China-US: Power in perspective

by Hugh White - 6 February 2012 3:29PM

As Michael Beckley acknowledges in his reply to Mark Thirlwell, it is hard to say definitively whether America is declining economically relative to China, because it depends what you measure. On some measures it is, and on others it's not. So the next question is: which measures should we pay attention to? And that depends on why we are interested.

In the present debate, flowing from Michael's excellent essay in International Security, we are interested in what the economic trends mean for America's strategic and political power, particularly in relation to China. And we are interested in that primarily because of the implications of shifts in relative power for America's management of its relationship with China. 

So we have three questions to answer before we can draw strategic policy conclusions from the economic data. First, which economic measures are most relevant to judgments about relative strategic and political power? Second, how far are these measures actually moving? And third, how far do the relevant measures have to move to make a difference to the way America frames its policies towards China?

Let's look at them briefly in turn.

Which measure? 

If I read him right, the core of the Michael's argument is that the wealth of a country's citizens, measured as average per capita income, is more useful than the overall size of its economy, measured as GDP, as an index of the country's strategic power.

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Could Australia fight China alone?

by Hugh White - 27 September 2011 1:30PM

Should Australia ever contemplate going to war with China (or any other Asian great power) by ourselves, rather than as junior partner in a US–led coalition? If so, under what circumstances?

Sam's perceptive response to me on 'fighting China alone' suggests slightly complicated answers to both questions. But the complexities are worth exploring, because these are perhaps the most important questions that Australian strategic policy has confronted in forty years.

Let's take the second question first. What are the situations in which we might contemplate fighting China alone? This question has exercised me since the mid–1990s when we ('we' being the group of strategic policy wonks then in Defence) began to wonder about the consequences for Australia if China just kept on growing.

The result was the 'concentric circles' conception of Australia's strategic interests and objectives, first sketched in the 1997 Strategic Policy Review, presented more fully in the 2000 Defence White Paper, and retained, somewhat modified, in the subsequent 2009 White Paper.

The essence of the 'concentric circles' concept is simple. Australia's most important strategic interests are those closest to home. They are our ability to deny the continent's air and sea approaches to an adversary, and to deny them bases in the inner arc of islands to our north. These are not only the interests on which Australia's security from attack most directly depends; they are also the ones that matter to us more than to anyone else.

If there is anything that the ADF must be able to do alone, protecting these interests is it. In 2000 the Howard government identified being able to do that, against a major Asian power, as Australia's highest strategic objective.

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Fighting a major power alone

by Hugh White - 14 September 2011 3:22PM

Sam's recent post on the Joint Strike Fighter made some good points about the relative priority of fighters and submarines. But it embedded a critical assumption that I think needs testing. 'Australia would only ever go to war with China by America's side', he said. How sure are we that this is true?

It certainly has been almost always true in the past that Australia would not contemplate independent military operations against a major Asian power. But in the past there has been no need to, because we have almost always enjoyed the protection of an Anglo Saxon ally exercising clear maritime primacy in Asia. 

Sam's confidence that we will never have to fight a major power alone seems to presuppose either that this will remain true indefinitely, or that if it does not remain true we would be prepared to demote ourselves to small-power status and surrender to any major power that applied military pressure against us.

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Three factors in US economic decay

by Hugh White - 2 September 2011 1:27PM

Thanks to Sam for asking, and Matt for addressing so effectively, the question at the heart of my op-ed a couple of weeks ago about manufacturing and the future of American power.

I'm not by any means a confirmed 'declinist' about America. Like many others, I have long assumed that the US remains, despite passing problems, an essentially very dynamic and productive economy. I argued in Power Shift that America's declining power relative to China is a story of Chinese strength, not American weakness. I still think that is probably true, but due diligence requires us to examine our assumptions with a detached eye. Might something fundamental be changing?

Matt's post argues that it is not. He argues that US manufacturing output has continued to grow strongly, and that the number of people who work in the sector has fallen because manufacturers have become more efficient, which is a good thing. He blames the downturn in output over the last few years on falling demand rather than Chinese competition, and implies that we should expect US manufacturing to continue to grow strongly once demand recovers.

So, business as usual? I have three doubts — about employment, output, and value. Start with employment, and its impact on politics. Jobs in US manufacturing started to decline forty years ago. New industries have emerged to replace manufacturing – most notably finance and IT – but they employ many fewer people who are paid much more. The result has been a revolution in income distribution: median incomes in the US have gone nowhere for decades, and there seems no reason to expect that to change. 

So it's not just that the manufacturing jobs have shifted from the old industrial heartland to the south and west. Manufacturing no longer provides large numbers of high-wage jobs for middle-class Americans, and no new sectors are emerging to offer such jobs in its place. America keeps getting richer, but most Americans do not.

Why does this matter for the future of American power? If, as I believe, strategic weight is more than anything a matter of GDP, why should it matter to America's global role that income distribution in the US changes, as long as GDP overall keeps trending up? 

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An attempt to define 'strategy'

by Hugh White - 15 August 2011 3:36PM

This post is part of a debate - click here to see how this debate started and developed.

Rodger Shanahan is having problems with the phrase 'civilian strategist'. Perhaps that's because he's looking too hard at the adjective and not hard enough at the noun. Let's work out what a strategist is, and then worry about the 'civilian' bit later.

