| Yesterday, Britain's prime minister, Gordon Brown, | | | | measures have not been able to stem the panic |
| called for a "new global order" to deal with the | | | | since. According to Kissinger, "international order will |
| economic crisis and warned against the protectionist | | | | not come about either in the political or economic |
| policies that were put in place in the 1930s. | | | | field until there emerge general rules toward which |
| Tackling issues on the global economy, the prime | | | | countries can orient themselves," and also that "in the |
| minister said that a "radical step-up in global | | | | end, the political and economic systems can be |
| cooperation" was necessary to prevent the | | | | harmonised in only one of two ways: by creating an |
| emergence of "financial mercantilism". | | | | international political regulatory system with the same |
| On the same day, Timothy F Geithner asserted that | | | | reach as that of the economic world; or by shrinking |
| "China manipulates its currency". This was indeed | | | | the economic units to a size manageable by existing |
| unhelpful, to say the least, as Sino-American detente | | | | political structures, which is likely to lead to a new |
| and cooperation is the essence of Brown's | | | | mercantilism, perhaps of regional units. A new Bretton |
| statements on creating a new global order. | | | | Woods kind of global agreement is by far the |
| Just prior to Barack Obama's inauguration, Henry | | | | preferable outcome." |
| Kissinger wrote the most erudite piece, "The world | | | | This underlying threat is perhaps what sparked the |
| must forge a new order or retreat to chaos". | | | | euphoria surrounding President Obama's inauguration |
| In it he analysed the "grave financial and international | | | | and the unrealistic and unprecedented expectations |
| crises", saying that the financial collapse represents a | | | | put on his new administration. And while that was |
| "major blow to the standing of the United States in | | | | going on the actors on the world's political stage |
| the eyes of the world", and that "every country will | | | | were "avowing their desire to undertake the |
| have to reassess its own contribution to the | | | | transformations imposed on them by the world crisis |
| prevailing crisis. Each will seek to make itself | | | | in collaboration with the United States". |
| independent, to the greatest possible degree, of the | | | | And in all this we cannot forget China, which has |
| conditions that produced the collapse". | | | | witnessed its export markets being mauled, with |
| Because of the economic exuberance, he said, a "gap | | | | worries that should its growth rate fall below the |
| had opened up between the economic and the | | | | 7.5% range, political stability in the country could |
| political organisation of the world." What he meant by | | | | become a real problem. It thus begs the question of |
| this, and this is by far the most pertinent idea in the | | | | how China and America deal with the crisis. |
| article, is that while the economic world has been | | | | On the one hand Kissinger is asking that the |
| globalised, the political order has not and that "every | | | | globalised economic order and the silo-based political |
| major country has attempted to solve its immediate | | | | order to come tangentially into line. But how can the |
| problems essentially on its own and to defer common | | | | two systems, wholly different in both architecture |
| action to a later, less crisis-driven point." | | | | and culture, be fused into a union that is able to deal |
| Both America and the UK are in a woeful economic | | | | with this depression? And what if protectionism |
| state, with one The Daily Mail editorial pointing out | | | | grows in either country and becomes adversarial in |
| that if the second tranche of the bank bailouts fails | | | | nature? That would have long-lasting and devastating |
| to stimulate the economy, the country itself will be | | | | long-term consequences on every country the world |
| bankrupt. One could argue it has been since the | | | | over. |
| Second World War but if Gordon Brown's so-called | | | | Kissinger argues that "the Sino-American relationship |
| saving the world policies fail at home, which the | | | | needs to be taken to a new level", to reshape |
| financial press largely think it might, it would send an | | | | relations "into a design for a common destiny, much |
| almost doomsday-like message to the world and its | | | | as was done with trans-Atlantic relations in the |
| markets. | | | | postwar period". |
| Rescue packages have been set up on a piecemeal, | | | | But can his vision of an international order be |
| national basis and, for most countries, with unlimited | | | | permanent? Can it work? Obama's inaugural address |
| credit guarantees by governments. So far, none of | | | | sought to build bridges in a vision of hope, but with all |
| these tactics seem to have reined in the maelstrom | | | | the conflicts that are currently dogging the world, will |
| from rescuing more industries from bankruptcy. | | | | the depression be the healer of these divisions or will |
| In part, it was run-away domestic credit that | | | | it explode into a disastrous new world disorder and |
| produced the crash in the first place and these | | | | war? |