholic Church. Faced with unrelenting criticism, Pope Benedict XVI said that condoms could be used by male prostitutes to prevent the spread of AIDS. As we will discuss in Chapter 13, the global community strongly encourages the use of condoms to prevent AIDS and other infectious diseases. Compared with its decline in Western Europe, the Catholic Church is expanding in the developing world due to population growth. But, Catholicism is also being challenged by Pentecostalism and evangelical Christianity, which are more egalitarian, less hierarchical, and less doctrinal. As Scott M. Thomas observes, globalization is making religion more pluralistic. Religion is increasingly becoming a matter of choices and is no longer imposed or taken for granted by prevailing cultures.40 Evangelical Protestantism has eroded Catholicism in predominantly Catholic areas such as Latin America, especially in Central America. Less than half the Christians in El Salvador, Nicaragua, and Belize are Catholic. Sexual abuse scandals and economic growth have weakened the Catholic Church in Ireland, where more individuals are embracing traditional Celtic priestless religions.41 Fewer young people are joining the Catholic priesthood, and successful lawsuits have forced many Catholic churches into bankruptcy in the United States. How can the Catholic Church respond to these fundamental challenges? One solution is to promote transparency and to assist in the prosecution of priests, bishops, and others who sexually abuse the most vulnerable members of society: children. Another approach could be to transform its message to deal with the realities of a globalized world without sacrificing its core beliefs. But the Church must also change itself and become less rigid. As societies become better educated and more scientific, both women and men reject traditional and subordinate roles assigned to women. The Catholic Church will have to give women equal opportunities. We saw that the growth of states in Western Europe challenged the Church. The modern forces of globalization are also transformative. Traditional institutions will have to face contemporary realities. At another level is the debate about the nature and impact of globalization and whether it is temporary or reversible. Some groups see globalization as homogenization, whereas others view it as promoting diversity and greater tolerance of differences. Many nonstate actors view globalization as conducive to their efforts to improve social conditions, protect the environment, and promote democracy. By removing restraints on people’s movement, globalization is perceived as instrumental in giving to the individual the power to choose. People are free to shape their identities, pursue an education anywhere in the world, and upgrade their standard of living. On the other side, critics of globalization focus on how cultural homogenization imposes Western values on others and destroys their traditions, religious beliefs, identities, and sense of community and belonging. Many believe that globalization is a threat to national sovereignty and autonomy. Environmentalists, for example, believe that globalization contributes to environmental degradation, and labor unions contend that globalization lowers wages and creates greater inequality. SUMMARY AND REVIEW This chapter discussed the foundations of international relations and provided a general view of how interdependence and the forces of globalization are creating serious challenges to governments as the almost exclusive major actors in world politics. It examined how technological, economic, social, political, and philosophical developments in Europe contributed to the rise of the modern state, the concept of sovereignty, the system of relations among states, and the decline of the Catholic Church as the dominant political and cultural institution in Europe. It illustrated how political, economic, and cultural forces contributed to the rise of the modern nation-state and how they continue to be integral components of contemporary globalization. We looked at interdependence and globalization. Just as interdependence plays a role in our private lives (e.g., most of us do not grow the food we eat), it also plays a role in world affairs. Globalization creates more obvious and extensive webs of interdependence. The causes of globalization can range from social issues (e.g., migration) to technological advances (e.g., in fields such as communication and transportation) to economic issues (e.g., market expansion). The major forms of globalization are (1) economic and trade, (2) financial, (3) political, (4) military, (5) cultural, (6) environmental, and (7) criminal. Finally, we discussed the five historical waves of globalization and the current debate that exists between groups that have resisted it and those that have been more accepting of it. CHAPTER 2 The Struggle for Primacy in a Global Society A country’s military force is one component of its power in the world. US Navy vessels in the Pacific are a show of dominance. INTRODUCTION One of the most discussed global issues is the rise of China and the decline of the United States. Throughout history great powers—such as Rome, Spain, and Britain—have gone through growth and decline, through competition and internal weakness. Power transition theory, which is an offshoot of cycle theories, stresses that the distributionof-power changes in countries will rise and fall. Dominant countries are often referred to as great powers, hegemonies, superpowers, or states that enjoy primacy in the international system. Often, these terms are used interchangeably. They generally refer to the ability of a country or a small group of countries to have extraordinary influence over the behavior of the other states.1 power transition theory Stresses that the distribution-of-power changes in countries