The Illiberal Tide
Why the International Order Is Tilting Toward Autocracy
BY ALEXANDER COOLEY
AND DANIEL H. NEXON
March 26, 2021
·
ALEXANDER COOLEY is Claire Tow Professor of Political Science at Barnard
College and Director of Columbia University’s Harriman Institute.
·
DANIEL H. NEXON is a Professor in the Department of Government and at the
Edmund A. Walsh School of Foreign Service at Georgetown University.
·
This essay emerged from the Lloyd George Study Group on World Order.
·
·
The “liberal international order” is under
severe strain. Although its supporters welcomed the defeat of former U.S.
President Donald Trump, the order still faces major challenges from both within
and without. Populist politicians across the globe call for major changes in
the norms and values of world politics. They attack liberal order as a
so-called globalist project that serves the interests of sinister elites while
trampling national sovereignty, traditional values, and local culture. Some
with this view currently lead countries that belong to pillars of liberal
order, such as NATO and the European Union. Others, including in the United
States, are only an election away from taking the reins of foreign policy.
Meanwhile, emboldened illiberal powers seek to make the world
safe for authoritarianism, in the process undermining key elements
of liberal order. China and Russia, in particular, have exercised diplomatic,
economic, and even military power to put forward alternative visions.
But if the current liberal international
order is in trouble, what kind of illiberal order might emerge in its wake?
Does an illiberal order necessarily mean competition for naked power among
increasingly nationalist great powers, rampant protectionism, and a world
hostile to democratic governance?
Current trends suggest less a complete
collapse of liberal order than important changes in the mix of illiberal and
liberal elements that characterize world politics. Multilateral cooperation and
global governance remain strong, but they display increasingly autocratic and
illiberal characteristics. The growing strength of reactionary populism and
assertiveness of autocratic powers are eroding the international order’s
ability to support human, political, and civil rights. Similar developments
point toward a future where liberal economic arrangements are used for oligarchic
and kleptocratic purposes.
These processes are already in motion.
They stem not only from recent developments but also from forces that have been
transforming international order since the start of the twenty-first century.
Indeed, it would be naive to think that the liberal order can be frozen in any
particular form. There are inherent tensions and tradeoffs that generate
pressures for change. It may be impossible to completely reverse current trends
in the evolution of international order. Democratic states should instead focus
their efforts on shaping the changing order to better protect their values and
systems of government.
LIBERAL AND
ILLIBERAL INTERNATIONAL ORDERS
What makes an order illiberal? The vast
majority of international orders—which were exclusively regional affairs before
the nineteenth century—were illiberal. They came in many shapes and sizes, and
other than being not liberal they did not share much in common. Attitudes
toward warfare, economic exchange, and the conduct of diplomacy varied widely.
Many past international orders took for granted the fundamental inequality of
human beings, but they involved very different understandings of social
stratification. Some were organized around universal empires that claimed, in
theory, to exercise suzerainty over the entire world. Colonial empires were
founded upon understandings of racial hierarchy and civilizing missions. Others
were composed of city-states or anchored by large nomadic confederacies. In
early modern Europe, dynastic composite states, formed through aristocratic
marriage and inheritance, competed for territory and influence.
If we want to make sense of the evolution
of contemporary international order, then, we are better off starting with a
discussion of liberalism. Although liberalism itself comes in different
flavors—sometimes combining liberal and illiberal features—it generally
involves three major domains:
Political liberalism concerns domestic
political systems. In its weakest form, it holds that governments must respect
some basic human and civil rights. The strongest forms contend that all states
should be liberal democracies. This means that precursors of liberal order can
exist in otherwise illiberal systems, including limited religious toleration in
Europe after 1648 or broader norms of toleration in the Achaemenid Persian
Empire.
