New roles for emerging powers

Editor's note: Globalization and power shifts at the world stage have gathered steam in the wake of the international financial crisis. One of the prominent features is the rise of emerging countries such as China, Brazil, India and Russia.

Andrew F. Cooper, a renowned Canadian expert on global governance, recently agreed to an exclusive interview with China Business Weekly journalist Fu Jing to discuss the challenging global economic and political landscape and China's role in the unfolding drama.

Cooper is associate director of the Center for International Governance Innovation, an academic organization based in Canada that explores effective systems to govern a robustly changing world.

He co-edited the book Emerging Powers in Global Governance, which is a collection of views from international experts on economics, politics and global governance. The English and Chinese versions already have been published.

Cooper and his fellow researchers have been closely tracking the development of the world's economy and have shown growing interest in the rising role of China.

Q: China's development in the past decades has attracted much attention worldwide. At this historical juncture, especially amid the global efforts to shake off the economic recession, how do you assess China's global role?

A: China is not just big in size, territory, population and economic output. China is a rising power, which features in its growing soft power. This is my basic judgment.

To be frank, skepticism existed in past years about China's global role. However, we can see now how high expectations were from the international community.

Correspondingly, China has been playing a responsible, cooperative and constructive role in many areas. We can find contributions from China at nearly every big global or regional occasion.

The financial crisis has had a tough impact on China, an economy heavily dependent on exports in its coastal economic powerhouses. Thanks to its swift response and stimulus package, China's economy has been put on the right track again.

Meanwhile, China's domestic economic measures have helped create opportunities for other countries. In this way, the stimulus package has been designed and implemented in a balanced way.

China is against trade protectionism and actively participating in redesigning international financial institutions. And the efforts are gradually delivering results. We can say China, as a growing power, is playing its role well.

Q: What should China do to continue the momentum at the global stage?

A: My suggestion is that China should work more aggressively to forge closer partnerships with international organizations such as the International Monetary Fund and World Bank.

A strengthened partnership and contribution from China can, in turn, boost its role and performance globally.

Of course, China's national interests can be well protected. However, the balanced approaches are needed as you are working at international levels.

At the same time, China's partnership with the United States is very important. The bilateral partnership is key to the success of China's role on the global stage.

Q: You mentioned that the US is still a superpower despite the fact that Western countries have been losing their economic edge in the financial crisis. Why do you hold that view at a time when there is so much criticism of capitalism and free markets?

A: We have to admit that globalization has accelerated, and an important phenomenon in these years is the rise of Asian countries and some other transitional economies.

The Western countries are losing power, and we have to admit the US has been severely affected by the financial crisis.

However, the US is still a robust society. Its high-tech industry is still leading its economy and the development of multinationals shows no signs of ebbing.

Globally, the US is playing a responsible role by hosting two G20 financial summits, with one in Washington last November and one in Pittsburg this September.

To make the international system work is the key. And the US has born the brunt in this regard despite the fact that the US could not command the G20.

Q: But the world is blaming the US for giving birth to the financial crisis because of its free markets, lack of regulation and the greed of bankers.

A: It is wrong that we criticize only the US for the problems. Not only London bankers, but also banks from Germany and other countries should be blamed for the worldwide financial crisis.

So, again, I think, it is not wise to criticize only the US. In the US, the financial facilities have been eroded. That is the problem, and this also happened in other countries.

We must rethink market systems and strengthen financial regulations. We need joint and global efforts.

Q: China's stimulus package has worked well, and many believed that the government in this country has played a powerful role. How do you comment on the government's role in Western countries?

A: The governments in Western countries didn't begin the right way by using laissez-faire policies in financial sectors.

There are a lot of stories since the collapse of the Soviet Union regarding the role of the market. And one thing at the heart of it is regulation.

However, this time in tackling the financial crisis, the governments have planned a very big role in a more positive way. And in this way, the authorities have become more creative.

Globally, with compassion, using the same measures that were used to tackle the Great Depression in the 1930s, all the countries this time are acting roughly in the same direction.

The policies are well coordinated, and we can see the financial crisis has brought the countries in the world closer.

Q: It seems you are quite optimistic about economic development globally and in China. So what do you think are challenges for China in a changing world?

A: At home, I think China should tackle the problems of rebalance, especially in the rural regions. China has been developed well, but the disparities between the cities and rural regions have grown larger during the past few decades.

This is a big challenge for China. In this time of financial crisis, China needs to design near-term fixes and long-term strategies in a more balanced manner. This should be shown in further urbanization.

Globally, I think China should actively participate in global governance constructive. From a longer-term perspective, China should participate in many global issues such as climate change and food security, and offer suggestions with vision.

Economically, the next danger could be protectionism. The financial crisis has basically bottomed out, and many countries are aiming to bolster their recovery.

So I think that possibly they will use some economic weapons to protect their industries, and then the policies might evolve into protectionism.

The world power shift has been happening in a peaceful way, without wars.

But in reshaping international economic and financial territories, trade wars and protectionism are threats China and other countries must face.

(China Daily 08/31/2009 page2)