China’s leaders set out their intention to push forward with policy reform following the Third Plenum. The full decision released on 15 November makes clear the aim to loosen constraints on the market, and suggests a dilution of state-owned enterprise influence. A new national security committee could also lead to greater policy integration between domestic security and international affairs.

The Third Plenum of the Chinese Communist Party’s 18th Central Committee took place in Beijing from 9−12 November. Initial reactions based on the communiqué released on the last day of the meeting were mixed. However, on 15 November the authorities published the detailed decision approved by the plenum, and an explanation given to the plenum by Party General Secretary Xi Jinping – in which he acknowledged major problems facing China.

These documents make the implications of the plenum much clearer. In sum, it offers a clear political signal that as China’s fifth-generation Party leadership enters its second year, it is intent on taking forward a ‘comprehensive deepening of reform’ across a wide range of issues. As an indication of the importance of this, a new high-level ‘leading small group’ will be established to coordinate and oversee this process. The decision spells out various new measures, and reiterates many which are already part of the government’s agenda.

More market in the economy

The most important material is on the economy, where the decision makes clear that the leadership envisages a ‘decisive’ role for market forces, and the establishment of ‘fair and equal’ competition in the economy. This will provide a guiding principle for policy-making over the coming years.

One of the ways of achieving this is to reorganize the functions of government. Here the decision reiterates the themes which the government has been working on since Premier Li Keqiang took over in March this year, namely reducing or removing the need for government approvals to businesses, freeing up the investment environment, and allowing businesses and the market to take the lead unless there is a strong reason for government intervention. Better governance is a wider theme of the decision, covering the judicial system and reforms to the party’s disciplinary organs which would clarify leadership and accountability in anti-corruption investigations.

SOE reform

A possible impediment to market reforms is the power of China’s state-owned enterprises (SOEs), and the original communiqué gave the impression that nothing much would be done about SOEs. However, the ability of these so-called ‘vested interests’ to stymie market reforms has been weakened by the targeting of a number of senior SOE-related cadres in the party’s latest anti-corruption campaign, which began at the end of 2012.

Further, the detailed decision suggests further reforms are in the offing. Although the relevant section of the document begins by restating the leading role for state ownership, a series of subsequent policy aims could serve to dilute it, such as ensuring equality in property rights protection and competition; developing mixed (state and non-state) ownership through cross-shareholding and bringing private capital into state-led projects; shifting from managing SOEs to managing state investments in enterprises; better supervision of SOEs which operate in natural monopolies; and removing administrative monopolies.

International affairs

The decision talks about further opening of China’s economy, but the vast majority of the issues covered in the decision are domestic in nature, and announcements such as a further relaxation of birth control policies have attracted most attention. Even the points on military and defense issues relate more to internal management than external capacity.

There was, however, one announcement which could have important implications for China’s foreign policy, which will be watched carefully outside China, the establishment of a ‘national security committee’. Xi said that this was being set up in response to external pressures to protect national sovereignty, security and development. He also cited internal pressures to maintain political security and social stability. It is too early to judge what the exact remit of this body will be, but it could lead to greater policy coordination and integration between domestic security issues and international affairs, at a time when China is playing a more important role across the international spectrum.

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Moisés Naím will share his insights into the changing nature of power in the 21st century. He will articulate what he considers to be the shift and dispersal of power between traditionally dominant actors (such as large, stable governments, corporations and armies), and newly ascendant ‘micropowers’ (such as the Tea Party, WikiLeaks, and Somali pirates). 

Crucially, however, he will argue power today is decaying. He will suggest power is easier to acquire, but harder to use, and easier to lose. Coupled with this, the drive for power makes emerging actors across many fields of endeavour vulnerable, leading to chaos, confusion and paralysis. 

There will be a reception after the event.

This is an Under 35s Forum event.

Dr Naím will discuss the changing nature of power in the 21st century and will argue power today is decaying. He will suggest that while power is easier to acquire, it is harder to use, and easier to lose. In addition to this, the drive for power makes emerging actors across many different fields of endeavour vulnerable, leading to chaos, confusion and paralysis. The conversation will take place under the Chatham House Rule. 

Attendance at this event is by invitation only. 

Professor John Ikenberry will examine the challenges to global order that are posed by the rise of China and current shifts in global power. He will argue that a liberal-oriented international order, as championed by the United States and Europe over the last century, remains the best hope for stability and growth in the 21st century.

Professor Ikenberry will contend that, while non-Western rising states seek greater voice and authority in the global system, they – perhaps surprisingly – still embrace the basic principles and institutions of liberal world order. Thus, the United States and Europe have powerful incentives to work together to reform the world’s governance institutions to accommodate new stakeholders and tackle problems of rising economic and security interdependence.

ASK A QUESTION: Send questions for the speaker by email to questions@chathamhouse.org or using #askCH on Twitter. A selection will be put to him during the event.