Economic liberalism entails a commitment
to market economies. What this means in practice can vary a great deal. New
Deal liberalism associated with the post–World War II Bretton Woods system envisioned
mixed economies with capital controls and robust welfare states. In contrast,
the neoliberal order that achieved dominance in the 1990s prefers
self-regulating markets, capital mobility, and the privatization of government
functions.
Liberal intergovernmentalism concerns the
means or form of international order. Strong forms of liberal
intergovernmentalism favor multilateral treaties and agreements; international
organizations; and institutions that make rules, resolve disputes, and provide
for international goods. In general, liberal intergovernmentalism also involves
bilateral agreements that reflect principles of sovereign equality—even between
states that are significantly unequal. In contrast, illiberal forms of
international governance range from the assertion of privileged spheres of
influence to formal imperialism.
International order—and regional orders in
places such as Europe, southern Africa, or East Asia—combines these domains in
different ways. After the Cold War, however, U.S. policymakers convinced
themselves that Washington could establish international liberal order as a
relatively stable equilibrium—even as they carved out exemptions, such as from
the International Criminal Court. U.S. leaders assumed that the world would
converge around ordering principles of democratization, expanding markets, and
institutionalizing multilateralism in global governance. They also believed that
these principles would come to reinforce one another.
It was a plausible assumption. It did not
take long for liberal institutions to enter the vacuum left by the Soviet
order’s demise. The Warsaw Pact’s collapse in 1991 gave rise to the expansion
of NATO. Within a few years, the European Union embarked on an ambitious effort
to incorporate postcommunist European states. The triumph of democracy seemed
inevitable. Autocratic holdouts—such as Slobodan Milosevic in Yugoslavia and
Vladimir Meciar in Slovakia—often faced military and economic punishment by
Western powers or at the hands of broad domestic coalitions. Western-controlled
international financial organizations and development agencies oversaw
transitions to market economies supported by Western advisers and consultants.
Principles such as private property, unrestricted foreign investment, open
capital flows, and free trade were embedded in domestic law. The new so-called
Washington Consensus dominated international economic
governance, while multilateralism and intergovernmentalism became the standard
mode for global economic cooperation through new institutions such as the World
Trade Organization (WTO).
Nonetheless, these different domains need
not coexist. They can even work at cross-purposes. Empires, for example, have
promoted open markets and free trade, but no one would describe their other
behavior as consistent with liberal intergovernmentalism. Neoconservatives have
long stressed how sovereignty norms at multilateral institutions such as the UN
can shield autocratic regimes from liberalization. Just consider the
authoritarian states that sit on the UN Human Rights Council (UNHRC) or how
Hungary and Poland have shielded each other from EU sanctions. Organizations
such as the International Monetary Fund have faced accusations of overriding
democratic principles by pushing structural adjustment programs on economically
vulnerable states that disproportionately affect the poor, and the democratic deficit in
the EU rightfully generates significant controversy.
The inevitable tension between these
aspects of liberalism can become a source of transformation in international
order. Such mutations may push international orders in uniformly illiberal
directions or in ways that make one dimension more liberal and another less so.
Consider the emergence and evolution of “responsibility to protect” principles
that justify international intervention to prevent genocide, war crimes, and
crimes against humanity. These pitted sovereignty norms and restrictions on the
use of force against human rights norms. These dynamics ensure that the
international liberal order mutates over time, producing different combinations
of liberal and illiberal characteristics.
SHIFTING
INTERGOVERNMENTALISM
To trace these mutations in international
order, it is helpful to first understand how liberal intergovernmentalism has
changed since its inception. Liberal intergovernmental practices date at least
as far back as the middle of the nineteenth century. The International
Telecommunication Union (then the International Telegraph
Union), for instance, was established in 1865. A major milestone was the
formation of the League of Nations in 1920. But the decisive shift toward
liberal intergovernmentalism occurred after World War II. Since then,
multilateral institutions and forums have increasingly become central sites for
cooperation and diplomacy. The end of the Cold War only solidified this trend.
