The_Triangle_of_Power_-_Alexander_Stubb
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PRAISE FOR
The Triangle of Power
“Alexander Stubb is one of the most incisive, experienced, and
thoughtful political leaders in Europe today. In this book, he argues that
we are at a moment in history as important as 1918, 1945, or 1989, and
need a ‘values-based realism’ to confront the challenges that confront us
from the east, the south, and now the west as well. One can only hope
that Europe will listen to his advice.”
TIMOTHY GARTON ASH,
author of Homelands: A Personal History of Europe
“It is rare for a foreign policy practitioner to write a profound work of
scholarship, but Alexander Stubb has done just that. He identifies the
central weakness in the international system today and has an ingenious
plan to address it. It is easier said than done, but it is a crucial first step to
say it clearly and intelligently, as this book does. Now President Stubb
must help turn these words into action.”
FAREED ZAKARIA,
CNN
“This book could not be more timely or necessary in an era of
geopolitical upheaval and turmoil. Finnish President Alexander Stubb
draws on his skills as a political analyst and his unique insights as a
prominent statesman to lay out a path toward a new international system.
President Stubb reminds us that we all have agency as citizens and offers
an eloquent, heartfelt, and inspiring exhortation to individual and
collective action in defense of democracy and the beleaguered ideal of
global cooperation.”
FIONA HILL,
senior fellow, the Brookings Institution, former senior director for Europe
and Russia at the US National Security Council
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“The liberal world order is dying, writes the Finnish President Alexander
Stubb, for whom the Russian invasion of Ukraine was conclusive proof
that the post-Cold War era was over. But what comes next? For Stubb it’s
a choice between ‘Yalta’ and ‘Helsinki’—between a chaotic multipolarity
and a more stable multilateralism. Only the latter, he argues, can
reconcile the conflicting interests of the established Global West, the
rising Global East, and the populous but less powerful Global South. But
that means halting the recent decay of international institutions—a hard
thing to do if the US president disparages most of them. It’s even harder
when the technological advances are happening in only two of three
corners of Stubb’s The Triangle of Power. This is a bold attempt at a
geopolitical synthesis by one of those rare scholars who can not only talk
the talk but also walk the walk in the corridors of power—not to mention
play golf with President Trump himself.
NIALL FERGUSON,
Milbank Family senior fellow, Hoover Institution, Stanford
“At a moment of transition in international affairs from the post-Cold
War order to an uncertain new system, President Alexander Stubb has
provided Europe and the world with a precise diagnosis of how we got to
his moment of disorder, and a cogent and compelling prescription for
how we can rebalance and thereby create a new world order. Informed by
his dignified foreign policy guided by values-based realism, Stubb’s The
Triangle of Power provides a fresh, pragmatic, and optimistic vision for a
new grand strategy for international relations anchored in cooperative
multilateralism, but of benefit to all in the Global North, Global East, and
the Global South. At a time when illiberal nationalism seems ascendant
in Europe and the United States, Stubb’s clarion call for a reformed
liberal internationalism is exactly what the world needs.”
MICHAEL MCFAUL,
author of From Cold War to Hot Peace
“History hath returned, and with a vengeance. In The Triangle of Power,
Alexander Stubb deftly argues what comes after the postwar liberal order
will be determined by the struggle for power between the West, East, and
South. Informed by his unique blend of academic analysis and political
acumen, President Stubb makes a compelling case that the West can only
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secure a future guided by freedom, democracy, and cooperation if it
manages to persuade the rest of the world of its merits. This book is a
passionate call to action from a hardened practitioner who, despite being
on the front lines of some of the twenty-first century’s fiercest
geopolitical battles, understands that the path toward a more stable global
order runs through greater empathy rather than force.”
IAN BREMMER,
political scientist, author, and president of Eurasia Group
“This is not just another book on world politics—it is the quintessential
guide to the new world disorder from the ultimate scholar-statesman. In
The Triangle of Power, Stubb delivers an unflinching analysis of the
seismic geopolitical shifts reshaping today’s global order. Stubb takes
readers inside the corridors of power, drawing from firsthand encounters
with world leaders like Putin, Trump, and Xi. Bursting with gripping
anecdotes and razor-sharp insights, this is the must-read playbook for
navigating the chaos ahead.”
MARK LEONARD,
director of the European Council on Foreign Relations
“If I was asked to choose any leader in Europe to lead a discussion of the
state of the world, I would choose Alex Stubb. He has the breadth of
experience, the intellectual reach, and the clarity of thought to analyze for
all of us what is really going on. His thoughts on a world moving from
order to disorder could not be more timely or relevant as old certainties
fall away. And his reminder that we have agency—that we can do
something about the disordered world before it disintegrates—is vital
advice that should help stir us all into action. This is a book that
policymakers and the public need to read.”
WILLIAM HAGUE,
Rt. Hon. The Lord Hague of Richmond
“Alexander Stubb is a rare, perhaps unique, figure who manages to
combine the role of head of state and public intellectual. As president of
Finland, he has become an important voice speaking out for Europe and
describing the challenges ahead. In his new book, he describes the
emerging new world order with insight and authority.”
GIDEON RACHMAN,
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associate editor and chief foreign affairs commentator, Financial Times
“Alexander Stubb provides a thoughtful and challenging account of the
seismic changes underway in the global order. These changes make a
compelling case for an inclusive multilateralism founded on the
principles of the United Nations Charter and underpinned by faithful
adherence by all countries to international law. At a time when the world
is confronting the existential threat of climate change, growing
inequality, conflict, and instability, human happiness and progress depend
more than ever on cooperation between nations and peoples. As this book
makes plain, we need a world order in which the rights and interests of
the vulnerable can no longer be trampled beneath the ambitions of the
powerful.”
CYRIL RAMAPHOSA,
president of South Africa
“Alexander Stubb’s important work could not have come at a more
important moment. As the world undergoes tectonic geopolitical shifts
that will shape the international landscape for years to come, Alex draws
on his deep knowledge of history, his expertise in interpreting global
power dynamics, and his experience on the front lines of diplomacy to
offer guidance for understanding and navigating today’s challenging
context. There is no scholar or practitioner of foreign policy better suited
to bringing clarity to this complex and consequential period for the
world.”
BØRGE BRENDE,
president and CEO of World Economic Forum, former foreign minister
of Norway
“President Stubb has presented us with a timely and compelling book
about some of the most important issues we are faced with today. His
case for a values-based realism and a dignified foreign policy is an
insightful contribution, one which should interest all readers who want to
promote a rules-based international order.”
JENS STOLTENBERG,
finance minister of Norway, former NATO secretary general, former
prime minister of Norway
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CONTENTS
Title Page
Map
Introduction
PART ONE—ORDER
Chapter One: From Order to Disorder
Chapter Two: From Disorder to Disruption
Chapter Three: From Disruption to Disintegration
PART TWO—BALANCE
Chapter Four: The Global West
Chapter Five: The Global East
Chapter Six: The Global South
PART THREE—DYNAMICS
Chapter Seven: Competition
Chapter Eight: Conflict
Chapter Nine: Cooperation
Conclusions
Further Reading
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Acknowledgments
Copyright
OceanofPDF.com
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Introduction
February 27, 2022. Three days into the war in Ukraine. From my home
in Espoo, I am mere hours from Russia, a border that has stayed quiet for
eighty years. I can scarcely believe that full-scale war has returned to the
continent. It threatens to strain an already frayed world order. I send a
text to Russian Foreign Minister Sergey Lavrov.
“Please, please stop this madness. You are the only one who can stop
him.”
Lavrov replies within a minute: “Whom? Zelenskyy? Biden?”
I’ve heard this line of defense from Lavrov before. This time it cannot
stand.
“No. You know what I mean,” I reply. “It’s gone too far. History is on
your shoulders.”
His next text parrots the usual Russian propaganda: claims of Russian
culture bans and Russians murdered in Ukraine.
I know Lavrov, and I know he’s smart enough to understand what’s
going on. I try again.
“There is no point in the blame game. This is about life and death. We
need to stop this.”
No dice. Lavrov continues with the same tropes. I quit after the sixth
fruitless message.
I feel angry and disappointed. More than that, I feel the tectonic
plates of history shifting.
Fast-forward three years.
March 29, 2025. I stand on the first tee of the Trump International Golf
Club in Florida. My playing partners are Senator Lindsey Graham, golf
legend Gary Player, Fox anchor Trey Gowdy, and President Donald
Trump. I used to be a collegiate golfer, though I’m rusty.
Over seven hours, President Trump and I discuss an array of world
issues. I tell him what I know about Lavrov and Putin and explain why
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Ukraine needs to win the war. Coming from a small country, I have no
illusions about outsize impact. But if I can make a convincing case that
Putin can’t be trusted, I’ve done my job.
At the same time, I understand that Trump’s world is more
transactional than multilateral. His presidency will change the way we
conduct diplomacy across the Atlantic. More than that: it will accelerate
the transition from the existing international order to something new.
Amid such upheaval, people tend to get het up. My advice: stay calm.
Be a Finn. Take an ice bath, visit a sauna, and reflect. The global stakes
are rising. And I am more convinced than ever that only global
cooperation can contain competition and prevent broader conflict.
There are moments in history when we understand that the world is
changing but don’t yet know exactly where it is going. One look around
the globe tells us we face such a moment now.
The rules-based world order that the West established after World War
II is in tatters. Liberal democratic values are challenged by rising
authoritarian powers in the East and South and populist forces within the
West. Instant, universally accessible social media puts a potent weapon in
the hands of political opponents plus extremist groups seeking to unravel
democracy. Facts are contested like subjective opinions, truth dismissed
as a matter of choice.
On the global stage, the open trading system is in retreat. The US
president uses tariffs as a negotiating chip in unprecedented ways. With
its America First approach, the new administration calls into question the
way the US has exercised global leadership since the Cold War. This new
time may indeed require new ways of thinking. But the risk of disruption
and fragmentation runs high.
At the same time, China is asserting growing dominance across
economic, technological, and geopolitical spheres. Russia is breaking
international rules and sovereign borders without blinking. Ballistic
missiles fly across the Middle East, no matter how outside nations
protest. Power vacuums open and fill everywhere. Power is shifting from
West to East and South, with a rising emphasis on national sovereignty at
the expense of international rules. This is not the world that we in the
West expected.
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The trust that has been the basis of the international system has been
broken. Russia’s war of aggression against Ukraine was the signal that
the world had changed. It showed us, clear as a missile trail, that the
assumptions we rested on for decades no longer hold. The things that
were supposed to bring us together—open trade, technology, energy, and
global financial markets—can also pull us apart. Economic
interdependence does not guarantee peace. Market economics do not
assure free trade. Liberal democracy is not a universal desire. After the
Cold War, we assumed Western values were destined to become
universal. Instead, they are in danger.
This is our generation’s equivalent of 1918, 1945, or 1989. The next
few years will decide the dynamics of the new international order for the
rest of the century, or at least for decades to come. The outcome will
fundamentally shift the way we live our lives. What’s certain is that the
world order as we know it—the power structures, relationships, and
foundational principles that guide them—will be reborn. The order that
emerges will depend on how we meet this moment.
The End of the End of History
The country that I am sworn to protect shares an 832-mile border with
Russia. Our history books recount centuries of bloody conflict and a
brutal civil war with Bolshevik meddling in the aftermath of
independence in 1917. My great-great-uncle, Emil Nestor Setälä, co-
authored the Finnish declaration of independence. Soviet aggression in
World War II forced us to concede 10 percent of our territory, including
the cities where my paternal grandparents and father were born. My
maternal grandfather stepped on a Soviet mine in 1941 and almost lost
his life. He met his future wife, my grandmother, in the hospital.
The timing of history made me luckier than my grandparents. I started
studying political science and international relations at Furman
University in the United States in 1989. When the Berlin Wall fell that
autumn it felt like decades were crumbling before our eyes. Germany
reunified. Central and Eastern Europe escaped the shackles of
communism. The bipolar world order, a balance of power between a
communist, authoritarian Soviet Union and a capitalist, democratic
United States, became unipolar. The US was the undisputed superpower.
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The markets and freedom won. The West won. The liberal world order—
with its rules, norms, and institutions—won.
I still remember the sense of excitement. There was a feeling that all
of the world’s roughly 200 nations would pivot toward liberal democracy,
freedom, and market economies. (Here and throughout this book, I mean
“liberal” in the classical, not political sense: upholding an open society
and the values of democracy, such as free speech and rule of law.) The
East would join the West. The North would unite with the South.
Globalization would lead to economic interdependence. War would
become impossible. The world would become one. Francis Fukuyama
wrote about “the end of history.” I believed it.
I even took a wager, a bottle of champagne with author Jari Tervo,
that Russia would become a liberal democracy sticking to international
rules and norms. I lost.
Now, more than thirty years later, my job as president of Finland
hinges on engaging the world as it is, not as I wish it to be. To achieve
the latter, I must navigate the former.
Yalta vs. Helsinki
What the West failed to understand in those heady days is that you must
be humble in victory. In international relations this means giving agency
to those who lost, or more importantly those who feel they have no say in
global governance. The West did not.
And so, in the first decade of this century, the world started drifting
toward disorder. It became more authoritarian, multipolar, and complex.
There was no longer a single leader, no clear nexus of power. America
began to retreat from international responsibility after the costly failures
of its wars in Afghanistan and Iraq. China emerged as a superpower
through rocketing exports and economic growth. The global financial
crash of 2008 delivered a severe reputational blow to the West’s
economic model, rooted in global markets. The US no longer drove
global politics alone.
Two pivotal moments in history illustrate the crossroads at which that
places us.
In 1945 the winners of World War II—the US, UK, and Soviet Union
—met in Yalta, on the Crimean Peninsula. There Franklin Roosevelt,
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Winston Churchill, and Joseph Stalin laid the groundwork for a postwar
order based on big powers. They carved up Europe into spheres of
influence. Soon after, the UN Security Council arose as a platform for
superpowers to address differences, with a veto for each of them but little
influence for others. It was a deal made by big states over small states.
The Conference on Security and Cooperation in Europe summit in
Helsinki in 1975 was different. Thirty-three European nations, plus the
US and Canada, created a European security structure based on rules and
norms applicable to all. They established fundamental principles
governing states’ behavior toward their citizens and each other. A central
tenet was that all participating states had equal ability to influence
decisions. This was a remarkable feat of multilateralism in a time of
major tensions, and it became instrumental in precipitating the end of the
Cold War.
These two watersheds underscore the difference between
multilateralism and multipolarity. Multilateralism is a system of global
cooperation based on international institutions and common rules—the
kind of system the Allies endeavored to build after World War II, with the
UN at its core. Its key principles apply equally to all countries,
irrespective of size.
Multipolarity, in contrast, is an oligopoly of power. A multipolar
world runs on several, often competing nodes of power, or poles. This
can lead to ad hoc and opportunistic behavior and a shifting array of
alliances based on states’ real-time self-interest. The concern is that a
multipolar world leaves small and medium-sized countries out—bigger
powers make deals over their heads. Whereas multilateralism leads to
order, multipolarity leans toward disorder and conflict.
Helsinki was multilateral. Yalta was multipolar. Now as a world we
face a choice, and we must choose Helsinki, not Yalta. That means my
fellow Western leaders and I must convince our counterparts in the many
countries that the old order ignored that Helsinki has something to offer
them. And we cannot achieve that by continuing to do things the way we
have before.
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The Triangle of Power
I believe February 24, 2022, was the day that ended the post-Cold War
era. Putin’s Russia, a permanent UN Security Council member, blatantly
broke the rules that were supposed to guarantee peace and stability by
invading Ukraine. And not only did the invasion reflect global change, it
accelerated it. That day forced the world to take a position: for, against,
or somewhere in between. We now see new alliances emerging in a
multipolar and essentially fragmented world. The war in Ukraine became
a snapshot of the new world disorder, of things to come, or of how they
already were.
The core argument of this book is that the forces molding our
emerging world represent a Triangle of Power—the Global West, Global
East, and Global South—and the interplay among these three will decide
the shape of the world to come. These are not traditional blocs or poles,
but despite their internal diversity they share similar values and interests.
The Global West and East are at the two extremes. The Global South, in
the middle, holds the power to decide in which direction the pendulum
will swing.
The Global West is composed of the United States, Europe, and their
democratic allies around the world, including Japan, Australia, New
Zealand, Canada, and South Korea, to name a few. The G7, the European
Union and their Pacific allies—the hard core of the Global West—
represent around 15 percent of the world population and over 50 percent
of the global economy. This group, led by the United States, has
traditionally defended the rules-based liberal world order. Most Global
West countries rely on democracy, social market economy, fundamental
rights, and freedoms.
I fully admit that this definition of the Global West contains a possible
weakness: the rest of the Global West will have to work hard to persuade
President Trump that the liberal world order is in the US interest. Yet I do
not think we should jump to hasty conclusions about deterioration of the
century-old trans-Atlantic partnership. The values and interests of the
Global West carry more weight than the way in which we drive them. We
should also see that some elements of a Trump presidency can be useful
for peace, stability, and security. He has made clear his aim of peace in
Ukraine and the Middle East. Of course, how these goals are achieved—
and what price is paid—matters enormously.
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The Global East is led by China and supported by Russia and a set of
smaller autocratic regimes including Belarus, North Korea, and Iran.
These five key Eastern countries represent around 20 percent of both
global population and world GDP (both mostly China’s). The Global East
is challenging the current world order, seeking to rewrite the international
system of rules, norms, and institutions. It believes in inviolable state
sovereignty with non-interference over universal human rights and
freedoms—and autocracy over democracy. Yet some Global East
countries routinely question the sovereignty of smaller states. Russia,
notably, wants a return to the nineteenth-century world of “spheres of
influence,” in which big powers make the decisions in their own
neighborhood. China’s military advances in the South China Sea speak to
the same doctrine.
The Global South, i.e. the global majority, is broadly composed of
countries from Asia, Africa, the Middle East, and Latin America. The
group represents over half the world’s nations and population, but less
than a quarter of global GDP. India, Indonesia, and Pakistan are key
Global South states in Asia. South Africa, Kenya, and Nigeria are strong
in Africa. Saudi Arabia, Qatar, and the United Arab Emirates lead in the
Gulf region. Brazil, Argentina, and Mexico lead in Latin America.
There are overlaps between the spheres. Many countries in Latin
America, for instance, see themselves as a part of the Global West and
South. The same goes for India and Turkey. Global South nations also are
obviously diverse. They include democracies and autocracies, rich and
poor states. The common denominator is that they are all
underrepresented in the current world order. They lack sufficient agency
and want a redistribution of power in their favor. And as everyone who
wants to shape the new world order should understand, they are likely to
get what they want.
Competition, Conflict, Cooperation
I argue in this book that our collective future will be forged by the
prevalence and balance of three dynamics within the Triangle of Power:
competition, conflict, and cooperation. Competition, at least, is a
certainty, and potentially a healthy one. It will feature prominently in
realms from economy to technology to military—and already does.
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The emergence of conflict and cooperation, however, depend on how
we manage competition. Competition among the three global spheres
could spill into conflict, especially in a world where anything—from
technology to energy to currency to information to trade—can be
weaponized. Those same tools could become instruments of cooperation,
but only if we collectively agree upon a new set of global norms and
institutions to guide how we use them.
Within the Triangle of Power, each realm has its own set of interests
influencing these dynamics. The core of the East-West divide lies in the
geostrategic competition between the US and China: the established
versus the rising power. This competition is about high politics, and as
much about world order as regional power. It encapsulates an ideological
rivalry between two systems of governance: democracy and autocracy,
freedom and control. At the same time both camps do, at least in theory,
believe in free trade and globalization. They differ on the rules and
principles that should govern the system. The West, or at least a majority
thereof, wants to preserve multilateral order. The East wants to rebuild
the system on multipolarity.
The Global South is not agnostic about the emerging world order; on
the contrary it wants agency in the system. But it does not necessarily
want to take sides. A new cohort of middle powers such as Turkey, Saudi
Arabia, South Africa, and India take a trans actional, rather than
ideological, approach. They make deals where it suits them. They decline
to frame the world as simply “us versus them.” To maximize autonomy
and flexibility, the Global South wants the opportunity to pick and
choose depending on the issue at hand, to gain fair and equal access to
global goods that affect its development. And while it is not a single
entity, geographically or ideologically, it wants a genuine seat at the table
in governing multilateral institutions and global trade.
This explains why the Global South has remained more neutral and
less engaged in the war in Ukraine. And it means that those of us in the
West who believe in democracy, freedom, and cooperation cannot rest
anymore on our triumphs of the twentieth century. We cannot sit this new
contest out. We need to engage with our colleagues from all corners of
the globe, with new creativity and humility, to determine where shifting
global forces will land.
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A New Prescription
As a small country living next to an imperial power, you learn that
sometimes you must put some values to one side. Other times you get
what you want. During the Cold War, Finnish foreign policy centered on
“pragmatic realism.” We had to compromise our Western values just to
survive, to keep the Soviet Union from attacking us again. At times this
accommodation went too far; this era in Finnish history is not one we can
be particularly proud of. Therefore, when anyone suggests that a solution
for Ukraine is “Finlandization,” I vehemently disagree. There should be
no anticipatory compliance, which amounts to giving up sovereignty.
Yet my job as president of Finland is to work with global leaders to
preserve the liberal world order that can protect and sustain us all. In
more than three decades in international governance, from the European
Parliament to Finland’s Ministry for Foreign Affairs to the presidency—
managing global crises from the war in Georgia to the euro crash to
climate change—I have seen how this can and cannot be done. Our path
toward a steadier future starts with seeing the world as it is. And defining
a way to hold our liberal values while working humbly and respectfully
with those who do not share them.
I call this approach “values-based realism,” and it represents a critical
evolution for the Global West. Perhaps you could call it Helsinki realism.
After the Cold War, Finland swiftly moved to “values-based idealism,”
like many Western countries that believed history was over. But after
Russia’s attack on Ukraine, Finland embraced values-based realism as its
foreign policy philosophy. Values-based realism is not a doctrine. For me,
it is an instrument of foreign policy used for a limited time, and that time
is right now.
Nor is values-based realism a conflict in terms. The ideological battle
of the post-Cold War era was between Francis Fukuyama’s end of history
(values) and Samuel Huntington’s clash of civilizations (realism).
Perhaps the paradigm shift we are witnessing is toward a bit of both:
values and interests. In other words, a cooperative world order of values-
based realism—rule of law alongside respect and understanding of
difference.
I define values-based realism as “a set of universal values based on
freedom, fundamental rights, and international rules, which take into
account the realities of global diversity, culture, and history of the nation
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states, regions, and continents that make up the global order of
international relations.” A mouth ul, perhaps. But its message to the
Global West is to stay true to your values but understand that the world’s
problems will not be solved with like-minded countries alone.
The challenges we all face—demography, technology, and climate—
know no borders. They don’t care about autocracy or democracy, don’t
divide themselves according to tradition, law, or trade policy. And their
solutions, if we are to forge them, will not either.
Past, Present, Future
Thousands of years ago, ancient Greek historian Thucydides identified a
risk that often leads great powers into war. Political scientist Graham
Allison calls that risk the “Thucydides’s Trap.” As Thucydides himself
wrote: “It was the rise of Athens and the fear that this instilled in Sparta
that made war inevitable.” Over the past five hundred years, Allison
counts, a rising power challenged a ruling more than a dozen times. More
often than not, it ended with war.
Geopolitical determinists gloomily predict that the world again
confronts Thucydides’s Trap—an inevitable clash between the long-
standing great power the United States and its rising rival China. A more
useful perspective is to ask how we can rebalance the international
system to underwrite shared security and prosperity. The Global East
argues (self-servingly) that multipolarity will produce material gains for
disenfranchised nations. The far better outcome is for the Global West to
refashion multilateralism so that it genuinely works for everyone.
We can get it wrong, as after World War I, when the League of
Nations could not contain great power competition. Or we can get it
mostly right, as after World War II with the creation of the United
Nations. In other words, the next decade (and consequently the next
century) could go well, it could go badly, or it could go really badly. It
could carry us toward a balance of power and global cooperation—or
global war.
What should be clear is that in an age of nuclear weapons and AI the
stakes of the race to shape a new international system are higher than
ever. My text to Lavrov on February 27, 2022, was a desperate call for
help, even if I knew it would fall on deaf ears. In international relations
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you sometimes come face-to-face with those willing to slaughter
innocent people in their quest for dominance. Yet the Global West, East,
and South all have an existential interest in preserving peace. Whichever
supposed superpower wants its paradigm to prevail, East or West, will
have to find an effective way to bring the South along with it. So far, the
Global East has done this better.
This book unfolds in three sections, corresponding to the past,
present, and future. The first part analyzes how we got here—the
evolution from order to disorder. This understanding of our recent past is
essential to see our present clearly.
The second part explains the present balance of power among the
Global West, East, and South. Both democracies and autocracies grapple
with similar structural challenges: demography, climate change,
economy, technology, and welfare. Understanding present conditions
enables us to see the choices (some uncomfortable) that lie ahead for the
West.
The third part forecasts the dynamics that will shape the twenty-first
century, asking how we can make the best of competition, prevent
conflict, and promote cooperation. This is where we translate
understanding into action. I contend that if the West is to maintain a
central role in global power it will have to shift toward a more dignified
foreign policy paired with values-based realism. A dignified foreign
policy is one grounded in mutual respect, where we lead by example not
exhortation. We try consistently to walk our talk of political freedom and
ethical warfare, for ourselves and our allies, even when it’s inconvenient.
We engage in dialogue, not monologue. And we understand that we
cannot dictate solutions to others.
The tasks for the West are significant and essential. We need to
prevent the US-China rivalry from leading us into Thucydides’s Trap,
contain Russia’s threat to European security, protect liberal democratic
values when they are challenged, preserve an open international
economic system amid intensifying geostrategic tension, confront rising
populist nationalism within the West, cooperate with the East where
mutually beneficial, and build a new compact with the South to refurbish
the international structures that underpin it all. This is our chance to
influence what kind of order the new one will be.
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If you detect a sense of hope within that challenge, you should. Finns
might come from the “happiest country in the world,” but there is plenty
of pessimism around. A Finnish saying goes: “A pessimist is never
disappointed.” I myself am an optimist and fan of the late Swedish
epidemiologist Hans Rosling, whose book Factfulness promised, “It
turns out that the world, for all its imperfections, is in a much better state
than we might think. But when we worry about everything all the time
instead of embracing a worldview based on facts, we can lose our ability
to focus on the things that threaten us most.” Take that to be the spirit in
which I wrote this book.
We humans tend to over-rationalize the past, overdramatize the
present, and underestimate the future. History is written retrospectively in
straight lines but in real-time occurs in zigzags. The reality is that events
of the past did not happen as rationally as we think. The present is not
usually as dramatic as the buzz leads us to believe. And future changes
will be even farther reaching than we imagine.
In this book, I intend to avoid those pitfalls of thinking. Instead, I
want to take you on a journey that tries to make sense of the past, present,
and future of global politics and bring order into a world of disorder—to
understand the tectonic shifts underway so that we can push them toward
the kind of world we want to live in. I want to tell you the story of how it
can be done.
OceanofPDF.com
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Part One
Order
OceanofPDF.com
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From Order to Disorder
January 1990. Furman University, Greenville, South Carolina. I have
abandoned my first major, economics, and my golf scholarship to
immerse in a new obsession: political science and international relations.
I study the fall of the Berlin Wall—almost in real-time. We are living
history. The outcome is unwritten.
At age twenty-two, I’m hooked. I read everything I can find: books,
newspapers, articles faxed from my dad in Finland. Studying the origins
of the European Union, I come to believe deeply in international
institutions, open society, liberal democracy, market economy, and the
essential tenet that states’ self-interest must be contained by global rules.
As European unifier Jean Monnet said, “Nothing is possible without men
[and women], but nothing is lasting without institutions.”
In my idealism, I fail to understand that the West’s ideological victory
is going without global celebration. Many formerly colonized countries
see it not as a liberation but an extension of a past they hoped to leave
behind.
The lesson the ensuing decades will teach me is that all cultures and
histories differ. Interests and power often supersede values. And if we
want democratic values to prevail, we must correct our vision.
In Search of Order
We humans seek order within disorder to make sense of a world that
often lacks it. We search for patterns and try to explain—sometimes even
predict—how the world is or will become.
Our history books bear evidence of this desire. They are full of epoch-
making terms that suggest some sort of order. The Roman Empire and its
“Pax Romana.” The Ottoman Empire. The Qing Dynasty. Defining these
empires within clear narratives necessarily involves interpretation. But
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they nonetheless represent something concrete and critical to understand:
structures that frame the relationships among populations and
governments and offer a sense of coherence. We seek order because we
need it.
Evolving from these regional orders came the British Empire, the first
to extend across the globe. It was a world order, and it defined our sense
of the scope of order to this day. Propelled by steam engines, gunpowder,
and the telegraph, it ultimately covered almost one-quarter of the earth’s
land.
The Westphalian System, named after the 1648 Peace of Westphalia in
Europe, defined our ideas about the structure of world order. These
treaties established the notions of sovereignty and equality of states.
World orders across history have centered on economics, trade, or
cultural exchanges. But states remain the most important building blocks.
Order, in this perspective, does not mean that all states are equal, but that
power is distributed and managed among them to provide stability.
The assumptions underpinning our latest world order, of course, no
longer apply. To understand the new rules, we need to retrace the
upheavals that brought us here—beginning with the Cold War.
From Bipolar to Western Order
The Cold War defined a world that, for the West, felt rather orderly. In its
simplest form it was bipolar and ideological. The United States and its
allies spoke the language of democracy, capitalism, and freedom. The
Soviet Union and its subjects represented autocracy, communism, and
control. There was little in between (unless you count the Non-Aligned
Movement of 120 states, which was neither orderly nor ideological).
Still, the two superpowers had to get along to avoid mutually assured
nuclear destruction. They forged a system of joint and separate
multilateral institutions and agreements for both competitive and
cooperative reasons. Comecon (the Council for Mutual Economic
Assistance), for example, was the Soviets’ response to the Marshall Plan.
The United Nations served as a joint forum of cooperation and dialogue.
An array of arms control agreements aimed to limit the proliferation and
use of weapons.
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That feeling of order persisted even when the Cold War ended. The
bipolar world became unipolar, almost overnight. Many of us, myself
included, were rather quick to call the new order Western, driven by the
undisputed superpower, the United States. In large part that was true. Yet
even amid heady hopes, a sober look at the world would have shown us
that weaknesses remained.
In reality, the 1990s were rather messy and disruptive, at least in
Europe. War erupted in former Yugoslavia. Germany’s reunification was
rocky. The EU’s enlargement, and the reconstruction of Eastern and
Central Europe, took time. Russia’s decade-long experiment with
democracy and hypercapitalism failed. The seeds of present-day
strongman rule in Russia were partly sown in this chaos.
Neither was capitalism the silver bullet to solve all problems, though
it felt that way. The pendulum had effectively swung from state to
market, control to freedom, authoritarian regimes to democracy. The
1990s Asian financial crisis, however, hinted at the fragility of let-it-rip
globalization.
Personally, I joined Finland’s Ministry of Foreign Affairs just as
Finland joined the EU. Multilateralism held particular appeal for a Finn;
hailing from a small country, you seek protection and amplify influence
by joining forces with others. And indeed, a Westward pattern emerged as
Eastern and Central European countries applied for EU and NATO
membership. The choice in Europe felt clear: from disintegration to
integration; from spheres of interests and submission to freedom to
cooperate; from closed to open societies; from socialism to capitalism;
from autocracy to democracy. The transition was imperfect and slow but
crucial.
The West, we now see clearly, had an opportunity to solidify Western
values around the globe then—but we did not seize it. And the changes
made to international institutions were modest and mostly regional,
insufficient to match the magnitude of global change.
The renamed Organization for Security and Co-operation in Europe
(OSCE) added democratization and stronger human rights oversight to its
agenda to guide the transition of former Soviet Republics. NATO
expanded and shifted focus from collective defense to crisis-management
and peacekeeping. The European Community officially became a Union,
integrated further, and more than doubled its membership in the fifteen
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years after the Cold War. Was it messy? Of course; the pooling of
sovereignty between nation-states always is.