If we start by agreeing that a strategist is someone who does strategy, we have to then decide what 'strategy' means. Do not expect a simple answer. The great philosophical logician Humpty Dumpty spoke truly when he said, 'My words mean whatever I want them to mean'. We can and do use 'strategy' to talk about all kinds of things. So the best one can do is to explain how one uses the word oneself, and hope that helps to make things clearer.

My use of the word 'strategy' derives from my understanding of the nature of war. For me, war is organised violence conducted for a political purpose. Strategy is the bridge between them – between the organised violence, which is the means, and the political purpose, which is the end. The relationship between violence as a means and political outcomes is inherently complex. Perhaps that's because it crosses the divide between the physical and the mental – always a tricky interface.

On this account, the central problem of strategy is how to match military means to political ends. The core strategic decisions that any government has to face are (a) what military operations it should undertake to achieve its political objectives, and (b) what capabilities it should build to be able to achieve its political objectives in future. These are the big questions of strategic policy - 'policy' being just a fancy word for government decisions.

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US-China: Not by bread alone

by Hugh White - 27 July 2011 1:27PM

This post is part of a debate - click here to see how this debate started and developed.

Jeffrey Wilson argues that the China market, while big, is not that big, so our economy would get by OK without it. He concludes that we need not worry too much about having to choose between the America and China. He suggests, therefore, that we need not be too anxious about the risk that US-China relations will dive to the point where that choice has to be made.

Well, I'll leave it to the economists to debate how serious the loss of bilateral China trade would be to Australia's economy. I suspect it would be more serious than Jeffrey's numbers suggest. But the stakes for Australia of US-China hostility are way bigger than bilateral trade.

Economically, the kind of US-China rift that would force Australia to choose would force a lot of other countries to do the same. Workable US-China relations are vital to Australia's economy because they are vital to the whole global economy, not just to Australia's bilateral trade with China. So Jeffrey's numbers don’t really capture what's at stake for our economy. 

And of course the stakes go well beyond economics. If the US-China relationship goes bad, Australia would not just have to choose whether to keep selling to China, but whether to line up against China strategically – and possibly whether to join America in a war with China. That would be a very big decision indeed, with no good choices.

So despite Jeffrey's numbers, I think we do need to worry a lot about the future of the US-China relationship. The big issue for Australia is not to decide whether we would side with the US or China if forced to choose, but what we can do to help avoid facing such a choice. 

Finally, a follow-up to Geoff Garrett's latest

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What is the rationale for foreign aid?

by Hugh White - 22 July 2011 12:11PM

Well, many thanks to Annmaree for her response to my op-ed. Over the years, she's taught me a fair bit of what little I know about aid, so I take her views very seriously. 

But I'm not sure her points quite settle my concerns about the underlying rationale for our aid program. (Another interesting post responding to my op-ed by Terence Wood over at Devpolicy raises some similar questions). 

Just to reassure: I'm not 'anti-aid'. But I do think that we should be clear about what the aid program is trying to achieve, and I think both the Aid Review and the Government's response have left that very muddled. Both say that the primary purpose of Australia's aid is to 'overcome poverty'. Is that something aid can do?

I think it is pretty clear that the only way to overcome poverty is to grow economies. So they key question becomes whether aid can do much to help economies grow.

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US-China: The risk of market failure

by Hugh White - 21 July 2011 10:32AM

This post is part of a debate - click here to see how this debate started and developed.

Geoff Garrett is quite right that economic interdependence between the US and China provides major incentives for both sides to avoid strategic rivalry and conflict. But I'm not as confident as he seems to be that these incentives will be strong enough to counteract the pressures the other way.

Of course it would not be in either side's interest for rivalry to escalate. But this doesn't make it impossible or even very unlikely. People and countries do things against their own best interests all the time. That happens because people do not always see where their actions might lead. And that is why I think Geoff is wrong to say that people who warn about the risks of rivalry between China and America make it more likely.

In fact I think Geoff's optimism is more likely to lead us into trouble than my pessimism, because it encourages the agreeable illusion that nothing needs to be done, and no sacrifices need to be made, to create a stable and peaceful relationship between the US and China in future. 

To see why, we need to consider how economic interdependence reduces the risk of escalating rivalry. 

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How to respond to a changing order?

by Hugh White - 5 July 2011 9:31AM

Stephan Fruehling's excellent post on Friday raises in a searching and helpful way many critical conceptual issues underlying our discussion of US primacy and the future of Asia. He covered the nature of primacy, the future of military preponderance, and relationship between them, as well as role of America’s allies in Asia, the analogies between Asia today and Cold War Europe and the negotiability of the status quo. 

Along the way he implies, but doesn't commit himself to, a view of how we should handle China's power which seems rather close to Nicholas Burns'. That's a lot to squeeze into 500 words, so it is perhaps a little churlish to say that I'd like to hear more. Nonetheless I would, because I'm still not clear what he thinks about the critical questions we all face. 

 But let's start with 'primacy'. Stephan says I use it in several different ways. I don't think I do. By 'primacy' I mean:

 a relationship between a country and an international system in which that country has a qualitatively different and greater role than any other country in the system in setting norms of behaviour, determining when those norms have been breached, and taking action to enforce them.