It thus made sense for observers to conclude that emerging powers, most notably
China, would have an incentive to uphold multilateral governance and to play by
the rules that contributed to their rapid economic rise.
This does not mean that one should
idealize the post–Cold War period. The United States regularly exercised its
hegemonic position to exempt itself from international rules and norms.
Washington bestowed favorable treatment on certain states for geopolitical
reasons. The United States invaded Iraq on, to quote former U.S. Secretary of
State John Kerry’s comments on
Russia’s invasion of Ukraine, a “trumped up pretext.” But acting hypocritically
and practicing double standards are an inevitable part of
how dominant states reconcile coercive power with countervailing norms.
Still, liberal intergovernmentalism
remains a crucial element of contemporary international order. The last 20
years have seen a striking increase in the number of regional organizations,
although not in the way that liberal triumphalists envisioned. These
organizations and forums do not generally involve advanced industrialized
democracies. Led by China and Russia, they mimic the form of Western
counterparts but embody illiberal and autocratic norms and promote their
authoritarian founders’ regional agendas. In some cases, such as the BRICS
(founded in 2009 by Brazil, Russia, India, and China—with South Africa joining
in 2010), new organizations explicitly claim to represent important powers once
excluded from the existing system of global governance. Moscow’s push to
establish the Collective Security Treaty Organization (CSTO) in 2002 and the
Eurasian Economic Union in 2014 aimed to demarcate a Russian sphere of
influence in the Eurasian region. It did so within a framework based on Western
counterparts such as NATO and the EU. Similarly, the Shanghai Cooperation
Organization (SCO)—founded in 2001 by China, Russia, and four Central Asian
states—explicitly defined itself as countering U.S. hegemonic influence by
helping to “democratize” international relations.
Other new international organizations
challenge the existing multilateral system by governing similar issues or
creating new geographic groupings that cut against the authority of liberal
institutions. Many of these new groups are actively recognizing and networking
with one another, in the process altering the balance between liberal and more
illiberal international bodies. In short, the global intergovernmental fabric
in 2021 looks increasingly multipolar and politically illiberal compared with
the one that existed two decades before.
Powers such as China and Russia also make
ample use of bilateral initiatives to influence the attitudes and voting
behavior of other states within more venerable multilateral forums. All great
powers leverage bilateral relations or provide side payments to achieve their
policy preferences. The United States has long done so, as did the Soviet Union
during the Cold War. But what’s striking is how such efforts are now altering
the central institutions of the liberal order itself. China’s Belt and Road
Initiative (BRI) partners appear increasingly sensitive to Beijing’s concerns
on issues such as its Xinjiang policy or broader human rights record. For
example, in June 2017, Greece—a Chinese BRI partner—blocked an EU statement at
the UNHRC that would have criticized China’s human rights practices. A Greek
foreign ministry official called the
statement “unconstructive criticism.” This was the first time that the
EU had failed to make a statement at the UN body. In 2019, following a
letter by 22 UNHRC members criticizing China for its reeducation camps in
Xinjiang, Beijing countermobilized a
statement of support by 37 countries—reaching over 50 by the
fall—that praised Beijing for its “remarkable achievements in the field of
human rights.”
In December 2019, the Trump administration announced a
new special envoy to counter Chinese influence in the UN—realizing, perhaps,
that by withdrawing from UN bodies and treaties, Washington had needlessly
abandoned important terrain to Beijing. But in July 2020, it notified Congress
that it had withdrawn from the World Health Organization (WHO). In the previous
months, Russia and China effectively overturned the Washington-backed Budapest
convention on cyber-norms and Internet freedoms by passing a new resolution at
the UN that embedded state-backed Internet censorship and regulation in
international law. The bill, which passed 88 to 58 (with 34 abstentions),
demonstrates that intergovernmentalism can just as easily serve illiberal
purposes as liberal ones.