will rise and fall When there are several hegemons, dominant states, or great powers, the international system is defined as being multipolar. An example is the international system that existed before World War II, when the United States, Britain, France, Germany, Japan, Italy, and the Soviet Union were considered great powers. Following World War II, there were clearly two dominant countries: the United States and the Soviet Union. The new structure was bipolar. The disintegration of the Soviet Union created a unipolar world, dominated by the United States. multipolar The international system that includes several hegemons, dominant states, or great powers bipolar The international system that includes two hegemons, dominant states, or great powers unipolar The international system that has only one hegemon, dominant state, or great power hegemons The leading country in an international system A dominant country exercises significant power, has few potential rivals, and leads an international system that benefits other powerful countries. Below the dominant countries are great powers, which help to maintain the international system. Then there are regional powers. But most countries are at the bottom of the pyramid of power.2 Power is now diffused. It is viewed as resembling a three-dimensional chess game. On the top chessboard, military power is essentially unipolar. Here is where the United States dominates. Power is multipolar in the middle, where leading players are the United States, China, Western Europe, and Japan. Nonstate actors are on the bottom board.3 This chapter examines the nature of power, factors that influence the rise and fall of nations, and the strategies countries use to maintain their dominant position. It focuses on the United States and China and concludes with a case study on challenges facing China. POWER AND LEADERSHIP Central to the rise and fall of dominant nations is the concept of power. Power is generally understood as the ability to get others—individuals, groups, or nations—to behave in ways that they would ordinarily try to avoid. Power capabilities are usually determined by economic strength, military strength, and political effectiveness. Elements of power include a country’s geographic area and location, its population, and its natural resources. Other elements of power are intelligence capabilities, the quality of national leadership, the level of educational and technological achievement, the openness of the political system, the character of the people, transportation and communication capabilities, ideology, and the appeal of a country’s culture (generally referred to as “soft power”).4 power The ability to get others—individuals, groups, or nations—to behave in ways that they ordinarily would not Economic power is often seen as the foundation of military and political power. It is measured in terms of the gross national product (GNP) or the gross domestic product (GDP). The GNP measures the total market value of all goods and services produced by resources supplied by the residents and businesses of a particular country, regardless of where those residents and businesses are located. The GDP measures the total market value of all goods and services produced within a country. Military power is often the most visible and impressive manifestation of national power.5As we will discuss, a major challenge for great powers is to maintain a balance between economic strength and military might. Too much emphasis on the military often weakens the economy, and ultimately the military itself. GNP Measures the total market value of all goods and services produced by resources supplied by residents and businesses of a particular country, regardless of where the residents and businesses are located GDP Measures the total market value of all goods and services produced within a country A nation’s strength goes beyond simply possessing the various resources that are sources of power. Countries, like individuals, must be skilled at converting these resources into effective influence. Power conversion is defined as the capacity to change potential power, as measured by available resources, into realized power, which is determined by the changed behavior of others.6 Knowing what resources to use, when, and how will also affect the exercise of power. Certain factors—such as globalization, domestic support for policies, and the willingness of citizens to support activities associated with international primacy—must also be considered. power conversion The capacity to change potential power, as measured by available resources, into realized power, which is determined by the changed behavior of others An important component of power is leadership. Leadership is the ability to persuade others to behave in certain ways, to shape their interest, and to influence their thinking. Leadership implies a capability to get others to cooperate to achieve particular objectives.7 At the foundation of leadership is the ability to get others to follow. Leadership can be structural, institutional, or situational. Structural leadership is derived largely from the control of economic resources, military power, technology, and other sources of power that enable a small group of countries to shape the international system. Structural leadership is often augmented by institutional leadership: that is, the ability to determine the rules, principles, procedures, and practices that guide the behavior of members of the global community. Institutions provide order and predictability and allow the dominant power to exercise control. Finally, situational leadership is primarily the ability to seize opportunities to build or reorient the global system, apart from the distribution of power and the building of institutions. Often, this kind of leadership is associated with a specific individual.8 