I think the US has sought primacy in Asia for almost a century, and has exercised it for forty years. Indeed since 1972 American primacy has been uncontested by Asia's other great powers, and this uncontested primacy has been the defining feature of the East Asian order.

There is a strong consensus in America today that it should aim to retain its primacy in Asia, but too little attention has been given to the obvious fact that its primacy will no longer be uncontested. That makes a big difference.

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Yes, there is a US consensus on China

by Hugh White - 30 June 2011 1:46PM

This post is part of a debate - click here to see how this debate started and developed.

Sam is right to see some tension between the different ways that influential Americans like Nicholas Burns and Mike Green describe their county's strategic objectives in Asia. But for what it's worth, I think Nic and Mike really do see America's purpose in Asia the same way. Both of them, and the vast majority of their colleagues in the US foreign policy community, believe America's overriding aim should be to preserve the regional primacy that it has exercised in Asia for the past four decades.

This consensus is seldom clearly spelled out in American debates, because it is simply taken for granted by everyone. Instead, discussion moves straight to the question of how primacy is to be preserved. Here too a ready consensus prevails: America should follow a two-track 'hedging' policy of engaging China as long as it accepts US primacy, and opposing it if it doesn't.

The two-track approach conveys an agreeable impression that American policy is flexible and accommodating — allowing China scope to grow, as well as imposing limits. But to my mind, that impression is false, because the policy clearly envisages a switch from engagement to containment as soon as China challenges American primacy. 

In other words, the US policy consensus does not encompass any significant accommodation of China's growing power. China will only be engaged as long as it submits to American primacy. So there is really no difference between Nic Burns' talk of predominance and Mike Green's talk of hedging. They amount to the same thing.

The big question, then, is whether our American friends have got this right. Is primacy in Asia the right aim for America? 

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Our security is at sea

by Hugh White - 10 March 2011 12:13PM

Rodger Shanahan's response to my post about the role of the Army hits the spot on two issues. First, he and Gates (whom he quotes), are right to say that we have not been able to reliably predict what the government might ask the ADF to do. Second, he is right that over the past 40 years, most of what the Australian Government has asked the ADF to do has clearly been for the Army, so it has done almost all the fighting.

Rodger implies that the best way to set future force priorities is to assume that the future will be like the past, and therefore we should keep maintaining an ADF, and an Army, that looks much like the one that has served us well until now.

I agree with one part of this. The Army we have today is broadly suited to the demands of the next few decades. But I disagree with Rodger's implication that the rest of the ADF can stay as it is, or even be scaled back. 

I'm not sure the past forty years is a good guide to the next forty. Since 1972, Australia has been protected by uncontested US primacy in Asia, which has blissfully limited both our strategic risks and the demands on our armed forces. The operations we have undertaken have been small, and the stakes for Australia have not been high. The next four decades will be different. US primacy will probably be contested, so the scale and nature of our strategic risks will grow, and we might well demand a lot more of the ADF.

While I agree that we cannot predict the locations and purposes for which governments might in future choose to deploy small contingents of the ADF for strategically marginal purposes, I believe we can predict with some confidence the circumstances in which Australia would depend on the ADF to face a really pressing strategic risk to our safety.

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What is the Army for?

by Hugh White - 8 March 2011 1:44PM

Two recent speeches by US Defense Secretary Robert Gates — one at West Point last Friday-week and one to the USAF Academy last Friday — raise questions about America's future strategic objectives and the future of the US Army which closely parallel those we face here about the Australian Army. 

At West Point, Gates told the cadets that America is unlikely to fight major continental land wars in future. 'The Army also must confront the reality that the most plausible, high-end scenarios for the U.S. military are primarily naval and air engagements – whether in Asia, the Persian Gulf, or elsewhere', he said. 'Any future defense secretary who advises the president to again send a big American land army into Asia or into the Middle East or Africa should “have his head examined,” as General MacArthur so delicately put it.'

Gates drew the obvious implication that the need for traditional heavy armoured and mechanised forces would decline in favour of lighter forces suited to the 'security challenges we face right now'. The Army 'will be increasingly challenged to justify the number, size, and cost of its heavy formations', as 'the prospects for another head-on clash of large mechanized land armies seem less likely'.

He also made it clear that the need for lighter forces would be, or should be, lower than over the past decade.

The odds of repeating another Afghanistan or Iraq – invading, pacifying, and administering a large third world country – may be low. But...those unconventional capabilities will still be needed...to prevent festering problems from growing into full-blown crises which require costly – and controversial – large-scale American military intervention.

If I'm reading this right, Gates seems to be saying that the US Army should not be designed primarily for high-intensity conflicts nor for large-scale stabilisation operations, but for smaller scale interventions designed to avoid the need for large ones.

But Gates also suggested that the fad for counter-insurgency has already passed, at least in his ring of the Pentagon. 'By no means am I suggesting that the U.S. Army will – or should – turn into a Victorian nation-building constabulary – designed to chase guerrillas, build schools, or sip tea'. (Or eat soup with a knife, he might have added.) So what does he think these 'unconventional capabilities' will do to stop the next Iraq or Afghanistan happening?

All this raises some very interesting questions about Gates' view of America's strategic priorities and objectives over the next few decades.