Globally, however, the rules of critical institutions such as the
International Monetary Fund (IMF) and World Trade Organization
(WTO) did not change. The UN reacted to events, but its power structure
remained pretty much the same—only now without a counterweight to
the preeminent power of the US and its Western allies. The nations that
had been sidelined remained sidelined.
The 2000s—Sliding Toward Disorder
The terrorist attack on New York’s twin towers on September 11, 2001,
was as tragic as it was symbolic—an attack on the two pillars of the free
world: capitalism and democracy. Little did we understand at the time,
but it became the moment when the long slide from order to disorder
began.
The fight against terrorism became the focus of the US and much of
the Western world. The attack’s aftermath also revealed signs that the rest
of the world would not automatically slide into Westernism—values,
norms, and institutions included. 9/11 marked a turning point in what I
call the West’s “double mistake.” One mistake was that we pivoted on
our highest message, making security more important than freedom. The
second was that, in attempting to direct world affairs, we gave inadequate
agency and power to other nations.
The US attempt, with European interventionists such as Britain’s
Tony Blair, to exact retribution for 9/11 was billed by Western politicians
as the beginning of a march to democracy in the Middle East. Instead it
marked the beginning of a fall to chaos in the region. Globally, the
resulting entropy assured that history would not end then. On the
contrary, it was about to begin.
The War on Terror presumed to thwart terrorism by force while
exporting democracy to as many places as possible. It was a recipe for
instability and potential disaster. Democratic change usually happens
from within, rarely from outside, and never through force.
Power continued to decentralize. Talk began about the “rise of the
rest” in The Post-American World, as Fareed Zakaria titled his 2008 book
—suggesting that the real challenge to US power came not from the Cold
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War’s losers but the winners of emerging economies. China, India,
Brazil, Russia, South Africa, Kenya, and many others showed formidable
economic growth. Increasingly, the rest of the world wanted a share of
power, a say in the institutions setting the rules of globalization.
Meanwhile, these shifts outpaced the ability of existing international
institutions to adapt to them. Much of the unease and disorder in current
global affairs is about representation. Essentially: about power. So
different coalitions of states, such as G7 and G20, began to challenge
more traditional and multilateral forms of global governance. Patchwork
cooperation was replacing a rules-based order.
As the decade rolled on, the Global West, especially the US and EU,
began to look increasingly vulnerable. The US-led conflicts in
Afghanistan and Iraq proved controversial and complicated. The Bush
administration aimed to oust the ruling Taliban and, with a NATO
coalition, create a new democratic authority to prevent their return to
power. Ultimately the Taliban resurged, the West deployed roughly
140,000 troops in the region, the war killed more than 240,000 people
(according to the Costs of War project at Brown University) and
displaced some 6 million, and the Taliban again rules Afghanistan.
The Iraq War proved an even bigger blow to the West’s credibility,
especially the US. The invasion was based on a false assumption that Iraq
possessed or was developing weapons of mass destruction—and occurred
despite little connection between Iraq and the 9/11 attacks. The protracted
conflict had no UN mandate. The superpower that had emerged
victorious from the Cold War as a beacon of democratic values did not
look so super anymore.
Meanwhile, the EU hardly looked like the epitome of stability either.
It did grow, albeit slowly, to twenty-seven member states by the end of
the decade. The widening and deepening European integration is one of
its great successes. But the EU failed to become the world’s “most
competitive economy” as planned.
In contrast, when China set forth its quinquennial economic growth
plan, it delivered. Much as it disavows a Western-designed order, Beijing
has never hesitated to make use of it. Many consider China’s decision to
join the WTO, gaining access to Western markets, as one of the most
important geopolitical events of the century so far. The global financial
crisis of 2008 exposed the depth of public debt among some EU member
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states and plunged the Union into internal division. Europe, like the US,
was distracted by its own concerns.
Personally, this decade taught me how to test my international values
against the grit of reality. Representing the Finnish Ministry for Foreign
Affairs I helped negotiate the Treaty of Nice, which reformed the EU
structure for the accession of a dozen new countries. Through tough, long
nights in 2001, we negotiated the critical question of any transnational
cooperation: how to share power. And we succeeded, strengthening the
EU and the states within it. Later, as advisor to European Commission
President Romano Prodi, I helped develop the Treaty of Lisbon, which
set forth a new EU Constitution more acceptable to member states. And
finally, as Finnish foreign minister and OSCE chairman in 2008, I helped
broker an urgent ceasefire in Georgia.
The phone call telling me that Russia had violated territorial
sovereignty and invaded Georgia literally came when I was by the pool,
on a family vacation in Sardinia. By the next day I was en route to
Georgia’s capital, Tbilisi, with a French delegation. In the heavily
bombed Georgian city of Gori, I walked down a side street and stumbled
upon women and children streaming out of buses, crying and clutching
plastic bags of their belongings as Russian soldiers ordered them out.
Russian forces had obviously ripped these Georgians from their homes in
areas Russia wanted to claim as its own. That evening, our delegation
drafted a ceasefire agreement and secured Georgian President Mikheil
Saakashvili’s signature. An overnight ride in armored vehicles over the
mountains to Yerevan, the capital of Armenia, and then an early morning
flight delivered us to Moscow, where I met Lavrov. French President
Nicolas Sarkozy brought our proposal to the Kremlin, the Russians
requested and received one last change, and the deal was done.
In Georgia, we managed to halt a conflict, with minimal loss of life, in
just five days, through swift and coordinated international action. Yet the
lesson I drew was that disorder was growing and needed to be contained.
The rules that we considered sacrosanct could be broken. We needed
strong multilateral institutions as much as ever. I tried to ring the alarm
bells in conversations with colleagues across Europe. But the collapse of
Lehman Brothers overshadowed Russia’s annexation of two Georgian
regions, South Ossetia and Abkhazia, as the global financial crisis began.
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The Global West was looking away and not looking good—opening the
door to disorder.
In hindsight it is easy to say the 2000s was a wasted decade for the
Global West. The US, having at last acquired all the keys to global
influence, failed to stay in the driver’s seat. Its financial crisis cascaded
into economies across the world. The EU made a mess of the euro crisis
and got entangled in internal disputes about who should foot the bill.
From the outside the Global West looked arrogant, incoherent, and often
inconsistent. Cooperation was fine, as long as it followed Western norms.
Solidarity was necessary, as long as it caused no inconvenience at home.
And international rules mattered, until they impeded the West’s interests.
Nations of the Global South leveled the charge of double standards,
which today has grown louder over US support for Israel as its military
destroys much of Gaza at the cost of tens of thousands of civilian lives.
The West spoke the language of democracy but sometimes acted with the
force of autocracy.
By the end of the decade, the rest of the world had turned its back on
the Global West. We just failed, or refused, to see it.
The 2010s—Disorder Arrives
The US and EU entered the 2010s in crisis mode. The emerging global
sentiment was that democracy, capitalism, and globalization were not
delivering. That sense only mounted through the decade as sequential
crises sealed the West’s fall from first place, sketching the lines of the
new triangle of power.
Europe, already strained by the euro crisis, then confronted the
asylum crisis. Populist movements grew across the West. The US
political climate grew severely polarized. To many observers, Brexit and
the first election of Donald Trump ratified the Global West’s retreat as
world standard-bearer. And in many ways Western voters turned their
back against a world they had created. With Brexit, Great Britain became
Little England. The US role as world police formally ended when it
refused to respond to Syrian President Assad’s use of deadly gas on
civilians in 2013. Disorder had finally, and fully, arrived.
Meanwhile, China was surging from strength to strength. To people
suffering under the financial crisis and questioning the capacity of
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democracies and market economies to maintain stability, Chinese state
capitalism and control started to look more attractive. Its consecutive
years of economic growth held between 6 and 10 percent. China
strengthened its economic and political dependencies around the world
through the Belt and Road Initiative, which invested Chinese capital to
build infrastructure connecting Asia with Europe, Africa, and Latin
America.
With the old world order dismantled, the pendulum of power swung
widely back and forth. But authoritarian regimes—especially China—
appeared to many observers to perform better than democracies.
My first phase in politics took place during the crisis years from 2008
to 2016. The euro crisis, in which several member states became unable
to cover their own debt, requiring bailouts and threatening to drag the
currency down with them, toppled European governments and sparked a
new wave of populism. The asylum crisis, where millions of Middle
Eastern refugees flooded into Europe to escape war and persecution,
deepened isolationism.
As we entered the 2020s the pendulum of power not only picked up
speed but started to swing in all directions. COVID-19 became a real-
time measure of societies’ resilience. Conventional warfare returned to
the borders of Europe when Russia attacked Ukraine. The resulting
energy crisis strained states’ capacity to manage supply shortages. Much
of it became a stress test of how states and institutions could cope with
crisis. Amid the tumult, observers around the globe compared different
states’ mortality rates, vaccine distribution, energy prices, and inflation.
The Cold War superpowers were officially off the podium, with a giant
public scoreboard running numbers for their replacements.
The View from Beyond the West
We in the Global West often look at the end of the Cold War from …
well, a very Western perspective. This chapter is a case in point. Sure, the
West won the Cold War. But the deeper lesson is that world politics are
never static—and if you are too focused on yourself, you fail to see your
surroundings. The critical decades since the Cold War have looked very
different from outside the West. And the West’s myopia cost it
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opportunities to consolidate global influence while opening opportunities
for China and others to do so.
During the West’s distraction China underwent rapid economic
growth and modernization, reaching de facto parity with the world’s two
largest economies, the EU and US. In many ways China embraced the
Western recipe of economic growth through market-oriented reforms,
foreign investment, and trade, but left out the element of moral high-
ground. China’s world was transactional; values were secondary. To
many nations, China looked like a less demanding and judgmental
partner than its Western equivalents, especially former colonial powers.
Meanwhile, the Middle East suffered conflict and instability, with the
West’s presence there serving energy and security more than democracy.
The Arab Spring, starting in 2010, saw a wave of popular uprisings
against authoritarian regimes but largely did not result in lasting political
change. The West mostly backed the “democratic” revolutionaries, much
to the dismay of non-democratic regimes with which they had previously
cooperated.
Against this backdrop, many states and regions began to envision new
roles for themselves. Free from bipolar or unipolar dominance, middle
powers struck a more independent note in foreign policy. They could
choose sides or stand back when it suited their interests. Turkey, for
example—always a linchpin between Europe and the Middle East—is on
one hand an ally and close partner of the West. On the other hand, it uses
its size and geostrategic position to autonomously drive its interests in the
region. Across the ocean, a Latin American Foreign Minister once told
me, “Our region is not even competitive as a threat.” The comment, by
design, got a good laugh from the gathering. But it illustrates the region’s
wish not to be taken for granted.
India, for its part, aligns with the West on democracy and capitalism
and against China’s assertive strategy in the Indo-Pacific but expresses
increasing frustration about its undersized role in global politics. The
world’s most populous country wants a seat on the UN Security Council
and a greater influence in key multilateral institutions, such as the WTO,
IMF, and World Bank. Already India is expanding its influence through
organizations like the BRICS and G20. As a leader of the Global South,
India will be a key, if not the key, state in determining whether the values
of the Global East or Global West prevail.
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2022—An Era Ends and an Interregnum Begins
As of February 24, 2022, we are in between eras, uncertain where the
next one will lead.
The slide from order to disorder was long and multicausal, but all the
elements came together on that day. International institutions and norms
were damaged by a former superpower unable to find, or more precisely
accept, its place in a new world order. This damage opened the door for
Russia’s rule breaking. Now the disorder is plain to see.
The year 2022 marks both a return to the past and potentially a new
beginning. It is the end of an era of relative peace and the beginning of an
Age of Unpeace, as Mark Leonard put it. Technology, long seen as an
engine of progress, has enabled repression along with liberation, fiction
along with facts. The global markets that connect us also enable
economic attacks. In this world, everything from energy to currency can
be weaponized. The tools of disinformation, cyberattacks, and sabotage
equip nations to blur the line between peace and war. This is what makes
disruption more dangerous and the establishment of new global rules
more important.
The Global East wants to frame this moment as a reckoning on the
Global West’s hegemony. The Global South wants to frame it as a
reordering of global power and goods to better reflect the present world
—and it is probably right.
The paradox is that no matter where you are in the world, your
conditions are being rapidly reshaped by the same key structural forces of
change: demography, climate, and technology. You can’t escape them. No
country can. All three forces penetrate the dynamics of local, national,
and international governance. And all eventually cause disruption,
fragmentation, and imbalance—issues with which all regimes, West,
East, or South, must contend.
At this watershed moment, the trending political rhetoric is exactly at
odds with the solutions we need. Global leaders talk of nationalism,
taking back sovereignty, or putting their people first. Yet interdependence
now is a critical part of the solution, not the problem.
What will the next era be called? Defining an era is as difficult as
determining when it ends. Tyrants can seem all-powerful until the
moment they are not, as we saw when Syria’s Assad was scuttled out of
office in a matter of weeks. It is safe to say that the post-Cold War era is
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over, but the new era’s identity is not yet clear. For now, I will call this
stage an interregnum, an in-between period where disruption rules.
To glimpse our global direction we have to detach from the day-to-
day mayhem of world politics—which is not that different from the
financial markets’ ups and downs. There is always something happening,
but not all of it is ultimately important.
It is tempting to conclude that the future will see a bipolar balance
between a US- and EU-led liberal order and a Chinese-led authoritarian
order. I think this is too simplistic, because it assumes that we live in a
binary world of alliances. We do not. It is more likely that we will see
flexible alliances—essentially a regionalization and decentralization of
world order. These alliances will be based on values, interests, and
necessity—a push-pull of forces that this book will explore.
To imagine this evolution, we first need to fully understand its tipping
point: the 2022 Russian attack on Ukraine. That moment shows us how
different players are positioning themselves in an interregnum—and
illuminates the foundations of the new world order and our opportunity to
help build it.
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From Disorder to Disruption
February 24, 2022. I wake up in Florence at 4:00 a.m. for an early flight
to Helsinki. I open my news feed—and can’t believe my eyes. Putin’s
Russia has attacked Ukraine. There is full-scale war in Europe.
I walk outside, past stone buildings nearly a thousand years old.
Observers expect Russian forces will breach Kyiv within forty-eight
hours and topple the government.
On the plane, I scribble in my notebook: “Georgia in 2008. Crimea in
2014. This is now the third invasion by Russia in fourteen years.” Yet
unlike Georgia, this conflict changes everything, for Finland, Europe,
NATO, and the world. I write: “This has to be the tipping point. A power
in decline is dangerous. Russia proves the case in point.”
Especially sobering to me is that I have met many of the people
behind the war and have heard firsthand the lies that justify it. I know
these people’s intelligence. I did not anticipate their disregard for peace.
Within days, most countries will condemn Russian aggression at the
UN (141). Others will abstain (35). Only a handful will support (5). But
most significantly, only 40 of roughly 200 member states will ultimately
sanction Russia (condemnation is words, sanctions are action). None
from Africa and Latin America. Only a handful from Asia.
On the eve of the Russian revolution Vladimir Ilyich Lenin reportedly
said, “There are decades where nothing happens, and there are weeks
where decades happen.” I rarely agree with communist revolutionaries,
but on this one, comrade Lenin was right.
If Lenin were still alive he might update his observation and say there
are also decades when centuries happen, when long futures are written in
short years. Such a decade begins on this day.
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Immediate Reactions to War
My notes from February 24, 2022, suggest that after the initial emotion,
my brain went into rational overdrive. I talked with politicians, military
experts, diplomats, and journalists in Europe and the US, taking notes,
organizing my thinking. The notes now reveal that most of these people
were genuinely scared. Some understood they had misread Russia.
Others knew their foreign policies had to change.
Among my Finnish compatriots, the fear was palpable. For us the
attack brought back our grandparents’ warnings about Soviet aggression
and their memories of World War II. We had maintained one of the
largest armies in Europe, but many Finns suddenly realized that staying
out of NATO was a potentially existential mistake. At the same time
Finland’s strategic importance grew exponentially as Western allies eyed
the potential escalation of the conflict toward the Baltic Sea, which
touches Finland’s shores.
I found myself interpreting the Finnish perspective in international
media, giving around five hundred interviews in a few months. As a
professor then, academic freedom allowed me to say things political
leaders could not. Government experience helped me understand what
was going on in the engine room. My off-the-record conversations gave
me all the information I needed to read beyond the headlines. I corrected
misperceptions about Finnish “neutrality” and calmed fears that we were
next in line. I knew Russia would not have the capacity to act on two
fronts. I also saw quickly that Finland would finally seek NATO
membership.
What I did not realize until my exchange with Lavrov three days in
was that, unlike Georgia in 2008, this war was beyond the point of no
return. Russia would not back down and Ukraine would not give in. And
the war would upend what remained of the old world order.
To understand the dominoes that began to fall then (and continue
now), we must cut through the emotion and examine why Putin decided
to attack Ukraine—and from there, why different states reacted as they
did. These reactions, even those which disappointed the West, were
rational from each state’s perspective. For some it was about political
security. For others it was about energy and food security. For everyone it
was about their place in the world.
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Putin Is Not Crazy
When the war broke out, Western media was full of speculation about
Putin’s mental state. I had met Putin several times. (Since the Ukraine
invasion and since I became president, I have not spoken to or seen him,
by choice.) My impression from those meetings is different than the
psychoanalysis provided by Western pundits, most of whom have never
met him.
The last time I met Putin was September 2013, when he and then
Finnish President Sauli Niinistö opened a power plant in Siberia, a €2
billion investment between our two countries. The meeting was
scheduled in the afternoon, to be followed by dinner. Putin, famously and
chronically late, arrived at 11:00 p.m. Dinner followed at midnight
(notably served by chef Yevgeny Prigozhin, who would later lead the
militia that marched on Moscow to overthrow Putin in 2023.) Now that
same power plant has been confiscated by Russia and its status is in
arbitration.
Putin was, as always, well prepared, analytical, strategic, and
composed. We conducted entirely rational conversations. He showed
empathy. He smiled wryly and appeared to really listen. He knew how to
take the room, so to speak. And I see no reason to believe that anything
has changed.
What is lost on those who believe Putin crazy is that the world looks
different from the Global East and South than from the West. What
appears insane through one lens may look rational through another. And
to effectively navigate a changing world, we need to see through both.
The rationale for the attack on Ukraine is more complex than critiques
of Putin’s mental state suggest. Russia has its own historical narrative, as
deeply rooted in Russian culture and education as the American Pledge of
Allegiance in the US. In this narrative, Russia has always been
threatened, alone, and isolated, attacked from all directions, whether by
the Mongols, Nazis, or NATO. This story holds that Russia has a mission
to preserve true European Christian ideals, which the West has
abandoned with its decadence, and that only Russia has been able to
defeat those aiming to conquer and control Europe, like Napoleon and
Hitler. These are mainstream views in Russia, not only cheered in the
margins. There is nothing innately wrong with building that national
identity. There can, of course, be problems with how it is applied.
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Through this lens we should also understand that Russia never
accepted the post-Cold War liberal order. Russia believes in big power
politics rather than multilateral cooperation. Foreign relations for Russia
have always been a zero-sum game ruled by strength, not norms. There
are no values involved. If you win, I lose. If I am bigger, I decide. The
Soviet Union is still seen as part of Russian greatness.
Putin promotes a revisionist vision of Historic Russia. His Russkiy
Mir, or Russian World doctrine, is about one language (Russian), one
religion (Orthodox) and one leader (Putin). This forms the ideological
basis to justify control of post-Soviet territories with Russian puppets or
proven friends of Moscow. For Putin the Soviet Union’s collapse was a
travesty, and Stalin was a hero. Putin wanted to Make Russia Great Again
—this is his mindset, not his medical state, and it is widely shared in
Russia.
In that spirit, Putin laid bare his longstanding obsession with Ukraine
as part of Russia in a July 2021 essay that practically denied Ukraine’s
statehood. His aim is to rebuild the Russian empire. And as Zbigniew
Brzezinski once observed, without Ukraine, Russia ceases to be an
empire.
Putin’s attack on Ukraine will, nevertheless, go down as one of the
biggest tactical and strategic blunders of modern history. He thought
Ukraine would fall into his arms in a matter of days. After all, that was
how easily he claimed parts of Georgia and annexed Crimea. But
tactically he overestimated Russian military capability and
underestimated Ukrainian resistance and Western resolve. Strategically
he achieved the opposite of what he expected: Ukraine became more
European than Russian, the EU and US grew more united, NATO
returned to its founding purpose, and Finnish membership doubled
Russia’s border with NATO. He also forgot that to succeed in war you
need not only tactics and strategy, but a sound reason to engage. If an
invasion could not control the minds of Ukrainians, Putin could not
expect to control Ukraine.
Once Putin invaded, however, the war was too big for him to fail and
keep his position. Being wrong is not necessarily crazy. Nor is being
disastrously self-centered and stubborn.
What Putin got right was the domestic reaction. Anti-war protests
remained small and met a furious crackdown. The few loud opposition
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figures were effectively driven out of the country. Almost no one else
was brave enough to publicly object. The result became a fight for
Putin’s existence. He wanted a place in history next to Peter the Great,
Catherine the Great, and Stalin, but might end up closer to Tsar Nicholas
II, who abdicated amid anger over territorial losses, massive war
casualties, economic difficulties, and domestic turmoil.
Why hasn’t Putin’s inner circle pushed back? We Westerners are often
bemused to see the Russian leader giving orders to governors and
oligarchs in public, but in fact these performances reflect the way Russia
has always been ruled.
Russia is a conservative society. It hates disorder. From the times of
Ivan the Terrible in the 1500s to today, it has been ruled by authoritarians.
The Tsars had God-given rights. The Communist leaders drew legitimacy
from the class struggle. The disruptive 1990s of hypercapitalism and
democratic transition engendered disorder, which Putin stabilized when
he rose to power. For many Russians the word democracy still equals
chaos. Correspondingly, Russians have dubbed that democratic
experiment dermocracy, or shitocracy.
Now, governors may rule a region or city—and oligarchs may manage
a company or industry—for as long as the leader is pleased with their
performance. The leader’s power rests on loyalty among the elites, and as
such leaders are almost never bound by political institutions or law. They
are never wrong. Neither are they accountable to the people. In this
system of organized corruption, we should assume that most of the
political and economic elite back Putin, at least until things go sour and
the oligarchs and governors lose out.
In other words, power, order, and Russian hegemony have been
foundational values in Russian culture for centuries, and the Ukraine
invasion is consistent with that point of view. It was only crazy by
Western reasoning. With this understanding, we should also assume that
Putin will go all the way.
Am I a deterministic doomsdayer claiming that Russia will never
change? Absolutely not. I have enough Russian friends and experience to
understand that not everyone reveres their Russkiy Mir leader. But change
in Russia often necessitates a people’s or palace revolution, and both
appear very unlikely now.
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From the Global West’s perspective, the good news is that Putin
failed. Unless his strategic aim was to Europeanize Ukraine, unify the
EU, revitalize the Transatlantic partnership, and drive Finland and
Sweden into NATO. In the process he destroyed the Russian economy
and alienated himself from many allies. Russia used to be able to
blackmail Europe on three fronts: economic cooperation, energy
dependence, and military might. The first two do not feel particularly
threatening anymore, but we should never underestimate Russia on the
third.
The United Global West
Alongside the misery Putin’s failure sowed in Russia and Ukraine, it set
in motion a chain of reactions that will eventually remake structures
across the world. Let’s examine those, starting with the Global West.
In my thirty-year career in international relations, never except after
9/11 have I seen the Global West more united, determined, or effective
than in the immediate aftermath of Russia’s attack. Nothing unifies more
than a common enemy. As Russian bombs fell on Ukrainian cities, the
West collectively launched coordinated declarations condemning the war,
consecutive waves of unprecedented sanctions, strategic military and
financial aid, massive demonstrations, operations to house refugees, and
waves of sympathy.
The West responded with such clarity because, quite simply, we had
to. For many of us a Russian attack is existential. The US, EU, and
NATO needed to show unwavering unity against this threat. Europe even
overcame two mistakes that critics claimed it made in the post-Cold War
era: counting on American security and depending on Russian energy.
Perhaps those mistakes were real, but Europe was able to rely on the
former and wean itself from the latter when it mattered.
The ripples of that response spread across Europe and the Atlantic. As
the EU united, Russia’s neighbors turned their back on Moscow. Georgia,
Ukraine, and Moldova applied for EU membership. (Georgia later
suspended its application.) Forty-four European states, including
Armenia and Azerbaijan, joined a first meeting of the European Political
Community in Prague in October 2022. The only ones not invited?
Russia and Belarus.
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This revived unity could prove a crucial asset amid the present
disorder, and we should strive to sustain it despite differences with the
new administration in Washington. We need it now especially because
Russian aggression produced an apparent contradiction for the West. In
one respect, it was fresh proof that an international order based on
common norms and institutions is better than rogue behavior. Yet it
simultaneously forced the West to recognize the weakness of these norms
and institutions on the world stage. Global responses to the West’s
attempts to sanction Russia have ranged from lukewarm to neutral.
The upshot is that the West must go back to the drawing board and
decide how it can best defend its interests and maintain at least some
parts of a liberal world order. The reflection begins with an understanding
that most of the world’s nations will not automatically follow in the
West’s footsteps—a fact of which the Global East is increasingly aware.
The Reluctant Global East
A few weeks before the war began, Presidents Xi Jinping and Vladimir
Putin met at the Beijing Winter Olympics. In a joint declaration, China
and Russia stated that “friendship between the two states has no limits,
there are no ‘forbidden’ areas of co-operation.” Read that as you will.
It is impossible to know whether Putin told Xi about his intention to
attack Ukraine, but once it happened China landed in an uncomfortable
position. Had the attack succeeded, things might have been different.
China illustrates the Global East’s balancing act in the present disorder: it
wants to unseat the West from dominance but is reluctant to do so in a
way that potentially damages its own interests.
For China the war was both a distraction and an opportunity. Xi
would have preferred all eyes on his dominance of the Chinese
Communist Party quinquennial congress in October 2022, through which
he secured an unprecedented third term as president. He also wanted
attention and admiration for China’s zero-COVID policy (which was
initially successful but outlived its purpose and ended up costing China
and its citizens dearly). The war was not part of China’s five-year plan.
The opportunity, however, was for China to cement its dominance over
Russia as the real leader of the Global East—which it did.
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China’s strategic calculations unfolded cautiously. At first it sat on the
fence. But as the war stretched on, China had to confront three options:
lean toward Russia, lean toward the West, or stay neutral. Whereas the
Russian economy doesn’t matter much to China, except as a source of
raw materials, the EU is one of China’s biggest trading partners. This
gave China genuine reason to worry about secondary sanctions if it
backed Russia overtly. So it ended up choosing to balance all three
options, to juggle its competing interests rather than sacrifice one.
I have met Xi Jinping three times, most recently in 2024. I always
find a respectful dialogue more fruitful than a disrespectful monologue,
especially if you disagree. So I took care both to listen and to explain
why Russia’s attack on Ukraine was wrong and how its ramifications
affect global security. Xi was personable and well-versed in his subjects.
He adeptly analyzed world-scale questions about technology and global
goods but did not engage about matters he considers China’s private
business, like human rights.
The conclusion I drew is that China’s and Russia’s “friendship
without limits” means less than we think. For China it is transactional.
For Russia it is necessary. It is an alliance more of convenience than of
depth. Both nations want to usurp power from the West. They share a
common enemy: the US and to a lesser extent the EU. Each leader wants
the other to remain in power to bolster his country’s position.
But it is important to understand that the two powers’ goals and
methods differ. Russia is an aggressive disruptor seeking to secure a
sphere of influence. China is a global economic superpower, and as such
it cares about its reputation. Hence its attempt, albeit clumsy, to mediate
peace one year into the war.
Beyond China, the war began to upend many previous patterns. Iran,
for instance, intensified its cooperation with Russia, supplying it with
arms and drones. North Korea has sent supplies and even troops to fight
with Russia in Ukraine, flying in the face of China’s aim to prevent
escalation. Since 2022, many Central Asian countries have distanced
themselves from Russia, indicating that whole regions can quickly shift
alliances. Yet this means they can, just as quickly, shift back.
The year 2022 also delivered hits to China’s reputation in both
governance and economics, as its COVID-19 approach backfired, its
strategic relationships stumbled, and its growth slowed—showing a weak
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side the world had not seen for three decades. Those optics are sure to
linger and affect the emerging world order.
Ultimately, the Ukraine war will probably recalibrate the East’s
relationships with its diverging leaders, China and Russia, and prompt
China to reassess where to find friends. It will also force China to rethink
any possible ambitions on Taiwan. The opportunity cost of Putin’s
senseless war is too high. I think President Xi understands that—but I
could, of course, be wrong.
The Neutral Global South
The Global West sighed with relief when 141 UN states voted to
condemn Russia a few days into the war. But behind the scenes, many of
those votes were soft—scrambled together at the last minute by the US,
EU, and their allies, often with a transactional exchange. The 35
abstaining members, including India, China, and South Africa,
represented over half the world’s population. The four countries that
supported Russia—Syria, Eritrea, North Korea, and Belarus—were less
of a surprise.
Many in the West mistook the vote for an overwhelming expression of
support. This interpretation was too early and too optimistic. Only about
forty countries were ultimately willing to translate those words into
action by sanctioning Russia. The reason was not indifference but
dissociation—a sentiment that this is “your war, not ours.” The conflict
may have had global repercussions—such as inflation on fertilizers, food,
and energy—but it fundamentally concerned Europe. Many states felt
that the West, especially former colonial powers, were in no position to
lecture on territorial integrity, sovereignty, or independence. Indian
Foreign Minister Subrahmanyam Jaishankar expressed a widespread
Global South view when he remarked in 2022, “Europe has to get out of
the mindset that Europe’s problems are the world’s problems but the
world’s problems are not Europe’s problems.” And he was essentially
correct.
Overall, the South’s reaction had less to do with the war in Ukraine
than with their role in the global order. Middle powers, as aspiring great
powers, now have greater scope to make their own choices.
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Take India, the leader of the Asian Global South. It has sat on the
fence since the war began. Looking through the lens of security and big
power politics, we see that India is a member of the Quad, a diplomatic
partnership with the US, Australia, and Japan—and one of the biggest
arms importers from Russia. It needs to manage a historical conflict with
Pakistan and keep a wary eye on China’s regional power. Its balancing
act is not only understandable, but for all intents and purposes has been
successful.
Latin American countries mostly supported Ukraine in words but
defended non-intervention in actions. In Brazil, both the right- and left-
wing presidential candidates, Bolsonaro and Lula, blamed NATO’s
expansion for Russia’s attack—moving beyond simple neutrality to a
kind of equal-opportunity critique. The lesson was that, rather than take
sides, Latin America prefers to keep its options open.
It is unfair to generalize about the African Union, composed of fifty-
five states, but safe to say that reactions were at best neutral. This is, first,
because African leaders tend to see Russia as a more constructive and
less demanding partner than Western states, especially those with a
colonial past. Second, because many African states have close economic
ties with Russia, especially in food, energy, defense, and in their fond
memories of Soviet support. And third, because Africa has a tradition of
non-alliance in big power competition.
The theme running across regions is that debates in the Global South
hinge on interests, which tie into political or economic commitments to
both the Global West and East. And they manifest in flexible, rather than
rigid, alliances. These countries see themselves as rightful actors on the
world stage, and they’re not keen to do anything that would constrain
their ascension.
From Fragmentation to Reconnection
Sometimes we humans suspend the truth for survival. Memories fade so
that we can move forward. Order itself is a mental construct or theory.
Disorder is often reality. Yet history does provide moments of disruption
that crystallize broader trends of change. The war in Ukraine was one of
those disruptions.
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When I began writing this book in early 2020, I thought about how to
frame the emerging world order. The narrative of a bipolar Cold War,
then a unipolar—and later multipolar—post-Cold War came easily. But
what then?
In an earlier version of the book my framing was bipolar, driven by
two power centers: China and the US. Yet as history charged on through
COVID-19, Ukraine, and the energy crisis, I realized the world was not
as orderly as I wanted to believe. The world order was a cacophony of
disorder, with hundreds of relationships ranging from global multilateral
institutions to regional groups to informal connections between
companies, states, and civil society.