President Joe Biden has halted the United
States’ withdrawal from the WHO and pledged greater U.S. engagement with
multilateral institutions, but these trends in liberal intergovernmentalism are
part of a broader decline of political liberalism in international order. Forms
of international governance persist, but with a diminishing commitment to
democratic values and liberal rights.
POLITICAL
LIBERALISM IN DECLINE
Perhaps no dimension of international
order is currently threatened more than political liberalism. Liberal democratic
principles deeply informed the post–World War II order, which emphasized
promoting and protecting individual rights and holding individuals accountable
for their participation in crimes or corruption. Since the 1940s, of course,
the application and enforcement of human rights, political liberties,
antigenocide norms, and other dimensions of the order have remained patchy at
best. But the importance of such liberal rights and principles is obvious when
compared with the norms and practices of prior international orders.
Still, although sweeping generalizations
about the decline of democracy require caution, it is clear that its advocates
are on the defensive. The early-2000s were an important inflection point. In
2006, for the first time since the end of the Cold War, the nongovernmental
organization Freedom House observed that
the number of states with declining democracy scores outnumbered those with
improved country scores (33 versus 18). This trend has continued every year
since.
Why has political liberalism come under
such sustained challenge? In retrospect, analysts should not underestimate the
role of systemic backlash to the “color revolutions” in Eurasia, which occurred
in the middle years of the first decade of this century and the Arab Spring
movements in the early years of the second decade. During the color
revolutions, street protests in a number of post-Soviet countries swept away
regimes with close ties to Moscow and replaced them with more Western-oriented
successors. In Georgia in 2003, Mikheil Saakashvili came to power pushing an
agenda aimed at rapidly joining the West and NATO. In doing so, he effectively
created a U.S. client state in the post-Soviet Caucasus. The following year,
Ukraine’s Orange Revolution overturned the electoral victory of Moscow’s
preferred candidate, Viktor Yanukovych. Moscow, along with other autocratic
regimes in the region, started to see democratic movements and their backers
not as political nuisances but as urgent and potentially destabilizing security
threats. Russia and countries across the post-Soviet region cracked down
heavily on street protests, banned or restricted civil society organizations,
and rebranded democratic activists as foreign-funded fifth columnists.
These revolutions, along with the Iraq
war, helped recast the United States as a hegemonic power determined to
overthrow authoritarian regimes. The Arab Spring further confirmed this image.
Washington offered encouragement to protests across North Africa and the Middle
East, greenlighted NATO intervention in Libya, and even leveraged its deep
security ties with Egypt to force the ouster of the country’s longtime ruler
Hosni Mubarak. At the same time, the (often overplayed) role of social media in
the Arab Spring convinced authoritarian regimes of the need to develop
effective countermeasures. Autocratic and insecure governments across multiple
regions also increasingly portrayed their domestic political opposition and
independent media as somehow aligned with intrusive Western forces or with
Washington’s geopolitical agenda. Moscow’s conspiratorial proclamations about
U.S. meddling resonated across other authoritarian regimes.
Emerging powers also sought to promote new norms to
counter the appeal of political liberalism. One of these, “civilizational
diversity,” frequently informs China’s bilateral relations and engagement with
international and regional organizations. The concept’s emphasis on cultural
relativism, sovereign noninterference, and respect for civilizational
differences aims to undercut political liberalism. A different set of
“counternorms,” most often championed by Russia, emphasizes “traditional
values.” These update the venerable tradition of associating liberalism with
decadence and decline. The Russian government has promoted, with support from
some Middle Eastern states, the idea that state-organized religion should play
a more prominent role in political life, “traditional” heterosexual family
values, and restrictions on migration to safeguard national identities.
Indeed, in the 1990s, so-called
transnational advocacy networks were overwhelmingly associated with liberal
causes such as human rights, gender equality, and environmental protections.
Now, illiberal regimes utilize transnational actors for their own ends.