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Gates draws curtain on Afghanistan

by Hugh White - 7 March 2011 8:32AM

A minor point on US Defense Secretary Robert Gates' recent West Point speech (a more thorough treatment of that speech to follow): talking about the need to break up the concrete of the Army’s promotion process, Gates started a sentence with this subordinate clause: 

After the major Afghan troop deployments end in 2014...

Just as bald as that. No 'if', 'but' or 'maybe'. No reluctance to set a date, no talk of 'conditions–based' rather then 'time-based' schedules. As far as Gates is concerned, America's major military effort in Afghanistan will end three years from now, no matter what. 

Why doesn't the Australian Government simply use the same formulation? Surely not because we expect to stay after the US goes? Someone might ask Gillard while she's in Washington.

Image by Flickr user The Rocketeer.

Nuclear reactions

Will America keep its nuclear promises?

by Hugh White - 2 March 2011 11:34AM

This post is part of a debate - click here to see how this debate started and developed.

To take this debate further we need to get a bit clearer about what we are debating. Are we discussing whether we want END to survive, or whether we expect it to survive? Many of the posts we have seen so far argue that END is a good thing that we should want to preserve if we can. Some comments on my earlier post seem to imply I think the opposite. 

Let me be clear: I think END has been an extremely successful and beneficial policy, and I wish it could last forever. No debate there.

But can it survive? This is a very different and to me much more pressing question, because, as I argued in my earlier post, the conditions under which END has worked until now are changing. I think END is unlikely to survive these changes, because I see it as a complex, delicate thing, and the conditions required for its survival are specific and demanding. This is the underlying point on which I differ from many of the excellent posts in this debate so far. In what follows I will respond primarily to Bruno Tetrais' second post, and to my colleagues Stephan Fruehling and Ben Schreer.

For them, END is very simple. America promises it will come to an ally's aid if it is attacked, and the ally is happy to have that assurance. The ally need not be sure that the US would honour its promise in a crisis, because what matters is the effect on the supposed adversary, who cannot be sure the Americans will not honour their promise, and will be deterred by the possibility that it might. This account of END makes it seem as if it delivers big benefits for little cost. Why shouldn't it last?

But I do not think END is that simple, and especially not in the cases where it matters most. It is complicated because of the substantial costs that both the US and its ally must incur in sustaining END. These costs mean that END will only survive if it delivers benefits to both sides that justify them. That is what I doubt.

What are these costs? Let's start with the ally. Being a US ally and accepting END carries several kinds of costs. The most important of these is the need to forgo other ways to protect oneself — what one might call strategic opportunity cost. These costs are quite low for a relatively weak yet secure country such as Australia. But for a strong ally in a risky position — in other words, for the most important allies — the strategic opportunity cost can be substantial. Strong allies have other options, and for allies at risk, the imperative to find the most effective defence is strong, so the costs of sticking with a sub-optimal policy is high. 

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Subordinate, accommodate or confront?

by Hugh White - 25 February 2011 10:42AM

This post is part of a debate - click here to see how this debate started and developed.

Well, thanks to Ross Babbage for his response to my earlier post. His points help to clarify some key issues in his Strategic Edge report, but I don't think they dissolve my two principal reservations. Let me explain them in turn, and offer some thoughts about how to move this important debate further forward.

Will China become an enemy?

Strategic Edge does not describe China as an enemy, but it promotes an approach to China's growing power that makes no serious effort to avoid a sharp escalation in strategic competition, and therefore makes it much more probable that China will become one. Ross does say that we should do 'all we can' to avoid strategic competition, but he does not clearly explain what we should do. I read Strategic Edge to say that we should not do anything to accommodate China's ambitions. Instead we should insist that China continues to accept the existing US-led regional order in Asia.

This is a common enough view. Many people believe that we should engage China as long as it respects the US-led order, but refuse to accept any Chinese attempt to change that order in its favour. This approach has worked well for many years, because while China was still relatively weak, the costs and risks of confronting it would not have been very high. But China's new strength makes those costs and risks much higher in future, as Ross makes very clear. So we need to ask whether preserving the current US-led order in Asia is still worth the much higher costs which that policy now entails.

Of course, that depends on what the alternatives are. Strategic Edge seems to imply that the only alternative to American primacy in Asia is Chinese hegemony. We can all agree that Chinese hegemony would probably be very dangerous for Australia, and therefore worth the high costs of confronting China to avoid. But that leaves a vital question: are there other alternatives that would be less dangerous than either Chinese hegemony or confrontation with China? My Quarterly Essay argued that there are, and that we should explore them seriously.

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Crime and punishment in defence policy

by Hugh White - 18 February 2011 3:17PM

This post is part of a debate - click here to see how this debate started and developed.

I agree with Ross Babbage about what I take to be the three most important messages in his Strategic Edge report. The first is that China's growing power is fundamentally transforming Asia's strategic order and hence Australia's strategic environment in ways that substantially increase Australia's strategic risks over the next few decades. The second is that Australia's strategic and defence policies today are quite inadequate to meet the demands this will make on us. The third is that Australia needs an open, serious, responsible debate about how we should fix them. 

But I think he is too quick to assume that China will become our enemy, and too optimistic about Australia's options if it does. Three points.

First, the report assumes there is nothing we can do to avoid an intense strategic contest with China. If China seeks a much bigger leadership role in Asia as its power grows – and I agree that it probably will – then Ross concludes that intensifying strategic competition becomes inevitable. But that depends on how big a role China seeks, and how the rest of us respond.