It was, at last, the Ukraine invasion that solidified these lessons for me
—that remade my understanding of the world and led me to declare the
old world order officially dead. We are not simply in a transition; we are
in a fight for a future world order. And the path to a healthy outcome
necessarily runs through international institutions, from the UN to
settings far beyond it, where we must rethink membership and power for
global cooperation to survive.
As new alliances formed and crumbled amid crises, and multilateral
institutions such as the UN and OSCE were sidelined in the Ukraine
invasion, some pundits announced the death knell of international
institutions. I disagree. These institutions are more resilient than we often
think. And they will prove critical to reshaping the relationships of our
evolving world.
OceanofPDF.com
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From Disruption to Disintegration
September 2008. World leaders gather in New York for the UN General
Assembly. Lehman Brothers has just collapsed. Markets are in turmoil. I
am Finland’s foreign minister and chairman of the OSCE.
My calendar is full of one-on-one meetings. Each country has its own
priorities. Many colleagues want my take on the frozen conflict in
Georgia. I want to secure Finland a rotating seat on the Security
Council.
At an EU ministerial lunch, Sergey Lavrov comes in late. Takes the
microphone. Starts rambling about how Georgia attacked first. We all
know he’s lying.
To an outsider, this scene may look like a flurry of formality among
elites, far removed from reality. But it is the foundation on which we build
a multilateral, rules-based world order and seek common solutions to
common problems. Even spontaneous conversations in the hallways can
seed trade agreements, climate pacts, or military alliances.
Relationships between countries ultimately rest on relationships
between people. Diplomats build rapport because a hard conversation is
better than a chasm of silence, and a compromise is better than no
agreement at all. And once we know each other, we know who to call for
support when a climate disaster hits our shores, a new energy
opportunity opens, or a missile lands where it shouldn’t.
I know firsthand that multilateral diplomacy can be messy. But we
cannot rebuild a world order without it.
The Currency of International Relations
I have always loved international gatherings, from academic conferences
to the UN General Assembly, from the Munich Security Conference to
informal retreats. Formal sessions afford a chance to pick up signals on
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the direction of negotiations at hand. In informal exchanges outside the
meeting room—often where the real work gets done—we forge personal
connections and feel the world’s pulse.
Believe it or not, there are more than 50,000 international fora,
summits, networks, institutions, and organizations that channel
international cooperation. They may be formal or informal, governmental
or non-governmental. Think, for example, of India’s Raisina Dialogue,
Singapore’s Shangri-La meeting, GLOBSEC in the Czech Republic, the
World Health Organization, and the World Economic Forum. Together
they make up the international system we know today and give rise to the
agreements, structures, and rules that comprise our world order. The
bonds they build between countries—and the shared ideas they foster—
are critical to peace and cooperation. (For the same purpose, I made a
point to meet nearly half the world’s state leaders within my first year as
president.)
These international fora have never been more important. Yet many
countries are rejecting multilateralism when we need it most. In fact, the
fraying of global structures has helped drive us toward disorder. Without
strong multilateral systems, all interstate deals become transactional. A
multipolar world runs on self-interest. A multilateral world makes the
common interest a self-interest.
Rising multipolarity has set in motion three trends—multiplication,
regionalism, and distrust—that complicate our prospects for rebuilding a
world order today. The first two, multiplication and regionalism, are
challenging but not necessarily unhealthy for a liberal world order. The
third, distrust, is our biggest obstacle to overcome.
The UN: Still the Backbone of the World Order
To revitalize multilateralism we need to understand how it has evolved
and devolved. Let’s begin this history with World War II.
The Soviet Union, United States, France, and Great Britain called
their military alliance the “united nations” long before the global
organization began. Forty-two more countries signed on during the war.
At the Conference of San Francisco in April 1945, fifty-one states
spanning every inhabited continent created the United Nations to
underpin a new international system meant to prevent another global
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conflagration. Almost all of Latin America and several Middle Eastern
countries were founding members. So was India, even before attaining
formal independence. Much of Asia and Africa had yet to emerge fully
from colonial rule. The UN became the backbone of the rules-based
world order. Its single most important task: keep the peace.
A lot has changed since 1945. One of the UN’s founding members,
the Soviet Union, no longer exists. Dozens of nations have broken free
from colonialism and forged their own governments. The UN’s initial 51
member states have grown to 193. Other international institutions have
proliferated. Critics rightly point out that the UN’s core structures have
not kept up with change. But the UN remains the cornerstone of the
multilateral world order, and we dearly need it—even if we need to make
it better.
A stronger UN starts with a more balanced Security Council. The
Security Council holds the institution’s primary responsibility, “the
maintenance of international peace and security,” and the global
monopoly to authorize the legitimate use of armed force under
international law. Yet its leadership is unbalanced. With the dust still
settling on world war in 1945, the four allies plus China received
privileged status with permanent Security Council seats and veto powers
(the remaining ten seats rotate among nations). Nothing could happen
against the permanent members’ will. In return, they stayed engaged.
This original design reflected the power dynamics of the day: a balance
between the Global West and Global East. The Global South was, and
still is, left out.
The UN expanded over time, setting up a growing portfolio of
activities from supporting economic growth to protecting the
environment to fighting hunger to resettling refugees. Through the Cold
War, it mostly managed to keep peace on a global scale. It is to date the
most universal, inclusive, and far-reaching attempt at global governance
the world has seen. Its institutions, rules, and practices became the
foundation of an international system that grew exponentially after 1945:
the Yearbook of International Organizations counted 123
intergovernmental organizations in 1951, and over 1,800 in 1990.
Today, the UN is no utopia. No world war has erupted since its
founding, yet it has proven unable to contain the rising belligerence of
nation-states. It is, like most international organizations, driven by its
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members’ conflicting interests. To paraphrase Winston Churchill on
democracy: the UN is the worst form of global governance, save all the
others.
There are three primary criticisms of the UN in its present state. First,
many lament its inefficiency, and they do not only mean the elevator
operators that take you up and down during the General Assembly. As a
large bureaucracy navigating multicultural environments and diverse
interests, UN structures are not built for fast decisions or smooth
processes. Many think the UN fails on its main missions, from
development to conflict prevention to mitigating global warming. Yet
most forget that international organizations are never perfect, especially
those with 193 members. The UN works about as efficiently as you can
expect when the world tries to negotiate with itself.
Second, the UN is often accused of encroaching on national
sovereignty. Concerns range from the conditionality of IMF and World
Bank financial aid, to UNESCO policies on schoolbook design, to
UNHCR human rights reporting obligations, to the Responsibility to
Protect (a requirement that every member state protects its population
from crimes against humanity and the international community steps in
when needed). Not only authoritarian regimes but also democratic actors
have scolded the UN for decisions they saw as incompatible with
national laws, values, and interests. They conveniently forget that the
UN’s purpose is to solve problems beyond the remit of any national
government alone.
Third, despite the UN’s democratic pretense (e.g., through the “one
state, one vote” principle in the General Assembly), critics have attacked
the UN for perpetuating global power disparities. Global South countries
contend that it mainly represents Western values. Even during the Cold
War, the Non-Aligned Movement depicted the UN as great power talking
shop, rather than a democratic institution addressing the world’s
inequalities.
This view deepens when vetoes by the Security Council’s permanent
five limit the UN’s scope of action in crisis. Newly emerging powers
remain eclipsed from the world’s most consequential decision-making
body. This view unites not only Global South countries such as India,
Brazil, Nigeria, or South Africa, but also Global West countries including
Germany and Japan.
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Even with its flaws, the UN is still by far the world’s most important
international institution—the spider in the middle of a complex web of
international institutions—and must be a central player in the effort to
build a new world order. The critical step is neither to keep the UN
stagnant nor to abandon it, but to make it work better for all members.
And that starts with agency—reforms to ensure that most of the world is
properly represented and its interests met. Many nations would rather
work through the UN than through shaky bilateral relationships. But they
need a genuine voice there to engage.
An Opportunity Lost
The end of the Cold War was a prime opportunity to revitalize the
international system. Competition was over. Cooperation was on the
menu. Global conflict seemed unlikely. With the battle between the two
heavyweights resolved, the rest of the world stood ready to step into the
game.
Early signs looked hopeful. When Saddam Hussein invaded Kuwait in
1990, the former Cold War rivals jointly condemned the aggression. The
UN Security Council, in surprising unanimity with Cuba and Yemen
abstaining, imposed several rounds of sanctions, then authorized the use
of force to expel Iraqi troops from Kuwait. By the end of February 1991,
a military coalition led by the US and backed by the Soviet Union,
including Egyptian and Saudi Arabian forces, defeated Saddam’s troops
and ended the First Gulf War.
I remember watching US President George H. W. Bush’s speeches on
the “new world order” as a student at Furman University. The Gulf War,
he said, was about “more than one small country; it is a big idea; a new
world order.” Exciting stuff for a young student of international relations!
In another speech Bush spoke of “new ways of working with other
nations to deter aggression and to achieve stability.” Emerging from the
Cold War stalemate, it seemed the United Nations could finally live up to
its founders’ ambitions.
What unfolded, however, was nearly the opposite—an international
devolution that drove fragmentation, not consolidation, and accelerated
the slide from multilateral order to multipolar disorder.
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The Global West took steps at first to strengthen international
systems. The early 1990s was busy with international institution building.
The Conference on Security and Cooperation in Europe (CSCE) was
strengthened and consolidated into the Organization for Security and Co-
operation in Europe (OSCE). The European Communities became the
European Union, set on deepening economic ties and expanding
eastward. NATO incorporated a reunified Germany and eventually most
of the former communist states of Central and Eastern Europe. The
World Trade Organization (WTO) emerged, joined by many post-Soviet
states. China’s entry into the WTO in 2001 marked a transformation in its
global trade relations and accelerated its economic growth.
At the UN Security Council, the newfound spirit of cooperation led to
a surge in peacekeeping operations, with a mission expanded to
multidimensional peacebuilding and governance support. Twenty-five
newly independent countries from the former Soviet Union and
Yugoslavia joined the UN between 1990 and 1993. Still, the US remained
the unchallenged global superpower. The fast and successful completion
of the First Gulf War, with a broad coalition backing the US,
emblematized American military and diplomatic might.
By now we know how the next part of the story goes. The US
invasion of Iraq without UN Security Council authority in the Second
Gulf War was seen widely, including in much of Europe, as a declaration
that Washington would exempt itself from its own rules. Charges of
double standards grew louder. The overconfident West became distracted
by its international blunders and internal struggles, and other nations
began looking elsewhere for leadership and partnership.
With hindsight, we can see that the West missed a critical opportunity
to consolidate liberal democracy, instead helping to set in motion the
multiplication, regionalization, and distrust that explain much of today’s
fragmentation. By multiplication, I mean an exponential increase in
players and fora in international cooperation. By regionalization, I mean
a flourishing of countries making economic and military pacts with their
neighbors rather than the wider world. Distrust is self-explanatory.
These trends were not all negative, but they were certainly disruptive.
And what is more, they led the Global West as traditional guardian of the
international order to find itself in a defensive position. Multilateralism
began to turn into multipolarity, a structure creaking from latent tensions.
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Multiplication
Power today is scattered, kaleidoscope-style, into a dizzying array of
ever-changing shapes and combinations. In 1990, the US appeared to
command the globe. Now small command centers appear everywhere—
which makes it hard to contain countries’ diverging interests or connect
them to the common good.
The pace of this proliferation first became apparent in the early 1990s.
International organizations, actors, and fora multiplied. New interactions
between East and West mushroomed as the weight of the Iron Curtain
lifted. The internet and affordable air travel made cross-border
coordination easier. The Yearbook of International Organizations reports
that the world’s non-governmental organizations grew from about 16,000
in 1990 to over 26,000 in 2017.
The leadership vacuum wasn’t the only thing driving this
multiplication. There were proliferating global issues in which many
actors had a stake and wanted a say. Migration, trafficking, international
crime, communicable disease, intellectual property, and environmental
crises grew more acute and demanded joint solutions. At the same time,
nations grew increasingly aware of the distribution of “global public
goods,” including climate stability, water, natural resources, cultural
heritage, health, and more. Actors from businesses to civil society,
science to arts, and activism to sub-national governments started to stake
their claim to share in global governance of critical issues.
Meanwhile, the spaces where states met changed. Informal groupings
became important alternatives to formal organizations. From the G7, a set
of large Western economies that discuss economic policy, grew the more
inclusive G20, including nineteen of the world’s biggest economies plus
the EU, and nowadays the African Union.
And then there were more: The Middle East Quartet to support
Middle East peace. The African Union, established in 2002 to promote
cooperation on the continent. BRICS, including Brazil, Russia, India,
China, and South Africa, since expanded to include ten countries. The
emerging BRICS economies combine 40 percent of the world population,
30 percent of world land surface, 24 percent of global GDP, and 18
percent of trade in goods. And they have, in a relatively short time,
become a serious competitor to the Western-dominated G7.
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These kinds of informal organizations, or “clubs,” tend to be smaller
than formal multilateral institutions, more issue-oriented, and have fewer
rules. Governments appreciate that they are less binding and more
confidential, with fewer strings attached. Yet they wield considerable
power.
Eastern powers, including China and Russia, like to promote
multipolarity with the argument that it frees other nations from Western
dominance. (Many of their neighbors, however, fear that Beijing and
Moscow seek to replace Western power with their own.) My
counterargument is simply to look at what a multipolar world without
regard for common rules leads to: chaos, disorder, and conflict. The
sustainable solution is not fragmentation, it’s fairness.
Regionalization
As international groups became more numerous, they also became more
localized. From the smaller number of global-scale efforts that followed
World War II, the world spun into many arrangements in each corner of
the globe. It was as if the neighborhood association split into a dizzying
array of permutations organized by bloc—a clear sign that the neighbors
were hungry for change.
The EU may be the most successful example of regional integration,
but it is far from the only one. Major organizations exist on all
continents. Almost eighty have emerged since 1945. Many of them
emphasize economic cooperation—the realm where countries expect
most benefits from common rules. They include, for example, the
Association of Southeast Asian Nations (ASEAN), Latin America’s
Andean Pact (AP) and the Economic Community of West African States
(ECOWAS), all created in the 1960s and 1970s.
The pace of regionalization accelerated starting around 1990.
Prominent new entrants included the Mercado Común del Sur (Mercosur)
in South America, the North American Free Trade Area (NAFTA), and
the Asia-Pacific Economic Cooperation (APEC). Regional organizations
also widened their scope, stretching beyond economics to assert
geopolitical influence where member interests aligned.
The agreement to pool sovereignty, of course, does not guarantee
smooth cooperation. Lose-lose is in a constant tug-of-war with win-win.
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Yet despite these challenges, regional organizations have become ever
more openly a tool of geopolitics, often with the largest regional powers
in the lead. China is an especially assertive player. It leverages its
economic power and its global infrastructure project, the Belt and Road
Initiative, to incentivize regional cooperation, casting itself as lead
partner.
The emergence of such groups in one region of the world naturally
inspires competitors in others. Russia has tried (without much success) to
drive economic growth through the Eurasian Economic Union (EAEU), a
common market of former Soviet states. The Shanghai Cooperation
Organization (SCO), in contrast, has realized more gains and holds the
potential to become a heavyweight in a future global balance of power.
The group, which has a formal charter and a permanent secretariat in
Beijing, includes China, Kazakhstan, Iran, Belarus, Kyrgyzstan, Russia,
Tajikistan, Uzbekistan, India, and Pakistan. SCO members make up
almost a quarter of the world’s GDP, and its cooperation covers trade,
military affairs, and politics.
The Global West, too, has reacted to this new regionalism. The US
has intensified security cooperation in the Indo-Pacific by reviving the
Quad (with Australia, India, and Japan), establishing AUKUS (Australia,
the United Kingdom, and the US), and sharing intelligence with the “Five
Eyes” nations, including AUKUS plus New Zealand and Canada.
The EU, for its part, vigorously promotes EU-Africa partnership and
has created its own infrastructure program, Global Gateway, to counter
Chinese regional advances. A G7 effort, the Partnership for Global
Infrastructure and Investment, also invests to improve health care,
telecommunications, and energy in the developing world but explicitly
promotes democratic values.
None of these agreements constitute true alliances (and some have
already started to wane). They are purpose-based groups, primarily
economic. Yet there is no denying that big economic dependencies tend
to engender political alignments.
The net effect of all these new fora is not necessarily bad for a rules-
based, multilateral order. But it does demonstrate that the current order
no longer meets participating states’ expectations. On many levels, these
are healthy signs of greater participation by more societies in
international politics, and an acknowledgment that regional cooperation
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carries greater benefits than regional rivalry. In fact, regionalization could
serve as a good first step to building stronger, more balanced
multilateralism—depending on how it is used. These groups not only
have an interest in promoting regional peace and prosperity but also tend
to know the players and the playing field.
The difference between healthy and unhealthy regionalism lies in how
these arrangements are structured and whether they are purely
transactional or more systemically cooperative. For regionalism to
support a multilateral world order, it must feed into a larger system based
on shared values. It must be part of something bigger.
Nations can only do that effectively, however, if we trust each other.
Distrust
The boom in economic cooperation after the Cold War has paid global
dividends. Global GDP more than quadrupled between 1990 and 2022.
Global trade grew six times over the same period. By 2015, UN data
show that more than a billion people had risen out of extreme poverty.
Emerging markets such as India, Brazil, Indonesia, and above all China,
were among the winners of globalization throughout the 1990s.
That rosy picture, however, is not what it really feels like in many
states, especially in the Global South. When I speak with leaders there,
they tell me their countries bear an unduly high share of the world’s
burdens and receive an unduly low share of the benefits. Climate change,
for example, affects Sudan and its neighbors much more profoundly than
Finland. Many Western nations have fueled their economic growth on
four pollution-generating industrial revolutions, but now that climate
change is upon us, we tell developing nations they cannot do the same.
The global currency transfer system is based on dollars. Yet when
migrants try to move to the West for economic opportunity, we tell their
countries to keep their people home.
In this context, multipolarity both reflects and accelerates the third
global trend: a loss of trust in the multilateral system. This lost trust is
probably the most significant factor in the slow decline of the liberal
world order—and the most difficult to overcome.
To cross this chasm we must understand its causes. I contend that it
essentially springs from three sources: disillusionment, lack of
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representation, and general populism. We need to rectify all three.
Disillusionment has as much to do with perception as reality—but
both perception and reality depend on where you sit. Growth was
distributed evenly in recent decades, but economic inequality rose in
parallel across the globe. The long-term impacts of COVID, inflation,
and food supply challenges from the war in Ukraine dampened
development prospects further. The world’s richest 1 percent now own
about half the world’s wealth. The lesson is that “economic growth”
remains a relative term.
These trends provide the ferment for growing disillusionment toward
an international order associated with Western leadership. The
discontents are not confined to poorer nations in the Global South. Even
in the world’s richest nations, many feel the spoils from technological
advances and globalization have been grabbed by the richest people. The
working classes have been left behind.
Many of the Global South’s grievances are also justifiably linked to
their lack of agency in the global architecture. Brazil and India (along
with Germany and Japan), for example, have long campaigned for
inclusion as permanent Security Council members. So have the UN’s
African group and the African Union.
That’s not to say there has been no progress. The appointment of
Nigerian Finance Minister Ngozi Okonjo-Iweala as WTO director-
general recognized Africa’s importance in the global economy. The
World Bank and IMF, however, remain firmly under Western control. An
informal agreement assures that the US chooses the World Bank
president and Europe the IMF managing director. IMF voting rights are
linked to the size of each member state’s economy. Consequently, the US
holds about 16 percent of the votes, almost as many as the next three
(Japan, China, and Germany) combined. World Bank decision-making
reflects similar quotas.
There may be good reasons to connect voting rights to member states’
economic investments, but this does not erase the impression among
states on the receiving end that others decide their fate.
The third source of international distrust is the most global. Whereas
disillusionment and unequal representation are felt most keenly by the
Global South, populism fuels distrust across societies. The populist
narrative, simply put, holds that international cooperation robs you of
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sovereignty, and lost sovereignty strips your national interests. In other
words: globalization has benefited only a few.
Early signs of a backlash against globalization appeared in protests
against G8 meetings and the memorable 1999 Seattle riots against the
WTO. In 2005, both French and Dutch voters rejected the proposed
European Constitution as a crowning jewel in European integration. This
marked the limits of popular support for losing more national sovereignty
into a cloud of multilateralism.
A common trope in populist discourse, left or right, is to blame
domestic challenges on international entanglements. Right-wing
populists like Italy’s Matteo Salvini and France’s Marine Le Pen bash
liberal migration policies. Donald Trump built or replaced more than 400
miles of wall on the Mexican border in his first administration, then
launched his second with a wave of deportations. Left-wing populists, for
their part, attack trade agreements for watering down labor, health, and
environmental standards. Many European voters rejected a transatlantic
trade agreement, TTIP, over similar concerns.
The phenomenon is not limited to the West. Populist leaders across
the globe fashion themselves as an alternative to the supposed elitism of
liberal democracy, both domestic and international. In his first UN
speech, Brazil’s far-right president Jair Bolsonaro lectured the General
Assembly: “We are not here to erase nationalities and sovereignties in the
name of an abstract global interest. This is not the global interests
organization.” Similar rhetoric is rising in nations such as Turkey, India,
Slovakia, and Hungary. When people fear that their share of the pie is
shrinking, they want to keep the whole dish within their control.
Conclusion
“It is true that economic globalization has created new problems. But
this is no justification to write off economic globalization altogether.
Rather we should adapt to and guide globalization, cushion its negative
impact, and deliver its benefits to all countries and all nations.”
This could have been said by the head of any G7 government, the
president of the European Commission or the trade minister of any
Western nation. But it was said by Chinese President Xi Jinping attending
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in person, for the first and only time, the World Economic Forum in
Davos in 2017.
Xi gave the speech days before the first inauguration of Donald
Trump. Here was the chairman of the world’s biggest communist party
appearing as a champion of free trade and an open international order.
The message rang loud and clear: If the West steps down from leadership,
China is ready to step in. In reality, Beijing has adeptly supported those
parts of the multilateral order from which it profits—notably trade—
while repudiating those that confine it, such as international tribunal
rulings against its maritime expansionism in the South China Sea.
Six years later, Davos 2023 was titled “Cooperation in a Fragmented
World.” Its very name captured that international governance was in flux.
UN Secretary-General António Guterres spoke of a “perfect storm” and
called the Davos audience to action, saying: “It’s time to forge the
pathways to cooperation in our fragmented world.”
The good news, and I mean this sincerely, is that we have come to
recognize the chaotic state of multilateralism today. And within that
chaos we can find the elemental materials for building something new.
For example, today more states and non-state actors than ever are
engaged in some form of international cooperation (albeit not always on
equal terms). In a complex world with complex problems, we have
developed a complex web of tools to tackle them. The results are not
always satisfying, and the procedures lack transparency, but as evidenced
by the Paris Climate Accords, the system can still deliver. This
recognition should not lead us to dismiss multilateralism as defunct or
inefficient, but to ask the right questions about it: What do we need to
change to improve its workings? Which parts work well and should be
kept? How can we reimagine what doesn’t?
All relationships, whether between people or nations, are built on
trust. And trust, once broken, is difficult and time-consuming to rebuild.
But it can be done. Look, for example, at Germany and France, who less
than a century ago were riven by military occupation and genocide,
whose citizens still hold memories of loved ones killed by the other
nation, and who now work across politics, economics, and security as
close international partners.
The truth is that this crisis has unequivocally strengthened my belief
in multilateralism. Now more than ever, facing global-scale challenges, I
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believe that nation-states’ behavior must be contained and channeled
through multilateral institutions. The question is how and in which
institutions. People say that if the UN didn’t exist, we’d have to invent it.
We should refocus on the matter of how to reinvent it. And do so, at last,
with everyone from the Global West, East, and South at the table.
OceanofPDF.com
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Part Two
Balance
OceanofPDF.com
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The Global West
June 2016. Grundsö in Barösund, a rugged island in the Finnish
archipelago. Across two seas, the citizens of Great Britain are voting on
whether to remain in the European Union.
I watch five-meter flames leap from our bonfire and finally flicker
beneath the midnight sun, celebrating Finland’s midsummer holiday. I go
to bed confident that Brexit won’t happen.
I glance at my phone around 3:00 a.m. Brexit! This was not supposed
to be possible. Has the UK lost its senses?
Three weeks later, London, a BBC town hall debate. More than a
thousand people pack the theater. A fellow panelist wonders why voters
abandoned the benefits membership has brought to the UK, including
exponential GDP growth. An audience member stands and shouts:
“Yeah, perhaps your GDP, mate, but not mine!” The audience applauds.
I realize my view on the EU is naïve. From where I sat in London,
Brussels, Luxembourg, Florence, or Helsinki, I believed the benefits of
European integration (and global multilateralism) were obvious to
everyone. I was wrong.
Fast-forward five months, and American voters elect Donald Trump to
his first term as president—another undeniable sign that voters on both
sides of the ocean are unsatisfied with the status quo. It looks
increasingly like democracy in its current form is not always delivering
the essential goods (security, education, health care, equality,
opportunity) that people across the globe expect.
But just because democracy does not produce the results you want
does not mean it has failed—probably the opposite. It is a system made to
change. And if it drifts off course, democracy, unlike authoritarianism,
has a self-correction mechanism. We need to learn to apply it better.
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By many measures, the Global West seems like the natural heavy hitter
on the world stage. It has been the most dominant force in politics,
economics, and technology for two centuries. Democracy has its roots in
Western political thought. Capitalism and communism both spring from
Western economic theory and practice. The first, second, third, and now
fourth industrial revolutions drove growth and prosperity in the West
before spreading to other corners of the world.
The Global West also encompasses roughly a quarter of the world’s
nation-states, accounts for around 60 percent of total global GDP, and is
home to 15 percent of the global population. The glue that holds these
countries together is a mix of shared history and common values,
geographic proximity, and broadly aligning interests. The bond manifests
in informal and formal alliances in fields like trade and security, plus a
multitude of cultural and social exchanges.
Internally, the Global West has created growth, prosperity, and welfare
through a combination of political and economic freedom. Most of its
political systems converge on democracy (some more liberal, others less)
and capitalism (some more regulated, others less). Greece can claim to
have laid the foundations for ancient democracy. The United States and
France can debate which was the first modern democracy. Finland and
New Zealand can battle for status as the first to have real universal
suffrage. These open societies provide opportunities, albeit not always
equally to all, and allow individuals to live as they see fit, provided they
follow commonly agreed laws.
Reality, however, has not always measured up to aspirations. Many
other states correctly point out that the West has a history of breaking the
global rules it promotes. It has used its economic and technological
advantage to conquer, rule, and exploit other regions and peoples.
Western powers have not been alone in pursuing imperial ambitions, but
they have spoken most loudly against them.
The twentieth century was also marred by two world wars, caused by
Europe. The West did learn its lessons and drove the establishment of an
international system that avoided another global military conflict for
decades.
The legacy of this history for the Global West is mixed. The
international system fashioned by the West laid the groundwork for
development cooperation and economic progress to reach most regions of
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the world. It did not, however, eliminate colonialism at once, nor did it
prevent bloody regional conflicts. And the system’s central challenge
remains: to reduce economic and political imbalances within the global
constituency it claims to serve.
All of which places the Global West at a watershed. It has all the
necessary elements to play a powerful role in crafting a new world order.
It has resilient political systems, a strong economic model, and a
technological advantage in many key fields. Yet the coming years will
determine whether those assets translate into meaningful global
leadership—the outcomes depending in significant part on how the West
builds on its strengths and contends with its weaknesses to meet this
moment.
Politics—Democracy Is Messy but Necessary
The critical questions for all three global spheres—West, East, and South
—cut across politics, economics, technology, and geopolitics. I’ll take
these in turn, politics first.
Democracy is inherently messy. As a president and former prime
minister, I know this personally.
Democratic leaders inevitably find themselves moving from one crisis
to another. Dissent is constant. Compromise is critical yet cumbersome.
New communication technologies have only accentuated this truth. Yet
what makes democracy messy—the mission for a diverse people to
govern itself through open consideration of different viewpoints—is also
what makes it essential. The combination of democracy, equal
opportunity, and freedom forms the bedrock of countries that top global
rankings from happiness to quality of life, economic stability to GDP per
capita, safety to security, and education to equality. This is no
coincidence.
I remain unshaken in the view that democracy, even with its
imperfections, is far and away the best form of government on earth. Yet
as the world wrestles to define its shared future, we must also recognize
the ways in which democracy today represents both an asset and a
challenge—and get serious about strengthening it.
Among the big questions democracies must answer is how to update
their political and economic models as technology becomes the main
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instrument driving both. Will technology and social media benefit
democracies or dictatorships? How do we reap the benefits of instant
communication while containing the risks? Will the Global West remain
a united force for change or sink deeper into polarization?
These challenges are exacerbated by the rise of populism in nations
across the Global West. Many populist leaders, right and left, do not have
answers to the grievances they raise. But they do speak to a genuine
problem. Many voters see the system as tilted against the majority in
favor of global elites.
A brief look at the state of Western democracies will help us assess
how ready they are to meet these challenges—and what steps are needed
to strengthen them.
The essential frame for the legitimacy of democratic systems is
respect for the rule of law. Most Global West countries have strong
democratic institutions and a separation of powers between the
legislative, executive, and judiciary. This does not mean such institutions
are immune to challenges and attacks. But significant challenges are
usually less conspicuous than military coups or violent mobs. Take, for
example, the ways we communicate.
In today’s real-time news cycle, decision-makers are expected to react
to events as they unfold. The plethora of views, supercharged by opinions
masquerading as news, makes compromise more difficult. Populism and
disinformation fuel a constant demand for change. There is little time for
reflection or nuanced positions. As a result, short-term thinking takes
precedence over long-term. Stopgap solutions bank on the arrival of the
next crisis to shift public focus. When any thoughtful statement is
immediately overwhelmed by an onslaught of online attacks, many
moderate thinkers retreat from the debate and we end up with decision-
making by the loudest, not by the silent majority. This is an existential
challenge for democracy.
Deeper challenges also confront Western politics. The victories of
President Trump or the Brexiteers reveal profound underlying tensions
and social problems within the West’s democracies. In the US, the two-
party system, Republicans versus Democrats, has paired with 24/7 media
and other forces to nurture an increasingly toxic political climate. The
United States of America is becoming the divided society of America.
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At the root of this tension are socioeconomics. Rising economic
inequality, fierce employment competition, and the disruptive impact of
technology and globalization, especially in labor-intensive industries,
have fostered economic and social stagnation. While the rich reaped the
rewards of free trade and technological advance, the incomes of blue-
collar workers plateaued. White-collar workers see their economic
security threatened by artificial intelligence. Our kids, many voters say to
themselves, will not live a better life than we did. This economic
squeeze, paired with declining birthrates and increasing immigration, has
triggered deep cultural anxieties. Many of the countries that preach equal
opportunity do not feel equal to those who live in them.
The structures in place to meet these challenges vary from country to
country. The Swiss model—frequent voting on current issues—is lauded
by those who urge more direct democracy. Some, like Finland, have
coalition governments and prime ministers as chief executives. Others
are run by presidents.
The European Union is, of course, not itself a democracy—as those
who disagree with supranational representation point out. But it is a
union of twenty-seven democracies that have decided to pool sovereignty
in certain areas for mutual benefit. Its contract describes it as a political
union bound by shared values, including democracy, equality, the rule of
law, and human rights. Driven by a common currency and the free
movement of goods, services, people, and money, the EU has exclusive
competence in trade, competition, customs, and monetary policy. EU law
stands above national law. The principle of subsidiarity, however, ensures
that the EU takes action only where national or local action would be less
effective.
At the same time the European Union is a regulatory superpower.
When the EU regulates, the rest of the world follows, most of the time.
With nearly 450 million consumers, the EU common market is the
biggest open single market in the world. Its standards in antitrust,
environmental protection, data privacy, services, commerce, health, and
safety, to name a few, force multinational corporations to follow. This
soft power—or the “Brussels Effect,” as Anu Bradford has called it—has
been a key element in the EU’s success.
The values the EU claims to promote, however, can collide with
national practices. The European Commission has confronted
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infringements of the rule of law in Poland (until the 2024 elections) and
Hungary. Far-right parties have gained ground in Germany, France, and
Italy by promising to curtail interference from Brussels and crack down
on immigration. Extreme left-wing parties in Europe, such as the radical
Greek Syriza movement, have equally shown their resistance to Brussels.