structural leadership The possession of economic resources, military power, technology, and other sources of power that enable a small group of countries to shape the international system institutional leadership The ability to determine the rules, principles, procedures, and practices that guide the behavior of members of the global community situational leadership The ability to seize opportunities to build or reorient the global system, apart from the distribution of power and the building of institutions THE RISE AND FALL OF GREAT POWERS States generally expand because of threats and opportunities in their international system. States fear power vacuums because rival states are likely to take advantage of them if they fail to act. Weaker states tend to gravitate toward a rising power and to move away from a declining power.9Failure to demonstrate strength causes a bandwagoning effect, which benefits the rising power. Population pressures influence the rise of great powers. Population growth puts pressure on available domestic resources. To address this problem, countries will venture across oceans or land boundaries to obtain raw materials, markets for their products, and living space for their people. Uneven economic growth enables some countries to enhance their power while other countries decline. population pressures The pressure on resources that leads countries to expand beyond their boundaries uneven economic growth A factor that enables some countries to enhance their power while that of other countries declines Urbanization has usually been associated with freedom and innovation. Urban areas attract diverse groups of people with differing ideas. They also improve the wealthgenerating, administrative, and political capabilities of a rising power. The efficient functioning of great cities depends on a commitment to tolerance, freedom, and trust. These characteristics, in turn, attract more talent, wealth, innovation, and technology to cities. Trust, for example, is essential for commercial transactions as well as for mundane, routine interactions. Cities such as London and Amsterdam attracted refugees from religious intolerance and persecution. During the seventeenth-century religious wars, Protestants and Jews migrated to Amsterdam and other Dutch cities that were more tolerant of religious diversity.10 Geography is another factor that influences the rise and fall of great powers. Britain and the United States have benefited from their geographic location and, in the case of the United States, its continent-size territory. They are not located in the middle of warring states, and they usually refrained from getting involved in other nations’ conflicts until it was to their advantage to do so. They could fight in other countries and avoid destroying their own. Their geography also enabled them to concentrate resources on internal consolidation, which ultimately increased their power vis-à-vis other states. War, which played a crucial role in making states, has been a major factor in the rise and fall of great powers. It usually increased the power of some nations at the detriment of others. Even when countries emerged victorious from war, some were so weakened that the countries that had avoided major damage rose to the top. An example is Britain after World War II: It experienced declining power as America’s global dominance grew. Historically, war has been instrumental in strengthening patriotism and nationalism. Historically, Britain went to war against France and Spain to engender cohesion among England, Scotland, Wales, and Ireland. Many great powers decline because of hubris (i.e., excessive pride) and imperial arrogance. They tend to overestimate their power and expand their military power so much that they ultimately erode their economic base. In other words, believing that their power is virtually limitless, they allow a gap to grow between their global ambitions and the resources they have to fulfill those ambitions. This disparity is referred to as the Lippmann Gap because Walter Lippmann clearly articulated the problem as early as 1943; Paul Kennedy, writing in the late 1980s, referred to this problem as imperial overstretch.11 Taking resources away from domestic programs for military activities abroad often leads to the unraveling of domestic political cohesion. hubris A term used to stress the dangers of excessive pride and arrogance Lippmann Gap The disparity between the global ambitions of countries and their resources to fulfill those ambitions imperial overstretch The disparity between the global ambitions of countries and their resources to fulfill those ambitions STRATEGIES FOR MAINTAINING POWER Leading powers, facing challenges from rising countries, adopt several strategies to preserve their position in the international system. Democratic enlargement is a prominent strategy in this effort. Potential challengers are restrained when they internalize the values, beliefs, and norms articulated by the dominant power. The United States, for example, has emphasized spreading democracy. But the dissemination of values and beliefs by great powers does not guarantee indefinite control, a reality that Britain had to face as India and other colonies demanded for themselves the rights enjoyed by people in Britain, including the right to selfgovernment. Great powers also build institutions to legitimize their control. They articulate concepts of an international normative order, concepts that involve principles of order and change within the international system as well as normative claims about the role of the leading power within that order.12 Another strategy used to prevent rising powers from creating disorder in the international system is offshore balancing. Following Napoleon’s final defeat in 1815, European powers created the Concert of Europe to maintain stability by