If China insists on trying to impose a stern hegemony over Asia, then we have no option but to resist as forcefully as necessary. But we might be able to negotiate a new order in Asia which gives China some increased influence yet still protects our vital interests. Strategic Edge overlooks this possibility. It sees no difference between negotiating with China and surrendering to it, and quite wrongly accuses people like me of advocating surrender when we advocate negotiation.

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Nuclear reactions

Extended deterrence: A game of bluff

by Hugh White - 3 February 2011 4:47PM

This post is part of a debate - click here to see how this debate started and developed.

It is best to start thinking about how extended nuclear deterrence (END) might work in future by looking back at its Cold War origins. It is, of course, an American concept. America deliberately promoted expectations that it would respond with nuclear weapons to a Soviet attack on its allies in Europe and Asia. This policy had two aims: to deter the Soviets from attacking US allies, and to keep the allies loyal by reducing their incentive to build their own nuclear forces.

For END to work, America needed both the evident nuclear capability to strike the Soviets hard enough, and the evident willingness to use that capability if its allies were attacked. The capability bit was never in doubt, but it proved harder to persuade both Moscow and America's allies that it would actually use its nuclear forces to defend others. 

The proportionality of a nuclear response to a conventional attack was one problem, but the real question concerned costs to the US once the Soviets had the ability to strike back. Would Washington risk nuclear retaliation against the US itself to defend an ally an ocean away?

Much of US nuclear strategy in the Cold War was devoted to persuading both friends and foes that it would. Ultimately, the US succeeded because it convinced others that it saw the loss of a European or Asian ally as posing a direct threat to the US, because they feared that would lead to Soviet domination of Eurasia, which would make Moscow strong enough to overmatch and dictate to the US.

What does this tell us about END over the next few decades? The capability element seems to me pretty clear. The US can easily maintain nuclear forces able to devastate any adversary, and – speeches in Prague notwithstanding — I think there is little doubt that it will do so. But America's ability credibly to threaten nuclear attack to defend other countries is much less assured. It depends on whether Washington can persuade others – adversaries and allies alike – that it would be willing to go ahead and launch a nuclear attack if its bluff was called. 

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My books of the year

by Hugh White - 23 December 2010 9:16AM

This year I've been thinking about a few related ideas; rising power, appeasement, containment, negotiation and political leadership. These themes show up in the books that have made the biggest impression on me this year.

In Greece in spring I reread Thucydides from cover to cover for the first time in many decades, and was rather taken aback by how good it is. I also read a wonderful little book called Why Socrates Died, by Robin Waterfield, which gives as good a picture as I've found of the workings of 5th century Athenian society and added a lot to my grasp of the whole deal.

In Munich I found a book called Munich: The 1938 Appeasement Crisis, by David Faber, which freshened up my thinking about this much-abused historical metaphor and has lots to tell us about present predicaments. Also a very interesting biography, Stanley Melbourne Bruce: Australian Internationalist, by David Lee of DFAT's Historical Section, which has a lot to say both about appeasement as a policy, and about Australia's remarkable efforts to shape British policy in the 1920s and 30s.

Thinking about how to deal with a rising power led me to read – for the first time, I'm ashamed to say – John Lewis Gaddis' Strategies of Containment, which explores the complexities of America's approach to the Soviet Union in great detail and with great insight. And that led me to Coral Bell's old classic, Negotiation from Strength, which is, in its clarity and power, rather a model of strategic writing, and very pertinent to our present concerns.

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Winners and losers in the Korea crisis

by Hugh White - 21 December 2010 9:39AM

It's too early to be sure that China has done badly out of the crises on the Korean Peninsula over the past few months, and that America has done well. We should at least consider the possibility of the opposite outcome. Let's look at the two powers in turn.

America's robust support for South Korea has strengthened the alliance with Seoul and enhanced US standing as a strong and reliable ally in Japan and elsewhere in Asia at a time when China's rise is challenging American power. 

But does the benefit last? What happens next time the North stages a provocation, as it most likely will? America's strong stand has gone down well in Asia because it has carried a strong implication that America will take military action next time. But will it? That seems unlikely, because the US has no military options without risking a major war, and the costs of major war are not justified to prevent the kind of small-scale provocations that North Korea is doling out. 

So next time the North strikes the South, America will say the same things and issue the same warnings. This will not stop North Korea, and will not impress the South Koreans and Japanese.   

Of course, the US could think about a military response next time. It could look for a military option which inflicts real punishment on Pyongyang without provoking a full-scale counterattack. The US would calculate that the North's threshold for major war is quite high, given Pyongyang must recognise that war would destroy the regime.

But the North Koreans can make the same calculation about Washington and Seoul; their threshold for general war is high too, so North Korea could make an escalated counter-response to America's escalated response, still (they hope) stopping short of an attack large enough to provoke all-out conflict. The result would be an escalated, protracted and very risky exchange of blows, which the US could not bring to a decisive end without escalating further to major war. 

So America would be very unwise to escalate. That means it will have real trouble making a credible response to the next provocation. South Korea and Japan will be disappointed. Does Washington look like a winner then?