But—maybe—this is just a sign of messy yet healthy democracy. The
critics are free to suggest alternatives, and the dominant parties must
prove their programs against opposition.
Western governments have indeed started a pushback to protect
domestic rule of law and promote international democracy. Initiatives
like US President Biden’s “Summit for Democracy,” or “D10” (basically
an expansion of G7 to include Australia, India, and South Korea),
signaled a spirit of resilience. The EU has developed its own mechanisms
to identify and prevent rule-of-law problems and react to them when
necessary.
For the Global West to stay on top of the game it will have to begin by
making sure its own house is in order—proving to itself and the world
that democracy is still the most successful model of governance. That
democracy delivers what it promises: freedom, equal opportunity, and
justice. This means retooling public systems to narrow the widening
income gap and provide citizens with the real prospect of economic
stability in exchange for hard work; affordable and accessible health care,
housing, and retirement; and equal protection under the law. In essence,
to make the walk match the talk of democracy. Globally, this also means
the West making greater contributions to leveling the world’s political
and economic playing field.
The process matters as much as the outcomes. I believe that
democracies around the world are struggling now because they haven’t
upgraded to the age of technology. Democracy was designed by
philosophers like Locke, Rousseau, and Hobbes in the eighteenth century
when decision-making was slow and sought compromise. Now
information flows so quickly that we must react quickly. Whereas leaders
then had three months to respond to a new issue, now we have about
thirty seconds. Sound solutions require far more time for reflection—and
can emerge only if we adapt democracy through new policies and
mechanisms to slow decision-making down.
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As Joe Biden said at the first Summit for Democracy in 2021:
“Democracy doesn’t happen by accident. We have to renew it with each
generation.” Renewal means action at all levels: citizens and civil society,
companies and community organizations, state and national lawmakers.
It can mean finding new modes of citizen engagement, reenergizing local
politics, creating digital spaces that foster democracy, and increasing
government transparency. If renewal has been a constant feature of
Western democracy, it is time to engage in it now.
Economics—Imperfect Capitalism
The Global West is undeniably the world’s economic heavy-weight, and
capitalism, even with its imperfections, has a lot to do with that.
Measured by its share of global GDP, the Global West represents over
half of the world’s economy. The US and EU form the largest bilateral
trade and investment bloc, accounting for about one-third of global trade.
The West’s economic model is based—at least in theory—on capitalism,
free markets, entrepreneurship, free trade, and open competition.
Economic growth has enabled most Global West countries to establish
what we in Europe would call functioning welfare states. (In the US,
where “welfare” has become something of a dirty word, you might call it
a social safety net, or the basic education, health care, retirement, and
unemployment benefits on which public well-being depends.) That said,
the level of the welfare state varies across the Global West. The Nordic
countries present probably the most successful model combining
capitalism and strong social security networks. The strongest economy
and weakest welfare system are found in the United States.
What lessons does this history hold about the Global West’s economic
position? As always, it’s complicated.
Ask people to name the opposite of capitalism, and many will say
communism: free markets versus state control. The West’s economic
power—as well as the East’s proclivity for political repression—have
only made that contrast appear starker. Yet as world power shifts, we
must recognize that the market/state dichotomy is overplayed. All
functioning systems reflect a mix between market forces and state
regulations. Markets foster innovation, while states provide needed
protection. History has demonstrated that fully unregulated markets and
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fully planned state economies both backfire. The economies that thrive in
the future world order will be those that find a healthy balance between
the two.
This reality has taken time to become clear. When the Cold War
ended, the prevailing economic excitement was all about markets. Many
world leaders saw states as an impediment to growth. The collapse of the
Soviet economy proved the point. Over the last twenty years, however,
the picture has become muddier. A decade of crisis beginning with the
Lehman Brothers collapse in 2008 revealed deep cracks in the Global
West’s economic model. As this Western-generated crisis sparked a sharp
global recession, critics around the world saw the drive for ever higher
profits as a root cause. The mantra of “market market market” changed to
“state state state.” The global pendulum started to swing from open
toward controlled, from liberalization toward protection.
This shift deepened in 2009, when the eurozone slid into the
sovereign debt crisis and several European countries came close to
default. Just as democracy is built on personal freedom, capitalism is
built on economic freedom. Both systems are full of tensions and prone
to crises. The euro crisis put European solidarity to a dire test.
As Finnish finance minister, I saw up close the ferocity of divisions it
ignited. Among all the negotiations I’ve held in government, nothing
matched the existential fights over the future of the common currency. It
was one of those crises that, rightly or wrongly, split down the line of
geographic identity, North versus South. Germany had reluctantly
accepted the euro in exchange for price stability and strict currency
management. When the rules were broken and the whole eurozone
suffered, fiscally rigid Northern countries refused to foot the bill for
mistakes made in the South. Yet if we left Greece unsupported its spiral
could compromise the euro and the very viability of pooled sovereignty.
Negotiations even drove us to ultimatums. In the end we got a deal, and
the euro survived—and eventually the crisis led to deeper ties and closer
economic coordination within the EU.
While Europe’s growth returned slowly, the Chinese economy
bounced back much faster. In 2010, it recorded double-digit growth.
Introducing the largest domestic stimulus package worldwide, China
played no small role in pulling the global economy out of recession. As
the decade rumbled on, the Global West fell deeper into the trap of tariffs
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and protectionism—a tit-for-tat process that ultimately drives economies
toward the lowest common denominator—and has only continued to do
so. When COVID-19 and, finally, the war in Ukraine disrupted global
value chains, many countries began forging strategic autonomy in key
industrial sectors. The market liberalization of the early post-Cold War
era was over. Protectionism and intervention resurged. In short, the state
was back. At least for now.
In the years ahead, all kinds of economic systems, from capitalism to
communism, will have to contend with new challenges spurred by
technology and the changing nature of work. We have little
understanding of what the job market will look like in 2050. As humans
cooperate with machines to drive efficiency, many of today’s jobs, blue
or white collar, will cease to exist.
Economic systems alone cannot solve the resulting problems.
Capitalism has been good at driving growth, but politics has been poor at
distributing that growth. Yet the purpose of capitalism is ultimately the
creation of jobs and welfare. The real value of economic growth is
measured in quality of life. Models to achieve this must adapt as life
expectancy increases, the gig economy rises, and retirement retreats. No
nation state, whether democracy or autocracy, will survive without an
effective welfare system. Economic power hinges not only on growth but
on the political capacity to support a decent life.
To keep its position, the Global West will have to prove it can deliver
both growth and welfare. This means it will have to stay true to its
economic model, combining free-market capitalism, competition, and
free trade. Deviation from that model—through protectionism, state aid,
or anti-competitive behavior—will cost the Global West credibility in the
eyes of the world. Or worse, it will cause the Global West to fall behind
economic developments in the Global East and Global South.
The balancing act the West faces is to integrate the most beneficial
parts of state regulation into a free-market system to deliver the equality
and quality of life that it proclaims to preserve. The difficulty is the
collision in many voters’ minds between the free trade that promotes
growth and the social equity that ensures the fruits of growth are widely
shared.
The world is watching, but it’s not waiting.
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Technology—A Fading Edge
Technology is probably the single most disruptive factor shaping the new
world order. Artificial intelligence, robotization, the Internet of Things,
quantum computing, and biotechnology all have evolving effects that we
struggle to grasp. Technology is changing economics and the way we
work, politics and the way we communicate, the military and the way we
wage war, science, and eventually our nature as human beings. The way
we manage this change will be a key factor in the balance of power
between the Global West, Global East, and Global South. And for the
record, this paragraph was written through dictation into my iPad, not by
ChatGPT.
The Global West held the upper hand in technological development
for decades. Japan dominated electronics in the 1980s, with companies
like Fujitsu, Sony, Toshiba, and Panasonic. Europe, specifically the
Nordics, led telecommunications in the 1990s, with Nokia and Ericsson
driving the first wave of mobile phones. The US rose in the 2000s, as
tech giants such as Microsoft, Apple, IBM, Intel, Dell, Google, Amazon,
and Facebook appeared initially as liberators of society, empowering
people through digital tools.
Now technology, once a great strength, no longer gives the same edge
to Western states. Other nations have caught up. Neither does the West
still benefit from tech giants’ social status, which dipped as big tech’s
risks became apparent and big data began to encroach on individual
freedom and self-determination. The questions for the Global West are
critical: How can technology be used to improve rather than undermine
public discourse and democracy? How can it increase efficiency without
exacerbating inequality? And how can we ensure that it is used for
peaceful ends? The West’s continued leadership will hinge on how
traditional democracies adapt to ongoing technological disruption.
Some of the West’s advantage certainly remains. The European
Union, for example, has a strong tradition in research and development,
as well as leading infrastructure companies. As a regulatory superpower
the EU can nudge global tech companies on privacy, data protection, and
antitrust. The EU also has a chance to lead on defining parameters for
responsible, human-centric artificial intelligence. But it needs to make
sure not to overburden companies with regulation and curtail their
competitiveness. The biggest challenge for the EU is unity. The single
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market does not translate into collective technological power, as
countries and companies prioritize their own interests. This, combined
with often cumbersome decision-making processes, puts the EU at a
competitive disadvantage.
That said, the greatest challenges posed by technology affect all
governments, democratic or autocratic, as the technologies that we
invented reinvent us. Facebook, Instagram, and X channel our view of
the world. Platforms such as Uber, Amazon, Netflix, and Wolt replace
traditional service industries. We spend more time in our home offices.
Fintech and cryptocurrencies disrupt financial markets. Currency is not
cash anymore. Data is the new gold and oil. Much will depend on how
that new oil and gold is used.
Technology has also changed the face of war and the nature of
security. Drones herald a new era of unmanned combat systems;
robotized systems on the ground are likely to follow. Instant sat ellite
communication provided by Elon Musk’s Starlink system helped
Ukraine’s military defend itself. Strategists can apply AI to satellite data
and open-source information to support fighting. At the same time,
technology has taken warfare far beyond the battlefield. Our
communication spaces, energy grids, and infrastructure have already
been targeted by malign foreign actors. So-called hybrid threats blur the
line between peace and war.
Perhaps most astoundingly, the technological revolution is changing
science. Over centuries science has cut the risk of humankind’s two
biggest killers, disease and famine, and helped us live healthier and
longer lives. Yet humans have still been “subject to the same physical
forces, chemical reactions and natural-selection processes that govern all
living beings,” according to Yuval Harari. Not so anymore. Humans are
transcending biological limits. Bioengineering, bioinformatics, and
genetic modification are challenging the laws of nature. Scientists
already use lab-grown human organs to study disease. Yet globally, this
existential transformation is taking place at a wild frontier under a highly
variable set of rules.
A healthy technological future hinges in part on regulation, on scales
both national and global. And the states that lead on global consensus-
building will also have to demonstrate that they can maximize the best
and minimize the worst of technology at home. Success at all scales
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demands sound policies on ethics and privacy. We must decide, within
and across nations, who owns data: the state, a company, or the
individual? How should data be used? Where do we set the limits of
biotech?
Ultimately, technology is neither positive nor negative. It can be used
for good or bad. It can advance democracies as much as dictatorships. It
can improve or destroy life. If the West wants to win this game, we have
to find a comfortable-enough balance between using data to benefit the
whole and protecting the individual. And we have to harness technology
to better organize our societies and better protect our democracy—using
re-energized democratic processes to do so.
Geopolitics and Geoeconomics
Geopolitically, one challenge precedes all others for the Global West:
unity.
The West reflects the diversity of roughly fifty nations across four
continents. Key players across these regions share broad goals on
politics, economics, and technology. Yet their particular interests and
approaches naturally diverge. On the urgent conflicts in Ukraine, Israel,
Palestine, and Iran, for example, Western leaders broadly want peace but
disagree on how to achieve it.
The good news for the Global West, however, is that we share
common values. And alliances based on values are stronger than those
based on interests.
Building on that strength to cultivate and maintain cohesion is the first
of three major tasks for the West if it seeks to hold sway in future
international relations. The question remains open whether this
coordination will be concentrated in a few central settings, like G7 and
NATO, or dispersed in many splintered fora. Second, the West needs to
keep space in its antagonism with Russia and China for de-escalation and
differentiated approaches by different Western nations. Last, and maybe
most important, the West must meet the challenge from the East by
engaging more credibly with the Global South, rendering the benefits of
the liberal world order that it preaches more accessible and equitable.
The successful resolution of these challenges is far from a foregone
conclusion. To see potential ways to get there, we must consider the
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current state of play for each realm of the Global West, starting with the
US.
Within the Global West, the United States is the primus inter pares. It
is still a military, political, economic, and technological superpower and
the ultimate protector of the rest of the West. Without US backing, the
war in Ukraine would most probably have been lost.
The United States has been able to project soft, hard, and smart power
for over a century. UN data show it was historically the most attractive
immigration destination in the world. Every sixth person in the US was
born in another country. The US imprint on global culture and
consumption remains unparalleled. Seven of the ten most valuable global
brands are American. The US is also the undisputed military superpower.
It holds around 750 military bases in 80 countries and accounts for 38
percent of global military spending—more than the next nine countries,
including Russia and China, combined.
However, its position of relative strength does not prevent its global
role from changing. Donald Trump is the loudest, but not the first, to call
for a retreat from the status of global policeman. Three underlying trends
in US foreign policy predate him: first, a shift in focus from Europe to
the Indo-Pacific; second, a strong belief in “great power competition,” in
which a small handful of great powers constantly compete for hegemony;
and third, a foreign policy agenda that is increasingly a function of
domestic politics (with Biden’s “foreign policy for the middle class” and
Trump’s “America first” approaches standing as different examples).
Trump is also not the first to call on allies to take on more of the
security burden. The unanswered question is to what extent the
administration’s rhetoric will be matched by a sustained US withdrawal
as guarantor of security, whether in East Asia or Europe.
The simultaneous challenge facing Europe is to take on more of the
burden of the continent’s security. The traditional EU narrative says that
it is an economic giant but a geopolitical dwarf. Reality is naturally more
nuanced, but it’s true that the EU has focused more on soft and smart,
rather than hard, power. Now the EU’s geopolitical role has started to
change, with fresh efforts to bolster Europe’s defense capabilities and its
strategic autonomy from the US.
China policy represents another potential collision between the US
and European allies. The broad consensus in Washington that China
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presents the most serious threat to the Global West and must be tightly
contained is not universally shared in Europe. European governments
talk about constraining rather than containing China—maintaining open
trade and cooperation on issues like climate change while seeking to
restrain its geopolitical grabs. In the US, Trump’s policy has yet to
resolve apparent contradictions between taking a tough line against
Beijing, particularly on trade and technology, while questioning US
commitments to Taiwan’s and Japan’s security.
What’s clear is that the EU will not go down the full path of
decoupling (i.e., eliminating all dependence on Chinese products and
supply chains), which the US at least rhetorically prefers. In reality,
economic interdependence between China and the Global West is so big
that it would be difficult to decouple. Instead, de-risking, or reducing the
risks of interdependence even while maintaining it, has emerged as
common working basis across the Atlantic.
The Global West’s strongest moments historically have often been
grounded in unity. The alliance rebounded around the attack on Ukraine.
The question is whether unity can endure. If it does, the Global West’s
most critical mission is upholding the central principle of the postwar
order: that national borders cannot be changed by military force.
The EU, for its part, increased investment in shared defense with the
“EU Strategic Compass,” adopted shortly after the Ukraine invasion.
Views differ across Europe on the role of an EU defense union, but
Putin’s action spurred a continent-wide increase in defense spending
toward, and sometimes above, the NATO target at the time, 2 percent of
GDP. In June 2025, NATO allies more than doubled the target to 5
percent of GDP (including 3.5 percent to defense spending and 1.5
percent to defense-related spending). The task now is to build on that
unity and demonstrate to the US that Europe will be a much more active
partner in defending the West.
Deepening security cooperation between Europe, the US, and Asia
also reflects changing dynamics in the Pacific. Japan, Australia, India,
and New Zealand have all joined at least one of a variety of security and
intelligence sharing groups with the US and partners such as the UK or
Canada. South Korea is not yet part of such formats but during the
Ukraine war sided strongly with the West.
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These relatively new strategic defense positions by East Asia’s
Western allies underscore a shifting threat perception in the region, with
China increasingly seen as a security risk. Japan’s former Prime Minister
Fumio Kishida explained metaphorically, “Ukraine may be the East Asia
of tomorrow.” Planned investments in new military equipment, including
Australia’s landmark deal to acquire nuclear-propelled submarines, speak
a language of deterrence vis-à-vis regional adversaries. In geopolitical
terms, Indo-Pacific partners are drawing closer to the US, just as
Europeans are against Russia’s aggression.
Conclusion
Taken together, these recent challenges position the Global West at a
crossroads. Even the West’s far-flung countries agree in their threat
assessments, recognizing Russia as an immediate aggressor and China as
the more potent long-term competitor. They share goals to maintain a
stable international security architecture, protect a rules-based
international order, and keep a system of open multilateral trade. This
unity of vision brings with it the potential to forge and support a cohesive
geopolitical strategy across the West—a global strategy separate from the
individual policies that each of its nation-states might pursue.
In this pivotal moment, it may appear to skeptics that democracy is
lagging behind as history speeds ahead. As someone who has studied the
world and sat eye-to-eye with leaders from myriad countries and cultures,
I know there is more to the truth than these appearances. The Global
West stands on strong foundations across the big challenges of our time
—politics, economy, and technology. The difference today is that we
cannot rest on them.
OceanofPDF.com
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The Global East
November 2009. Helsinki. Chinese Vice President Xi Jinping has
requested to meet. I am only a foreign minister. But we already see the
beginnings of a post-American world, and Xi knows the EU influences
global financial markets and trade.
We get talking about technology. “Why are you so restrictive toward
some of the Western internet applications?” I ask.
He smiles and says, “Mr. Stubb, you come from the land of Nokia. We
live in a competitive world. Why should we open our markets to
American or European products? We might even lose.” I realize that
Chinese tech protectionism is as much about interests as values.
Fast-forward four years. It’s almost midnight. Nyagan, Siberia. I am a
tired minister of European affairs and trade. Our delegation is here to
inaugurate a Fortum power plant, the biggest ever investment between
Finland in Russia. Putin is three hours late, his way of showing who is in
charge.
Business done, our delegation takes off around 2:00 a.m. When we
stop in Russia to refuel, the airport officials refuse to let us fly on. They
claim we lack the necessary documentation. We know they want bribes. I
lose my patience and show Lavrov’s number on my phone. I am about to
press the button to call him when they let us go.
I come home frustrated. I am beginning to realize that my idealism
about Russia turning into a normal Western state was wishful thinking. At
the same time, I see China developing faster than any country in the
world. True to Xi’s word, it is as much a partner as a competitor, and at
times rival to the Global West.
The truth is that while the West was busy feeling like it was on top of
the world, China was slowly, stealthily building its power, forging itself
into a global force—far more effectively than recalcitrant Russia. Now
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China has arrived, and the rest of the world can choose to ignore, resist,
or cooperate.
In the Triangle of Power, the Global East is challenging the liberal world
order, including its values, rules, and institutions. On its podium of
influence stand China, Russia, and Iran, in that order.
Since the Ukraine invasion, North Korea has joined these three
nations in what many in the West see as an “axis of aggression.” China
supports Putin economically and diplomatically. Iran supplies arms and
drones to Russia. North Korea has sent troops, artillery, and rockets to the
front line in Ukraine. Many other nations support China and Russia,
directly or indirectly, in the UN or elsewhere.
What provides the glue among this sphere’s roughly twenty-five
states? The Global East is less about values, more about interests. Yet
these countries’ interests differ. Some, like Iran, pursue more regional
agendas. Others, like Eritrea, Mali, the Central African Republic, or
Congo, are primarily concerned with regime stability. Venezuela, Cuba,
and Nicaragua share historic economic links with Russia. North Korea
existentially depends on China, Belarus on Russia.
This group varies in geography, demography, economy, politics,
technology, history, and culture. And as we will see, China and Russia
differ in their approaches to the global order. But they are united in their
rejection of the current liberal world order and the hegemony of the
Global West, especially of the United States. And most of them are happy
to see a multipolar world, led by big powers such as China and Russia,
and their spheres of interest.
China’s political and economic strength and patient strategy position
it far better than Russia to lead the Global East toward a new world order
that prioritizes authoritarian power and regional self-interest over
Western democracy. The Eastern states broadly feel they have not gotten
their due credit, power, or piece of the global pie, and they will make
whatever alliances they need to get more of that. China has leaned into a
fragmented world of disorder to exemplify that strategy, leveraging
flexible interstate cooperation for influence.
The upshot is that, whether the West likes it or not, the Global East is
a powerful force that works transactionally with others, and we must
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understand and dance with their interests if we are to counterbalance their
disregard for democracy in the new world order.
Politics—The Efficiency and Inefficiency of Autocracy
Monolithic as the Global East may appear in its authoritarianism, there is
great variation within its political systems. Autocracy has in some ways
bolstered the strength of most but leaves potential weaknesses in their
future. For all its economic power, the Global East faces political
challenges to shape the world order to its liking. Let’s look first at China.
China is a one-party state. The three pillars of power are the Central
People’s Government, the Communist Party with its chairman at the top,
and the People’s Liberation Army.
China is often described as an unusually homogeneous country; over
90 percent of its population is Han. Compare that to the US, a self-
described “melting pot,” or the EU, composed of twenty-seven diverse
states and even more cultures and histories. The Chinese have a strong
sense of common culture and civilization. The idea of building walls (not
to keep its people in but to keep foreigners out) is enshrined in the
national anthem. I once asked George Yeo, former foreign minister of
Singapore, the same question that I posed to Vice President Xi in 2009.
His answer was revealing: “Alex, China builds walls for everything. Not
just physical walls, but also walls for capital flows, cultural imports,
foreign movies, educational material, cyberspace, and, as we saw in
recent years, bacteria and viruses.”
China is historically a mix of law and aspiration to harmony, rather
than a strict authoritarian order. The Qin and Han Dynasties unified
China over two thousand years ago, standardizing everything from
weights and measures to writing. Over four centuries, the dynasties’
ruling philosophy developed from legalism to Confucianism,
emphasizing rituals and proper behavior rather than strict obedience to
law. Confucius talked about cultivating the self, raising the family, and
governing effectively. The desired result? A world of harmony, with a
grounding in law.
China’s zero-COVID policy—criticized by the West—illustrates this
combination. If authorities detected cases in a community, they
immediately locked it down for weeks or months. Many Chinese people
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hated the draconian measures, but they complied. The speed of lockdown
and level of compliance would not have worked in the Global West,
which puts individual freedoms ahead of collective obligation. The point
is not whether the policy succeeded, but that it was even possible.
China is also a country of big projects and visions. The now discarded
one-child policy and the recurring five-year national economic plan are
but two examples of centralized decision-making. Some big projects
implemented in the name of the common good have caused immense
pain to the population—including the brutally repressive Cultural
Revolution. The big visions, combined with economic growth and
general welfare improvements, are what maintain relative peace and calm
domestically. They also aim to project global power.
Some see the Belt and Road Initiative as colonialism 3.0, a Chinese
colonialism, others as a genuine attempt to improve global trade. By the
same token “Made in China 2025,” Xi’s strategy to boost Chinese
innovation, can be seen by a cynic as an attempt to steal as much Western
intellectual property as possible, rather than to promote genuine global
cooperation in technology. And perhaps, for some observers, the
“Beautiful China” environmental protection initiative means moving
polluting industries to Africa, not improving the continent’s economic
welfare. Either way, it’s clear that China is a power with patience—one
which has slowly but surely widened its networks and established closer
ties with countries around the world.
In Russia the methods of dominance differ, as does the culture. Russia
has long been louder than China in its call to change the world order. In
fact, it has been making proposals for a post-Cold War security structure
since the mid-1990s. The common denominator of its proposals, which I
discussed often with Lavrov during my previous stints in office, was that
Russia should sit in the center of that system. I remember seeing draft
charters of a new European security order sent from Moscow now and
then. They expressed growing antagonism and revisionism in Russian
thinking but could not be treated as serious proposals. The reason was
simple: they were all about superpower nostalgia, a world that did not
exist anymore. Or that is at least what I thought.
More recent history illustrates what the Russian vision is all about:
size and power over state sovereignty and international law. This vision
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has kept Russia reliant on imperialism and natural resources, not
innovation, and contributed to its stagnation.
To understand why, consider that Russia has been an authoritarian and
imperial state for centuries, and it becomes frustrated when its powerful
self-image does not match geopolitical realities. The system of
governance has always centered around a supreme leader, be it a tsar,
party leader, or president. The leader derived his or her rights from God
(tsar), the class struggle (party leader), or general societal stability
(Putin). Romanov dynasty rulers pursued modernization and imperial
conquest to establish Russia as a successful, ambitious, and glorious
power by the late eighteenth century. This image remains deeply
ingrained in Russian self-understanding today.
The empire ultimately expanded from the Baltic and Black Seas all
the way to Alaska and the Pacific, becoming the third largest empire in
world history. However, as Europe industrialized and other societies
adapted to new economic realities, reforms in Russia began to fall
behind. Under pressure from a growing workers’ class, the still largely
feudal society began to crack. The traumatic military defeat in World War
I was final evidence that the Russian Empire had not kept up with
history. Russia plunged into revolution and a civil war that lasted five
years. The Bolshevik Party, led by Vladimir Lenin, finally established its
power, and the Soviet Union arose from the blood-drenched soil of the
former empire.
In terms of economic, technological, and political strength, the Soviet
era marks arguably Russia’s high point in history. At incredible human
costs, Soviet leader Joseph Stalin forced industrialization through the
Union’s vast territory. Russia, with the other Allied powers, defeated
Nazi Germany and remained the only global military power next to the
US after 1945. It developed its own atomic bombs and nuclear energy. It
sent the Sputnik satellite and the first man into space. But a few decades
on, the system—this time communism—again proved incapable of
keeping up with global change.
This eventful, if abbreviated, Russian history is important to bear in
mind. Its narratives determine much of the way Russians think about
themselves and their neighbors and enemies today. Stability is associated
with Russian greatness, expansion, progress, and cultural richness. Chaos
signals trouble.
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But underlying tensions between poor segments of society and a thin
ruling elite—which haunted tsarist Russia—remain fundamentally
unresolved. Russia today is a poorly organized, inefficient, and
essentially corrupt petrostate that derives between 30 to 50 percent of its
public budget from oil and gas exports. The close-knit elite keep their
positions only through loyalty to the present leader. Perhaps this system
confers short-term strength, but it is a long-term weakness.
These conditions explain why Russia’s recent development has been
the inverse of China’s. Military spending stagnated during the 1990s. The
Russian population shrank from 148 million in 1990 to 144 million today
and is expected to fall further. Its per capita GDP only returned to its
1990 level in 2004. The dismantling of the Soviet Union into fifteen
independent states was a geopolitical tipping point. Russia never got over
it, and much of its rogue behavior in former Soviet territory is linked to
its superpower nostalgia.
The Russian and Chinese autocracies enjoy stability—for now—
because from the inside they appear to provide order and, at least in
China, economic progress. Their power is also underwritten by tight
control over the media and information, allowing them to present self-
promoting narratives and block diverging ones. To some outside actors
they are attractive partners, offering cooperation without asking difficult
questions about human rights or good governance. Yet it is worth
remembering that authoritarianism renders not only human rights but also
stability and even success fragile. Authoritarian regimes seem to be
tolerated from the inside only as long as there is either continuous
economic growth or relentless control. If one or both evaporates, collapse
is only a question of time.
Turning the lens to the rest of the Global East, we see an array of
countries that don’t fit a single mold. But they converge on two
characteristics: political freedom is close to nonexistent, and poverty is
widespread. All of Russia’s core supporters other than China are
dictatorships of various shades: Belarus, Iran, North Korea, Syria (under
Assad), Eritrea, Nicaragua, and Mali. Others that took a more moderate
pro-Russian stand at the UN after the Ukraine invasion, including Cuba,
the Central African Republic, Laos, and Vietnam, offer little more
freedom. Only the Bahamas and Bolivia, which voted at least once in
Russia’s favor, can be located on the democratic spectrum. Most Global
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East countries depend heavily on commodity exports and rank low on
national income. International development data show that Russia’s
supporters in the current geopolitical confrontation are a club of very
poor autocracies. This does not mean, however, that we should
underestimate their influence.
Economics—State and/or Capitalism
Most economies of the Global East can be described as in transition, with
an inescapable dependence on trade with the West. Yet they are keen to
find alternatives and become less exposed to the West’s economic power.
Each state’s potential ultimately hinges not only on its resources but also
on how well its authoritarian government manages to play within
international markets—a feat that some are achieving more successfully
than others.
Chinese state-driven capitalism, the hub of the Global East’s
economic spokes, has strengths and weaknesses. Its successful economic
opening and subsequent growth have driven immense changes in Chinese
society over forty years. Modernization has spread. Poverty has
decreased. Both average incomes and income inequality have increased.
China has scale, speed, and drive. The size of its workforce, plus a
strong central government with a collective mandate and a capacity to
implement policy, gives China a competitive advantage. Its ruthless
culture of competition, strong work ethic, and yearning for wealth make
it a formidable global contender. Many in the Global West and Global
South have observed China’s growth rates with envy, some starting to
look at the Chinese model for solutions.
The system, however, has its weaknesses. State control combined with
bureaucracy rarely leads to innovation. China has a weak currency,
excessive debt, limited information flows, and plenty of internal
dissonance. The legacy of the one-child policy is a shrinking labor force
supporting a growing elderly population. Human rights violations, weak
environmental standards, limited welfare, and excessive control could
spill into general social unrest and demands for more freedoms.
The only certain thing about China’s future governance is that it will
have to become more decentralized. Fiscal decentralization has already
proven a source of growth. It gave local governments tools and
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incentives to develop their cities and regions and promoted the
emergence of private companies that could raise productivity faster than
the state economy. This regional flexibility helped channel a carefully
controlled national opening to foreign investment and policies to secure
international technology transfers. Many observers contend that
infringements of intellectual copyrights—and even business espionage—
have also played their role in the Chinese economic miracle.
While China turned strategically and selectively outward during the
1990s, Russia sputtered. In 1990, Russia’s GDP still surpassed China’s
by over 40 percent. Today, China’s economy dwarfs Russia’s by a factor
of ten. The reasons are manifold. Russia entered the 1990s as an
exhausted state-run economy. Its economic transition stumbled on
haphazard privatization, inflation, corruption, and social hardship. A
decade-long recession followed.
Further reforms, and above all rising oil and gas prices, finally
stabilized the Russian economy in the early 2000s. Growth returned at
moderate rates. Domestic consumption, foreign investment, and
economic diversification grew. But challenges remained: in an economy
still dominated by large state-owned companies, innovation never took
off. Following Russia’s illegal occupation of Crimea and Donbas in 2014
and the international sanctions it sparked, Russia’s economy lost
momentum again. Declining energy prices reduced state revenue. Today,
Russia remains an important trading partner for many countries,
especially in defense and energy. But as innovation and diversification
slow, its economic competitiveness keeps decreasing.
China understands this and, despite the neighbors’ deepening trade
relations, does not depend on Russia to thrive. Russia is a useful source
of raw materials, including oil and gas. Yet for China the West’s banks,
finance, and business are simply much more important. In 2021, its
exports in goods to the US and EU each totaled more than seven times its
exports to Russia.
The economies of the remaining Global East countries are similarly
transitionary, with some liberalizing more than others. Many, especially
in Africa, are starting from a very poor level. Cuba, Laos, and Vietnam
maintain a high degree of state planning. North Korea remains the
world’s most closed economy, except for its trade with Russia. Vietnam
has achieved noticeable successes in recent years, whereas Iran and
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Venezuela have suffered under international sanctions. During my visits
as minister for foreign trade I discovered that former Soviet republics in
Central Asia were, like Russia, dependent on oil and gas exports, but
unlike Russia, working toward modernization.
Looking ahead, the Eastern economies to watch are likely to be those
with young and growing populations, sufficient technology infrastructure
and connectivity, and critical minerals. China and Russia remain the
economic power centers, although each plays in a different league. They
will probably continue their efforts in “de-dollarization”—attempting to
reduce exposure to Western economic power plays. Some Eastern
partners will welcome this. But it is far from clear that this is enough to
lure other Global East countries into following their geopolitical lead. For
the foreseeable future, economic cooperation within the Global East will
remain a tactical choice grounded in short-term political objectives and
the presence or absence of viable alternatives.