Consider, for instance, the success of the World Congress of
Families, a network that ties right-wing Christian organizations in
the United States together with pro-family groups, religious representatives,
and Russian oligarch patrons. The WCF has held annual meetings to promote the
“traditional values” agenda and connect governments and social actors pushing
reactionary cultural programs. Several of these annual conferences have been
hosted by countries with self-styled illiberal rulers, including Moldova,
Hungary, and, most recently, Verona, Italy, home to Lega head and then Deputy
Prime Minister Matteo Salvini, who delivered celebratory remarks at the
meeting. Although the WCF may or may not expand in influence, it showcases how
transnational advocacy has become a far more contested arena than it was in the
1990s, with illiberal actors and movements often on the offensive.
The United States itself bears
responsibility for promoting one of political liberalism’s most potent
counternorms: the need to restrict civil liberties and human rights to combat
terrorism. The U.S.-led global “war on terror” included a diplomatic effort
aimed at eradicating and blacklisting terrorist and extremist movements
worldwide. Taking advantage of this sudden normative shift, governments
designated political opponents and groups as “terrorists” and “extremists.” As
a result, regimes during the first decade of the 2000s used
counterterrorism as an excuse to
consolidate executive power, expand surveillance, reduce civil liberties, and
increase informal cooperation among their security services.
Framing democracy as a threat to regime
security also helped new regional organizations incorporate illiberal
principles into their institutional platforms. The SCO, for example, adopted
the so-called Shanghai Spirit, which advocates norms of noninterference, as
well as mutual civilizational respect and understanding. The SCO also institutionalized blacklisting
organizations and individuals regarded as terrorists, extremists, and
separatists—with no clear criteria for those designations. It committed to
extraterritorial procedures that allowed listed individuals, including
political opponents, to be extradited from one another’s territories without
any international legal protections. The Gulf Cooperation Council followed suit
with a similar set of provisions in 2012. New regional
organizations in Latin America—notably the Venezuelan- and Cuban-led
Bolivarian Alternative for the Americas and the more recent Union of South
American Nations and Community of Latin American and Caribbean
States—emphasized regional solidarity and anti-imperialism, while omitting
safeguards for democratic norms and human rights. The new Chinese-led dialogue
forums with Latin America, Africa, and Europe similarly leave out any
references to support for political rights and, instead, invoke governing
principles of noninterference and shared prosperity. International institutions
and regional organizations now increasingly serve to shield their members from
liberalizing pressures.
The mid-2000s also saw the co-optation of
mechanisms once associated with political liberalism. Consider international
election observation. During the 1990s, election monitoring was a relatively
modest but specialized endeavor, confined to committed practitioners from the
Carter Center or, internationally, the Office for Democratic Institutions and
Human Rights of the Organization for Security and Cooperation in Europe. By the
mid- to late 2000s, however, many of these new regional organizations got into
the business of election monitoring to stem the tide of international
criticism. Unsurprisingly, their assessments invariably support obviously
flawed elections by incumbent autocrats. In turn, the presence of these
regime-friendly international observers muddies the waters and reduces the
chance that rigged elections will become focal points for antigovernment
mobilization. Authoritarian governments have repurposed international norms and
practices designed to promote liberal values to strengthen the sovereign
authority of autocrats.
RECONFIGURING
ECONOMIC LIBERALISM
Discussions of the end of economic
liberalism tend to focus on deglobalization: the return of protectionist policies
designed to benefit specific sectors, the decoupling of economies to facilitate
great-power competition, and related efforts to mitigate security threats posed
by trade and financial interdependence. For instance, the Trump
administration’s strategy to confront Chinese market distortion—including
government subsidies to Chinese state-operated companies and infringement of
intellectual property rights—relied almost exclusively on imposing tariffs. At
the same time, Trump jettisoned liberal strategies such as contesting Chinese
practices at the WTO and negotiating, as part of the Trans-Pacific Partnership,
an alternative zone of trade, commerce, and protection. Deglobalization and
enduring trade wars remain a real possibility. Despite a more supportive overall
disposition toward trade, Biden administration negotiators haven’t challenged
Trump’s expansive invocation of “national
security” to justify tariffs on products such as steel.