preserving a relatively equal distribution of power among them. The main goal was to prevent one country from gaining so much power that it would dominate the others. Balancing— which basically means opposing the stronger or more threatening side in a conflict—can be achieved through efforts by individual states to strengthen themselves and by building alliances to preserve the balance of power.13 Closely related to balancing is the strategy of containment, which attempts to prevent ambitious powers from expanding and destroying order and balance in the international system. When the Soviet Union marched through Eastern Europe and subjugated the countries there, the United States and its European allies responded by implementing a policy of containment. Concert of Europe Created by European powers to prevent one country from gaining so much power that it would dominate the others containment A strategy that attempts to prevent ambitious powers from expanding and destroying order and balance in the international system Binding and engagement are also important state responses to rising powers. The European Union (EU), as we have seen, has its origins in efforts by France and other countries after World War II to avoid the nightmare of another war in Europe by forming economic and political alliances with Germany, which had initiated the conflict. Binding aims at controlling the behavior of the rising or threatening country by embedding it into bilateral or multilateral alliances. By making the rising state a member of the alliance, dominant countries allow it to participate in decisions and to contribute to building the institutions that maintain the status quo. Engagement attempts to minimize conflict with a rising power and to strengthen those aspects of its behavior that are consistent with the status quo and the interests of the great powers.14 Eventually the rising power will have too great a stake in preserving the international order to challenge it. binding Attempts to control rising states by embedding them in alliances engagement Efforts to minimize conflict with challengers America America’s decision to launch a preemptive war against Iraq in March 2003 without broad international support and with significant domestic opposition to war demonstrated its power to ignore world opinion. Its awesome military power was evident in its “shock and awe” campaign against Iraq. However, although there was strong disagreement about America’s decision to engage in a preemptive war, there was global consensus about America’s military predominance. The wars in Iraq and Afghanistan weakened American power. Nevertheless, the strength of the U.S. military is unprecedented in the history of great powers. America spends roughly $700 billion on its military. That is more than the rest of the world combined. It spends three times as much on military research and development as the next six powers combined. America’s economic might is also undisputed. With 5 percent of the world’s population, the United States produces about a quarter of the world’s GDP. Its economy is worth approximately $14.3 trillion. That is more than the economies of China, Japan, Germany, and France combined. The United States has a per capita income of around $47,000, compared to $6,000 for China. It has the best universities in the world, and its culture is dominant globally. Culturally, intellectually, scientifically, and politically, America dominates the global system. America’s emergence as the most powerful country in history was a complex and relatively gradual process. The United States, like previous civilizations, borrowed heavily from others and built on foundations created by others. America, in many ways, was a continuation of British society in the New World. The Pilgrims who arrived in 1620 on the Mayflower at Plymouth in Massachusetts were English people who brought English values and institutions with them. The United States utilized strategies very similar to those used by other great powers to achieve its dominant position. It also benefited from the protection of the Pacific and Atlantic Oceans and unthreatening neighbors on its borders. The expansion of the United States occurred over land through the acquisition of Native American territories. Similar to other great powers, America relied heavily on military force to expand and consolidate its power. Believing in the concept of manifest destiny, it eventually expanded its territory from the Atlantic to the Pacific. The Mexican-American War (1846–1848) resulted in America’s acquisition of two fifths of Mexico’s territory, including California and the present American Southwest, in the Treaty of Guadalupe-Hidalgo, which ended the conflict. However, the issue of slavery divided the United States into two warring factions, leading to the bloodiest war in American history. Even so, the American Civil War removed a serious obstacle to the United States’ rise as a great power. In essence, the Civil War forged a common American culture and internal unification.15 manifest destiny Jingoistic tenet that the U.S. expansion is reinforced through God’s will Mexican-American War The war between Mexico and the United States (1846–1848) that resulted in the U.S. acquisition of two fifths of Mexico’s territory, including California and the present American Southwest Internal stability enabled the United States to concentrate on building its economy and broadening its interests. The Civil War produced advancements in American military organization and technologies. However, after the war the United States demobilized the army, scrapped over half its warships, and allowed the rest to rot. The government declined to remain ahead of other countries in construction of iron-clad steamships.16 As a continental-size power, the United States remained largely preoccupied with domestic