Technology Decides the Future
In 2016 I wrote a Financial Times op-ed with the slightly provocative
title: “For China, Europe Is the New Africa.” I argued that China was
mining European technology, patents, and intellectual property much like
Europe mined African natural resources, mostly through thinly veiled
state-owned companies. Yet I warned against knee-jerk reactions of
protectionism. Soon after the US government intervened in a Chinese
purchase of German semiconductor equipment manufacturer Aixtron,
whose holdings involved sensitive technology and intellectual property
with potential US security implications. The lesson: technology is at the
center of both political and economic competition. And for the Global
East and especially China, it is the key tool to achieve economic growth
and political power.
China’s technological ascent after the Cold War may be even more
impressive than its economic rise. In the 1990s, China was considered
capable of neither large-scale innovation nor offering a domestic market
for innovation-based products. World Intellectual Property Organization
(WIPO) data shows that in 1996, China filed fewer than 12,000 patent
applications while the US filed over 177,000. Huawei was a small
company and mobile phones a luxury afforded only to the party elite.
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Twenty years later, China’s patent applications surpassed the US by
90 percent, Huawei was the world’s biggest telecoms company, and most
Chinese owned a smartphone. And this was only the first year of “Made
in China 2025.” China has since caught up in R&D investment, academic
output, and ability to attract international talent, and has gone beyond the
catch-up and copying type of innovation. This was partly a play to keep
technology under state control, but equally to create national champions.
Tencent, Alibaba, and mobile phone brand Xiaomi show that China both
produces innovation and provides a vast consumer market. Experts
consider China a credible contender for world leadership in future
technologies from software design to quantum computing,
semiconductors and chips to renewable energy. Militarily, former CIA
Director William Burns has stated that technology will be the crux of
competition with China and a matter of survival for future US
intelligence.
China’s centralized steering of industry has fueled its technological
rise. The government is willing and able to use limitless resources to
catch up to the US. It can also leverage massive troves of state-owned
data to gain a competitive advantage. This strength is also a weakness.
China’s AI investment could ultimately founder on the innovation-
suppression of state control. Plus, Chinese innovations often stay local,
unlike equivalent US services. Scaling tends to stumble on suspicion
about how the Chinese government might use Chinese technology
beyond its borders. Limits on information and data flows from the
outside world, like blocking Google or ChatGPT, will continue to hold
China back.
China is also technologically constrained by the company it keeps.
With friends like Finland and Sweden, home to global infrastructure
leaders Nokia and Ericsson, the US can leverage its allies’ technologies
and knowledge for competitive advantage, a luxury China does not have.
China has nonetheless used its innovative power to develop highly
sophisticated systems for technological state control. During COVID-19,
the government used a vast network of closed-circuit cameras, plus AI, to
monitor and control private citizens’ every move. Apps such as WeChat
gather personal data used to determine everything from mortgages to
insurance payments—based on individual credit history, health and
exercise habits, nutrition, alcohol consumption, travel, and more. Many
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Chinese see no problem with that. Most in the Global West would
disagree.
Ultimately the tension that all countries face—and that will affect
competition between states with differing values—is about data. Every
society must decide who should own our data: the state, a private
company, or individuals? To prevent concentration of power the only
option is to regulate data ownership and control. In a digital dictatorship
this regulation is done by the authoritarian state. In a democracy, by us
all.
The Russian tech sector, meanwhile, has followed a very different
trajectory. The Soviet Union stood for high-quality engineering and
innovation in sophisticated fields like aerospace and atomic energy. Post-
Soviet Russia remains a foremost exporter of modern weaponry and
nuclear-power hardware and expertise. Its growing submarine fleet and
the hypersonic Kinzhal missile exemplify its continued military
competitiveness.
However, the story of Skolkovo—the Russian Silicon Valley—
illustrates the trouble that a Russia on its descent into Putin’s autocracy
was to encounter. Announced in 2009 by then-President Dmitry
Medvedev, the Skolkovo area outside Moscow was designated to house
Russia’s tech future. The multibillion-dollar investment project aimed to
build vast office and lab complexes, welcoming thousands of digital
startups, computing firms, and research labs. Microsoft, Samsung, Cisco,
and Nokia began to invest; MIT entered a university partnership.
But beyond these flagship participants, large-scale investments did not
pour in. Neither did any blockbuster innovation produce a single unicorn
startup. Corruption scandals arose and political interference set in. Once
in power, President Putin prioritized military modernization, including
the development of digital warfare and disinformation capabilities. When
Russia invaded Crimea and Donbas in 2014, sanctions put the brakes on
Western cooperation. The fast deterioration of civic freedoms kicked off
a steady exodus of talent.
The Ukraine invasion then sealed Russia’s isolation from Western
finance and exchange and reinforced short-term thinking. Resources now
sustain an increasingly unsustainable war and plug the holes torn by
international sanctions. Massive defense spending diverts investment and
workforce from other sectors. Worst of all, hundreds of thousands of
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young Russians have left the country, adding to an already catastrophic
demographic gap. Russia’s capacity to drive relevant, marketable
innovation is seriously limited. Its dependency on friendly states, above
all China, for access to future technologies has deepened.
Beyond Russia and China, innovation and technology are not the
strong suit of the Global East, where many countries must battle poverty,
fragile statehood, weak governance, and in some cases tight sanctions.
Only China, and with great distance Russia and Vietnam, made it into the
top 50 of WIPO’s global innovation index in 2022. This is despite
notable scientific traditions in countries such as Iran. As models, China
and Russia appear at opposite ends of the political strong-arming
spectrum: While the former used government planning to systematically
increase its potential, the latter risks losing what’s left of its capacity in
an aggressive geopolitical gamble.
Geopolitics
The Global East’s shared antipathy to Western dominance presents an
opportunity for a large power to leverage that dissatisfaction to assert its
influence over the world order. Both Russia and China, of course, aim to
do just that. Yet they drive the multipolarity agenda in different ways. As
in other realms, China’s slow and stealthy strategy is more likely to
succeed than Russia’s short-term show of force.
A long-standing goal for both Russia and China is to break the bond
between the US and Europe. In 1997, they presented a common
communiqué under the telling title “Joint Declaration on a Multipolar
World and the Establishment of a New International Order.” Putin often
provocatively speaks of the EU as the vassal of the US. China’s approach
is more flexible. It distinguishes between the EU and US, attempting to
leverage the EU’s cooperation to the US’s detriment. Yet to the extent
that China and Russia collaborate on efforts to splinter the West, their
partnership is one of convenience, not values. For China the relationship
is utilitarian. For Russia it is existential.
China and Russia are also in the business of trying to split European
unity. China’s “14+1” (formerly “17+1”) cooperation with Eastern and
Central Europe intends to create trade and economic links independent
from Brussels (albeit slowed by the war in Ukraine). Russia tried
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preferential treatment for certain European states on energy cooperation,
such as the Nord Stream natural gas pipeline to Germany. Russia has also
sought to influence public opinion in EU countries through
disinformation and propaganda, funding far-right groups and spreading
“fake news” during elections.
China’s strategy to reshape global relations hinges on positioning
itself as a broker and benefactor—and it uses big projects as a
geopolitical tool. Take its “Community of Shared Future of Mankind”
proposal to reinvent an international order free of the “inherent biases of
the existing international order” (hint, hint). Xi’s “Global Security
Initiative,” launched in 2022, spoke in similar code. His underlying
message is: China can help as an “equal partner,” whereas the West will
make cooperation morally conditional. China’s pitch is to tweak the
West’s system to the East’s advantage.
In Russia’s push for multipolarity it helped formalize the Eurasian
Economic Union (EAEU) of several post-Soviet states in 2015, aimed at
creating a single market like the EU. However, the economic benefits
have neither fueled momentum for further integration nor attracted new
applicant states. The Collective Security Treaty Organization (CSTO),
founded with similar partners in 1992 as a counterpart to NATO, also has
showed meager success, and some members have distanced themselves
since the Ukraine invasion. In other ways, the war has provided Russia a
forum to push multipolarity further. It deepened security cooperation
with China, Iran, and North Korea, forging an alliance Western
commentators now call “CRINKs.” But China, leveraging flexible
alliances, quietly supports Russia’s war efforts while also using fora like
BRICS or the Shanghai Cooperation Organization to promote alternative
visions of cooperation.
In the contest to shape the new world order, China plans for the long-
term. It is in no rush to become the global leader. It has all the time,
population, and resources to let things happen gradually. “Hide your
strength, bide your time,” as former leader Deng Xiaoping used to say.
And China will. The big question is whether China’s governance model
is sufficiently adaptable to go all the way. Xi often appears impatient; he
pictures himself as a leader destined to steer historic changes, not wait for
them to happen.
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I have my doubts—at least in the long-term. China will have to
orchestrate a gradual opening of its politics, as it has done with its
economy. This opening will not lead to traditional democracy, no matter
how much the West hopes for it. China will not become a dystopia either.
Its model will be a unique combination of state-controlled market
capitalism, central planning, more economic decentralization, and
digitally enhanced authoritarianism.
The clouds over the Russian system of governance are much darker. It
is closer to a renewed period of internal turmoil and economic instability
than a renaissance of its role as a global power. Putin is gambling with
his remaining national resources and increasingly dependent on his
international partners’ patience. The gap between the Russian economy
and the Global West will soon be as big as it was when the Soviet Union
collapsed in 1991.
Iran, for its part, may be an outlier of the Global East. It is
fundamentally a religious state that sees itself as a regional and
potentially global heavyweight. Its nuclear ambitions, hostility toward
Israel, aggressive meddling in Yemen, and use of proxies to destabilize
the region have made it a natural target for US containment. Iran, like
Russia, lost position with Assad’s ouster from Syria in late 2024. With
Iran’s proxies (Hamas, Hezbollah, and the Houthis) also severely
weakened, Israel and the US saw an opportunity to target the Iranian
nuclear program with major attacks. It is still unclear what the long-term
impact will be. Given its economic and military potential and its crucial
role in the world’s most complex geopolitical region, however, Iran
remains an important element in the Global East equation. To the West, it
remains an awkward unknown.
Conclusion
The Global West’s view of the Global East is unified, for the moment, in
the belief that Russia’s invasion must be stopped and China’s global
ambitions checked. Internal differences, however, bubble just below the
surface and may be amplified by Trump’s presidency. The US is much
more comfortable than others confronting China. The EU holds a
differentiated view of China as “partner, competitor, and systemic rival.”
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It is, however, the Global South countries, as well as some junior
partners of Russia and China, that the Global West needs to take into its
geopolitical calculations. Many are driven by economic and
developmental needs. They are tired of Western lectures on human rights
and of global geopolitical considerations taking precedence over their
national concerns. Despite the diversity of their interests, they map onto
both Russia’s policy of disruption and China’s advancement of an
alternative world order.
The confrontation between East and West today is different from the
Cold War, as our economic and technological (inter) dependency is much
higher. Ideological competition is also less pronounced. However, the
competition is systemic in that it pitches democracy versus autocracy in a
race for who can best offer prosperity and security. And the Global South
is closely observing who is performing better—and who offers
cooperation on better terms.
OceanofPDF.com
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The Global South
May 2023. I draft a Financial Times column about the Global South’s
importance to the new world order and send it to colleagues for
comments.
One response, written by a prominent foreign policy thinker, reads “…
my attitude is fuck the Global South…. But, for reasons you will
understand, I haven’t gotten round to writing that yet. Your piece sounds
eminently more rational and publishable.”
I know the message is written tongue-in-cheek. But the fact is that it
reflects the genuine thinking in many corners of the world. And that
thinking is wrong.
It was always a moral mistake to dismiss the Global South as a
backwater. But now that the Global South has a critical role to play in
the new world order, it is a strategic mistake, too.
The task for leaders across the West and East is to rid ourselves of
old-school prejudice and recognize the changes taking place in the
Global South. A good starting point is to realize that we live in a world of
multiple orders and alliances where the Global South will be the pivotal
player, whether we like it or not. And as always, it’s better to understand
than assume.
The Global South is far from monolithic. But collectively and
individually its states have increased their economic heft and political
voice. Most see advantage in weakening the old international (they would
say Western) order. As the geopolitical calculus changes, Global South
nations see an opportunity to leverage their influence and act with a new
independence from the West. Nations such as India, Saudi Arabia, Brazil,
and South Africa speak with new self-confidence. Many no longer feel a
need to call Washington before striking out in a new direction.
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The Global South is also receiving more attention than at any time
since the 1970s. In that decade of acute Cold War tensions, many
countries from Asia, Africa, and Latin America refused to take sides. The
group comprised around 90 members (later 120), ranging from Indonesia
and India to Yugoslavia, Egypt, Algeria, Ghana, and Jamaica. They called
themselves the “Non-Aligned Movement” and demanded new
international structures of economics and cooperation. They wanted a
voice—agency. But the big powers listened only when it was in their
interest. Not much changed.
In fact, when the global economy did change in the late 1970s, it was
not the way those countries hoped. IMF and World Bank reforms ushered
in a free-market era where competitive advantage rested firmly with
developed economies. In 1980, an international commission under
former German chancellor Willy Brandt concluded that the world was
divided into a rich industrialized North and a poorer developing South.
With a few exceptions, countries below the thirtieth parallel had
significantly lower economic outputs and standards of living.
Today, development has become a global phenomenon rather than a
regional condition. But in politico-economic terms the so-called “Brandt
Line” still holds. IMF data show that, not counting China, Russia, and
several smaller European states, emerging and developing economies are
home to 60 percent of the global population but produce only 28.5
percent of global GDP. Their share of global trade stands at 17.3 percent.
This economic disadvantage is one of the defining commonalities within
the Global South.
Nonetheless, the Global South is geopolitically resurgent. And within
its body politic are many key players, such as India in Asia and Saudi
Arabia, Qatar, and the United Arab Emirates in the Middle East and Gulf.
In Africa three countries stand for over half the continent’s economy:
South Africa, Egypt, and Nigeria. Brazil often speaks for Latin America,
but Argentina also has the Global West’s ear.
Since Russia’s invasion of Ukraine, talk of “non-alignment” is back.
The leaders of India, Brazil, and South Africa made a point of not openly
supporting Russia but not condemning it either. Yet these countries’
position is not neutral. They are staking out an agenda of their own. And
as someone from the Global West, which has long enjoyed the freedom to
pursue its own prerogative, I can understand why. It is easier to claim that
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values supersede interests if you have agency and economic strength. The
opposite holds true if you lack either or both.
India illustrates this approach neatly. Indian Prime Minister Narendra
Modi told Putin publicly in September 2022 that today was “not a time
for war.” Yet India has abstained from all UN resolutions condemning the
Russian aggression to date and, as reflected in Bruegel datasets,
increased imports from Russia. Former National Security Advisor
Shivshankar Menon summed up developing countries’ perspective like
this: to them, “The war in Ukraine is about the future of Europe, not the
future of the world order, and the war has become a distraction from the
more pressing global issues of our time.”
Whether such diverse nations can stick together is at best
questionable. But for now the Global South is leveraging the power
vacuum created by East-West upheavals to drive forward its own
interests—and insisting that international powers and institutions respect
those interests.
Politics—Democracy or Other Priorities
Lumping together more than a hundred countries on four continents, with
around 5 billion inhabitants, requires a caveat. These states share interests
and aspirations, yet Western preconceptions often miss the subtleties of
their diversity. I cannot claim to have studied enough Southeast Asian
economy, African history, or Latin American sociology to be an expert on
any one region. Then again, not being an expert sometimes makes it
easier to see the forest for the trees.
During my years in government, I have visited six continents and met
leaders from pretty much every country. It is sometimes my duty to raise
issues linked to democracy or human rights, and I feel comfortable doing
so, but I always take care to do so in a respectful manner. I try to listen
deeply, to understand what matters to my host country before I present
Finland’s agenda. Every such meeting is an opportunity for learning.
Coming from a smaller country without a colonial past, it is probably
easier to have this dialogue. I cannot viably lecture anyone, but I can
share the narrative of a country that believed in democracy even when it
was poor. Finland, after all, rose from repression and poverty to freedom
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and prosperity. I have always tried to tell this story without arrogance,
only a sense of hope about what can be achieved.
What I have understood through these conversations is that
democracy has deep roots in many Global South countries. The sphere
includes a spectrum from democracies to autocracies. Many have robust
democratic institutions—witness the role of an independent judiciary in
Brazil amid political tumult. Others put economic growth and regime
stability ahead of democracy. But despite the sphere’s democratic
inclinations, democracy has not broadly flourished across the Global
South. And as its countries grow and assert their global place, democracy
may not be their highest priority.
India prides itself on being the world’s largest democracy. Its origins
lie in the anti-colonial movement of the late nineteenth century. The
struggle for independence in the mid-twentieth century was instilled with
a strong democratic ethos. Mahatma Gandhi’s nonviolent protest
embodied a vision of a peaceful and tolerant country that guaranteed
civic freedoms. In 1947, the new Constitution declared India a
“sovereign socialist secular democratic republic.”
Democracy was also a watchword for anti-colonial movements in
Africa during the 1950s and 1960s. Under charismatic leaders, Ghana,
Kenya, and Senegal overcame colonial rule and established states with
democratic foundations. Democracies in Tanzania, Mozambique,
Namibia, and Botswana also grew from liberation movements. The
people expected democratic institutions to replace colonial
administrations. Eventually, South Africa’s liberation from apartheid also
became a symbol for African democracy. Nelson Mandela’s release from
prison in 1990, and the negotiated transition from racist authoritarianism
to democracy, sent reverberations across the globe.
Democratic idealism, however, did not always translate into facts on
the ground. Coups in Uganda, Ghana, and Nigeria ousted civilian
governments in the early 1970s. Brutal dictatorial regimes, such as Idi
Amin’s in Uganda, emerged. More recently, military and authoritarian
rule has returned to West Africa, Central Africa, and the Sahel and Horn
regions. Reasons range from ethnic and religious tensions to corruption
to organized crime and persistent poverty. Worsening climate conditions
add to the pressure.
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That assessment is not an indictment. International liberals like myself
often make two false assumptions about democratic progress. The first is
that democracy is somehow a self-evident part of human nature. It is not.
On the contrary, democracy tries to contain human nature by a system of
mutually agreed laws. The second assumption is that everyone considers
democracy the best form of governance. I might believe that, but not
everyone does—and certainly not everyone in the Global South. In many
places, growth and welfare feel more urgent.
Positive examples also appear in Africa despite war and conflict.
Botswana, Cape Verde, and Namibia have proven resilient democracies
for decades. In Ghana and South Africa, courts have fought back against
leaders seeking to retain power or enrich themselves. Regional
organizations like the African Union (AU) and Economic Community of
West African States (ECOWAS) have helped stem a democratic rollback.
Forces pressing toward and against democracy also continue to shape
regimes in Asia and Latin America. The military takeover of Myanmar
contrasts with the overthrow of authoritarian rule through popular protest
in Sri Lanka. The Philippines swung away from democracy with the
ascent of an authoritarian strongman in 2016, but its new president
appears more moderate. Latin America registers a relatively high number
of democracies, with autocratic regimes only in El Salvador, Haiti,
Honduras, Nicaragua, and Venezuela. How many Westerners know that
the small Central American nation of Costa Rica has no military, spends
7 percent of GDP on education, and generates 90 percent of its energy
from renewables?
The defense of democratic principles is ongoing business across the
Global South. Conditions can change quickly. President Jair Bolsonaro
set back democracy in Brazil; current President Luiz Inácio Lula da Silva
has made repairs. India held competitive elections in 2024, but Prime
Minister Modi has been criticized for discrimination against minorities
and suppression of civil liberties.
The Middle East and North Africa were the stage for the biggest
drama of democracy in recent decades. Following the self-immolation of
street vendor Mohamed Bouazizi in Tunisia in 2010, a wave of protest
swept the notoriously autocratic region. Hundreds of thousands of mostly
young protesters took to the streets to push back against the economic
precarity and unresponsive political systems in which they lived. While
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regimes fell in Tunisia, Libya, and Egypt, others held on to power,
sending police and military to fight back. Syria and Yemen descended
into bloody civil wars.
Democracy, however, was ultimately unable to gain a foothold in the
region. Bashar al-Assad’s cruel regime in Syria did collapse in December
2024, and new President Ahmed al-Sharaa has vowed to uphold peace,
respect minorities, and, eventually, hold elections. But if the past has
taught us anything, it is to wait and see.
The Arab Spring exemplified the intricacies of political development
in the Global South. In many countries, economic stagnation creates
unsatisfied popular demands. Entrenched elites, caught in social
conservatism, fear losing in the change process and fight back. If we
thought social media could create an unstoppable wave of democratic
empowerment, Assad’s long war on his own population underscored the
standing power of brute force. Extremism finds a breeding ground in
such violent and fragile environments. What is more, protesting
populations do not always aim for democracy.
Adding pressure to the political pot is the large size and young age of
Global South populations. Demography may be the second most defining
feature distinguishing the Global South, after GDP per capita. Whereas
the median age in Europe and North America is around forty, the median
age in all other regions is ten years lower. In Africa it drops to nineteen.
UN data shows that half the global population increase until 2050 will
occur in eight countries: Congo, Egypt, Ethiopia, Nigeria, Tanzania,
India, Pakistan, and the Philippines.
These demographic changes hold opportunities and risks, as well as
implications for political stability across the Global South. Youth can in
some cases be a force for democracy and, as the UN’s 2022 World
Population Prospects notes, booming populations present economic
growth potential, a so-called “demographic dividend.” Yet young and
growing workforces also raise pressure on governments to provide
education and opportunity. If these demands remain unmet, the
temperature in these societies will rise and make conflict more likely.
Countries under pressure will ask themselves whether democracy or
autocracy provides the recipe for success. If they are wise, they might
also ask: How can we best unleash the potential of a young, striving
generation?
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Economics—High Expectations
Economically, the Global South has been on a roll—a fact that explains
some of its growing confidence on the international stage. The question
for the coming decades, however, will be whether this group can foster
the stability and cooperation to sustain their momentum, and whether
economic growth will ultimately help to close or widen the gaps within
them.
The Global South has been the powerhouse for global economic
growth in recent decades. Starting from much lower levels compared to
industrialized countries, emerging economies contributed over half the
increase in global GDP in the 2010s. UN Conference on Trade and
Development data show that trade within the Global South accounts for
one-fourth of global trade, and South-South foreign direct investment
represents one-third of global FDI.
Asia has seen big economic successes. The “tiger economies” of
Hong Kong, Singapore, South Korea, and Taiwan, which took off in the
1960s and 1970s, became emblematic of fast-paced industrialization.
Thailand, Malaysia, and Indonesia soon joined them. The 1980s then saw
the awakening of the giants: India and especially China, which alone has
contributed around 25 percent of global growth in GDP since 1980.
These success stories were often the result of state-led industrialization
and export orientation. They profited from globalization and a steady
increase in global trade—basically their integration into a capitalist
global economy.
Beyond Asia, Brazil, Mexico, Argentina, and South Africa also
experienced extended periods of growth. In Africa, forty years of catch-
up growth since 1980 have produced rising living standards and
impressive poverty reduction. But these benefits have been unevenly
distributed across the Global South. Most countries in Asia, Africa, and
Latin America moved up from low-to middle-income. But only a small
minority, such as Chile, Saudi Arabia, or Singapore, moved into the high-
income bracket. Little movement occurred among the world’s poorest
countries, especially in sub-Saharan Africa, where poverty levels remain
high and growth prospects meager. The UN list of least-developed
countries (LDCs) currently counts forty-six. Since the list’s inception in
1971, only six countries have managed to “graduate.”
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With demographics on their side, emerging markets in the Global
South still hold the biggest growth potential within the global economy—
but significant obstacles lie in the way.
Despite increases in manufacturing and services, many emerging
economies still heavily depend on agriculture and the extraction of raw
materials for foreign markets. This is particularly the case in Africa and
Latin America. They need investments in infrastructure and access to
advanced technology. Deficits in good governance, the rule of law, and
human rights create uncertainties that discourage foreign investment.
Limited educational opportunities hinder the expansion of human capital.
Gender imbalances put girls and women at a systemic disadvantage,
especially in parts of Africa, and thus cost these countries an additional
source of growth.
It’s no help that many of the richest Western nations are turning
inward. They talk of decoupling and so-called “friendshoring,” or
limiting trade to allies—a move with serious economic implications for
the Global South. The IMF finds that foreign direct investment (FDI), an
indicator of cross-border economic activity, also has shrunk over the past
decade. After years of global integration, we are witnessing the era of
economic fragmentation.
The Global South is therefore looking to new sources for development
finance. Existing financers, like the IMF and World Bank, have long been
criticized for uneven governance structures. Even some regional sources,
such as the Asian Development Bank, are Western dominated. Enter the
New Development Bank, operating since 2015 and owned almost
completely by BRICS, and the Asian Infrastructure Investment Bank,
started in 2016 with China as the largest shareholder. Both arise from
Chinese initiatives and preside over growing capital resources.
Regional integration is likely to play an important role in boosting
economic exchange. Especially in a volatile and fragmented global
economy, organizations like MERCOSUR in Latin America, ASEAN in
Asia, or ECOWAS in West Africa provide important alternative platforms
to coordinate on trade, labor mobility, and investment. South-South
cooperation, which was once more aspiration than reality, drastically
increased after 1990 and continues to be an economic driver.
It remains to be seen whether intra-South cooperation will lead to a
more coherent common agenda to power the Global South on the
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international stage. Developing countries will have to address internal
obstacles to sustainable growth. And their success may hinge on whether
great power competition helps or harms prospects for development
cooperation.
Technology—Better Than You Think
Kids in Kigali or Kathmandu will know Apple, Google, Samsung, and
Huawei. They may have Facebook profiles and sit in internet cafés
chatting on IBM computers run with Microsoft’s Windows. In the West,
what brands from emerging markets (other than China) do we know?
There is still a Western perception that associates African technology
largely with emails from a Nigerian prince offering a commission to
transfer his funds. Our ignorance is increasingly behind the curve. The
Global South has huge markets, entrepreneurial energy, and more
innovations underway than we in the West often think. But its continued
growth depends on many factors.
Sheer access is one. The International Telecommunication Union
estimates that over 90 percent of people in developed countries have used
the internet, but only 57 percent of people across developing countries. In
LDCs this rate drops to 27 percent. A UN Pulse report on the Sustainable
Development Goals notes that mobile networks still leave 8 percent of
people in sub-Saharan Africa without coverage.
Western firms have nonetheless recognized the South’s potential.
According to DataReportal, nine of Facebook’s ten biggest audiences are
Global South countries. Netflix has started buying African and Middle
Eastern content to maintain its market position. Plenty of innovation and
growth is also homegrown. Southeast Asia has become a hub for mobile
technology and ecommerce. Brazil and Chile are investing in wind and
solar power. Gulf countries are pushing AI and blockchain. Africa has
advanced in mobile communication and fintech. Kenya’s mobile payment
system M-Pesa shows how entrepreneurs in developing countries create
tech solutions to everyday challenges. Writing in the African Journal of
Science, Technology, Innovation and Development, Professor Timothy
Waema noted that M-Pesa once channeled more transactions in Kenya in
a day than Western Union did in the entire world.
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Beyond digital, Saudi Arabia’s smart city project “Neom” points to
the level of ambition, creativity, and resources that some countries—at
least in the upper income bracket—can mobilize. Its car-free city would
run entirely on clean energy and be optimized by artificial intelligence.
India has made strides in its space program. Its advances in
biotechnology were apparent when it became one of the world’s largest
COVID vaccine suppliers.
Yet no opportunity comes without challenges. Yawning gaps persist
between North and South—and within the South—in resources to
support entrepreneurship, R&D, and, importantly, infrastructure on which
innovation can build. The unequal distribution of technologies between
urban and rural areas favors innovation in cities. Rural areas fall further
behind, intensifying disparities.
For the Global South to sustain development, it will need both the
public and private sectors to engage. Big multinationals from both East
and West, however, prioritize their own interests. They seek to profit
from fewer data regulations and push weaker domestic competitors aside.
To some observers the provision of infrastructure, hardware, and
software—be it from the US, Europe, or China—resembles the colonial
railway projects Europeans pursued to render extraction from their
overseas dependencies easier. “Digital colonialism” has become a
watchword.
Even with all the right investments and reforms, technological success
will ultimately depend on how well the Global South and its partners
answer the fundamental challenge of equity. North-South cooperation
must support the South’s independence and help narrow, not widen,
societal disparities. And the world must break its fixation on established
Northern hubs to recognize transformative potential elsewhere.
Geopolitics—A Canvas of Interests
At the World Economic Forum in 2023, I met with around fifty diverse
leaders to discuss the theme: “Preparing for a New Geopolitical Era
Today.” The rules were Chatham House—no comments attributed
publicly without consent—the table set for an amicable yet frank debate.
The entire first half of the discussion focused on the war in Ukraine. I
watched frustration deepening in the eyes of my colleagues from the
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Global South. Suddenly one of them stood up.
“I thought this was about a new geopolitical era, but all we are doing
is talking about Ukraine,” she said. “You all just don’t get it, do you? The
world has changed, but you have not.”
The minister was right, of course. The Global West was so
preoccupied with our own neighborhood that we failed to see beyond it.
Yet that moment of frustration also exposed an opportunity for the
Global South. As the West and East have rearranged alliances and sought
to rally support over Ukraine, the South has found a fresh platform to
draw attention to its concerns. The South’s collective bargaining power is
at its peak. Its prospects for using that leverage to its ultimate benefit,
however, are complicated.
Think of it like this: If consensus building in the EU’s 27 nations is
annoyingly painful, how should one expect a group of 125 states
scattered across the globe to come close to a common agenda? Which
interests do the 39 small island states share with the 32 landlocked
developing countries? What goals could unite the commodity-export-
dependent Arab and African economies and the diversified South Asian
economies? Why would Peru, Namibia, or Sri Lanka have a stake in
supporting Brazil, South Africa, or India’s geopolitical ambitions? Why
should the latter three keep the former three on board when negotiating
new cooperation?
One answer came with Russia’s war in Ukraine, which turbocharged a
dynamic started in 2017, when the Trump administration signaled the
return of “great power competition.” Russia and China were already
pushing that program. But now US allies and opponents alike had to
show for whom they would root in this competition. Cold War-like bloc
building was in the air. Russia’s invasion heightened the pressure to
choose sides. In a telling response, Uganda’s UN ambassador Adonia
Ayebare tried to stake out a third position. After abstaining from the first
UN vote in early 2022, he tweeted: “As incoming Chair of the Non-
aligned Movement (NAM) NEUTRALITY is key. Uganda will continue
to play a constructive role in the maintenance of peace and security both
regionally and globally.”
Now, the shared purpose that brought cohesion to the Global South in
the 1970s had a reason to exist again—to protect developing countries’
interests against outsized actions of the East and West.
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The Non-Aligned Movement itself is today a loosely organized forum
with a rotating chairmanship, operating on consensus. Yet its neutrality is
not always so simple. As East-West tensions mount, Global South
countries must do an increasingly delicate dance to protect their interests
without running afoul of big powers. For example, South Africa’s
supposed neutrality came into question when it conducted a naval
exercise with Russia and China in 2023 and allowed a Russian cargo
vessel under US sanctions to dock in a South African port. Then South
Africa hosted a BRICS Summit—which it ultimately arranged for Putin
not to attend. Putin did not attend the 2025 BRICS Summit in Brazil,
either.
What has emerged since February 2022 is what we might call “tactical
non-alignment,” an approach that avoids the costs of engaging on any
one side and profits from concessions offered by both. India’s External
Affairs Minister Subrahmanyam Jaishankar takes the idea further. He has
criticized historic achievements of the Non-Aligned Movement and
promoted “multi-alignment” instead. In his 2020 book The India Way,
Jaishankar concluded: “[T]his is a time for us to engage America,
manage China, cultivate Europe, reassure Russia, bring Japan into play,
draw neighbors in, extend the neighborhood.” Since the war began, India
has successfully walked this tightrope.
If the war in Ukraine has provided the Global South with leverage, it
has also shown its vulnerability. The COVID pandemic did likewise.
