There has been much discussion of the role of ordoliberalism in Germany’s approach to the euro crisis (see for example this paper by two former colleagues at the European Council on Foreign Relations and this paper by my former Transatlantic Academy colleague Wade Jacoby). But of course the story of how German ideas have influenced the European Union does not begin with the Greek crisis in 2010. It is well known that the European Central Bank (ECB) reflects the values of the Bundesbank. (Actually, it in some way doubles down on them – the ECB is even more independent, and has an even tighter focus on price stability, than the Bundesbank.) Less well known, though, is the way German ideas on competition policy that go back to ordoliberalism have shaped European integration since its beginnings in the 1950s. You might almost say that competition policy is the missing link between histories of ordoliberalism and the EU.
There seems to be a lot of discussion about rules these days. In particular, among foreign policy analysts, rules come up both in discussions about the liberal international order and in discussions about the eurozone. But it is striking to me how disconnected the two discussions are – and how differently rules are seen in each case. In discussions about the liberal international order, rules are widely seen as a good thing because they are thought of as an alternative to relations between states based simply on power. But in discussions about the eurozone, rules are seen by many as being much more problematic. In particular, critics of the German view, which emphasises rules over discretion (see Brunnermeier, James and Landau on this), see them as essentially post-democratic. So are rules a good or bad thing?
In a thought-provoking recent paper, Petri Hakkarainen asks an important question: what role should history play in foreign policy? (The paper is part of the History and Policy-Making Initiative, which was launched jointly by the Geneva Centre for Security Policy and the Graduate Institute in 2015.) Hakkarainen, a Finnish diplomat, argues that “we seem to be living in increasingly ahistorical times, dominated by myopic presentism” – in other words that policymaking is insufficiently informed by history. “The tendency to see arising policy challenges as one-off events, detached from the past, not only misleads us in the present but also blurs our vision ahead.” At the same time, historical analogies can also be misleading. So how can policy be informed by history without being misled by it?
Srinath Raghavan’s India’s War is a brilliant synthesis of the history of India’s struggle for independence and the history of World War II. In most versions of the story of how India finally became independent in 1947, the impact of World War II tends to be underplayed. Conversely, in most histories of World War II, India’s role in it tends to be underplayed. What Raghavan does in India’s War is to bring these two histories together. That alone makes this an important book – a contribution to an emerging global history that simultaneously connects and challenges Western narratives centred on the war and non-Western narratives centred on decolonisation. But it seems to me that India’s War is also more than that. It can be seen as a kind of pre-history of India’s post-independence foreign policy. As such, it illuminates not just the past but the present and the future.
Last month I took part in a workshop run by the Transatlantic Academy in Washington on the development of the relationship between China and Russia – and its consequences for the West. Immediately after the European Union and the United States imposed sanctions on Russia following the annexation of Crimea, President Vladimir Putin signed a series of trade deals with China, including a $400 billion deal to export Russian gas to China. Since then, the two countries have also agreed to “co-ordinate” the development of the Eurasian Economic Union and the Silk Road Economic Belt. Beyond China’s need for energy and Russia’s need to replace trade with, and investment from, Europe, the two countries also share an interest in challenging U.S. power and in creating a “multipolar world”. So should the West worry about a relationship? And if so, how should it respond?
Since my book, The Paradox of German Power, came out, I’ve had some interesting discussions about the implicit assumptions about the nature of international relations in Europe on which it is based. In particular, especially in Germany, some have questioned whether the concepts I use make sense in the context of the European Union. The EU, they argue, has transformed international politics into domestic politics. So does it make sense to use concepts like hegemony in this context? Thus discussion of the “German question” – a phrase that implies continuity with pre-World War II Europe – inevitably raises broader questions about how to understand the way in which international politics in Europe has changed. How exactly has European integration transformed relations between European states?
Since the euro crisis began five years ago, there has been much discussion of a return of the “German question” – though few of the commentators or analysts who have used the term have explicitly defined the new version of “German question” or clearly explained what it has to do with the original (that is, pre-1945) “German question”. The argument in my book, The Paradox of German Power, is that what defined the “German question” between 1871 and 1945 was Germany’s position of “semi-hegemony” in Europe. It seems to me that since reunification in 1990 Germany has returned to something this position of “semi-hegemony” – as some German historians such as Dominik Geppert have also argued. At the same time, there is no danger of war as there was between 1871 and 1945. So does it even make sense to speak of a “German question” in the current context?