and regional affairs. Furthermore, America believed that it could be “a City on a Hill” and an example to other nations, albeit from a distance and without getting entangled in their problems. This proclivity toward isolationism has always been an essential component of American foreign policy. But isolationism also emanated from the reality that until the late 1880s America was far behind great powers such as Britain, France, Germany, Austria-Hungary, Russia, and Italy. In fact, when the Sultan of Turkey decided to reduce expenses in 1880, he closed Turkey’s diplomatic missions in Sweden, Belgium, the Netherlands, and the United States.17 Yet America’s vast territory, abundant natural resources, spirit of freedom and innovation, ability to attract immigrants and investments, institutional stability, and cultural values contributed to its phenomenal growth in the 1880s. The United States became a leading producer of agricultural products, coal, iron, and steel. Its banking and manufacturing sectors surpassed those of the major countries. By 1890 the United States had decided to strengthen its navy to be competitive with European navies. This development was fueled partly by America’s imperial ambitions, evidenced by its conquest of the Philippines, Puerto Rico, and Guam and its increased influence in Cuba and Hawaii as a consequence of its victory in the Spanish-American War in 1898. By ending Spain’s declining position in the Americas and the Pacific, the United States established itself as the hegemon of the Western Hemisphere, thereby achieving the objective of the Monroe Doctrine of 1823, namely, diminishing European involvement in the Americas. Spanish-American War The war between Spain and the United States (1898) Monroe Doctrine The statement of U.S. policy made by President James Monroe in 1823 that resulted in diminished European involvement in the Americas Reluctantly, America began abandoning its policy of isolationism during World War I in response to dangers of war in Europe and indiscriminate German submarine warfare. President Woodrow Wilson accelerated the construction of military weapons and warships, drafted young men, and trained them to fight. World War I stimulated a rapid growth in the foreign-policy establishment and brought out a strong American commitment to free trade, the promotion of democracy, support for national selfdetermination, and an emphasis on international cooperation to achieve world peace through organizations such as the League of Nations. American power was applied to protect its growing interests abroad. The United States’ rise to global prominence meant that it could no longer avoid entanglement in European affairs, a reality made clearer by World War II. President Franklin D. Roosevelt, even before Japan bombed the American fleet at Pearl Harbor on December 7, 1941, expressed an urgent need to strengthen the military. He created the U.S. Air Force in 1939 and a two-ocean navy in 1940. The military draft was reinstated, military cooperation with Britain was enhanced, and military assistance was extended to Britain, the Soviet Union, and China. America’s entry into World War II unleashed unprecedented military growth. By the end of the war, the United States was indisputably the dominant global power. But the Soviet Union, especially after it acquired intercontinental nuclear weapons, also gained superpower status. As Table 2.1 shows, the major European powers and Japan, destroyed by war, declined. Figure 2.1 demonstrates the global reach of America’s military power. TABLE 2.1 Great Powers from 1495 to Present Period 1495–1521 1604–1618 1648–1702 1713–1792 1815–1914 1919–1939 1945–1989 1989–Present Great Powers France, England, Austrian Hapsburgs, Spain, Ottoman Empire, Portugal France, England, Austria, Spain, Ottoman Empire, Holland, Sweden France, England, Austrian Hapsburgs, Spain, Ottoman Empire, Holland, Sweden France, Great Britain, Austrian Hapsburgs, Spain, Sweden, Russia, Prussia France, Great Britain, Austria-Hungary, Russia, Prussia/Germany, Italy, United States, Japan France, Great Britain, Soviet Union, Germany, Italy, United States, Japan Soviet Union, United States United States FIGURE 2.1 Location of U.S. Military Forces League of Nations International alliance created in 1920 to promote international peace and security Pearl Harbor Bombed by Japanese submarines and carrier-based planes in 1941 America’s hegemony or primacy rests not only on its dominant power but also on its ability to legitimize that power by making it acceptable to potential challengers in particular and members of the global community in general. Cooperation, integration, and multilateralism became cornerstones of the American-led postwar order. Certain institutions—such as the United Nations, the World Bank, the International Monetary Fund, and the General Agreement on Tariffs and Trade—benefited most countries and induced them to accept American leadership. Institutionalization and increasing globalization meant that the United States and other countries would be constrained to varying degrees and would embrace multilateralism and cooperation instead of unilateralism. As the global leader, America would play a major role in providing collective benefits or public goods (i.e., services such as security, stability, open markets, and economic opportunities). By doing so, the United States would minimize the possibility of envy and resentment that could escalate into the fear and loathing that spawn hostile alliances designed to balance power.18 public goods Collective benefits, such as security, stability, open markets, and economic opportunities In the Gulf War against Iraq in 1991, the United States’ use of very sophisticated weapons stunned many countries and prompted them to upgrade their own military technologies. Ten years later, the war in Afghanistan was