Trade narrowed within a widening net of US and EU sanctions. Western
governments’ solutions, including domestic stimulus packages and
friendshoring, stood to hurt emerging markets. The political energy and
resources of the world’s most powerful states were channeled into a
regional conflict. Global challenges like climate change, poverty, and
development had to wait.
The Global South’s current approach reveals three central demands:
First, to have more voice on the global stage. This means reform of the
UN Security Council, which grants disproportionate influence to a tiny
group of mid-twentieth-century powers. Beyond the UN, many Global
South leaders also worry that small, exclusive clubs like the G7 can
dictate the international agenda and want more inclusive fora. The G20
was a good start but not the final answer.
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The second demand is a level economic and technological playing
field. Given vastly different states of development, however, leveling
requires support for the weak wherever possible and restraint for the
strong where necessary. This includes fairer prices for raw materials, a
more reciprocal opening of markets, and more generous sharing of
technological advances. The WTO’s creation in 1995 has contributed to a
surge of global trade. Yet WTO reform is essential to make its rules more
responsive to emerging markets.
A third demand is for a general overhaul of multilateralism. This
means reform of the World Bank and IMF, where developing countries
have close to no influence. A fairer multilateral system would also
restrain the “weaponization” of international systems. American or
European appeals to a rules-based order ring hollow if the West, through
control of the dollar and international financial channels, can unilaterally
decide to exclude others.
The Global South’s campaign includes DIY diversification and greater
regional integration. BRICS, for example, has pledged to strengthen their
independence by pushing alternative currencies, developing their own
global communication infrastructure, and cooperating on AI. The forum
holds strong appeal for the Global South and has expanded from five to
ten members, plus a partnership category that currently lists nine
countries. China’s vice minister of foreign affairs explained that BRICS
“was inclusive … in sharp contrast to some countries’ small circle.” (Not
naming names.)
A similar set of countries helped create the New Development Bank, a
BRICS offshoot, and the Asian Infrastructure Investment Bank as
alternatives to the IMF and World Bank to provide financial assistance
without attaching political conditions. Their backers envision them
becoming part of a new international financial architecture removed from
Western control. A broader drive for regionalization reflects consensus
that regional cooperation in trade, economics, and politics is essential to
fuel growth and strengthen the Global South’s resilience.
China is a driving force behind many of these initiatives, presenting
itself as a leader of the non-Western world, East and South. Beijing is
headquarters to the Shanghai Cooperation Organization on trade and
regional security and the Asian Infrastructure Investment Bank. Shanghai
hosts the New Development Bank and the BRICS Tower.
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China likes to portray itself when convenient as a developing country
and champion of the decolonization narrative. Yet its real ambition is to
mold the international system, including the UN, in its own image. For
big players in the Global South, especially India, China thus presents a
challenge. Reform of the international order may be a shared goal—but
China’s own ambition as a hegemon is not.
Conclusion
When pressed to explain his country’s position on the Ukraine war,
India’s External Affairs Minister Subrahmanyam Jaishankar declared: “I
am not sitting on the fence just because I don’t agree with you. It means I
am sitting on my ground.”
He stands for a new assertiveness with which Global South countries
are demanding to be understood not as a function of East-West power
politics but on their own terms.
Plenty of opportunities appear. For infrastructure funds the Global
South can choose between the Chinese Belt and Road Initiative, the EU’s
Global Gateway, or the G7’s Partnership for Global Infrastructure and
Investment—to name but one area where great power competition may
open options for developing countries.
The risks, on the other hand, are substantial. China never was a
traditional non-aligned country. Today its outsized geopolitical weight
worries its neighbors. More generally, the disproportionate strength of
certain countries threatens to undercut the strength of the group.
Sometimes referred to as the “graduation problem,” countries with an
economic advantage, like Brazil or India, might prioritize relations with
economically powerful players over the pursuit of a common Global
South agenda. Smaller and poorer states, in turn, remain susceptible to
attempts to be bought off.
Nor is the Global South immune from the consequences of Russia’s
war on Ukraine. Were Putin to succeed, powerful actors everywhere
might feel emboldened to deploy military might to redraw borders or
establish regional hegemony. An obvious question would arise about
China’s ambitions in Taiwan, but the principle would apply anywhere.
Maybe the most central question that arises across the Global South is
how to harness the biggest and most important resource it has: a young,
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growing, hopeful, and ambitious population. Demands for economic
development, sustainable growth, fair trade, access to infrastructure and
technology, and stability are already loud in developing countries and
unwise to ignore.
It may not be for anybody in the East or West to tell the Global South
how to achieve such conditions. Yet the more I listen to leaders from the
Global South, the more I understand that the keys that will unlock the
new world order are in their countries’ hands.
OceanofPDF.com
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Part Three
Dynamics
OceanofPDF.com
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Competition
For Finland there is nothing more gratifying than beating Sweden in ice
hockey, and never more so than in the world championship in Stockholm
in 1995. It was Finland’s first world championship—won against Sweden
on Swedish home soil. It felt like a kind of proof that Finland, a small
country still building on its liberation from Russia’s shadow, had arrived.
I watched that match in my dorm in Belgium, while schoolmates
wondered why I was jumping up and down.
Finns and Swedes love each other before and after every match, but in
between we want to beat each other—and not only in sports. Swedish
Ericsson and Finnish Nokia spurred each other to become the world’s
two biggest mobile phone companies and later networks. Over the years
our brotherly rivalry has helped us develop into two of the world’s most
modern countries.
In fact, all the Nordic countries—Denmark, Finland, Iceland, Norway,
and Sweden—often find themselves in the top rankings on wealth,
equality, environment, freedom, justice, and education. That, combined
with some of the world’s lowest income inequality, makes the Nordics
lifestyle superpowers. Competition has been a key driver.
I always remind my Nordic friends that Finland has ranked as the
happiest country in the world for eight years running (2018–2025). Yet
competitive as I am, I must confess that all the Nordics can claim high
happiness rankings. My Danish, Swedish, Norwegian, and Icelandic
friends are, I’m sure, naturally just happy that we are so happy. And the
competition goes on …
In decades past, we understood which players were likely to win the
global economic and geopolitical games. The rules were clear, and there
were certain competitors who, like the Florida Panthers or the Nordic
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cross-country skiers or the Jamaican sprinters, were well positioned to
dominate.
That playing field has changed. The era of dominant global powers is
giving way to a multipolar world of increasing competition. The
competition plays out on many levels: between states, between regions,
and between spheres of power. While the big picture is about the Global
West, Global East, and Global South, a close-up look shows that the great
US-China rivalry sits alongside regional competition for dominance
among a host of other emerging powers.
The result is that today’s competition is less stable than yesterday’s,
buffeted by the emergence of competing regional orders and alliances. If
you are a small state, like Finland, your capacity to project power is
limited. By joining a bigger regional entity, your influence grows.
Organizations such as the African Union and ASEAN provide smaller
states with insurance against being pushed around by the great powers. In
increasingly transactional international politics, these fora multiply the
options for smaller players to impact the international agenda.
All of this makes the outcome of the match less certain. In the coming
decades, competition could lead in one of two ways: toward cooperation
or conflict. The outcome will hinge on our ability to leverage competition
as a force for positive development rather than mutual detriment. How?
Competition can be a force for good only if we build a new rules-based
global order that balances interests across the Global West, East, and
South. If we succeed, competition could drive us all forward toward a
more prosperous, equitable, and democratic world. If we fail, we spiral
into trade war, hybrid war, and potentially conventional war.
These three dynamics of power—competition, conflict, and
cooperation—will determine the order and balance of power between the
Global West, East, and South. Unquestionably, all three will remain in
play; they exist simultaneously and are deeply interconnected.
Competition can spill into conflict unless it is contained by cooperation.
Conflict makes both competition and cooperation difficult, sometimes
impossible. Cooperation can foster fair play to support healthy
competition and prevent it from becoming conflict.
The key to building a thriving world is to tilt the balance of
competition toward cooperation rather than conflict. This last section of
the book examines each of these forces and how they could play out. In
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this chapter, we begin with competition. I’ll zoom in on four areas—
political, economic, technological, and geopolitical—and explore the
upsides and downsides of the competitive climate, both regionally and
globally, for our shared future.
Competition enables innovation. Innovation enables growth. Growth
enables welfare. At the same time, competition, both within and among
states, requires the right balance. A balance between freedom and control,
between monopoly and fragmentation, between expansion, domination,
and fairness. This balance is never static. It is a moving target to which
all players, from states to companies to civil society, must adjust.
Competing Political Systems
In 2008, as Finland’s foreign minister, I met one-on-one with Islam
Karimov, late president of Uzbekistan—though it was really more of a
two-hour monologue than a meeting. I got in about five minutes on the
importance of democracy. Karimov told me, in no uncertain terms, that
the West did not need to come to Tashkent to lecture about values. I tried
to say that values, including human rights, are universal. His eyes
disagreed.
I left the meeting shaken. Karimov was a notorious dictator. He
allegedly let his security service boil two prisoners to death and deliver
the bodies to their families. He clung to power for twenty-five years. I
still heartily hope that something, anything really, will bring down
dictatorships like his. And indeed, when I met the current president of
Uzbekistan, Shavkat Mirziyoyev, sixteen years later, things were
changing.
Traveling home, I almost felt my heart warming at the thought that the
worst that could happen to me as a politician in Finland is to get voted
out of office. I thought to myself (and still do): democracy is right,
dictatorship is wrong, plain and simple.
But I know that self-certain lectures won’t be enough to protect
democracy. The global competition among political systems depends on
much more.
Yes, in a competitive world, even our political models are in contest.
Democratic and autocratic states are engaged in a contest of narratives
over which system is best. They compete over ideology, values, and the
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capacity to deliver prosperity, security, and welfare. Naturally, each
model claims superiority. China boasts about its stability and economic
strategy, while the United States trumpets its rapid innovation. Oil-and-
gas-rich countries like Qatar and Saudi Arabia tout their growth and per-
capita GDP. Nordic countries, including mine, brag about our high
quality of life and low income inequality.
Claims of success sometimes rest on good arguments, sometimes on
blunt propaganda. Legitimacy may come from fact-based comparisons,
done by impartial international institutions or universities. But narratives
(real or fabricated) count as much, sometimes more. To navigate the
coming challenges effectively, we need to see beyond the popularity
contest. We in the West mainly prefer democracy, but we must still
understand and respect the context in which autocracy arises.
I believe firmly in democracy, rooted in regular elections, the
separation of powers, a free press, and the protection of minorities
through the rule of law. In this sense I am not impartial. Democracy
might be inherently messy, but its historical track record is superior to
that of most other systems. It outperforms autocracies in freedom of
speech and civil liberties. It has lower levels of corruption and higher
accountability. The V-Dem Institute’s Case for Democracy Report cites
evidence that after twenty-five years, a country that has transitioned
toward democracy has on average 20 percent higher GDP per capita than
an undemocratic country. Social spending increases in democratizing
countries; so does access to education and gender equality. Infant
mortality decreases significantly. I have personally participated in seven
elections for European and Finnish office—and won only some. I did not
complain either way.
The bottom line is that democracy is always a test—a challenge by
nature, designed to forge compromise and navigate tensions between
majorities and minorities. Yet it enshrines the essential values of
individual freedom, political participation, and representation. Leaders
are generally held accountable. Power transitions peacefully. Democracy
has been good at creating prosperity, and certainly better than other
systems at creating individual opportunity. But the balance is never
perfect, often fragile.
The logic of autocracy is different. In an autocracy, power is
concentrated in the hands of one or some individuals, not shared. There
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are no checks and balances. Autocracies can take many forms, including
monarchies (Saudi Arabia), authoritarian one-party states (China), or
military dictatorships (Myanmar). Autocratic rule typically entails a lack
of free speech and political freedom, limited civil liberties, and no free,
let alone fair, elections. Individual rights come second to what the
autocratic regime calls the collective good.
It would be a simplification to say that autocracies do not deliver
security, stability, or welfare. Many do. The more relevant question is
how they do it and at what price to their people. Autocracies often claim
there is a trade-off between freedom and security. They claim superiority
at providing stability under adverse conditions, such as a pandemic or a
population divided by ethnic or religious factions. And they are not
necessarily wrong.
Don’t get me wrong, I am not prepared to ditch my Western values on
the altar of geopolitical interests. I do say, though, that it’s a mistake to
condemn undemocratic countries without deepening our understanding of
the historical and cultural roots of diverging systems of governance. Too
often we believe that our own experience can be generalized and
projected onto others. We forget that it took centuries for many European
nations to create the institutions and habits of democracy. We overlook
how much easier it is to focus on individual freedoms when we have the
basic needs of food, infrastructure, and medicine.
Simple as the distinction between political systems may appear, the
global picture is hardly binary. The world’s nations represent a broad
array of competing political ideologies and practices. Many systems are
democracy-autocracy hybrids. Some so-called democracies in the Global
West flirt with an illiberal form of democracy that tips into autocracy.
Some Global South countries are much more democratic than others in
the West. And the Global East is about more than autocracy.
This is where competition comes into play—a tournament of global
public opinion. Almost everything in the modern world can be measured,
often in real time. The list of state rankings includes PISA, the World
Press Freedom Index, the Environmental Performance Index, the Human
Development Index, and countless more ways to check scores on which
states or regions are doing better than others.
Ultimately, the winning odds of any political system hinge on
delivery. There are trade-offs and priorities in every system. Stability and
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security may come at the cost of freedom and innovation. Growth may
come at the cost of social equality. Participation and representation may
come at the cost of speed and efficiency. Competition often turns into a
contest of narratives, where leaders justify limitations in one area with
progress in others.
Prosperity, however, remains among the core measures for any
system. This is why competing political models are so closely linked to
economic competition.
Competing Economic Models
After the Cold War the Global West felt that it had won not only the
political battle, but also the economic one. I remember sitting in EU
meetings as a young civil servant in the late 1990s, listening to sermons
about the virtues of the free movement of goods, services, labor, and
capital. I continued those sermons myself as a Member of the European
Parliament in the mid-2000s. Part of the thinking on globalization went
that the economic pie was getting bigger and bigger. Competition might
dictate that slices of the pie would grow at different rates for each
country, but they would all grow after all. Companies would invest in
regions with stable governments and predictable regulations.
Competition could have a democratizing effect.
While not all those assumptions were wrong, today, zero-sum
thinking has returned. In the lingering ripples of global recession, growth
has stayed slow. Just as important, the gains from technological advances
and free trade have been unevenly shared. Populist politicians of the far
right and left look for scapegoats—economic competitors and often
immigrants. Many people believe that their neighbors’ gains come at the
cost of their own losses.
States need to grow to provide domestic welfare. The better the
economy, the easier it is to deliver basic social security, and thus the
more likely that a given regime stays in power. But if the pie is not
growing, the need to develop a competitive edge over other states
becomes more urgent. Competition becomes fiercer. Economic
nationalism has returned.
Economic competition amid today’s disorder is also less stable than it
was in the post-Cold War era. The rules for global trade are weaker and
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less respected. Free markets have been partially replaced with forms of
state capitalism. These trends only accelerated during the crisis decade
encompassing the global financial crisis, the pandemic, and Russia’s
attack on Ukraine. Now societies are less willing to compromise in the
short run in the hope of long-term gains.
Each of the world’s largest economies positions itself differently
within this context—effectively placing its own bet for success.
The EU’s early economic success was based on the Common Market:
free internal movement, competition, and trade. In the 2000s, the focus
shifted to building a knowledge-based economy driven by innovation and
research. This focus has not changed radically, but the world has.
Protectionist and interventionist tendencies in the EU are now on the rise.
Maybe the EU’s biggest asset is its regulatory capacity, the so-called
“Brussels Effect.” Any multinational company that wants access to the
EU’s twenty-seven member states, the world’s biggest market, must
abide by EU rules. Provided that regulations overall improve rather than
stifle competition—a constant balancing act between overregulation and
underregulation—this gives the EU a competitive edge globally. Yet
competing regulatory spaces are already on the horizon.
The US economy has always been characterized by free markets,
private ownership, and competition, with government involvement seen
as inimical to innovation. The Biden-era Inflation Reduction Act and
CHIPS Act, which poured billions of dollars into infrastructure, clean
energy, and technology, were classic state interventionism. The second
Trump administration is leaning even more protectionist, threatening
tariffs on friends and foes alike. At the time of this writing, the risk of a
trade war runs high, but the end result can also be positive: removal of
trade barriers by mutual agreement. The EU must work to this end.
Free markets and competition have served the US well: the model has
produced some of history’s most admired and successful multinationals,
like Apple, Microsoft, Amazon, and Google, to name but the biggest. The
system favors entrepreneurship and rewards private investment. There is
no startup scene more impressive than in Silicon Valley. However, like
any economic model, the American one has its downsides.
Since my formative years at Furman University, I have always
admired the United States. But as agile as the system might be, I worried
about its distributive power—or more precisely, the lack thereof. A firm
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believer in Nordic welfare capitalism, I have seen up close that the
American system is good at creating wealth but poor at distributing it
fairly. Social security networks are practically nonexistent, as is public
health care. Visiting the US in the 2020s feels like going back to the
1990s. The US is not a modern society by European or Asian standards.
The infrastructure is antiquated. Cars are absurdly big. Homelessness and
poverty are widespread. Without radical change toward a basic welfare
state, the political polarization will continue.
In the Global East, China’s economic system is a hybrid, often
referred to as “Socialism with Chinese Characteristics,” but more aptly
described as state capitalism. The government is instrumental in planning
and directing the economy and maintains control over strategic sectors,
including telecommunications and banking. At the same time, it allows
market forces to drive innovation. China has been good at copying best
practices from different economic models around the world. By
continuously modernizing its economy, China has become an exporter of
sophisticated smartphones alongside large-scale infrastructure projects
and the finance to go with them—all while constraining the activities of
foreign companies in its domestic market.
There is, however, a question of sustainability. Demography is no
longer on China’s side. With an aging population, fewer young people
work and more old people require care. President Xi believes in a model
of dual circulation. He banks on the size of China’s domestic
consumption (internal circulation) and drives international trade and
investment (external circulation). Time will tell whether this strategy
works in the long run.
Admittedly, I have never had much faith in the Russian economy. I
saw it for the first time when I visited Moscow in 1983. I was a teenager,
playing for the Helsinki ice hockey team. In the Soviet Union, the cars
looked old, cigarettes smelled bad, and hotels had guards on each floor.
Only two consumer goods were of interest for a Westerner: vodka and
caviar. You could buy these with foreign currency or an old pair of jeans.
After our hockey games, which we lost, the Russian players would rush
to us to exchange hockey sticks. We agreed out of courtesy and were left
with sticks best used as kindling on cold winter nights.
My perception of the Russian economy has not changed much. The
post-1990 reforms were abrupt, the transition from a centrally planned to
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a market economy chaotic. As state-owned companies privatized, corrupt
oligarchs took over key industries with government support. The gap
between rich and poor grew to unprecedented levels. I hoped change
would finally arrive around 2000. But Putin’s ascent to become an
unchecked autocrat with imperial ambitions set different priorities. He
went for symbolic projects, like the unsuccessful Skolkovo, instead of
structural modernization. Russia today remains a petrostate. Rather than
rallying domestic consumption and entrepreneurship, it will become ever
more dependent on energy exports to the Global East and South.
The story of the Global South is mixed. Geography, demographics,
and development differ across countries and continents. Their economic
approaches range from market-oriented economies like Mexico, Brazil,
or South Africa, to state-controlled economies like Vietnam or Angola.
The West may preach free trade and privatization as a one-size-fits-all
solution, but the needs of Global South economies have differed greatly
across time and space. Some, like Brazil, India, or South Africa, clearly
became winners of globalization. Others are still struggling to keep their
heads above water.
The Global South’s competitive edge today lies in its abundant
supplies of raw materials and its growth potential. These assets are
unevenly distributed, and the African continent, given its young, fast-
growing population and possession of key minerals, might just have the
best prospects. But instability, conflict, and corruption remain major
obstacles on its path. India seems to be avoiding these pitfalls and is on
track to become a robustly growing large economy. What is clear, though,
is that the Global South is fully buying neither the Western model of a
liberal economy nor the heavy-handed state approach of the East. It seeks
a middle way and continues to watch which system shows greater
resilience to current strains.
It is relatively straightforward to measure competitiveness in
economic indicators such as GDP, growth, productivity, trade, and
inflation. But today’s competition will be about more than scores in these
categories. Control over the rules and instruments of the global economy
is itself a contest. Those who determine trade rules, write WTO and IMF
policy, or sit on the UN Security Council influence the entire playing
field. In a zero-sum game, everyone fights to win. Whoever sets the rules
gains the advantage.
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The Contest for Technological Hegemony
When I started framing this book in 2020, I focused on technology’s
impact on governance. Would we end up with digital democracies or
digital dictatorships? Then many things changed. We lived through the
COVID-19 pandemic. We saw Russia invade Ukraine. War erupted
between Israel and Hamas. Donald Trump was reelected president.
At the same time, great power competition unfolded in the sphere of
technology. Throughout history, technology has driven both political
power and economic growth. States with a technological edge, be that the
printing press or steam engine or computer, are always ahead of the
economic curve—which gives them political power. Now we can add to
that list: artificial intelligence, quantum computers, satellites, data
centers, and more.
Democracies and authoritarian regimes today face a common
challenge: Technology changes everything. Innovations are already
transforming our economies, militaries, science, politics, and the way we
live. The resulting disruptions and accelerations have the power to make
or break economies and even regimes, depending on how technology is
encouraged or constrained.
The key question is how different states, companies, and international
organizations will cope with this force of disruption—leveraging
technology’s advantages while containing its threats. Is the recipe
pouring state funds into projects and orchestrating innovation (China)?
Or allowing the markets to take the lead (the US)? Or finding the right
regulations to let technology grow yet manage its disruption (the EU)?
Speaking broadly, autocratic states are vulnerable because they can’t
control technology as much as they want to, and democracies are
vulnerable because they don’t want to control technology as much as
they need to. The right course might just lie somewhere in the middle.
Let’s look at one particularly instructive example of technological
competition: data. Data can unlock powerful economic growth and
political advantage. But it also represents a serious vulnerability, as it
exposes governments and businesses to cyberattacks, spying, and
sabotage.
There are three basic approaches. China centralizes data within
government, which mines data without restriction for the benefit of the
state. In the US, private companies can mine data, at least theoretically
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based on some form of individual consent. Europe puts data sovereignty
first. Data ownership lies with the individual, and its use is closely
regulated and monitored. The European approach is probably ethically
strongest and competitively weakest.
Data feeds competition on several levels. Economically, “big data” is
an enormous resource. US firms like Google or Meta pioneered data
mining and finding ways to profit from it. In China, companies like
Tencent, Alibaba, and ByteDance (TikTok) quickly caught up and
became global competitors. But the Chinese government recognized the
potential of data mining, too. Its social governance strategy relies on
collecting and analyzing data on individuals and businesses through a
Social Credit System that issues “trustworthiness” scores. Government
can thus reach deep into citizens’ private lives and exert wide-ranging
powers over firms.
There is no European company able to compete on the same level.
The European Union has recognized this disadvantage and launched the
“European Digital Decade,” trying to protect citizens’ data sovereignty
while enabling digital industry to flourish—though this has yet to
improve the EU’s economic position.
Data dynamics have already revealed the overlap between
technological and geopolitical competition. Western powers concerned
over data security and infrastructure have banned (US) or strictly
regulated (EU) certain digital services from China. 5G is a classic
example, where close ties between the private company Huawei and the
Chinese government sparked fears that China would use its access to spy
or subvert digital networks abroad.
Yet competition is still on as far as emerging markets are concerned.
Whereas China can provide fast and cheaper network infrastructure and
user devices, Western brands like Apple still carry more prestige. The
geopolitical rivals are keenly aware of the hard and soft power potentials
that lie in technology cooperation.
The US ban on exporting chips to China is something like a summary
of the conflict and competition raging in technology. It aims to curtail
growth in China’s military capabilities by slowing semiconductor and AI
development—but also to weaken China’s ability to serve foreign
partners and slow the expansion of Chinese brands. The measure’s
bluntness speaks to the stakes at play.
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Beyond data, geopolitical rivalry fuels fierce competition in machine
learning, blockchain, cloud computing, cybersecurity, bioinformatics,
genomics, space technology, and advanced manufacturing. For some, AI
raises echoes of Orwell’s 1984. They see a straight line between
digitalization and the rise of an autocratic, all-controlling system. I
strongly disagree. Technology is what we make of it. This is why I
believe the EU’s approach is right, even if it might slow market forces for
innovation, and even if it needs adaptation to the competitive landscape.
The most successful states, in the end, will be those that find the right
equilibrium.
Geopolitical Competition
Geopolitics—the study of how geography (including location, resources,
and size) interplays with political power—used to be a rather
straightforward affair. Most countries seemed to be on a gradual track
toward peaceful interdependence. The geopolitical contest faded into the
background.
Now geopolitics is back, in a way I have not seen for thirty years. The
reasons are Russia’s attack on Ukraine and the rivalry between the US
and China.
The integration we heralded after the Cold War also created countless
new mechanisms of competition. We used to equate power with hard
power, especially military capacity. Today soft and smart power pack
almost as much punch. Military matters, but so does innovation. Natural
resources matter, but so does trading power. Alliances matter, but so does
the capacity to set global security rules and project the image of success.
Companies today increasingly complement market studies with
geopolitical analysis—because conflict disrupts markets, supply chains,
and consumption. Private and public-sector actors want a forecast, not
just on profit but global dynamics. I see many companies hiring “chief
geopolitical officers.” The definition of geopolitics has changed.
The major players in the Global West, East, and South bring their own
strategies to this contest, each pursuing the prize of dominance, each with
its own strengths and weaknesses.
The US still has pretty much all the instruments it needs. Its
geography provides protection, its terrain is rich in raw materials, its
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economy produces innovation and wealth. On defense, it outspends
China, Russia, and the next seven countries—combined. Its Achilles’ heel
is an unstable and polarized political system, which has left allies and
adversaries alike worried about sudden policy shifts.
The EU used to shy away from hard power and focus on soft and
smart power. But the European Commission under Ursula von der Leyen
has shifted. It pictures itself as a geopolitical player and has many
instruments at its disposal. The EU is a global heavyweight in trade and
regulation. Its monetary and financial influence allowed it, with the US,
to exclude Russia from major finance markets after February 2022. Its
most powerful geopolitical tool, however, may still be its enlargement
policy. The EU’s image nourishes among neighboring countries the
desire to join. And these countries accept a host of rules and conditions to
become a member.
Now the Commission is also stepping up European defense, partially
forced by President Trump’s “America First” drive. The EU peace project
has suddenly become a “war” project. Donald Trump did more in five
weeks to force Europe to take responsibility for its own security than US
presidents in the past fifty years.
China has scale and size, economic and military power. Its global Belt
and Road Initiative has involved some 150 countries, at times executing
infrastructure projects with awe-inspiring speed and efficiency. China’s
political system seems on its face more stable than that of the US, and
certainly more predictable. Part of modern geopolitics is the ability to use
instruments of power consistently. China does. The US—due to the
pendulum swings of a two-party democracy—does not. China’s newer,
and still somewhat aspirational, role as mediator in geographically distant
conflicts underscores its growing geopolitical weight.
Russia remains a top-tier geopolitical player. But for how much
longer? It has oil, gas, and minerals and is the go-to security exporter for
many countries. Its military has modernized through the war in Ukraine.
Yet many countries already treat it as a political pariah. Its war economy
has shown resilience toward Western sanctions, but the forces of
economic renewal seem all but dead. Energy offers a good metaphor for
Russia’s geopolitical role: it is consuming resources it cannot sustain.
Invisible, interconnected levers of power have become more
important than ever. Control of maritime routes and strategic chokepoints
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remains crucial. Yet previously quiet elements of international relations
—setting rules for international traffic, trade, and finance, dictating
climate targets, managing security cooperation across regions, and
influencing the institutions that oversee international monitoring and
arbitration—are now factors in the geopolitical competition. States with
power in institutions like the IMF or WTO, namely the US and Western
Europe, can protect their interests. But this position of influence comes at
a cost of global trust.
In this context, we have also seen alliances shift—or a competition for
alliances, if you will. After its Ukraine attack, Russia was isolated from
the Global West. It shifted cooperation toward the Global East and South.
Yet other countries are cautious in cooperating with Russia to avoid
facing sanctions themselves. The war brought the transatlantic alliance
closer together but still left it unable to build the global alliance it hoped
for.
In this atmosphere of contention and latent conflict, some middle or
emerging powers, such as Iran, South Africa, Qatar, and the United Arab
Emirates, are now punching above their traditional geopolitical weight.
Economically heavier players, like Brazil, India, and Saudi Arabia, are
catching up with first-rank geopolitical players like the EU. Even if the
US and China continue to be in a league of their own, geopolitical power
has become relative.
Conclusion
In the new world order, competition can either be a force for good
(healthy development) or ill (destructive conflict). It can be a race to the
top or a race to the bottom.
Competing political systems are good if comparisons and contrasts
fuel ambition and lead to improvements. At the moment, however,
democracies are instead facing domestic challenges from rising
populism.
Economic competition is good when it incentivizes innovation,
development, and growth. The problem is that many less-developed
states see competition as unfair. Economic competition is swinging away
from Western models, as states across the political spectrum turn inward,
restricting trade and digging deeper into state control.
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Technologically, competition drives innovation and growth. The
question is: to what end? Whether it fuels good or bad outcomes is up to
us. We may find ways to contain technological competition for mutual
benefit. Otherwise, unevenly regulated technology will feed a descent
into digital dictatorships or new forms of warfare.
The trends are worrisome. The trajectory points to an uneven playing
field, deepening insularity and mistrust, and a waning ability to forge
shared solutions to problems that confront us all.
Marshalling competition as a force for good requires revitalizing the
rules-based global order with a fairer distribution of power that balances
varying global interests. For novel fields, we need new rules and models
of governance. We will succeed only if we forge them together. If states
do not trust each other to fairly set or follow the rules, then competition
becomes difficult to contain. This is the point where competition risks
escalating into conflict.
OceanofPDF.com
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Conflict
Christmas Day, 2024. I’m at the dinner table with my family when I get a
message from the situation room: four cables connecting Estonia and
Finland have been cut in the Baltic Sea. This is the fifth incident in less
than two years.
Within hours, Finnish authorities identify two ships that could have
caused the damage. One is approaching the Balticconnector gas pipeline
—which could mean even more carnage. Time is of the essence.
Finnish vessels identify the ship as crude oil tanker Eagle S,
registered in the Cook Islands. It departed Russia the previous day.
Seeing the ship’s anchor down, our officials request it to move from
international into Finnish waters. The crew complies. And in our waters
we exercise our right to board and impound it for criminal investigation.
Investigators will later find a sixty-mile anchor drag mark on the sea
floor. There are three possible explanations: accident, intent, or
incompetence. Or perhaps a combination of all three.
Hybrid warfare—cyberattacks, sabotage, and disinformation—is now
part of the playbook of state and non-state actors alike. The aim is to
cause mayhem. To throw the target off-balance.
In this case, Finnish authorities stayed calm and prevented further
carnage. Will we ever find out who was behind the incident? I leave that
to the reader to judge.
What we must all understand is that as interstate conflict grows and
takes on new forms, we must act wisely—and act together across borders
—to prevent it from spiraling into war.
If I could time-travel back to Furman University in 1991 and describe
today’s world to my younger self, I would scarcely believe it.
I would have to explain that a Russian invasion of Ukraine broke the
peace of Europe. That Hamas made a murderous incursion into southern
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Israel, killing around 1,200 soldiers and civilians and taking more than
250 hostages—and that Israel responded with a devastating military
campaign that by early 2025 had killed tens of thousands of Palestinians,
mostly women and children, and spilled into conflict in Lebanon and
Iran. I would recount that divisions within Africa’s Sahel region have
merged with great power rivalries as Russia sought to disrupt Western
efforts to contain the spread of jihadis. That Sudan is now (again) locked
in a bloody civil war. And that, on the other side of the globe, Xi Jinping
seems to have dropped China’s hide-your-strength-and-bide-your-time
strategy in favor of ever more demonstrations of military power to press
reunification with Taiwan.
