Wanted: A New Grand Strategy

The "rise of the rest," as I have termed it, is an economic phenomenon, but it has political, military and cultural consequences. In one month this past summer, India was willing to frontally defy the United States at the Doha trade talks, Russia attacked and occupied parts of Georgia, and China hosted the most spectacular and expensive Olympic Games in history (costing more than $40 billion). Ten years ago, not one of the three would have been powerful or confident enough to act as it did. Even if their growth rates decline, these countries will not return quietly to the back of the bus.

The "Global Trends" report identifies several worrying aspects of the new international order—competition for resources like oil, food, commodities and water; climate change; continued terrorist threats; and demographic shifts. But the most significant point it makes is that these changes are taking place at every level and at great speed in the global system. Nations with differing political and economic systems are flourishing. Subnational groups, with varied and contradictory agendas, are on the rise. Technology is increasing the pace of change. Such ferment is usually a recipe for instability. Sudden shifts can trigger sudden actions—terrorist attacks, secessionist outbreaks, nuclear brinksmanship.

The likelihood of instability might increase because of the economic crisis. Despite some booms and busts—as well as 9/11 and the wars in Afghanistan and Iraq—the world has been living through an economic golden age. Global growth has been stronger for the past five years than in any comparable period for almost five decades. Average per capita income has risen faster than in any such period in recorded history. But that era is over. The next five years are likely to be marked by slow growth, perhaps even stagnation and retreat, in certain important areas. What will be the political effects of this slowdown? Historically, economic turmoil has been accompanied by social unrest, nationalism and protectionism. We might avoid these dangers, but it is worth being acutely aware of them.

At the broadest level, the objective of the United States should be to stabilize the current global order and to create mechanisms through which change—the rise of new powers, economic turmoil, the challenge of subnational groups like Al Qaeda—can be accommodated without overturning the international order. Why? The world as it is organized today powerfully serves America's interests and ideals. The greater the openness of the global system, the better the prospects for trade, commerce, contact, pluralism and liberty.

Any strategy that is likely to succeed in today's world will be one that has the active support and participation of many countries. Consider the financial crisis, which several Western governments initially tried to handle on their own. They seemed to forget about globalization—and nothing is more globalized than capital. Belatedly recognizing this, leaders held the G20 meeting in Washington. This was a good first step (though just a first step). Without a coordinated approach, efforts to patch up the system will fail.

The same applies not just to "soft" problems of the future—pandemics, climate change—but to current security challenges as well. The problem of multilateralism in Afghanistan—a place where everyone claims to be united in the struggle—is a sad test case for the future. Thirty-seven nations, operating with the blessing of the United Nations and attacking an organization that has brutally killed civilians in dozens of countries, are still unable to succeed. Why? There are many reasons, but it does not help that few countries involved—from our European allies to Pakistan—are genuinely willing to put aside their narrow parochial interests for a broader common one. Terrorism in South Asia generally requires effective multinational cooperation. Business as usual will produce terrorism that will become usual.

National rivalries, some will say, are in the nature of international politics. But that's no longer good enough. Without better and more sustained cooperation, it is difficult to see how we will solve most of the major problems of the 21st century. The real crisis we face is not one of capitalism or American decline, but of globalization itself. As the problems spill over borders, the demand for common action has gone up. But the institutions and mechanisms to make it happen are in decline. The United Nations, NATO and the European Union are all functioning less effectively than they should be. I hold no brief for any specific institution. The United Nations, especially the Security Council, is flawed and dysfunctional. But we need some institutions for global problem-solving, some mechanisms to coordinate policy. Unless we can find ways to achieve this, we should expect more crises and less success at solving them.