fought with even more advanced weapons. For example, American commandos using binoculars with laser range finders could spot distant enemy targets and relay the coordinates to satellite telephones or laptop computers in U.S. warplanes. Bombs weighing 2,000 pounds and guided by lasers and global positioning systems that improved their precision were dropped on targets in Afghanistan. Bombs weighing 4,700 pounds were used against Baghdad in the 2003 war. New technologies allowed American forces to detect heat, magnetic fields, and vibrations through as much as 100 feet of solid rock, and thermobaric weapons could be used to penetrate rock and concrete to destroy underground targets.19 The Predator, an unmanned reconnaissance and surveillance plane that is controlled by a ground team from a remote location, can be equipped with Hellfire missiles to strike targets. CHALLENGING AMERICAN HEGEMONY The U.S. military superiority, combined with what many countries viewed as unilateralism, deepened fissures between America and other countries, such as France, Germany, Russia, and China. Instead of being perceived as promoting the global welfare, American foreign policy was increasingly seen as being preoccupied with narrowly defined American interests. Instead of consulting, Washington was perceived to be issuing demands and ultimatums. America’s preference for a unipolar system and American global hegemony threatened other great powers, most of which favored a multipolar system. The growing consensus among foreign policy experts, political leaders, and others is that America’s hegemony is over.20 This section discusses the principal challenges to American power. China China has been one of the world’s leading powers for at least four thousand years. China was once far superior to Western Europe in virtually every human endeavor. These historical achievements reinforce China’s self-perception as a great power. China’s many contributions to human civilization, its population of more than 1.3 billion, its rapid economic growth, and the spread of its culture across continents combine to strengthen its view that it is entitled to play a major role in world affairs. Just as an individual’s identity helps to influence his or her perception of his or her role in the world, a nation’s identity is crucial in its determination of its global status. China’s identity is that of a great power.21 China has traditionally emphasized protecting its borders, fostering domestic integration and stability, and reducing regional threats. What impact does China’s search for energy have on the global economy and China’s foreign relations? Oil is extracted from tar sands at this Syncrude mine in Canada, which is a joint venture of China’s Sinopec and other companies. But China is now widely viewed as a major challenger to America’s dominance of the global system. It is using its financial power to acquire companies and gain access to much-needed natural resources. To obtain these resources, Chinese companies are forming partnerships and joint ventures in the United States, Canada, and Latin America. China has established strong economic ties with oil-producing countries in Latin America, the Middle East, and Africa. As the United States became preoccupied with wars in Iraq and Afghanistan, fighting global terrorism, and preventing nuclear proliferation in Iran and Korea, China strengthened its navy and increased its defense spending.22 Both China’s perception of its growing global power and America’s perception of its loss of its dominant position in the international system, heightened by the global financial and economic crisis, combine to engender antagonistic relations between the two countries. Each country perceives the other as a threat to its power and ambitions. China’s economic growth has been spectacular since it implemented far-reaching economic reforms and improved relations with the United States in the 1970s. The economy has consistently grown by around 10 percent a year, even during periods when the American economy experienced recession. Even when most of the industrialized world experienced a severe economic recession due to the financial crisis, China’s economic growth was roughly 7.2 percent. China’s economic growth was spurred by deliberate and often draconian policies to reduce population growth, by the adoption of the free market, by increased privatization of the economy, by promotion of entrepreneurship, and by the efforts to attract foreign investments through the creation of special enterprise zones. In 2011, China had roughly $2.6 trillion in foreign exchange reserves. It overtook Japan to become the world’s second-largest economy. It has vast dollar reserves and holds 22 percent of America’s treasury debt. In other words, America is indebted to China. Companies from around the world established subsidiaries in China to take advantage of low production costs as well as the growing Chinese market. Despite strained relations with Taiwan, which China claims to be part of its territory, many Taiwanese engineers and high-technology companies have moved to China to take advantage of business opportunities. China’s own engineering and technological schools and universities are producing experts in information technology. China’s economic might also enables it to convince leading global companies to transfer advanced technologies to it. Such advantages in technology improve China’s economic competitiveness as well as its military capabilities. Faced with declining exports due to the global recession, China focused on increasing domestic investing and consumer spending. Although largely preoccupied with regional security, especially the significant U.S. military presence in the area, China developed nuclear weapons as a deterrent to threats from the Soviet Union and the United States. In addition to acquiring