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Christopher Sands

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Why Won't Canada's Troubled Friends Take Our Advice?

Posted: 05/22/2012 10:11 am

The Camp David Group of Eight (G8) Summit was oddly clarifying. With Europe riven with divisions over the euro and the sclerosis of welfare states in aging societies, the United States wrapped up in increasingly parochial domestic politics, Japan adrift and Russia backsliding into authoritarianism, Canada stood alone as a country with healthy economic prospects and a stable government.

If Prime Minister Stephen Harper was interested in providing leadership in the G8, it is not clear that anyone was prepared to follow. Despite his sensible fiscal and monetary policies, commitment to free trade, and Canada's prudent development of commodities, few abroad find Canada's approach replicable at home. Finance Minister Jim Flaherty similarly can suggest sensible adjustments to International Monetary Fund (IMF) governance to avoid foreseeable trouble ahead, to no avail.

A month from now, the Group of Twenty (G20) meets in Los Cabos, Mexico reuniting the Camp David Eight and adding leaders of major developing countries. The preoccupation with domestic crises will prevent any meaningful progress at this summit, too. Once again, Harper will find few takers for the proffer of Canadian wisdom.

Beyond the photo-ops, and providing the opportunity for more feckless protests by the lumpen protestariat, what do these summits accomplish?

The idea behind these gatherings was to foster coordination of macroeconomic policies among the world's major economies. But coordination doesn't just happen. The key ingredient is leadership. You would think that a gathering of leaders would be a good place to find some leadership, but it isn't that easy.

Leadership has to come from the major powers. Middle powers like Canada can try to mediate conflicts among major powers, or promote consensus within groups of countries. And among the major powers, the European Union has yet to be able to provide this kind of leadership when it competes for a voice with its leading member states at global summits. China is respected but not fully trusted, admired but rarely followed in global forums.

Which brings us back to the United States, which isn't providing much leadership these days: the constant fundraising and media mudslinging of the 2012 election preoccupies Barack Obama and congressional leaders these days, and Washington appears to want to retreat from international problems -- from Afghanistan and Iraq, from the Syrian massacres, and no less from the economic crises in Europe.

Ian Bremmer, founder of the Eurasia Group, sees the decline of the United States and the inability of alternative global leadership marching us inexorably toward a "G-Zero" world. It is an anarchic place, but one which Bremmer thinks will provide opportunities for middle powers like Canada. Without abandoning old friends like the United States in senescence, Canada can create new and fluid networks of "friends." International alliances are transformed into Facebook "friendships" and world order emerges in a patter of "likes" and twittering followers.

Perhaps. Yet few Canadians should wish for this world. Middle powers, like the middle class at home, thrive when hard work is rewarded and everyone follows set rules. For most of the past century, the United States has backed a rules-based world order that has helped the global economy to grow. Bremmer is right that alternative global leadership is not ready to fill the vacuum left when the United States does not provide it.

Let us hope that the United States comes to its senses quickly, and provides credible leadership in all the Gs Canada has joined.

 
 
 

