G20 Evolution and New Model of Major Power Relationship

  2013/9/29 source：

Section I
This Section gives a general assessment of the G20 in the past five years and an evaluation of the St. Petersburg Summit in Russia this summer from the perspective of Asia-Pacific.

In terms of the latest Summit, the scholar from Russia takes a positive attitude and believes that considerable achievements have been made, particularly in promoting financial investment, job creation, economic structure adjustment and labor market reform. It is certain that a strong and sustainable growth will not be possible if without reforming the labor market and economic structure. Furthermore, it is also believed that the agenda of St. Summit is more focused and makes the goal be more achievable and agreeable.

Scholar from SIIS takes a historical view from the five-year experience and defines the performance with three “REs”, rebuilding the world economic order in the financial turmoil, regulating the financial sector and other economic doings, reforming the economic structure in the domain of fiscal mechanism, labor market, and other aspects in general. As a whole, through the group efforts of the G20, the world economy is showing a promising picture that the US has a beautiful deleveraging, big progress has been made in the labor market of the EU, structure reforming is undergoing in the some emerging countries as well.

Differed from the scholars of G20 members, those scholars from non-G20 member countries also shared their views in the conference. For example, Singapore as an international financial center also has a big concern on the policy issues proposed by the G20. They think that the G20 should care more economic issues rather than political-mixed topics. The St. Petersburg Summit is overshadowed by Syria chemical weapons issue and that makes the discussion less efficient. Nevertheless, it is not to deny the positive effects of the G20 meeting, world leaders coming together in formal or informal ways to deal with issues of common concern.

With regard to the agenda of the G20, experts have different views, some believe that security and other political issues should be removed from the agenda since the leaders have very limited chances and time, while other experts believe that security issue cannot be totally separated from the economic issues and should be in the agenda as well.

Section II
This section is designed to define the implication of the “New Type of Major Power Relations” and elaborate its role in promoting the G20 process. Furthermore, the role of middle powers, some caucuses (G7, BRICS and etc.) has also been discussed. Four experts have delivered their presentations in this section.

In defining the concept of “New Model of Major Power Relations”, a scholar from the US quotes the definition in Chinese Foreign Minister Wang Yi’s speech at Brooking Institute recently, and believes that the principle of “No conflict or confrontation, mutual respect and Win-win cooperation” is mainly composed by China side, rather Americans normally describe it with the norms of” cooperation and competition”. In terms of the working mechanism, the US scholar believes that the caucuses, such as G7 and BRICS, would undermine common goals of the G20.Thus people should pay attention to such problems. The BRICS members met formally and informally, before and during the G20 summit, but the G7 did nothing. The BRICS is progressively strengthened, members singing in chorus, forming their agenda in the G20. Furthermore, the US scholar also points out that the role of middle powers, typically represented by Mexico, Canada, Korea and etc. should be strengthened.

A special focus is given to analyze the economic interaction between China and US, and its role in promoting China-US New Model of Relationship. The S&ED dialogue this July sets a milestone in reshaping China-US economic relations. Fruitful agreements have been made in the fields of free trade and investment. Economic rebalancing is happening between China and US, which is crucial to the global wide rebalancing and sustainable growth. More than that, plenty of other cooperation platforms in various forms have also been implemented between China and US for economic cooperation.

Experts from non-China and non-US express their perspectives on the definition of “New Model” and the role of G20. A scholar from India believes that G20 agenda is still dominated by G7 group, and emerging economies feel the sense of marginalization, even though big progresses have already been made than before. India itself thinks that G20 needs to do realistically in order to deserve the title. Furthermore, the Indian expert also express the view that the role of Asia-6 and BRICS. He believes that Asia-6 in the G20 is not commensurate with its strength, and their role should be strengthened. However, the BRICS is progressing in this regard, that BRICS is by no means rhetoric, but rather a pragmatic cooperation. For example, the establishment of the BRICS Development Banks reflects the collective effects and uprising influence in the G20. With regard to the wording of “New Mode”, the Indian scholar questions the difference between the current “new” and the traditional “old”, and prefers that a multi-polar world is the trend.

Some Chinese scholars articulate the feasibility and future challenges in building China-US New Model of Major Power Relations. They believed that there is a solid foundation for currently political push on the relation between China and US. Some points are listed as follows:

(1) Increased Sino-American economic interdependence. Some new topics, such as environmental protection, climate change, the shale gas revolution and etc. are pushing two sides into closer collaboration.  (2) Broadly expanded cooperation platform. In addition to the G20, other multilateral and bilateral platforms have also been built, including S&ED, businesses and the non-public exchange mechanisms are extremely broad.(3)The principle of “no conflict or no confrontation” has become a common consensus between the two countries and it will make the cooperation be easier. Furthermore, Chinese scholars take a historical and cultural view in articulating China’s peaceful ways and approaches in international relations. However, without doubt, Chinese scholars also acknowledge the possible challenges ahead, such as different security concerns, regional interest conflicts, cultural discrepancy and etc.