advanced Russian military technology, China is making a concerted effort to build a new generation of nuclear-powered submarines that can launch intercontinental nuclear missiles. It is also modernizing its air force and reorganizing its army to enable it to be a mobile and technologically competent force able to fight limited wars under high-technology conditions. Growing perceptions of America’s unilateralism and its willingness to use its military might reinforce China’s determination to balance American power, especially in Asia. However, China is also careful not to jeopardize its strong economic links with the United States or its rapid economic development by allocating an overwhelming share of its resources to expanding its military. China is building alliances with Russia, symbolized by the Treaty of Friendship and Cooperation of July 2001, to challenge the American framework for international security. It is also strengthening relations with India and resolved the border dispute between the two countries. In July 2006 they reopened the Nathu La Pass, which was closed for forty-four years, to facilitate trade. With a third of the world’s population, the alliance between China and India has the potential to significantly impact global affairs. China is India’s largest trading partner, and there are numerous economic and investment ties between the two countries. During his visit to India in December 2010, Chinese Premier Wen Jiabao stressed the importance of cooperation between the two countries, and that if they work together, the twenty-first century will be the Asian century. The United States is strengthening its ties with India to counteract China’s rise. Treaty of Friendship and Cooperation Chinese-Russian alliance designed to challenge the U.S. framework for international security. As we have seen, financial and economic power is widely regarded as the foundation of global political power. Countries whose economies suffer severe declines often experience a diminution of power. America’s wars in Iraq and Afghanistan, the rapid decline of its manufacturing sector, huge budget deficits, and its reliance on borrowing from China and other countries to fund its expenditures have contributed to the relative increase in China’s power. The financial crisis exposed America’s vulnerabilities and raised serious questions about America’s capitalism. China clearly perceives itself as the leading rising global power. Although China is unlikely to directly confront the United States for global leadership, its financial and economic strength has influenced it to demand greater recognition and influence in global affairs. China’s rise, in contrast to America’s decline, is also fueling Chinese nationalism and changing America’s relationship with China. U.S. perceptions of and its responses to China play a crucial role in shaping relations between the two countries. If China is perceived as a military and economic threat rather than a competitor that also cooperates with the United States, a hostile relationship will be fostered. On the other hand, given the transformation of the international system in an information age that allows individuals to exert influence on international relations, cultural ties and increased understanding between the two countries could override threat perceptions. As the case study demonstrates, China will be restrained by many of its own problems. THREATS TO U.S. POWER: EMERGING POWERS AND NONSTATE ACTORS Emerging market economy countries pose challenges to America’s leadership and are diffusing power in the international system. Ian Bremmer and Nouriel Roubini argue that the global financial crisis and the economic recession sent a much larger shock wave through the international system than anything that followed the collapse of the Soviet bloc.23 Combined with other forces of globalization discussed in Chapter 1, these developments have further eroded the potency of military might and have enhanced economic power. Emerging market economies such as China, India, and Brazil are posing challenges to American dominance. Confident of their growing economic power, these countries are changing what they perceive to be an outmoded world order established by the United States and Western Europe. The diffusion of power is demonstrated by the transition of power from the G-7 (group of leading industrial countries) to the G-20, a group composed of the world’s largest economies, including emerging market countries. When faced with overwhelming power, represented by the giant Goliath, the Israelites employed a boy, David, with a slingshot to counteract that power. In Jonathan Swift’s Gulliver’s Travels, the Lilliputians are able to restrain the giant through cooperation. These stories illustrate the paradox of being a superpower. Instead of engaging a country that possesses overwhelming power with conventional weapons, the weak usually confront the strong in unorthodox ways. Suicide bombings by terrorist organizations challenge America’s military and economic power. The United States is fighting its longest war against terrorist groups. This strategy of counteracting the dominant power of a hegemon is called asymmetrical warfare. It enables the weaker side to gain military advantages and level the playing field to some extent by using comparatively unsophisticated weapons and strategies. Joseph Nye argues that for all the fashionable predictions of China surpassing the United States, the greatest threat may come from nonstate actors. In an information-based world, power diffusion may pose a bigger danger than power transition.24 asymmetrical warfare Strategy of counteracting the dominant power of a hegemon through unorthodox ways Terrorist organizations are a threat to American dominance. After bin Laden’s death, questions remained about al-Qaeda’s future. Almost 98 percent of ...