A more probable outcome, however, involves
appropriating liberal economic arrangements for illiberal purposes. The most
likely option is one that tracks with the trends identified in liberal intergovernmentalism
and political liberalism: an order characterized by the elements of economic
liberalism that autocratic leaders and populist politicians find most convivial
and those that provide great and regional powers with tools to pursue
international influence. These intersect with an increasingly kleptocratic and
oligarchic international economy, one that further undermines political
liberalism and democracy.
To understand why this is a likely future,
consider a number of recent scandals, including the conviction of Paul Manafort
and the impeachment of Donald Trump, that involve how ruling elites and despots
take advantage of the legal institutions and hidden service providers of the
global economic system.
Western accountants, shell companies,
lawyers, lobbyists, bankers, and luxury real estate developers have all helped
kleptocrats and crooked officials launder wealth pillaged from their home
countries. The release of the Panama Papers in 2016, a leak of over 11 million
documents from one of the world’s largest providers of offshore companies,
offered a particularly vivid picture of the liberal economic order’s dark side.
It showed how rulers, elites, and democratically elected officials around
the world used the Panamanian law firm Mossack Fonseca to purchase complex
assets designed to conceal the origins of their embezzled wealth.
The United States has done much to make
economic liberalism friendly to corruption. In its 2020 Financial
Secrecy Index, the anticorruption watchdog Tax Justice Network
ranked the United States as the second “most complicit” country in the world,
right behind the Cayman Islands, when it came to enabling money laundering by
criminals and wealthy individuals. Combined with the rise of unregulated and
opaque dark money flooding into the U.S. political system after the Citizens
United Supreme Court decision, shell companies have become the primary vehicle
through which corporations and wealthy individuals avoid taxation and directly
influence the political system and campaigns.
The combination of extreme capital
mobility and secrecy is just one of the features of the contemporary economic
order that illiberal leaders find useful for extracting rents. Rentier states,
many of which are authoritarian, depend on international trade to sell
commodities such as oil, gas, and precious metals. Foreign direct investment
can provide additional opportunities for corruption by incentivizing investors
to secure contracts through kickbacks.
Development assistance, a key part of the
postwar liberal order, can also help illiberal leaders entrench their regimes.
Like favorable trade and investment arrangements, development programs help
governments generate legitimacy by providing material benefits to their
citizens. For corrupt rulers, moreover, they create opportunities for rent
seeking, both by enriching themselves and by greasing their domestic patronage
networks. Hungarian Prime Minister Viktor Orban famously depends on EU
subsidies to reward his supporters for their loyalty. A previously embargoed
World Bank study estimates
that up to 7.5 percent of official development assistance sent to the poorest
developing countries is siphoned off into offshore assets and secret
jurisdictions.
Chinese assistance plays a central role in
this process. Indeed, after the 2008 financial crisis, Beijing
emerged—especially outside of Europe—as a de facto source of international
goods. It provided loans and investment to countries unwilling or unable to
access Western emergency lenders. Some studies estimate that between 2000 and
2014, Chinese lending approached the amount provided by Western institutions
such as the World Bank. The announcement of China’s BRI in 2013 and the
establishment of the Chinese-led Asian Infrastructure Investment Bank the next
year marked China’s formal arrival as a heavyweight provider of investment and
infrastructure financing. Despite initial claims that the BRI would provide
“apolitical” infrastructure improvements and that it would complement existing
sources of development assistance, Chinese economic actors involved in the BRI
have interfered in numerous countries’ domestic politics, including Sri Lanka,
Pakistan, Tajikistan, and Cambodia. The global network of BRI projects focused
on digital infrastructure and telecommunications will also allow Beijing to set
global standards for technological and security protocols.
