A “normal” creditor country?

At a discussion I had with Stephen Green and Quentin Peel at Chatham House recently, a member of the audience put it to me that German policy in Europe was normal for a creditor country in a debt crisis. In particular, he suggested that it was playing in a similar role in the euro crisis as the United States did in the Latin American debt crisis in the 1980s. “The thinking in Berlin is no different from the thinking in Washington during the Latin American debt crisis”, he said. It was an interesting point, which prompted me to think more about the similarities and differences between the two crises and between the role of Germany in Europe and creditor countries in other debt crises. It is also relevant to the question of the relationship between ordoliberalism and neo-liberalism, which I discussed in my previous post.

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Neoliberalism and ordoliberalism

One of the things that has persistently puzzled me over the last few years is the disconnect between the Anglo-Saxon and German debates about the euro crisis. The mainstream view among Anglo-Saxon economists is broadly Keynesian: they see surpluses as a problem as well as deficits and therefore argue it is not only debtor countries that need to adjust. But the only German economists you hear making such arguments are those such as Heiner Flassbeck who are perceived as being on the far left. (Flassbeck was the state secretary in the German finance ministry during the short-lived tenure of Oskar Lafontaine at the beginning of the Schröder government. Lafontaine subsequently left the German Social Democrat party and became one of the leaders of the Linke, or Left party.) It seems as if, in this respect, Germans are to the right of the Anglo-Saxons.

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Memory and security in Asia

Since taking part in a study trip to Tokyo (which prompted me to write another post on Japan and the concept of “civilian power”) over the summer, I’ve been thinking a lot about the role of collective memory in international relations in Asia. In Tokyo, where we spent a week in discussions with policymakers and analysts from all over Asia, we talked a lot about history and the role it plays in tensions between Asian countries. In particular, there is an ongoing dispute between China and Japan over the Japanese occupation of Manchuria in 1931 and the Nanking massacre in 1937. This is particularly important because it plays into the dispute between China and Japan over the Senkaku islands, which the Chinese call the Diaoyu. There are also acrimonious disputes between Japan and Korea over issues such as the “comfort women” the Japanese forced into sexual slavery during World War II.

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Ordoliberalism and Ostpolitik

At a recent discussion with Simon Tilford of the Centre for European Reform about my new book, The Paradox of German Power, I was asked about the role of ordoliberalism in Germany’s response to the euro crisis. A couple of years ago, my colleagues Sebastian Dullien and Ulrike Guérot wrote an excellent brief for ECFR in which they argued that ordoliberalism – an economic theory that goes back to the so-called Freiburg School in the 1930s but is little known outside Germany – cast a “long shadow” over current German economic thinking. I think they’re right, but I wasn’t really able to give a good answer about exactly what role ordoliberalism plays in the German economic policy process. The more I thought about it after the discussion, however, the more it struck me that there is a parallel with the role of Ostpolitik in the German foreign policy process.

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I finally got around to reading Christian Kracht’s “pop” novel Faserland, which was originally published in 1995. The novel – Kracht’s first – has rightly been compared to Brett Easton Ellis’s Less than Zero. The world that the unnamed narrator describes – one of rich kids obsessed with designer labels who lead empty lives – is one that could be almost anywhere. But Faserland is also apparently an attempt to say something specific about Germany. The title, which literally means “threadland”, is obviously a play on “Vaterland”, or fatherland. In the novel, the narrator travels, apparently aimlessly, from one end of Germany to the other – from Sylt in the north to Bodensee in the far south (and then, in the final chapter, to Switzerland). He frequently comments on Germany and the Germans. So what, if anything, does Faserland tell us about Germany?

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Japan and “civilian power”

In an essay I wrote in 2011, I argued that Germany should no longer be thought of as a “civilian power” but rather as a “geo-economic power”. I argued that the weakening of the Federal Republic’s commitment to multilateralism during the previous decade and its increasing economic assertiveness, particularly within the eurozone, undermined its claim to be a “civilian power” – that is, one that used multilateral institutions and economic co-operation rather than military power to achieve its foreign policy goals. The concept of “civilian power” was originally used by François Duchêne to describe the European Union and was applied to the Federal Republic by Hanns W. Maull, who, in one of his first essays on the subject in the early 1990s, described Germany and Japan as “new civilian powers” – “prototypes” of “a new type of international power”. So if Germany is no longer a “civilian power”, what about Japan?

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Finland and Russia

Last week I spent a few days in Helsinki, where I took part in a panel discussion about European foreign policy organised by the Finnish Institute of International Affairs. It was an interesting time to be there. The issue on everyone’s minds, just like everywhere else right now, was the Ukraine crisis and in particular the implications of the Russian annexation of Crimea last month. St. Petersburg is less than 200 miles away from Helsinki and Finland was part of the Russian empire for 108 years until it became independent in 1917. Russia still feels very present in Helsinki – for example a statue of Tsar Alexander II stands in front of the neo-classical Lutheran cathedral in the centre of the city. So during my time there, I was particularly interested to hear from officials, analysts and journalists about the complex relationship between Finland and Russia.

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