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What has surprised me about this year? China's hubris and America's adaptation

by Hugh White - 13 December 2010 3:04PM

I've spent most of this year focused on the US-China relationship, and two things have surprised me.

First, I've been unpleasantly surprised by how assertive China has been this year, especially at sea. I think it has always been inevitable that China would one day leave behind Deng's injunction to hide its power, but to have become so bolshie so fast on navigation issues in the South China Sea, East China Sea and Yellow Sea seems clearly counter-productive for China. 

Having spent a decade very successfully reassuring everyone in Asia (except, of course, Japan) that they had little to fear from Chinese power, the Chinese have now given everyone a good reason to worry. And any countervailing gains to China seem modest at best. There are several possible explanations for what seems poor policymaking in Beijing: the PLA flexing its muscles, rivalry between leadership factions as the post-Hu transition is hammered out, or simple hubris grown uncontrollable by the GFC. All of these are possible, and none is reassuring. 

One detects a note of glee from some Western commentators and governments that the Chinese should be so dumb as to shoot themselves in the foot this way. I think that is unwise. Managing the implications of China's growing power for Asia's order is going to be very hard even if the hard men in Beijing are completely cool and rational about it. If they keep acting like this, it is going to be that much harder, and that is not good for America or anyone else.

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Wikileaks cable: Rudd in a muddle

by Hugh White - 7 December 2010 1:48PM

On one view, then-Prime Minister Rudd's leaked conversation with Secretary of State Clinton about China in March last year is simply banal: a salutary reminder that very important people can, and often do, have very unimportant conversations. 

But even the banal can be interesting in some contexts. The China passage of the Rudd-Clinton cable is intriguing precisely because it provides a window into the way the US and Australian governments talk about the most important foreign policy question in the world today.

The exchange, as reported, seemed to consist of a rather random selection of observations and assertions which broke little new ground and reached no conclusions. This tends to confirm my hypothesis that the two governments are not engaging in a serious dialogue on the issue which will do more than anything else to shape Australia's future security and prosperity. If so, it constitutes major failure on the part of our Government to fulfill its foreign policy responsibilities.

But there is another interpretation of the cable which makes it much more important. A lot depends on how we interpret the cable's laconic account of what Rudd actually said:

Calling himself "a brutal realist on China," Rudd argued for "multilateral engagement with bilateral vigor" -- integrating China effectively into the international community and allowing it to demonstrate greater responsibility, all while also preparing to deploy force if everything goes wrong.

The implications of this statement depend on whether the Asian order into which Rudd wants China to fit is the one which has kept Asia peaceful for the past forty years, led by the US, or whether he envisages the evolution of a different order in Asia as China grows.

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China: An inconvenient truth

by Hugh White - 15 October 2010 1:19PM

Our colleague Raoul Heinrichs has a peach of a post over at Pnyx exploring the fascinating and momentous paradox that America has so willingly used its power to create the conditions in which China's power could grow to displace it.

One could write a book about the subject, but for what it's worth, it seems to me that over the past three decades, Americans, and America's friends, have constructed quite an elaborate system of interlocking beliefs to assure themselves that China's rise will not seriously challenge America’s global position. At their simplest, these beliefs boil down to four propositions:

  • China's economy will stop growing before it gets close to America's.
  • If China's economy does keep growing it won't matter because the US will still be far ahead in other forms of national power, especially military and diplomatic.
  • If China's military and diplomatic power grows too it won't matter because China will not try to challenge America's primacy, either because its economic interests give it no choice, or because it will have become more like the US and hence will welcome US leadership.
  • If China does try to challenge American primacy it won't matter, because America will easily defeat the challenge.

Separately or together, these propositions have been accepted as axiomatic by most people in American and Asian strategic debates. Each of them could be true, but none of them is self-evidently so, and in fact all four are proving to be false.

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Concert of Asia: Community inaction

by Hugh White - 1 October 2010 3:19PM

This post is part of a debate - click here to see how this debate started and developed.

Oh dear, I didn't mean to accuse Sam of Kumbaya-ism, but only to defend myself from that grave charge. One reason many people have doubts about the Concert model for Asia's future order is that it seems to presuppose the prior existence of precisely what it is supposed to establish – stable and trusting relations between the major powers. I thought that was the criticism Sam and Raoul were both advancing in their different ways. 

Hence my eagerness to say that, on the contrary, a Concert as I conceive it would work in impeccably realist terms based only on the cold calculation of self-interest by the parties, requiring no more to start the process than a cautious willingness to give it a try, and a clear understanding of how much worse the alternatives would be for each of them. 

But now I see that Sam thinks my vision is too Realist. He argues that, to build a Concert, we would require more than enlightened mutual self-interest among the great powers. We need something of the sense of community, embodied in institutions, which conservatives like Scruton and Burke believe are at the heart of domestic political life. We therefore need to build a concert on the foundations of the region's current institutions.

Well, this is a big subject and Sam's points are very important. However, to stop this post getting out of control I'll make just two brief points.

First, a broad point about the difference between national and international politics. Sam's argument relies on the idea that they work the same way, or should work the same way. In this he is following a great tradition of liberal internationalism, but not one I think good conservatives like Burke would have signed up to (Sam may well correct me on this – he knows his Burke much better than I do). 

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Concert of Asia not an idealistic solution

by Hugh White - 29 September 2010 3:50PM

This post is part of a debate - click here to see how this debate started and developed.