Here, the interests of illiberal leaders
converge with those of great powers in seeking tools of economic influence.
China’s disinterest in enforcing liberal conditions (such as transparency
requirements or environmental safeguards), along with its willingness to
exploit corruption to lock down deals and political influence, has played a
major role in pushing the liberal economic order in a more kleptocratic and
oligarchic direction. But it is far from the only actor doing this.
Indeed, many of the forces driving these
mutations in the liberal order are coming from inside the house—and not merely
from right-wing populists. Policymakers who consider themselves champions of
liberal economic order frequently pursue capital mobility, financial
deregulation, and the excessive privatization of public services. Meanwhile,
advanced industrial democracies often support corrupt foreign officials out of
economic or geopolitical interest. The presence of competitors such as China
that care even less for economic liberalism will further pressure liberal
states to look the other way.
The initial economic collapse and
political uncertainty that accompanied the COVID-19 pandemic will likely fuel
many illiberal trends in the global economy. In the midst of global economic
contraction, economic trade and investment have slowed and national borders are
increasingly important. The WTO noted a strong rebound in the fourth quarter of
2020 but warns that this recovery is “unlikely to be sustained” in the first
half of 2021. In the meantime, trade in global services remains depressed and
international travel is down by 68 percent. China has publicly positioned
itself as a provider of emergency medical supplies and vaccines, and the crisis
has put renewed pressure on BRI debtors to service their loans. This raises the
prospect of impending debt write-offs or other forms of loan restructuring that
could enhance Beijing’s political influence in highly indebted countries.
Skeptics of arguments about U.S. decline point to Washington’s enduring
financial hegemony and the global demand for dollars, especially in a time of
crisis. In March 2020, the U.S. Federal Reserve announced new temporary dollar
liquidity swap lines (through which foreign countries can
exchange their home currency for dollars at prevailing exchange rates), which
brought its total for these arrangements up to 13 countries, in addition to an
agreement with the European Central Bank. But although the Federal Reserve
continues to function as a global backstop, the People’s Bank of China now
maintains around 26 similar bilateral agreements. Three countries (Brazil,
Singapore, and South Korea) in the U.S. orbit also maintain lines with China.
Emergency spending in the midst of the
pandemic is exacerbating these trends, as elites and kleptocrats worldwide use
crisis-induced borrowing to reward political allies. In the United States
itself, watered-down oversight provisions in the $2.2 trillion Coronavirus Aid,
Relief, and Economic Security (CARES) Act fueled concern that the emergency
package would lead the U.S. Treasury to ignore fraud and reward political
supporters. One preliminary investigation into the recipients of the CARES
Act’s Paycheck Protection Program, which allowed companies and small businesses
with 500 or fewer employees to apply for $10 million in forgivable loans, found
that 100 companies owned and controlled by
Trump political contributors were among the first to receive
relief. Another analysis revealed that Trump’s family and associates received
$21 million in funding. The Treasury Department provided no details about
recipients of loans below $150,000, which accounted for about 80 percent of the
nearly five million recipients of the $659 billion program. In early 2021, the
international corruption watchdog Transparency International said that weak oversight “raised serious
concerns” and found, overall, that levels of corruption in the
United States were the highest in nine years.
THE SHAPE OF
ILLIBERAL ORDER
If current trends continue, the emerging
international order will likely still contain liberal characteristics. Liberal
intergovernmentalism—in the form of multilateral organizations and interstate
relations—will remain a major force in world politics. But this will be, to
adapt a cliché, intergovernmentalism with autocratic characteristics.
Authoritarian states will continue to chip away at political liberalism in
older international institutions while constructing illiberal alternatives.