Those would only be the stories about military conflicts today. There
are also economic conflicts (tariffs and sanctions), financial and
infrastructure strikes (cyberattacks and sabotage), information wars
(digital disinformation and propaganda across borders), and competitive
diplomacy. Over the last thirty-five years, everything about conflict has
changed, from the scale to the types of fighters to the way they fight.
This is not a world at peace. It is a world of rising tensions—which is
to be expected when multilateral institutions are weakened and foreign
relations increasingly transactional. Without clear rules, norms, and
reliance on international institutions, competition becomes increasingly
difficult to contain.
The multilateral institutions set up to prevent such conflicts, above all
the UN, are not equipped to respond effectively to this new face of
conflict. And they have, in the present wars in Ukraine, Israel-Palestine,
and Sudan, proven largely powerless. Without clear leadership from an
international institution, it’s hard to achieve a peace deal that considers
broader implications. Instead, big powers and smaller actors make deals
that serve their own interests. Solutions become transactional and thus
narrow and temporary.
The great responsibility for global leaders is to prevent tensions from
erupting into outright conflict—and to prevent regional wars from going
global. Success will depend on how well the world can cooperate,
meaning: renew a rules-based international system that everyone can
believe in and manage competition before it becomes conflict. We need
to do that now—and do it nimbly enough to adapt to a world changing
even as I write.
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The Changing Nature of Conflict
The nature of conflict changed gradually enough that many of us, myself
included, did not initially notice. During the Cold War, most wars were
civil wars or proxy fights. The cost was horrific for those in war zones.
But rich Western nations and the Soviet Union were directly affected
only where they committed their own forces abroad. From then on, we
believed, the only wars would be local.
So high was Western confidence in a peaceful future after the Cold
War that NATO all but scrapped its traditional warfighting capacity in
favor of smaller, cheaper expeditionary forces to underpin security in
still-troubled regions. Out of area or out of business, the NATO slogan
ran. Meanwhile, the UN retooled its security structures to address civil
wars, not interstate wars.
Soon enough, however, local conflicts started to become regional. The
US War on Terror succeeded in driving the Taliban from Afghanistan
only to see the Islamist fundamentalists continue the war from Pakistan.
The Arab Spring of 2011–2012, hailed by some as proof of the march of
democracy, turned out to be the harbinger of several bloody civil wars.
And France had to quit the fight against jihadis in Africa’s Sahel region
as democracies fell to Russian-backed coups.
At the same time, the focus of fighting shifted from interstate wars to
non-state actors. Rebels and terrorist groups became the main target of
state military action. The terrorist attacks of 9/11 triggered NATO’s
mutual-defense guarantee for the first time in history, activating a
coalition to fight back. Crisis hotspots like Syria turned into complicated
conflicts with regional and international dimensions. The US, meanwhile,
learned that it is one thing to conquer a country, quite another to keep it
conquered, and its body politic began to balk at the role of global police
officer. China and Russia stepped into the emerging gap. For those
paying attention, Russia’s incursions into Georgia in 2008 and Crimea in
2014 were sure signs that the nature of conflict was changing. Finally,
Russia’s Ukraine invasion and the war in Israel-Palestine made the
expansion from local to regional conflict too obvious to overlook.
Interstate wars have returned.
Neither are the methods of warfare the same as they used to be. Israel
has effectively won its war on technological superiority—at one point
simultaneously exploding thousands of Hezbollah pagers across Lebanon
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at the push of a button in Tel Aviv. Russia and Ukraine are
technologically well-versed in modern warfare. When Russia invaded,
Ukrainians asked their allies for ammunition, air defenses, and missiles.
By the war’s third year, they were asking us to finance drone production.
This is a glimpse of the future, and it has already arrived.
The international peace and security systems set up to prevent such
conflicts, however, have been unable to adjust. Even UN peacekeeping
structures redesigned during the War on Terror do not match the complex
mix of players and settings we see today. Most conspicuously, the UN
has found itself paralyzed on critical Security Council votes, as China
and Russia veto resolutions on Ukraine and the US tends to veto those on
Israel and Palestine. The vacuum leaves the field open to big-power
politics, paving the way for Saudi Arabia to seek a transactional deal with
Israel, or perhaps Russia to do so with the US. Iran also has played its
role in Israel-Palestine, acting through proxy forces (the Houthis in
Yemen, Hamas in Gaza, and Hezbollah in Lebanon) in pursuit of state
interests.
New challenges require new tools. As interstate conflict resurges, it
might be tempting to move backward, to resurrect peacekeeping models
built after World War II. But it’s clear that our present and future world
demand we move forward. We need to remodel international conflict
management systems to address the full range of conflict that we
confront: state and non-state, internal and external, primary and proxy.
And we must retrain ourselves to address weapons and strategies that I,
as an aspiring young diplomat, could not have imagined—because along
with the warring parties the methods of war itself have dramatically
changed.
Hybrid Warfare
“I need ammunition, not a ride.” This simple statement, given in reply to
an American evacuation offer by Ukrainian President Volodymyr
Zelenskyy as Russian forces crossed his border, is not only a symbol of
Ukraine’s resilience but a prime example of what is needed to succeed in
modern warfare. Materiel, yes. But more important, a personalized
message, homemade, delivering a morale boost to fighters and allies and
a warning to enemies in the same sentence. Non-state groups and
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insurgencies had previously used such informal, grassroots tactics. But in
those six words, Zelenskyy showed that these—along with a host of other
nontraditional methods—were the province of warring governments, as
well.
The return of war, in Gaza as well as Ukraine, has illuminated
dramatic changes in the way it is fought. Where once we lost sleep over a
single devastating weapon, now we must nimbly keep pace with the
sheer number of available tools of conflict. Ironically, this proliferation
springs in part from the global interconnectedness that we cultivated. The
same interdependence that fosters growth and reduces poverty also vastly
multiplies the tools with which one state can inflict damage and pain on
another. Virtually everything, from information to technology, energy to
currency, raw materials to migration, can be weaponized. Developments
designed to bring nations together—open trade and investment markets,
freer movement of labor, the accurately named “worldwide web”—can
be bent to the cause of confrontation.
Hybrid warfare—including economic, technological, and
psychological weapons—will shape our future conflicts and the way we
fight them. There is no longer a clear line between conventional kinetic
warfare and these more dispersed strategies, or between formal war and
subtler acts of provocation. The boundaries are blurred. And all of us—
leaders and citizens alike—need to be prepared.
Available tactics in hybrid warfare accumulated in recent decades as
global relations descended into increasingly antagonistic forms of
competition. Methods previously used by non-state actors are now
commonly used by states against other states. Let’s look at a partial list.
Economically, states or groups of states may apply sanctions, freeze
individual or group assets, restrict access to financial markets, disrupt
supply chains, or impose trade tariffs. Technologically, states hiding in
the internet’s shadowy corners can hack into foreign governments’ or
private companies’ computer systems, steal information, and wreak
havoc. Cyberattacks and acts of infrastructure sabotage like the one that
disrupted my Christmas supper have become an ongoing front between
countries that are not actually at war. In the arena of information,
competition has become a battle of narratives, a contest for hearts and
minds, dominated not only by national parties and politicians but
increasingly infiltrated and abused by foreign powers. Social media, and
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more recently innovations in AI, amplify the power of disinformation.
Even human migration can be wielded as a form of confrontation, where
one country (Russia) pressures its neighbor (Finland) by sending
migrants—many of them conscripted to the task—across its borders.
Russia may lag in many technologies, but it has proven highly
sophisticated at deploying such hybrid tactics. Its war on Ukraine
illustrates the case. In one sense, it fits the traditional template of a
territorial land grab. But in its prosecution Moscow has reached well
beyond traditional war tools and beyond Ukraine’s borders as it seeks to
weaken international support for Ukraine. It attempts to destabilize US
and European domestic politics by interfering in elections, seeding digital
propaganda and misinformation, and funding political extremists. Tactics
run from there along a spectrum to deliberate gas and energy disruptions,
critical infrastructure attacks, and widespread cyber operations calculated
to create economic disruption. In late 2024, Nordea, a bank used by
roughly 30 percent of the Finnish population, endured seventy
consecutive days of cyberattacks that succeeded in bringing down its
system for twelve cumulative hours. US federal government and
healthcare computer systems have also been hit. Who exactly perpetrated
those attacks? Part of these tactics’ effectiveness is that no one can say
with certainty.
More overtly, Russia and Belarus have sought to weaponize irregular
migration, offering a jumping-off point for western Europe to those
fleeing conflicts in the Middle East and thus stoking the fires of populism
and isolationism among Ukraine’s allies. Finland closed its border with
Russia because if we open it, Russia will likely fly thousands of asylum
seekers from Yemen, Ethiopia, Eritrea, Syria, and Iraq in on chartered
flights to overwhelm Finnish capacity and cause domestic tension.
The net effect is like the 2022 film Everything Everywhere All at
Once. Traditional, kinetic warfare continues, as the people of Ukraine
know only too well. But it is accompanied and complicated by a swirl of
incursions in other arenas, many of them from sources hard to identify.
The perpetrators’ aim is to blur the boundary between peace and war—to
deploy intimidation and coercion without formal declaration of
hostilities. This poses a dilemma for adversaries. Does cutting a vital
digital cable constitute an act of war that could lead NATO to activate
mutual defense? How can we be certain that it represents a deliberate act
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of sabotage? Hybrid tactics muddy the waters and can lead to unexpected
escalations.
For their part, the US and its Western allies have raised economic
sanctions and financial offensives to new strength. Western powers have
frozen Russia’s financial assets—and are using the interest on them to
finance weapons for Ukraine. Import and export prohibitions have shut
down much of Russia’s trade with the West, a hard hit for a national
economy fueled by gas exports. Ukraine’s allies have seized the Mayfair
mansions and Mediterranean yachts of Russia’s richest men.
The West is also flexing these muscles beyond Russia and applying
them to show force to its quieter rival, China. Within the first six weeks
of his second term, President Trump imposed trade tariffs on China. A
series of US administrations, recognizing that military strength will rest
on technological prowess, have restricted the sale of advanced silicon
chips to China. Chinese companies are effectively locked out of the
American tech sector. European nations, as well, have blocked Chinese
takeovers of companies at the forefront of artificial intelligence.
The weaponization of everything delivers two important
consequences beyond its intended targets. First, it further weakens the
global order. Sanctions, for example, are not a new instrument but have
rarely been applied with the intensity of those imposed on Russia by the
EU and G7. They serve to pressure a warring party without engaging
directly in war. Yet sanctions also carry risks for those imposing them.
The dollar’s role as the world’s only reserve currency gives Washington
unparalleled control of the international financial system, allowing it to
force third countries to shut down payments to and from America’s
adversaries. But the more often the weapon is used, the greater the
incentive for others to build alternative systems to bypass the dollar.
China and Russia have already moved in that direction.
Second, Russia’s war in Ukraine has demonstrated that the step from
misinformation campaigns and cyberattacks to physical destruction is a
small one and quickly done. In addition to Baltic Sea communications
cables, acts of sabotage on EU countries have included arson and targeted
energy grids and other critical infrastructure. It seems a miracle that none
of these incidents has caused fatalities—yet. Future forms of sabotage
could include biological agents that target public health. The
weaponization of everything, in short, has reduced the distance between
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competition and conflict as the crumbling of global order has greatly
increased the threat that smaller wars will ensnare great powers.
On the battlefield itself, technology promises to transform war—and
is already doing so. Israel’s victories over Hamas and Hezbollah hinged
on technological superiority as much as conventional weaponry. The
Israeli Defense Forces have tracked Hamas leaders using facial
recognition technology, used aboveground geotechnology to map
underground tunnels, and remotely exploded walkie-talkies in Hezbollah
commanders’ hands.
The Ukraine war has shown that armies still need rocket artillery and
tanks to seize territory, but drones, cheap and quickly produced, have
proven the most lethal weapon on both sides. When the war began,
Ukraine produced few drones. In 2025 Ukraine aims to produce 4.5
million.
Beyond the horizon, drones, robots, and digitally directed fire systems
will make fighting increasingly automated. Soldiers whose packs were
once loaded with guns and ammunition will now be deployed operating
lethal drones. Fighter pilots will sit behind consoles in remote locations
to “fly” a new generation of warplanes. Warring parties will pursue these
tactics in tandem with hybrid attacks that aim to destabilize citizens’ lives
at home.
Hybrid warfare directly strains civilians far from the battlefield in a
way that kinetic, conventional warfare does not. The technological
conveniences that we take for granted in our daily lives also make us
vulnerable. Cyberattacks could block access to your money or medical
prescriptions. Sabotage could cause an electrical blackout. A
disinformation campaign could fill your social feeds with deepfakes that
make you unsure of the truth. The chaos that results is exactly the point:
to cause havoc that undermines public morale and political support.
All of which means that national security now relies more than ever
on civilians’ cognitive resilience. To counter such offensives, everyday
people need the strength, wisdom, and steadiness to weather disruptions
while keeping matters in perspective—to “keep calm and carry on,” as
my British in-laws might say. Societal resilience is now a matter of
national security. We are all part of the defense.
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Blurring Foreign and Domestic Policy
In Finland the constitution provides a nice division of labor between the
president and the government. Put simply, the president does foreign
policy together with the government and the government does domestic
and EU policy without the president. Sounds tidy—except that the world
is more complex. Is EU foreign policy Finnish foreign policy? Yes. Is an
attack on a data cable in the Baltic Sea part of foreign policy? Certainly
—but also internal security. In today’s world, in Finland and everywhere,
the line between foreign and domestic policy is always blurred.
Domestic dynamics today are both drivers and symptoms of the
changing world order. Sometimes foreign policy can be best understood
as shadowboxing in domestic politics.
The influence of domestic politics on foreign policy is not new. After
all, the national mood of isolationism obliged President Franklin
Roosevelt to delay US entry into World War II until Japan bombed Pearl
Harbor. Democracy is about nothing if not public consent. But these days
politicians ever more openly advertise their foreign policy stances as
currency in domestic political debate. In this game, policy is no longer
based on values but value—often narrowly interpreted. Witness both
Trump’s “America First” slogan and Biden’s “Foreign Policy for the
Middle Class.” And the permeable boundaries between the domestic and
foreign make it harder for us to prevent competition from sliding into
conflict.
Why, for example, did Biden withdraw troops from Afghanistan at the
scale and speed he did, despite the contrary advice of experienced foreign
policy experts? Because most US citizens wanted it. Domestic pressure
also played a role in the decision to enter Afghanistan in the first place in
2001. In the public mind, a terrorist attack as big as 9/11 cannot go
unanswered—no matter the military or foreign policy implications of the
response. The latest Israel-Hamas conflict starting in 2023, in turn,
influenced national political agendas all over the world.
Sometimes surprising foreign policy shifts have roots in domestic
dynamics. Take, for example, the early foreign policy of Trump’s second
term. Pressuring Ukraine was about ending the war quickly to free the
US from its obligations and thus make good on a campaign promise.
Calling for Europe to take on more of its own security was about
reducing costs for American taxpayers. Getting a minerals deal with
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Ukraine was about proving that the president can forge agreements that
benefit the US economy. All foreign policies driven by a domestic
agenda—even if in an admittedly nontraditional style.
This blurring of foreign and domestic is not only a Western
phenomenon. Several trends have pushed domestic concerns into foreign
policy around the globe. A radical change in the media landscape is
certainly one. Social media, blogs, influencers, and the 24/7 news cycle
all play an outsize role. Never in human history has almost everyone on
the planet had so much access to so much communication from virtually
unlimited sources—or has that information been so easy to manipulate
and spread.
As a head of state, I encounter this challenge every day. On the
upside, modern media allows me to communicate directly with
constituents about real-time events and tap into public conversation. The
downside, however, is substantial. Anything I express is instantly tackled,
pundit-ized, manipulated, and amplified within filter bubbles that drive
public opinion to polar extremes. Civilians online face the same hurdles.
Molehills become mountains. Mountains become domestic
battlegrounds. It’s hard for societies to foster dialogue, forge common
ground, or find lasting solutions—including in foreign relations.
Rising income inequality, as well, provides plenty of fuel for the
informational fire. As median incomes in the US and most of Europe
stagnated, the top 1 percent’s riches multiplied. On the unfairness of this
outcome, populists have a point. The danger of populism lies in its
supposed remedies: aggressive nationalism, scapegoating immigrants and
minorities, and weakening civil protections that underpin democracy.
Simple solutions to complex problems. With hardly any checks on truth
or fiction, populists selling simple messages pack an obvious advantage.
If you say something often enough, people will begin to believe it.
Diasporas also press foreign and domestic policy together by creating
microcosms of conflicts far from the battlefield. Arab Americans in the
US state of Michigan, outraged at the Biden administration’s support for
Israel, helped deliver Donald Trump a victory over Vice President
Kamala Harris. Internal religious politics in Pakistan are transposed onto
UK society and politics. Turkish political tensions play out inside
Germany, as do dynamics in the Sahel on domestic politics in France.
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This is not new on our small planet, but the more we connect across
borders the more diaspora communities hold sway.
These forces all flow together. The genuine strains of inequality,
whipped up in the media tornado, propel a sense of competition between
people and societies—whether or not those differences are the actual
cause. Here hybrid warfare enters again. The more effectively the
aggressor can deepen those divides, the stronger the attack. If you impose
sanctions, you want them to affect one part of your target society more
than others. If you attack a power grid, you want to leave open questions
about who ordered the attack to sow instability. Uncertainty creates
domestic ambiguity about who the enemy is.
The resulting divides run along different identities in different
societies. What we in the West see as the liberal-conservative split shows
up in other societies as secular vs. religious, urban vs. rural, or ethnic
divisions, to mention just a few. All can drive public opinion and shape
how a state treats its allies, enemies, and neighbors. Heightened
competition, and perhaps ultimately conflict, ends up as the result.
The solution requires leadership. All states need responsible leaders
who foster cooperation and refrain from exploiting foreign conflict for
domestic political gain. The world also needs multilateral structures
strong enough to moderate tensions between states and find common
solutions—because what we miss amid the blame game is that we all
face the same problems.
Conclusion
In 2024 I sat next to South African President Cyril Ramaphosa at an
international luncheon focused on conflict prevention. Among the first
three speakers, not one mentioned the conflict in Sudan. Astonished, I
turned to President Ramaphosa and said, “How is it possible that we’re
just talking about Ukraine and Israel?” He shook his head to express that
he was not surprised.
Conflict is a collective problem. Its roots lie in our shared global
challenges, and its reach can easily grow from regional to global. Yet the
current world disorder only addresses conflict piecemeal. When security
—along with trade, climate, energy, and so many critical global matters
—becomes bilateral and transactional, the solutions are only local and
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rarely lasting. We need new systemic measures to address conflict, and
these measures must account equitably for the needs and narratives of the
Global West, East, and South.
As if we needed more reason, the fracturing of UN authority carries
another, potentially existential, danger: the proliferation of nuclear
weapons. Nine states (India, Pakistan, North Korea, Israel, and the five
permanent UN Security Council members) are assumed to have acquired
a nuclear arsenal. So far, broad consensus between West and East that the
number should not rise—and that nuclear conflict would deliver
catastrophic destruction on all—has held the threat in check. Now, as
Putin rattles his saber and more states approach readiness to build a
bomb, the equilibrium is under strain.
Where do these trends lead? In simple terms, we can see our
challenge through the prism of three present conflicts: Russia’s war
against Ukraine (where the West expects but has not received global
support), the Middle East (where the West’s words and actions prove
inconsistent), and Sudan (which the West largely ignores).
In both Ukraine and Gaza, we see an old conflict playing out on new
local, regional, and global scales. We see high-tech warfare accompanied
by sabotage, sanctions, and subversive social media campaigns. We see
domestic pressures driving foreign policy choices. All these dynamics
underscore the need for systemic measures to achieve and sustain peace.
The war in Ukraine has already sparked systemic shifts, inspiring new
countries to join NATO and NATO to return to its roots as protector of
European peace. As the war inches toward a conclusion, watch closely to
answer essential questions: Who will broker an end? Which players will
observe a ceasefire? Which issues remain unresolved? What structures
will emerge to prevent a return to war? The answers for Ukraine
ultimately will form the basis of a new European security order.
Both Ukraine and Gaza also underscore that the dividing lines
between the Global West, East, and South are not clear—and that the
West has work to do to regain the South’s trust. Beyond the battlefields,
both are wars of narratives and the proliferation of alternative concepts
for defining and addressing the fight. For example, is the Gaza conflict a
war on terrorism? A war between Israel and Hamas? Or Israel and
Palestine? Or Arabs and Israelis? Or Israel and Iran? The answer depends
on the frame.
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In Sudan, a war between rival armed factions erupted in April 2023
and had killed tens of thousands of people and displaced more than 8
million by early 2025. The ongoing violence has driven the world’s worst
displacement crisis and largest hunger crisis. Yet in many countries of the
Global West, it barely makes news. Until now, the Global West has
wanted our wars to be the world’s concern, but we haven’t shown
consummate concern with wars elsewhere. Therein lies a challenge to
overcome.
Just as the global challenges of climate change, migration, and
pandemics can only be met through collaboration, the same is true of
modern conflicts. The foundations of the new world order are already
under construction. In fact, the wars in Ukraine, Gaza, and Sudan may
offer indications of its emerging form. The solutions we forge there will,
in turn, set new standards for the international system. Let us make sure
that those solutions engage other states as true partners, build institutions
to last beyond this moment, and lead us toward the antidote to
fragmentation: cooperation.
OceanofPDF.com
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Cooperation
October 2024. I land in Beijing for my first state visit to China as
president. A red carpet, schoolchildren with flags and flowers, and rows
of uniformed soldiers greet me as I walk alongside President Xi Jinping.
It’s a moment for classical diplomacy—made more urgent by global
upheaval. I believe that diplomacy is human before strategic. The world
works better through cooperation than conflict. And there are mutual
benefits for those with the courage to engage.
Personality matters. I’ve always found President Xi easy to engage:
serious but open, willing to listen. I tell him it feels good to stand here
together representing almost 1.4 billion people. He laughs.
After the ceremony we talk for three and a half hours. My team has
prepared thoroughly—with allies, clear goals, and hard questions.
Ukraine is top of mind. I raise my concerns. Xi responds that his main
concern is to prevent escalation, provocation, and expansion. “Isn’t
that,” I ask, “exactly what North Korea is doing by sending ammunition
and troops to Russia?” Xi quietly smiles.
These are the kinds of things you can say if you have a relationship of
mutual respect.
Diplomacy is not binary. It is a tool to bridge differences. It requires
compromise, patience, and humility. If I had entered with moral
grandstanding, the meeting would have been brief—and final. Instead,
we opened space for honesty and incremental progress. This was values-
based realism and dignified foreign policy in action. And this, for the
sake of the future world order, is what the West must do.
Let’s talk about the weather. The year 2024 was crazy. Consider
September alone. That month, Vietnam’s strongest storm in seventy years
buried towns and people under mud and damaged or destroyed more than
200,000 homes. Flash floods across central and southern Europe washed
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away buildings and sent tens of thousands of people fleeing their homes.
And Hurricane Helene poured twenty-nine inches of rain on the US state
of North Carolina, sweeping away small towns in areas not previously
considered flood zones and causing more than $200 billion in damage.
By the end of 2024, wildfires had consumed more than 7,000 square
miles of Brazil, where severe drought seared tropical forest into a
tinderbox. And as 2025 began, a wind-driven wildfire in Los Angeles not
only threatened the edges of a major American city but consumed large
swaths of the city itself.
Sadly, we have become used to such news. Climatic extremes
routinely produce deadly and mind-boggling weather contrasts across the
globe. These events also affect neighboring regions through impacts on
ecosystems, agriculture, population flows, and supply chains.
The World Meteorological Organization (WMO) calculated that the
number of extreme weather events causing large-scale disasters has
increased fivefold during the past fifty years. Whether or not you believe
in human-made climate change—and I strongly do—we must
acknowledge that humankind’s relation with nature has changed. As
populations grew, we colonized flood plains, drained swamps, cut forests,
burned fuel, straightened rivers and streams. Now we recognize,
belatedly, that these changes put humans directly in the path of
increasingly frequent and devastating climate events.
Climate change and extreme weather have become iconic examples of
problems that not even the most strong-willed or self-sufficient country
can tackle on its own. Others include the impacts of accelerating
technology and changing demography, pandemics, financial system
stability, terrorism, hunger relief, access to water, and global waste
management. We can only address these challenges together.
The good news is that, despite competition and conflict, our own
interests will necessarily drive us toward cooperation. The challenge is to
do it right.
We have made considerable strides, at least on extreme weather
events. While the number of natural disasters has increased, the global
death toll is in decline. Information sharing and international forecasting
have increased global preparedness. After a catastrophe, the international
community races to provide technical support and humanitarian relief.
Politically, the Paris Climate Accords of 2015 represented a significant
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success, as 195 states recognized that climate change requires a global
effort. The US withdrawal puts a dent in this solidarity, but the direction
has been set.
Global challenges are not only about crisis management but also
better living conditions: access to communication, safe international
travel, basic education, and more. Political scientists call these “global
public goods” whose benefits or costs affect everyone, across borders.
Most countries recognize the imperative for cooperation and want to
participate—and to wield influence. Watching the news it’s easy to think
international relations are anarchy. Yet in reality, countries are voting
with their feet. Nine candidate states are queuing to join the EU, two for
ASEAN, and many lobbying for a permanent UN Security Council seat.
BRICS is adding members. In an age of assertive nationalism, countries
nevertheless see value in cooperation.
Ultimately, the future global order will not be either-or. It will be
characterized by competition and conflict as much as by cooperation. The
need for global rules to manage the distribution and flow of global goods
ensures that multilateralism will play an important role in restoring us to
order. Yet its impact depends on how effectively we build it.
Liberal internationalists used to see international cooperation as a
functional tool and a moral imperative. Today, the moral dimension
seems an antiquated vestige. Democratization and human rights have
become contested ideas between West, East, and South. When Western
policymakers extol shared values they sound, to a global audience,
somewhat off tune. Multilateralism for its own sake is doomed.
Multilateralism must be shown to deliver.
The good news is there is plenty of opportunity for it to do so.
Interests, not values, provide common ground. States across the spectrum
from democracies to autocracies share goals like stability, prosperity, and
economic growth. Global goods are indispensable assets to achieve these
goals. And multilateral cooperation will be the indispensable tool to
provide them. To illustrate what’s at stake let’s explore three examples:
climate change, trade, and security.
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Global Goods: Climate Change
Addressing climate change is a whole-society endeavor. The stakes
include farmers’ livelihoods, populations’ food security, industries’
energy supply, households’ heating, mass mobility, and technological
innovation. In our globalized world, environmental shocks in one country
will likely have knock-on effects across the region.
Countries have different climate priorities depending on their own
strengths and weaknesses, trade patterns, and political agendas. A small
island nation may care most about sea-level mitigation, while mid-
latitude countries seek to prevent wildfires and protect agriculture, and
northern European states scramble to integrate climate-driven
immigrants. This complexity makes multilateral climate negotiations
difficult.
At the same time, they have proved fertile for innovating international
cooperation and produced strategies that may be effective in realms
beyond climate. The UN-sponsored Paris Climate Accords introduced
voluntary commitments to reduce carbon emissions instead of the 1997
Kyoto Protocol’s legally binding ones. This allowed more countries to
join, including high emitters such as the US and China who rejected legal
obligations. Voluntary commitments provide leeway to adjust to national
needs. But the increased reporting duties, Nationally Determined
Contributions (NDCs), and political capital invested create public
pressure to follow through.
The Paris Accords also bolstered the principle of a “common but
differentiated responsibility.” Many developing countries argued that
Western nations today enjoy the advantages of the industrialization that
contributed most of the world’s historic emissions. Therefore, they
reasoned, industrialized nations should shoulder a greater share of the
reduction. Without directly confirming such views, the EU and US
reacted by putting large premiums on green technologies, seeking to
make climate policies a driver of innovation and growth.
Climate-friendly development has also become a key element in
global development efforts. The EU’s Global Gateway infrastructure
initiative makes environmental sustainability a central priority. China’s
Belt and Road Initiative now emphasizes ecosystem protection, a shift its
promoters cheer as an unfolding “Green Silk Road.” The results of such
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ambitions remain to be seen. But they clearly mark a field of growing
cooperation.
Despite these positive steps, however, climate cooperation has far to
go. The litmus test may lie in providing adequate finance for developing
countries to reach their national climate action goals. In 2009, high-
income countries collectively promised $100 billion per year from 2020
onward. They have not yet provided much of it. Plus, many of the funds
that did arrive were structured as loans rather than grants, which further
contributes to low-income countries’ heavy debt burden.
What’s at stake here is the credibility of high-income Western
countries in the Global South. Many developing countries are
disproportionately exposed to climate risks. They naturally perceive
failures of support as hypocrisy against the background of continuous
calls for a common global effort.
What is equally at stake, of course, is the success of global climate
action itself. Decarbonizing Western economies will not make enough
impact if developing economies build growth on dirty energy—and
collaboration is critical to prevent the latter. Recurrent crises will also
require emergency responses and will produce economic ripple effects
and migration. If the Global South remains exposed to climate risks, the
West will inevitably share in paying the price.
Global Goods: Trade
The size of the global economy has roughly tripled since the Cold War
ended. Average per capita income has nearly doubled. Over a billion
people were lifted from poverty. The volume of global trade in goods
also expanded almost fivefold between 1995 and 2022—and this is no
coincidence. Trade remains a key driver of global growth and as such is
an essential global good.
A series of events, however, has limited trade expansion over the past
decade or so. The global financial crisis and ensuing euro-crisis slowed
general economic growth. The pandemic put imports out of fashion amid
supply-chain interruptions and fears that import dependency could
undermine economic resilience. Russia’s invasion of Ukraine exposed
Western Europe’s overreliance on Russian energy and deepened the
aversion to global trade. Friendshoring and a growing abandonment of
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the “just-in-time” economy (which relied on fast trading routes to deliver
goods precisely when needed) rose in its wake.
Digital technology has simultaneously pushed trade in both positive
and negative directions. Ecommerce and expanded digital networks make
international division of labor easier and thus potentially fuel trade. Yet
the digital transformation has also left workers in more traditional
industries behind, creating resentment against globalization. From
resentment grew populism, which often promotes economic
protectionism—and thus ironically ends up hindering the domestic
growth it champions.
These kinds of reactionary moves against trade present a threat that
we must collaboratively address. Fragmentation, or even deglobalization,
may result from accumulating risks and fears. For now, former WTO
Director-General Pascal Lamy argues that global trade remains strong. At
the same time, he warned in Foreign Affairs in 2022 that the sum of all
fears could drive precautionary measures up to the degree that
“deglobalization could become a self-fulfilling prophecy.”
In trade, as in climate, nations can make limited progress alone,
especially small and medium-sized countries. Multilateral cooperation is
the only viable option. Yet the WTO, which has enabled global
liberalization of trade since its creation in 1995, has recently appeared
paralyzed. Negotiations to lower trade barriers and reform the
international trading system have run aground. The so-called “Doha
Development Agenda,” meant to support developing economies, is not
progressing. The WTO’s dispute settlement mechanism is defunct. New
rules on digital trade and intellectual property rights have not found
consensus.
The WTO’s stagnation is exacerbated by global competition. Since
Western countries benefited from WTO-led globalization, developing
countries today naturally demand differential support to level the playing
field. The US and EU in turn sharply criticize that China—one of the
biggest winners of globalization—still profits from its formal status as a
“developing country” within the WTO. The WTO used to be able to forge
trade cooperation despite its member states’ differing geopolitical
ambitions. Not anymore.
Global fragmentation here, as in so many realms, leads to
regionalization. One example is the USMCA trade agreement, previously
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known as NAFTA, that covers North America from Mexico to Canada.
The EU also has agreements linking the Common Market with third
countries. Regional trade agreements exist on all continents. The
downside is that they exclude others and undermine the WTO’s
requirement to treat all trading partners equally. Regional trade
agreements are the economic equivalent of geopolitical bloc building. In
the wrong circumstances they risk cementing cleavages rather than
furthering cooperation.
The dangers of this situation are twofold. First, the WTO remains the
single most important forum to address structural challenges and set rules
for ecommerce, digital trade, and data governance. It remains
indispensable to prevent protectionism and help developing countries
update their economies. Making trade a pillar of a global economic
recovery requires a functioning, active WTO—and trade is unlikely to
thrive without one.