Sam and Raoul both raise important questions about the Concert of Asia which I propose in Power Shift as a model for how Asia's order could be adapt to China's growing power. Raoul worries that a Concert could not last because the parties would not trust one another enough to stop competing. Sam shares this worry; he suggests that Europe's concert required a lot of cultural cohesion to overcome the competitive instinct, which Asia lacks. 

I agree with their premise. If the concert required the great powers to abandon strategic competition in favour of trust and cooperation it would have a very poor prospect indeed. But that is not how I see it. 

To me, a concert is not an alternative to strategic competition, but a way of managing it. Its essence is simple: every member of the concert accepts that the costs of attempting to dominate the system outweigh the benefits, so each accepts as the best outcome they can sensibly hope for an equal share of regional power with the others, as long as the others accept that too.

There is nothing 'kumbaya' about any of this. The judgement by each of the concert's members that the costs of a bid for hegemony outweigh the benefits is not based on a close reading of Kant on perpetual peace. It is based on a lively expectation that any bid for hegemony would meet a unified, determined and forceful response from the other members. To make that credible they remain well-armed and ready to defend any major violation of the norms which underpin the concert.  

Trust does play a part, of course. The parties need to trust one another enough to think that the arrangement has a chance of working or the initial agreement would never be reached and the system would slide directly into a competition over primacy. But that trust is bolstered by the expectation that each party will see that the deal is in its own best interest. It will also be bolstered by the immense risks and costs of the alternative. 

One reason I think the concert might be possible is precisely the huge stake that economic interdependence gives as all in avoiding competition. So I'm not as gloomy as Sam about the chances of making it work in Asia.

And, to repeat what I have said elsewhere, my point about the concert is one of prescription, not prediction. I do not predict that a concert will emerge in Asia, in fact I think it is quite unlikely. But I do think it is a credible possibility, and that it would be the best credibly possible outcome for Australian and for the rest of the region. So I agree with the many strong arguments that the concert is a long shot, but I also think they slightly miss the point.

Photo by Flickr user just.Luc, used under a Creative Commons license.

China: Cautious pessimism

by Hugh White - 28 September 2010 4:25PM

This post is part of a debate - click here to see how this debate started and developed.

Geoff Miller raises lots of interesting points about my argument in Power Shift, any one of which would be worth a long post in its own right. But it might be more useful to go to the core idea which I think underlies Geoff's comments. He finds my description of the problem of Asia's future order too stark, and my approach to a solution too radical. He suggests that China's power is already being accommodated, that the region's multilateral machinery is evolving to take that process further, and we can safely relax and let things continue along these lines.

In fact, I agree with many of Geoff's positions, at least up to a point, and some of the remaining differences may be merely temperamental: Geoff is an inveterate optimist, while I am a professional pessimist. 

But there is a deeper issue here that deserves analysis. Geoff's optimism derives largely from his view that the region has already begun to accommodate China's rise, and it has gone OK so far, so why shouldn't it continue to go OK? My view is that we have hardly begun to adapt to the political and strategic implications of China's growth, because we — the US, Australia and the rest of the region — have been in denial about the scale and significance of those implications.

But on the most important issues I think we agree: that we need a new order in Asia to keep the peace in new circumstances; that the foundation of that order must be the accommodation of China's power in ways consistent with the most important interests of others; that something like what I have called a Concert of Asia seems the best model for how this might be done; and that Australia should be active in trying to bring that about. If we agree on that much, I’m content to settle the rest over a glass of wine. 

Photo by Flickr user Major Clanger, used under a Creative Commons license.

Concert of Asia: The is-ought problem

by Hugh White - 28 September 2010 10:02AM

This post is part of a debate - click here to see how this debate started and developed.

Stephan and Ben address three important issues in their latest post about my Quarterly Essay. First, they raise the question of who is driving strategic tension in East Asia. They say I blame the US.

This is most definitely not my view. But nor do I share what seems to be their inclination to blame China. In fact, I do not 'blame' either Beijing or Washington for the rising level of strategic competition; or rather, I blame both equally for not working together to reduce the risks. I see their situations as essentially symmetrical.

This seems to surprise many people, because it is China that challenges to status quo, and the status quo suits us. That leads us to think China is at fault because its ambition for more power threatens the current order. But I do not think it is inherently wrong for China to seek more power as its strategic weight grows. Nor is it wrong for America to try to maintain as much power as possible. It would be wrong for either of them to pursue power to the point that it threatens regional stability; both have a responsibility to balance their desire for power with the imperative for peace.

That means it is legitimate for China to seek a new order which accords it more power, as long as that order preserves peace. To do that, the new order will have to establish and enforce clear limits on how China’s power is used – broadly those of the UN Charter – but those limits will apply to the US and other great powers equally.

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China: Applying rational pessimism

by Hugh White - 21 September 2010 12:32PM

This post is part of a debate - click here to see how this debate started and developed.

Andrew Phillips’ elegant post presents a sophisticated challenge to the pessimism which underpins my Quarterly Essay. I see a serious risk that US-China strategic competition will escalate, making Asia a more contested region at higher risk of major war – more like Asia in the century before 1970 than in the decades since. 