Transnational civil society will likely remain a site of continuing ideological
contention, with a variety of reactionary, populist, and pro-autocratic actors
competing with liberal groups and one another. Such a world will more closely
resemble that of the 1920s than the Cold War. Even a “return” to what the Trump
administration’s 2017 National Security Strategy called “great power competition”
is just as likely to spur on illiberal tendencies—including animus directed at
ethnic Chinese and pressure to expand domestic surveillance—as it is to
reenergize liberal advocates, institutions, and networks.
Barring unexpected changes in the
distribution of power or regime change within rising authoritarian states,
defenders of international political liberalism should not expect more than
intermittent success in holding the line. One important step, though, would be
a coordinated effort by major democracies to engage with new regional
organizations on common issues and norms and values—that is, concerns that
usually get bracketed in the name of political pragmatism. Comprehensive
engagement should become the standard way for liberal states to interact with
groups such as the SCO, the CSTO, and the Eurasian Economic Union.
Most of all, democratic powers need to
show up and push for their values. Trump’s withdrawal from the World Health
Organization illustrates the risks of doing otherwise. After the Trump
administration withheld its funding to protest Beijing’s alleged undue
influence, China announced that it would step in to bridge the subsequent
funding gap. Rather than confront China’s revisionism, such withdrawals concede
new areas of global governance to Beijing and its illiberal clients. Here, the
Biden administration’s declared intention to
embrace multilateralism is a welcome development.
The status of economic liberalism in such
a future, however, is much more uncertain. The United States has already
weaponized interdependence by leveraging its hold over global financial and
technological networks to compel other countries to reject the spread of
China’s 5G technology. The more the United States trades away its influence in
international organizations, deliberately undermines its diplomatic capital,
and damages its vaunted soft power, the more it will depend on military
instruments and economic coercion to get its way in world politics. Such a
cycle would make it extremely difficult for Washington to become a force for
international liberalism.
Although a major rollback of
interdependence remains possible, the most likely outcome will not reflect
either isolationism or hypercapitalist authoritarianism. Instead, it will be a
world in which transnational flows are increasingly oriented toward the needs
of domestic kleptocrats and patronage networks. Proponents of liberal order
should therefore focus on anticorruption efforts. The United States, United
Kingdom, and EU should continue to develop new anticorruption measures with
extraterritorial reach, such as extending the U.S. Foreign Corrupt Practices
Act and enforcing the United Kingdom’s new Unexplained Wealth Orders. The U.S.
Corporate Transparency Act of 2021—which ends the anonymity
of many shell corporations by 2022—is a major step in the right
direction. But Washington, London, and Brussels should do much more to
harmonize their efforts, including creating common and public registries of
beneficial owners of companies and enacting coordinated sanctions on
kleptocrats.
The good news is that there are few
effective pro-corruption norms. Kleptocrats prefer to convince their citizens
that everyone is equally corrupt and weaponize anticorruption measures against
political opponents. Thus, opposition to corruption remains politically
relevant in illiberal powers such as Russia and China, even as these countries
increasingly use corruption
strategically to buy off and capture elites, bureaucrats, and
regulators overseas.
The success of efforts to develop an
illiberal order does not mean that liberal powers lack opportunities to shape
norms and institutions. No international order is homogeneous. There is nothing
unusual about variations in arrangements and values across different regions or
policy domains. Some aspects of contemporary liberal order, however,
particularly in the economic domain, require reform lest they continue to
undermine the viability of domestic liberal democratic institutions.
Indeed, policymakers interested in
resisting challenges to liberalism need to prioritize its political dimensions,
both at home and in intergovernmental settings. This means defending political
liberalism in word and deed. It also means affirming, rather than undermining,
its current normative foundation. Projects, such as former U.S. Secretary of
State Mike Pompeo’s attempt to redefine human rights, that require attacking
those foundations will only backfire—making the task of authoritarian powers
that much easier.
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Source URL: https://www.foreignaffairs.com/articles/united-states/2021-03-26/illiberal-tide
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