That scenario will, in turn, contribute to rising geopolitical tensions
between West, East, and South. And if more antitrade policies result, they
will only push geopolitical conflicts deeper into the economic realm until
geopolitical and economic tensions become mutually reinforcing.
Maybe even more than with climate, a rules-based international order
may rise or fall with the health of a rules-based trading order. We already
see signs of weakness. The weaponization of economic tools against
adversaries like Russia or Iran causes doubts within the Global South
about the West’s reliability in keeping faith with such an order. The US
refusal to cooperate on reforming the WTO’s conflict resolution
mechanism allows critics once more to accuse the West of hypocrisy—
upholding an international system only as long as it serves its interests.
WTO reform may serve as the Global South’s bellwether on whether the
West will fixate only on besting China or rebuild an international system
more responsive to the needs of all.
Global Goods: Security
Security seems to be the least likely field of international cooperation—
as a land war rages in Ukraine, the war in Gaza continues to take a
devastating toll, the consequences of the Israel-Iran escalation remain
uncertain, and conflicts elsewhere seem intractable. Yet peace is the
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ultimate global public good. And it has a track record of giving birth to
unexpected breakthroughs.
One of them is non-proliferation. During the Cold War, the 1968
Treaty on the Non-Proliferation of Nuclear Weapons and the 1972 Anti-
Ballistic Missile Treaty were milestones that provided stability between
the two superpowers. The Chemical Weapons Convention and the
Strategic Arms Reductions Treaty (START) in the 1990s were part of the
peace dividend after the Cold War.
But as if to mark the new epoch, recent years have produced no good
news on non-proliferation. In 2019, the US withdrew from the
Intermediate-Range Nuclear Forces Treaty, signed in 1987, citing a
Russian lack of compliance. Russia left the Comprehensive Nuclear-Test
Ban Treaty and the Treaty on Conventional Armed Forces in Europe in
2023. Now New START, one of the last major non-proliferation treaties,
is due to expire in 2026.
All these treaties involved parties suspicious of each other and
antagonistic in their interests. Only patient diplomacy behind the scenes
allowed them to find compromises that made them—and the world—
safer. Today would be a good moment for another major diplomatic
breakthrough—and the leadership to sustain it.
Multilateral institutions also continue to play a vital role for global
security. The International Atomic Energy Agency was indispensable in
monitoring Iran’s compliance with the nuclear deal. In Ukraine, it gained
access to the Zaporizhzhia power plant seized by Russian forces, which
was in acute danger amid the fighting. The UN proper remains pivotal in
promoting a peaceful use of outer space and preventing the stationing of
weapons of mass destruction in earth’s orbit.
Regional organizations are important security providers, too. The EU,
for example, deploys around 3,500 military and 1,300 civilians on three
continents to support peacekeeping, capacity building, and regional
stability. Western Africa’s ECOWAS has executed robust military
missions in several crises. Even if conflict persists, ECOWAS’s
credibility as a regional player is a key asset in promoting stability.
Amid global disorder we also take for granted the many unglamorous
successes in international police cooperation, anti-trafficking, and
intelligence sharing. We would be in a worse place without such quiet
efforts. On the other hand, security is an indivisible good; if one region
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lacks security, the neighbors and the neighbors’ neighbors cannot live in
peace.
Global Rules
Countless countries have called to reform the multilateral system since
the UN’s founding in 1945. It is time to realize that such reform is not a
political project but an ongoing process.
Over eight decades, the international system has changed in too many
ways to count. International organizations proliferated and participating
countries multiplied. Scores of NGOs created a parallel network of
international cooperation, often closely linked with states. The UN itself,
though not conceived for this purpose by its founders, proved
instrumental in consolidating the statehood of decolonized countries in
the 1960s and 1970s. Then a new majority of developing countries
helped shift the UN’s focus from political and civil rights to social and
economic ones. Financial institutions moved from postwar reconstruction
to development.
The lesson is that time and again, institutions of international
cooperation have changed in response to the challenges of the time. It is
time for another update, and a meaningful one. Successful cooperation
rests on establishing and staying faithful to a fresh set of global
agreements, forged by a more equal voice among countries.
How to craft those rules is another question. Eight decades of
evolution have produced so thick a layer of multilateralism that a
complete overhaul is but a theoretical idea. I would even argue that a
tabula rasa is undesirable, as it would hurl us quickly into chaos and
abandon many multilateral tools worth keeping. We should aim instead
for incremental change while maintaining the flexibility to use more
fluid, spontaneous forms of multilateral cooperation to respond to
specific challenges. A “less is more” motto would enable us to keep using
those parts of the system that function and facilitate dialogue even while
pursuing reform.
This incremental change should be built on a minimum of rules and
one overarching goal. The rules relate to the rule of law and respect for
human rights. The goal relates to representation.
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Let’s start with the rules. In an age of division and mistrust, a values-
based foreign policy has become difficult to sustain. To resolve conflict,
we need to engage players with whom we—speaking from the
perspective of Western democracy—have little worldview in common.
We won’t get far by projecting liberal democratic ideals onto them.
Instead, the first rule to promote should be respect for and protection of
international law and treaties. The rule of law on the international plane
means staying true to the principle expressed in Latin as pacta sunt
servanda, or “agreements must be kept.” There is no point in dialogue
and compromise if there is no assurance that parties will keep their
agreements. Abandonment of this rule means a step further toward
anarchy. On the other hand, any notion of international order will find
solid footing in this principle.
This is why the retreat of the United States from agreements like the
Paris Climate Accords poses a dilemma. It allows the opponents of a
rules-based order to argue that the West’s foremost country betrayed the
very order the West tries to protect.
This is also why the weaponization of trade, finance, travel, and other
elements of global interdependence is a double-edged sword. We are
quick to call for sanctions against certain international actors. But the EU
acts prudently when it scrupulously examines whether its sanctions are in
accord with international law. Punishing rogue states may be our heartfelt
desire. But imposing sanctions without grounding in international law
means enshrining the principle that might makes right. It kills the
incentive for anybody else to make shared rules, if rules do not promise
to restrain the power of the powerful.
Pushing human rights as a global value will prove as fraught as
promoting democratization. The core body of human rights laws is
enshrined in the UN Charter of 1945 and the Universal Declaration of
Human Rights in 1948. But despite broad global recognition, its
interpretation and enforcement remains controversial. And amid
criticisms of double standards and selective application, the West would
be doomed to failure if it wanted to police respect for human rights
around the world.
The conclusion need not be to abandon the human rights agenda. The
rights outlined in the UN Charter and the UDHR still provide an
indispensable compass for international relations. However, it might be
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wiser and more credible if Western commentators employ less of a
professorial attitude when judging human rights situations elsewhere.
Western governments cannot stop talking to governments with poor
human rights records. Instead, an incentive-driven approach might
improve rights more effectively than applying conditionality to Western
cooperation.
If respect for international law and human rights should be the
minimum consensus for global reform, a fairer distribution of voice and
representation should be the outcome. Shared values should remain a
goal but not a condition of collaboration. The legitimacy, and thereby
durability, of any order hinges on the perception of most actors that they
stand on equal footing. States will only believe in institutions if they have
agency in them.
In September 2024, I made my own proposal for UN Security Council
reform in a speech at the UN General Assembly. My proposal contains
three critical elements. One, that all major continents should always be
represented. I find it unacceptable that there is no representation from
Latin America or Africa, and that China alone represents Asia. I also
question the fact that Europe is represented by three states, one of which,
Russia, is blatantly violating everything the UN stands for.
My proposed remedy is to double the permanent members to ten,
adding one from Latin America, two from Africa and two from Asia, plus
ten seats for rotating members. Second, I propose that no single state
should have a Security Council veto. I understand why this rule was
established after World War II, but in today’s world it simply obstructs
decision-making. Third, I contend that any Security Council member that
violates the UN Charter should have its voting rights suspended.
It is telling that in a room of UN ambassadors from around the world,
my proposals received a hearty applause. Well, at least from 188
members out of 193.
Beyond the UN system we might need a more flexible, demand-
driven, and sometimes regional approach to navigate today’s disorder.
Efforts by the EU, African Union, Mercosur, ASEAN, and others to pool
sovereignty on trade and security are prime examples. What may look
like fragmentation could turn out to be a pragmatic way to put the global
community back on a path toward order.
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Successful reform also requires a turn toward a dignified foreign
policy, which I describe as the willingness to listen to each other with an
open mind and greater appreciation of differences between societies,
cultures, regions, and states. This is a task for East, West, and South
alike. But if the US, EU, and their partners in the Global West seek
international leadership, they need to lead by example.
Triangle of Power
Beyond the playing fields of economics and politics, the global contest
also extends into the judges’ box and league headquarters. With the
international order in flux, East, South, and West are carrying
competition into the realm of international cooperation itself. The new
world order is the winner’s prize.
The existing international system provides the venue for this contest.
But only in part, as new forms and places of cooperation emerge and
grow.
For the foreseeable future, Russia and China will continue their twin
offensive to change the international landscape. They have shared the
goal of a multipolar world order (and tacitly, deposing the US) since they
proclaimed it in the Sino-Russian declaration of 1997. Yet they differ in
their strategies. Russia, through its exports of energy, weaponry, and
nuclear technology, remains an indispensable partner for many, often
poor and autocratic, countries. China plays the economic card. Tactically,
Russia is more disruptive, exploiting crisis and conflict to drain Western
resources. China is more constructive. It promotes its own visions of
global order and creates new venues, while also pushing reform from
within the existing system.
The Global South is somewhat agnostic about the future order—
provided it is a clear improvement from the current one. It shares the
East’s aim to make the system less dependent on the West. But it does not
want to replace dependency on one power center with dependency on
another. For the time being, the South is likely to continue to hedge its
bets, exploiting its ability to court both East and West and extract benefits
from both. It will accept and draw on regionalization without letting up
the pressure on global institutions.
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The Global West finds itself in a complex situation. To preserve the
international order, it must change. And while it may be the camp with
the greatest convergence of interests, values, and goals, Europe and the
US differ fundamentally on one issue. For Europe, multipolarity is
inscribed in its history. Europe is used to internal differences, multiple
power centers, changing patterns of dominance, and the hard labor of
compromise. The US prefers a world of clear contrasts; bipolarity is its
natural framework for strategic thinking. Its National Security Strategy
clearly defines one main competitor, China, and ranks every other second
or third.
The advantage of the US approach is that it calls out the Chinese
power grab as China continues its stealthy ascent to global leadership.
The downside is that both the US and China deliberately choose
confrontation with each other over cooperation on an increasing number
of issues. This bipolar stance, in turn, freezes relations with the Global
South in their historic state, as a derivative of great power competition.
Europe and the EU take a more moderate position. To protect its trade
interests, the EU recognizes China as a systemic rival and economic
competitor but also as a potential partner. And the EU realizes that it
cannot sufficiently protect its security, not even in its immediate
neighborhood, without strong support from the US. Together, the EU and
its member states have the widest reaching and most densely knit
diplomatic network around the globe, making Europe uniquely placed to
help find compromise on any topic in any region in the world.
The big plot twist for the Global West is the second Trump
administration. Through tariffs, treaty cancellations, and claims on other
countries’ territory, the US has moved dramatically toward
transactionalism. The ultimate duration and impact of this trend remains
to be seen. If it continues, however, it could make global cooperation
more patchwork, interest-based, and á la carte. With the US out of the
game, the EU would have to seek more bilateral deals with the rest of the
world. As it now holds more than forty trade agreements with more than
seventy countries, it already has a head start. We also can’t exclude the
possibility that the Trump administration’s startup-like “move fast and
break things” approach will eventually lead to new agreements and better
practices, such as more even burden sharing on security.
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In the big picture, the way to win the world-order contest is for the
Global West first to be proactive in reforming existing institutions, with
an eye on the Global South’s demands. Second, it needs flexibility to
engage partners, competitors, and adversaries in the forum best suited for
the issue at hand. Some actors will be partners on one issue and
competitors or even adversaries on others. This combination of reliability
and flexibility will open a path to preserve elements of the current world
order while growing new parts to accommodate the demands and
ambitions of a changing world.
Conclusion
It is easy to point to all the disappointments of our international
institutions today. The WHO failed on vaccine provision, the WTO is
paralyzed on trade negotiations, the IMF and World Bank cannot mitigate
the debt distress of the least-developed countries, and most of all, the UN
Security Council is unable to preserve peace. Amid this disarray,
European Council on Foreign Relations Senior Policy Fellow Jana
Puglierin recently described multilateral institutions as the “Potemkin
villages of today.”
I disagree. We must not throw the baby out with the bathwater. The
UN, for example, plays a vital role in development, climate policies, the
limiting of biological and chemical weapons, non-proliferation, and
many more fields. It continues to serve as a valuable crisis manager. It
helped negotiate the Black Sea Grain Initiative, permitting critical food
and fertilizer exports via Ukraine even amid war, and its relief
organizations provide aid around the globe. The UN remains a forum to
initiate discussions on new themes like artificial intelligence and
cybersecurity. And it has an important task in protecting sovereignty and
statehood. It may not always be as effective as we want it to be, but we
would be much worse off without it.
We need to manage our expectations. The UN won’t resolve the war
in Ukraine or the Middle East, the World Bank won’t cover for all the
costly climate policies. And no institution, agreement, or single great
power will be able to control all conflict and competition. International
cooperation can, however, influence competition and conflict. It can help
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us manage them—provided we approach it with the humility to listen and
the flexibility to adapt.
We are at a tipping point. Action to update the international system is
urgent. The longer the West ignores this reality, the more cooperation
becomes local and regional and thus prone to fragmentation and conflict.
The sooner we reform the system, the greater our chances of preserving
an ordered, cooperative world.
OceanofPDF.com
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Conclusions
March 2025. Three years and three weeks since Russia started its full-
scale war of aggression against Ukraine. Many expected the war to be
over in three days. But Putin made a colossal tactical and strategic
mistake. And Ukraine has put up a heroic fight.
My wife Suzanne and I are hosting a private dinner at our home in
Helsinki. We have two very special guests: Volodymyr Zelenskyy and
Olena Zelenska. It is a rare moment for them to take a breath amid their
fight for survival.
The war is at a stalemate; we call it a war of attrition. Russia’s
territorial advances in the first half of 2025 are as abysmal as the human
casualties are colossal. It has gained only 0.25 percent of Ukrainian
territory so far this year. Meanwhile, casualties are up to the thousands
each day.
Earlier this afternoon, Finns thronged the streets to show support for
Ukraine. Zelenskyy took a phone call with President Trump. We were, we
hoped, working toward peace.
It’s just the four of us now. Jazz in the background. Candles on the
table. We talk about our children and how their family has coped with the
stress of war. Suzanne and I are full of admiration for their tenacity and
courage. We Finns understand what Ukraine is going through.
I remember my text message exchange with Lavrov. Russia has again
shown its colors: imperialist ambitions and disdain for human life and
international law. It is a former great power in decline, gasping for the
remnants of what used to be. But as a Finn I never underestimate Russia.
The easy solution for the rest of us would be to cave in, but we simply
can’t. Ukraine has not, and it won’t. When one nation tries to change the
world order by force, it has consequences for every nation on earth.
All of us have a choice. We can engage or disengage.
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I began writing this book when Donald Trump was ending his first term
as US president. I finished writing it when Trump was beginning his
second term. That leap alone, over just four years, illustrates how much
the world has changed.
In fact, the world has changed more in the past three years than in the
previous thirty years combined. Making sense of it has been like trying to
hit a moving target. Yet writing has helped clarify my view of the big
picture. Returning to political office has done the same. My experience as
president has strengthened my belief that values-based realism, combined
with dignified foreign policy, should be the Global West’s response. It
has also affirmed for me that regional integration, paired with the
rejuvenation of international institutions, is the best path toward global
peace, stability, and security.
The more world leaders I meet, and the more classified and
unclassified analyses I read, the more convinced I am that the Global
South will decide the new balance of power. History, geography, and
demographics are on the side of these rising states. I am also convinced
that after a period of disorder, some kind of new order will emerge. As
we take up our roles in shaping it, the following is what we must all
understand.
A Glimpse of the Future
The postwar institutions that have helped steer the world through its most
rapid development and have sustained a period of relative peace still
stand the test of time. But to survive, they must change. First, because a
world based on competition without cooperation will lead to conflict. It
will also lead us away from the solutions we all need. Second, because
states that lack agency in the existing system will disinvest in it. And who
can blame them? Third, because the new world order will not wait. It is
already clear that transactional and multipolar disorder feeds conflict and
chaos. The chips are falling. Timing, as well as strategy, makes a
difference in the direction the world goes.
I foresee at least three scenarios that could emerge in the decade
ahead.
The first, disorder, would resemble what we have today. There would
still be elements of the old order left, but respect for international rules
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and institutions would be à la carte and mostly based on interests—not
innate values. The capacity to solve major challenges would remain
limited, but the world at least would not devolve into greater chaos.
The second scenario is collapse. Here, the foundations of the liberal
international order—rules and institutions—would continue to erode. The
world would move closer to chaos without a clear nexus of power or the
capacity to solve acute crises such as famines, pandemics, or conflicts. In
this scenario, strongmen, warlords, or non-state actors would fill power
vacuums. Stability and predictability would be the exception, not the
norm. The danger is that local conflicts could spill into widespread war.
The third scenario is a rebalanced world order based on a new
symmetry of power among the Global West, East, and South. This
scenario has the potential to contain competition and nudge the world
toward cooperation on climate, security, and technology—critical
challenges that none of us can solve alone. This outcome is what this
book is about.
The wild card for the Global West in any of these scenarios will be
whether the United States actually wants to preserve a multilateral world
order. The wild card for the Global East will be how China plays its hand
on the world stage. The black swan for everyone would be the unlikeliest
of alliances, a pact between the US, China, and Russia—between three
strongmen—leaving the rest of us behind. In this world, power would
rest at three poles: Trump, Xi, and Putin.
Trump’s reelection undoubtedly affects the West’s potential to
influence a new world order. Yet no matter how inflamed the transatlantic
relationship becomes, I do not believe that the core of it, NATO, will be
weakened. On the contrary, it might be strengthened, not least because
President Trump has pressured European members to increase their
defense spending— which I consider healthy, at least under present
circumstances. The challenge for a new world order will be Trump’s
reservations about international institutions and his affinity for tariffs,
which ultimately harm not only their target countries but the US and
everyone else. His early language on territorial acquisition also throws
the reliability of sovereignty into question. World leaders should not
necessarily take him literally on this, but we should take him seriously.
The most important lesson to draw is that states—including small
states like mine—are not bystanders in the story. The new order will be
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determined by decisions taken by political leaders, whether democrats,
autocrats, or something in between. And here a particular responsibility
falls on the Global West as the architect of the passing order and still,
economically and militarily, the most powerful global group. The way we
carry that mantle matters.
The Road to Helsinki
It is clarifying to view the global shakeup through three lenses: values,
interests, and power. Foreign policy is usually a mix of all three. Right
now, all are changing. Values are less universal than we expected.
Interests shift in real time. Power is changing hands—between the US
and China, and into the hands of mid-size nations. You could say that the
US emphasis is shifting from values to interests, China from interests to
power, and Russia from power to interests. The evolving order forces
even the biggest players to change.
Coming from a small state, I understand that I can play on the field of
values and interests. The power I have is limited. But even small states
that play their cards right can be power brokers. They might not have the
power, but they have the power to influence.
My foreign policy approach is values-based realism, which gives
space to all to navigate a world of difficult trade-offs. Are you willing to
compromise your values if it is in your interests? Or will you stay true to
your values even if doing so defies your interests? Are you willing to
compromise your individual interests for the good of the whole? War
emerges often from an innate and stubborn belief that you are right.
Preserving peace requires compromise.
I do not suggest that liberal democracies should sacrifice core
democratic values and beliefs on the altar of power, influence, and
realpolitik. These values will always serve as a stronger basis for success
than pure interests. Would I like to persuade the rest of the world to be
more Finnish or perhaps Nordic? Yes! Because I believe the system of
governance we have up North has proven itself. Open, free, just, and
equal societies work. Values should be part of the conversation. But we
cannot, and should not, seek to impose ours on others.
In fact, if a choice between values and realism must be made, the
Global South will have the tiebreaking vote. Yet the South does not want
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to make a binary choice between a democratic West and an authoritarian
East. Were the South obliged to choose, it would probably gravitate
toward Europe and North America. There are not long queues of migrants
waiting to cross borders into Russia, China, or North Korea. The South
wants, however, to make that choice on its own terms. And it is in the
global interest to let them.
Realistic Reasons to Be Optimistic
Like many heads of state, the president of Finland delivers a New Year’s
speech. In 2025, I shared this observation: “It is easy to list what is
wrong and to concentrate on threats. It is much harder to find solutions.
Pessimism leads to inaction, optimism to action, realism to solutions.”
This is true across borders.
As president I will continue to work for a world that I perceive to be
just, fair, and functional. I will do so based on my inherently Western
values while recognizing that not everyone shares them. Be that as it
may, I make here three concrete proposals that I believe will be useful to
all in rebalancing a new world order—and convincing leaders across the
globe that it is necessary and urgent to do so.
First, there is no such thing as a perfect system of governance, but I
firmly believe that open, free, and democratic societies are the basis for
national success. There is a reason why liberal democracies top almost all
global rankings, from quality of life to GDP per capita to life expectancy.
The decentralization of power allows corrective measures to renew
progress and development. Authoritarian regimes simply do not have the
capacity to react to change in the long run. Freedom always trumps
control.
I do not claim that authoritarian states are incapable of creating
welfare and prosperity, but that all models of governance that limit
freedom will only survive in the short to medium term. Natural resources,
demography, and size can only take you so far; authoritarian regimes
ultimately hit a wall and are forced into more radical change. Autocrats,
likewise, tend to leave office in one of three ways: in jail, in exile, or in a
coffin. At the same time, democracies must understand that their model
of society is not an end state. It is a process that must be constantly
protected and developed.
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My second proposal is that states should strengthen regional
cooperation. I am fully aware that geography, history, and culture differ
everywhere, but regional integration is both in states’ national interest
and a useful segue to global cooperation. There is a direct correlation
between prosperity and regional cooperation. My personal experience
stems from the Nordics, OSCE, the European Union, and NATO—which,
despite their complexities, have generally delivered peace, stability, and
prosperity.
My third and final proposal is about the most important international
organization in the world, the United Nations. There are others, such as
the World Bank, IMF, and WTO, that need rebalancing, but the most
important reform linked to peace and stability is at the UN. The specific
changes I endorse are those I outlined in my UN General Assembly
speech in 2024:
1. Expand the Security Council to include five additional permanent
members (one from Latin America, two from Africa, and two from
Asia), plus ten rotating members.
2. Eliminate single-state veto power.
3. Suspend the voting rights of any Security Council member that
violates the UN Charter.
When I made this proposal, I could hear the applause of 188 out of
193 members. But I did not see current Security Council members
clapping. Unsurprisingly, they did not want to dilute their dominant
position. Yet unless they accept the need to rebalance power, they will
forfeit the chance to choose.
Long Live the Triangle of Power
I began the book by noting that this is the 1918, 1945, and 1989 moment
of our generation. Or perhaps it is all of them put into one? But there is
no such thing as deterministic foreign policy. Humans make foreign
policy. Every day. It is a choice.
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The future order presents a critical role for each part of the world to
play. In the competition for the Global South’s support it would be a
mistake for the West to rely only on the appeal of freedom and
democracy. The East would be equally mistaken to think that big
infrastructure projects and generous credit buy it unchecked influence.
The South has plenty of options.
For the Global West, values-based realism and dignified foreign
policy should mean adopting a new, more cooperative framework with
the South. Rather than coercion we should deploy persuasion: setting an
example that others may adopt. This entails collaborative partnerships as
well as changed behavior. The charge from the Global South of Western
double standards is sometimes deafening. The way to persuade is to live
up to our principles. This also means recrafting a global system where the
rules and norms are not just adopted but also created by the South,
forging trade agreements on equal footing, sharing technological data and
knowledge, and cooperating on defense and infrastructure. The
cooperation need not be transactional, but many Global South countries
can provide clear benefits in raw materials or security.
In its relationship with the Global East, the West must acknowledge
the difference in values and interests but also understand that decoupling
permanently is not sustainable. Economic interdependence is too deeply
rooted. So too is the need to act collaboratively to confront climate
change and other shared challenges. The West can stay true to its values
but cooperate where its interests apply. There is nothing to be gained
from lecturing the Global East, but the West can point to real-world
evidence. China’s economic ascent has been based on liberal markets,
capitalism, and free trade, along with an ample workforce. Russia has
failed to match that pace because it has not used market mechanisms to
modernize its economy.
At some point the West may start to rebuild a relationship with Russia
—but in my mind only when it ends its brutal war in Ukraine, takes
responsibility for the war, and credibly commits to international rules and
order.
The opportunity for the Global South lies in leveling the economic
playing field. Stark inequality remains across the South, but technology,
properly managed and used, provides competitive opportunities for all.
There is no need for nations in this group to choose between West and
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East. They might note, however, that open, free, and democratic societies
work better than closed, controlled, and authoritarian states. Freedom is
an engine of prosperity. States where leaders cling to power are usually
on a road to stagnation.
Not only diplomats but also everyday civilians have a role to play.
Global cooperation is not a spectator sport. Neither is democracy. It
requires participation: voting, standing for election, participating in local
boards and decision-making bodies, demanding the best from our
representatives. Our democratic systems will not last forever if we do not
cherish and develop them.
The world above all needs the capacity to look forward in a spirit of
mutual respect and cooperation. No one should doubt our ability to meet
the obstacles ahead if the world’s three spheres—West, East, and South—
build a global order that respects difference and allows states to set their
national interests in a broader framework of international cooperation.
We should have no illusions, though, about the costs of failure. The first
half of the twentieth century was warning enough.
“What humans begin, humans can also end.”
So said my mentor, Finnish President and Nobel Peace Prize laureate
Martti Ahtisaari. And so it is true of our intentional, essential world order.
Humans created it in a time of critical need. Humans can allow it to erode
into obsolescence. Or we can remodel it to begin anew.
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FURTHER READING
Applebaum, Anne. Twilight of Democracy: The Seductive Lure of Authoritarianism. New York:
Doubleday, 2020.
Bradford, Anu. Digital Empires: The Global Battle to Regulate Technology. New York: Oxford
University Press, 2023.
Bremmer, Ian. The Power of Crisis: How Three Threats—and Our Response—Will Change the
World. New York: Simon & Schuster, 2022.
Friedman, Thomas L. The World Is Flat: A Brief History of the Twenty-First Century. New York:
Farrar, Straus and Giroux, 2005.
Fukuyama, Francis. The End of History and the Last Man. New York: Free Press, 1992. Reprint,
London: Penguin Books, 2012.
Gessen, Masha. The Man Without a Face: The Unlikely Rise of Vladimir Putin. New York:
Riverhead Books, 2012.
Grant, Adam. Think Again: The Power of Knowing What You Don’t Know. London: WH Allen,
2021.
Harari, Yuval Noah. Sapiens: A Brief History of Humankind. New York: Harper, 2015.
Kahneman, Daniel. Thinking, Fast and Slow. New York: Farrar, Straus and Giroux, 2011.
Kennedy, Paul. The Rise and Fall of the Great Powers: Economic Change and Military Conflict
from 1500 to 2000. New York: Random House, 1987.
Kissinger, Henry. World Order. New York: Penguin Press, 2014.
Leonard, Mark. The Age of Unpeace: How Connectivity Causes Conflict. London: Penguin
Books, 2021.
Levitsky, Steven, and Daniel Ziblatt. How Democracies Die. New York: Crown, 2018.
Marshall, Tim. Prisoners of Geography: Ten Maps That Tell You Everything You Need to Know
About Global Politics. London: Elliott and Thompson, 2015.
Moyo, Dambisa. Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa.
New York: Farrar, Straus and Giroux, 2009.
Papaconstantinou, George. Whatever It Takes: The Battle for Post-Crisis Europe. Athens:
Papadopoulos Publishing, 2016.
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Rosling, Hans, Ola Rosling, and Anna Rosling Rönnlund. Factfulness: Ten Reasons We’re Wrong
About the World—and Why Things Are Better Than You Think. New York: Flatiron Books, 2018.
Rudd, Kevin. The Avoidable War: The Dangers of a Catastrophic Conflict Between the U.S. and
Xi Jinping’s China. New York: PublicAffairs, 2022.
Thaler, Richard H., and Cass R. Sunstein. Nudge: The Final Edition. London: Penguin Books,
2021.
Zakaria, Fareed. The Post-American World: Release 2.0. New York: W.W. Norton, 2011.
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ACKNOWLEDGMENTS
Writing a book is always a long process. It feels especially long when
you are writing about international relations in the middle of a shift in the
global power balance. Just when you think it is a wrap, things change
again.
I started writing this book exactly five years ago, as a professor at the
European University Institute in Florence. I finished writing it in summer
2025, in my second year as the thirteenth president of the Republic of
Finland. When I began, I did not realize how much the world would
change, let alone that I would reenter the stage of world politics, which I
had left—permanently, I thought—in 2016.
I know it is rather unusual for a head of state to publish an analysis of
international relations at the beginning of his or her term of office, but I
felt that I had a story to tell. A story of academic analysis and practical
experience—a look from the outside in and inside out. This book is not
Finland’s foreign policy doctrine; it is my personal take on how
international relations have evolved since the Cold War and where we
might be heading in the decades to come. World events will continue to
roll on. This book should be read not only as an analysis of the past and
present but a call for action into the future—a defense of democracy,
multilateralism, and the liberal world order.
The book does not contain a bibliography or footnotes. I wanted it to
be a journey of how my thinking has evolved from my days as a student
of international relations in the immediate aftermath of the Cold War to
my time as president amid a changing world order. I did not want the
book to become a mammoth tome full of references, but I hope it shows
my appreciation for all the people, books, and articles that have taught
me so much over the years.
Writing a book is always a lonely job, but you can never do it alone.
The biggest thanks for finalizing the manuscript go to my editor, Grace
Rubenstein. For over a year, we worked together to get the book over the
goal line. To put it simply: “No Grace = No Book.” The biggest thanks
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for getting me started go to Jonas Brendebach, who was my research
assistant in Florence (and is now a diplomat in the Auswärtiges Amt). He
did a lot of the research and heavy lifting, especially on chapters 3, 6, and
9. Many thanks also to legendary Financial Times columnist Philip
Stephens for substantive edits and challenging my arguments.
The book will come out in many different languages—thank you,
Kirsi Koskinen, for keeping it all together. My book agent, Jim Levine,
showed me how books get published around the world. The book has
gone through many rounds of comments—thank you, Mark Leonard,
Fabrizio Tassinari, George Papaconstantinou, Simon Hix, Erik Jones,
Adam Grant, Brent Nelsen, Samir Saran, Kristiina Mäkelä, Timo
Miettinen, Tuomas Forsberg, Risto E. J. Penttilä, Antti Helanterä, Aliisa
Tornberg, and all of my friends and colleagues who did not want to be
named publicly. A final word of thanks goes to my family, who have had
to listen to me go on about the book for five years. Kiitos, tack for your
patience. And as always, responsibility for the content of the book lies
solely with the author.
I dedicate this book to the memory of President Martti Ahtisaari, to
peace.
Alexander Stubb
Helsinki, June 2025
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Copyright
First published in Great Britain in 2026 by
Biteback Publishing Ltd, London
Copyright © Alexander Stubb 2026
Alexander Stubb has asserted his right under the Copyright, Designs and Patents Act 1988 to be
identified as the author of this work.
Map design by Jeffrey L. Ward
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system
or transmitted, in any form or by any means, without the publisher’s prior permission in
writing.
This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent,
resold, hired out or otherwise circulated without the publisher’s prior consent in any form of
binding or cover other than that in which it is published and without a similar condition,
including this condition, being imposed on the subsequent purchaser.
Every reasonable effort has been made to trace copyright holders of material reproduced in this
book, but if any have been inadvertently overlooked the publisher would be glad to hear from
them.
ISBN 978-1-83736-054-3
10 9 8 7 6 5 4 3 2 1
A CIP catalogue record for this book is available from the British Library.
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