Andrew argues that Asia has changed a lot since 1970, and he identifies four kinds of change which make it less likely to slide back to the way it was before then. He concludes that we should not assume Asia cannot peacefully manage what's coming.

I absolutely agree with his conclusion. Escalating competition between the US and China is not inevitable, and important features of Asia today should act powerfully to help prevent it. Nonetheless I think the residual risk remains sufficiently high – and the consequences sufficiently serious – that Australia and other countries should put a lot of effort into managing it. This might be so even if I thought the risk is as low as Andrew does. But for several reasons, his arguments do not provide me with as much reassurance as they provide him.

Andrew's first two trends are the increasing strength of the region's states and the declining strength of conflicting ideologies. He says both trends make it unlikely that Asia will slip back into the kind of disorder we saw before 1970, because that era's troubles were clearly fostered by the weakness of some key states and the power of competing ideologies. I agree with the history but not with the conclusion.

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Power shared is order secured

by Hugh White - 20 September 2010 4:20PM

This post is part of a debate - click here to see how this debate started and developed.

The European sensibilities of Stephan Fruehling and Ben Schreer infuse a little old-world continental grace and charm into our debate and provide an antidote to its Asia-centricity. Nonetheless, I'm not sure they intend a compliment when they compare my Quarterly Essay to French writing on American power. I think they suspect me of whimsical Gallic anti-Americanism. 

Not guilty. As I make clear in the essay, I would like nothing better than for America to remain the uncontested dominant power in Asia, but I fear this is not possible as China grows. They say my fears are exaggerated, because American power depends not just on its economic weight but on its capacity to build coalitions around shared interests and values. I think they miss two points.   

First, soft power and the business of building coalitions: I agree with Ben and Stephan that America's power vis a vis China depends among other things on its capacity to attract support from others. But they seem to think that this capacity is inherent in America's nature as a country. I would say it depends rather on the existence of an actual and sustainable congruence of interests between the US and prospective supporters. For reasons I make clear in the essay, this is not to be taken for granted. If the countries of Asia believe that the region's peace can be maintained in an order based on shared power, they are unlikely to support America in asserting primacy at the cost of disorder.

Second, the nature of American primacy: Ben and Stephan think Australia should be relaxed because America, supported by its allies, will remain strong enough to resist China's challenge to its primacy.

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China's challenge to Australian identity

by Hugh White - 20 September 2010 9:15AM

This post is part of a debate - click here to see how this debate started and developed.

Malcolm thinks the picture I paint of Australia and its place in Asia is not the Australia he knows and loves. He is absolutely right. At the core of my Quarterly Essay is an argument that China's rise is the biggest change in Asia's strategic order, and hence in Australia's strategic setting, since 1788. Big claim, but how else to describe the emergence of an Asian power as the world's richest (and therefore strongest) country for the first time in 200 years? 

Asia will not be the same, and neither will Australia. We need to get used to that, and ask the next question: how can we make whatever follows as good for us as possible?

As Malcolm says, my starting point in exploring this question is the judgment that China's growing power does not per se threaten Australia. This simple statement embodies two rather distinct judgements. The more obvious one is that there is no reason to assume or even expect that China will use its power directly to attack or intimidate Australia. Of course, there is no reason to rule this possibility out either. Indeed, I argue that addressing this possibility is a central issue for our defence policy, and limiting the risk that China might become threatening is a key requirement for the design of a new Asian order.

But whether or not China does use its power in ways that threaten Australia and others directly does not necessarily depend solely on China's choices – it also depends partly on the choices we make. We can help make China a threat, if we are not careful.

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Who do we think we are?

by Hugh White - 14 September 2010 9:33AM

This post is part of a debate - click here to see how this debate started and developed.

Last year, when we were debating the 2009 Defence White Paper at the National Press Club, Paul Dibb wanted to emphasise his dissent from my relatively ambitious view of Australia's strategic objectives in the Asian Century. 'Who do we think we are?' he asked rhetorically.

It was the right question to ask, but not rhetorically. Not far below the surface of every debate about strategic policy lurk questions of national identity, and Graeme Dobell, with his unerring knack for finding the tender spot in any position, has gone right to it with his second post about my recent Quarterly Essay.

In his rather different way, Greg Sheridan went to the same issue in his response to my essay over the weekend. As I've suggested in my response to Greg, I think what drives his evident discomfort with my argument is not simply a difference of view on specific issues. It is his discomfort with the idea that there could be any circumstances in which the US alliance would not be the foundation of Australia's foreign policy. In the end, this reflects his belief, shared by many people, that the US alliance is part of who we are as a country – part of our national identity.

To be clear, I do not argue for the end of the alliance in my essay. I do argue that the circumstances in which the alliance has been so good for us are changing. 

We therefore have to reconsider how the alliance works, and whether it works, in the new circumstances we now face. That means we face big choices about the alliance's future, and this is where Sam Huntington and the Clash of Civilisations comes in. Graeme is absolutely right to draw attention to our tendency to conceive these choices in Huntingtonian terms, because it so natural to see the alliance, and Australian identity, through the lens of what Huntington called 'Civilisation'.

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Interpreting the Aid Review

This is the archive of a Lowy Institute blog which ran from January to April of 2011. It was published to debate the Gillard Government's independent aid review, which was then in its research and consultation phase. We offer this archive as a service to researchers and the general public.