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07:35 AM on 05/23/2012
Maybe no-one listens to Canada's voice because our leader is a known liar and so are most of his ministers. They are expensive and privileged and not at all above cheating. Why on Earth should anyone listen to these men?
06:25 PM on 05/22/2012
If you think Canada is in bad shape because of domestic politics, you only have to read about the domestic politics of other countries (from within, not the stuff that makes international news) to put things in perspective. That may not be convenient for those of you who seem to take perverse pleasure in continually running Canada down, as it might reveal that Canada still has it pretty good.
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Glass Cannon
Let every eye negotiate for itself.
03:27 AM on 05/23/2012
We have the ability and opportunity to be even better. It would not be beneficial to become apathetic or complacent in these times. Nothing stays level and if we let go of our ideal standards we can only slip down.
06:16 PM on 05/22/2012
Why should we believe anything from a corporatist neo-liberal pro US thinktank like the Hudson institute?
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laymancanuck
IGNORANCE has used up its quota of TOLERANCE
06:14 PM on 05/22/2012
I would urge other commenters to attempt to over come Canadian partisan politics and count their blessings. Canada is far from perfect, who ever is governing they are far from perfect. We all agree Canada can do better. Compared to most countries, we are very fortunate. Whether Liberal, NDP or Conservative Canada is well managed, our system works to provide us with one of highest quality of life on the planet. Of course we must all be vigilant, continue the debate, agree to disagree. BUT How lucky we are.
05:57 PM on 05/22/2012
Canada's input at this moment in time would be irrelevant. The deficit of both the US and the European Union is too large to correct without cutting spending that would destroy the economy instantly. The only solution is to either default on the debt or print more money for bailouts and the only solution that governments have available to them is to print more money. This will cause much higher inflation but it is the only viable solution that will prevent an instant deflationary depression. Be prepared to spend more money on everything because that will be the result of such inflationary spending.
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arkymorgan
Nobody knows the trouble I've been...
04:55 PM on 05/22/2012
Perhaps they are unwilling to concede the moral high ground to a country led by a man without principle, determined to lie, steal and cheat his way out of our commitments to our own poor, let alone offer succor to those who are even more hardly pressed.
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04:24 PM on 05/22/2012
If Canada is seen as an island of probity in a sea of insanity, it's because the rest of the world isn't setting the bar all that high.
04:04 PM on 05/22/2012
Why would Canada's "troubled friends" take "troubled Canada's" advice? Canada's economy, international reputation, and social stability have all tanked precipitously under the direction of the Harper majority government. Consider the nearly 20% decline in financial markets, ongoing scandals of government corruption and incompetence, simplistic ideological attacks on science, and misguided assaults on the environment. Other nations and their governments are unlikely to seek advice from a Canadian government that substitutes rational thinking with selfish ideology and acts without humility and moral reflection.
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ochaye
03:18 PM on 05/22/2012
This is worth a read:

http://en.wikipedia.org/wiki/Hudson_Institute
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02:20 PM on 05/22/2012
"...Canada stood alone as a country with healthy economic prospects and a stable government."

Interpret, "tar-sands" and "false majority".
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Glass Cannon
Let every eye negotiate for itself.
02:18 PM on 05/22/2012
Perhaps those foreign leaders understand that Harper and our current government are all talk. And condescending.

Our financial health is a myth that they've been able to sell to Canadians because Canadians love to hear about how great we all are.

Any stability we may have over any other nation is certainly not due to Harper or his cabinet, so why should foreign leaders listen to people aren't leading in their own country? If our leaders were truly engaged, dynamic, and innovative people would listen.

But the Harper government is all sizzle and very little steak in the diplomacy department.
02:13 PM on 05/22/2012
"Harper will find few takers for the proffer of Canadian wisdom." Using the words 'Harper' and 'wisdom' in the same sentence is jarring to my way of thinking about the world. In relative terms, Canada remains in fortunate economic territory for the moment. How much of that enviable situation is the result of Mr. Harper's 'wisdom' is highly debatable. I suggest it is more the result of good fortune generally (including our resource base) and the collective wise decision-making of generations of Canadians -- at all levels, not just top 'leadership'. Leadership is only as effective as the ability and willingness of the 'followers' to follow. But 'good leadership' is only as effective as the ability and willingness of good citizens to act as mini-leaders in their own spheres of influence.
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01:29 PM on 05/22/2012
"Despite his sensible fiscal and monetary policies, commitment to free trade, and Canada's prudent development of commodities..."

I'm not sure that "sensible" and "prudent" are necessarily the words that would be applied here. Our economic situation is not bad, but there are plenty of risks on the horizon. Our "sensible" monetary policy, for example, includes rock-bottom interest rates that have crushed personal savings rates and driven up consumer debt to terrifying levels. There's also a very real risk those same interest rates, combined with a swath of zero-down, 35-40 year, >100% valuation mortgages are leading to a major housing bubble not entirely dissimilar from what we saw in the US in 2007-2008. The risks are all there.

As for commodities, well, I don't think there's any denying that they're spurring the economy at present. Unfortunately, our "prudent" policy regarding commodities does not include investing the proceeds of those non-renewable resources into anything sustainable--infrastructure, sovereign wealth funds, debt repayment, or even turning those resources into consumer products. Instead we're just shipping them all away and using the money to slash taxes with no foresight into what we want Canada to look like for our children and grandchildren.