Times are truly changing.
Just to show how things are changing, here are two speaches, the first by the Canadian Prime Minister Mark Carney and the latter by German Chancellor Friedrich Merz. First some quotes from both of them to show just how much the discourse has changed.
First, here’s a quote from the Carney speech at Davos:
For decades, countries like Canada prospered under what we called the rules-based international order. We joined its institutions, we praised its principles, we benefited from its predictability. And because of that we could pursue values-based foreign policies under its protection.
We knew the story of the international rules-based order was partially false. That the strongest would exempt themselves when convenient. That trade rules were enforced asymmetrically. And we knew that international law applied with varying rigour depending on the identity of the accused or the victim.
This fiction was useful. And American hegemony, in particular, helped provide public goods: open sea lanes, a stable financial system, collective security and support for frameworks for resolving disputes.
So, we placed the sign in the window. We participated in the rituals. And we largely avoided calling out the gaps between rhetoric and reality.
This bargain no longer works.
Let me be direct: We are in the midst of a rupture, not a transition.
Over the past two decades, a series of crises in finance, health, energy and geopolitics have laid bare the risks of extreme global integration.
But more recently, great powers have begun using economic integration as weapons. Tariffs as leverage. Financial infrastructure as coercion. Supply chains as vulnerabilities to be exploited.
You cannot “live within the lie” of mutual benefit through integration when integration becomes the source of your subordination.
(the Carney speech transcript here )
Then the German Chancellor opening the Munich security conference only few weeks later gave a similar speech, which the most important points emphasized from the official German government website are the following:
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New world disorder: “The international order, which was based on rights and rules”, said Federal Chancellor Merz, “no longer exists”. With the Russian war of aggression against Ukraine, if not before, “a new phase of open wars and conflicts has begun”. The struggle for spheres of influence, dependencies and allegiance sometimes pushes democratically constituted states to the very limits of their ability to act, Merz said.
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Transatlantic relations: According to the Chancellor, a rift has opened up with the USA, and the United States’ claim to leadership is being challenged. On some issues, he said, Europe and the administration in Washington would come to different conclusions. But despite all the difficulties in the partnership, it still has potential, according to Merz. NATO, he said, is the shared competitive advantage – for Europe and for the USA.
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Europe’s new role: The Chancellor also emphasised that Europe must preserve its interests and values and focus on its own strengths. Europe’s freedom, he said, is predominant and is made possible by security and economic strength. With a programme of freedom, said Merz, Europe should be stronger and more sovereign in the future.*
(the Merz speech here )
Two leaders of major Western countries declaring the international order isn’t any more just shows that something big has happened. And I would argue that this will change not only politics, but also political theory and perhaps even political philosophy in the long run. The post-WW2 system has come to an end, even if we would hope it wouldn’t have come.
Unfortunately many American commentators and experts don’t seem to fathom this, as it seems to be all just about the ever changing things Trump does: declares high tariffs, wants to annex Greenland, kidnaps the Venezuelan leader, starts a war for regime change in Iran and creates a regional war. And also tries to get away from the Epstein scandal by making the Justice Department and the FBI to hide his role. Now as Trump has started a war with Iran, some even laugh about the whole Greenland issue, which actually was a bigger shock than it looked.
But this actually isn’t about Trump. Trump, even if a great populist showman, is an old senile man and his term will end in a few years. Yet Europe won’t just wait for his term will end and hope things will change then for the better. It did so earlier, but not anymore. The real issue is that Americans have now twice elected Trump as President. That means that they truly wanted this and are at least very favourable to the populist siren song. Hence it’s totally possible, perhaps even likely, that in the future they will vote for a similar populist who will be hostile against Europe/EU as Trump’s administration publicly and formally is. These Americans don’t see any worth in the system the US created for itself and the West accepted after WW2.
So even if the next president and administration after Trump would want to mend the relations with it’s Western allies and obviously the Europeans would be happy about this, there is now the fear that Americans will turn again to be as hostile towards the EU as they are now. There is now a probability for this to happen in the future, that should be taken into account.
Hence the change in security policy and the rapid attempt to get trade agreements with other parts of the World. Even if the West would be happy if the US would continue the system that worked for 75-years, the damage has already been done.
And it seems that many Americans do not see how damaging this is to them. Likely because many eagerly accept the idea that they (Americans) have been here the one’s who have had pay everything and Europe has just freeloaded all the time. Actually the defense expenditure hasn’t been so different in the long run and Europe was a huge client for American weapons. Above all, the US has been against “strategic autonomy” that France has been long calling for.
Then many people forget just why the dollar has the of being the reserve currency. It is not because the US is the largest economy, it is basically because of political relations, the security treaties and the role the US has played in the Western alliance. Keynes and the Brits would have wanted Bancor in Bretton Woods in 1944, but the Americans pushed for the dollar to be the reserve currency (the dollar being linked to gold and all currencies then to the dollar) and they could do it, because of the unipolar moment in the end of WW2. Basically by then nearly bankrupt UK had to agree with the Americans.
The role of the reserve currency of the dollar has been very beneficial for the US, even if there is the Triffin dilemma
When there isn’t that international order backed up by the US, when there aren’t those close alliances anymore, then the obvious question is what really happens to the reserve currency role of the dollar?
Saudi Arabia is already accepting the Yuan as a payment for oil and the petrodollar link is also crumbling (also a system based that was based on security guarantees, not economic reasons). Some might see attacking Venezuela and Iran as way of trying to reinstate the petrodollar dominance, but I wouldn’t be so sure.
And if the reserve currency role of the dollar goes, that is a real disaster for Americans. The debt spiral is rapidly going out control and the idea that the AI revolution and all those databases will create new growth or that with managed inflation the situation can be managed is questionable. And if/when a dollar crisis does happen, who are there for the American politicians to blamed? Of course, it’s the evil foreigners. And a time for a new wave of populism and nativism could take place.
Turning to political theory and philosophy, when the old international order isn’t anymore, political thinking has to change also. We start to view the last 75-years as a passing era, not something that we ground our political theories in. What will then be the new political theories and explanations? The Fukuyaman “End of History” era has surely passed and we need a new reasoning to make sense of the new situation.
But I’m interested to hear what you think. Can we turn the tide? Is the situation as dire as I represented it? Do we need a new way of reasoning the present? Will we see a new political philosophy this century after the post-WW2 era has ended?