This event will be followed by a reception.

THIS EVENT IS NOW FULL AND REGISTRATION HAS CLOSED.

This report serves as a record of the inaugural London Conference on Globalization and World Order, convened by Chatham House on 2–3 June 2014 at Lancaster House in London.

The London Conference has three aims: to be comprehensive in debating how best to manage the profound economic and political rebalancing taking place across the world; to go behind the headlines and debate the trends underlying and connecting current events; and to build an international community of experts with a shared understanding of the major challenges accompanying globalization.

This inaugural conference was fortunate to draw together high-quality speakers for each session, who offered perspectives reflecting their geographic and sectoral diversity. It benefited enormously from the ideas for themes, speakers and participants suggested by its steering committee. The conference would not have been possible without the generous support of its two founding partners – Accenture and Chevron – and its supporting sponsors – Bloomberg and Rio Tinto – as well as the generous cooperation that we received from the Foreign & Commonwealth Office in hosting the event at the historic Lancaster House in St James’s. And the quality of the debate, insights and ideas generated over the course of the conference was driven largely by the input from its 200 participants. Steering committee members, sponsors and participants are all listed in the next section, along with speakers’ details and the conference programme.

The report itself opens with a short essay which explores one of the main conclusions of the conference: the loss of trust that appears to be permeating relationships between governments, and between governments and their citizens, as a result of the pressures they are all under from the process of globalization. This is followed by the key insights from each of the five main sessions of the conference on 3 June.

The final section brings together the five papers written by members of Chatham House’s in-house research teams in advance of the conference in order to stimulate participants’ thinking. Even following an eventful six months since these were written, their insights and proposals retain an important salience for the future.

We look forward to hosting the second London Conference on 1–2 June 2015.

 

Robin Niblett
Director 

How changing power dynamics will affect how the international order is constituted is one of the most fundamental questions facing the world today.  Whether or not the US itself is declining, the post-war liberal world order, which is underpinned by US military and economic primacy and supported by various global institutions, is evolving. However it is unclear what, if anything, will take its place.

Amitav Acharya argues that the age of Western hegemony is over. While the US will remain a major force in world affairs, he says that it has lost the ability to shape world order in  its own interests and image. As a result the US will be one of a number of anchors, which include emerging powers, regional forces, and a concert of the old and new powers, shaping a new world order.

THIS EVENT IS NOW FULL AND REGISTRATION IS CLOSED.

With China’s economic power on the rise, there is a growing sense among many publics around the world that the global balance of power is shifting and that China already is, or will soon be, the world’s leading power, according to a new survey. The Pew Research Center’s latest Global Attitudes survey found that despite China’s rise in economic power, the People’s Republic is not very popular in Asia, Europe and the United States. As for the US, although the ‘Obama Bounce’ effect of more positive attitudes toward the United States is waning in Europe and China, anti-Americanism in most countries remains much lower than it was during the Bush administration, but remaining consistent in the Middle East. 

Bruce Stokes will present these findings and the expert panel will discuss the insights it provides into an emerging superpower rivalry. In addition they will discuss how these nuances in global attitudes might increasingly shape the security and economic policies of governments around the world.

As Nigeria celebrates one hundred years of unity, significant differences – real and perceived – remain between different parts of the country. This event marks the Nigeria launch of the Chatham House Briefing Who Speaks for the North? Politics and Influence in Northern Nigeria. Its author, Dr Leena Hoffmann, will discuss the effects of democratization and pacted politics on northern Nigeria, broader governance challenges, and how relations among decision-makers nationally have evolved.

Attendance at this event is by invitation only.

Africa is now recognized for its vast potential as well as its political influence in international fora, and there has been a growing number of Africa-focused summits, with China, India, the European Union, South Korea and Turkey all hosting such events in recent years. The US has in the past given precedence to bilateral engagements in support of its ‘four pillars’ approach to implementing its Africa strategy. The first US-Africa Leaders’ Summit, held in August, marked a shift towards a complementary continent-wide engagement. 

At this roundtable, Ambassador Linda Thomas-Greenfield will discuss US policy and priorities in Africa and the significance of the summit for enhanced US-Africa relations.

Attendance at this event is by invitation only.

The speaker will argue that President Xi Jinping's accretion of substantial political power has rendered him the most influential Chinese leader in decades. Still, there is much debate over how President Xi intends to wield that power, and to what end. The speaker will seek to deconstruct Xi's understanding of the nature of power, speculating on his likely game plan for his tenure and exploring the implications for China, the region, and the world in the first quarter of this century.

THIS EVENT IS NOW FULL AND REGISTRATION IS CLOSED.

The stunning victory of the Aam Aadmi Party (AAP) in elections to Delhi’s legislative assembly on 7 February is clearly causing reverberations around India’s political establishment, and has been widely interpreted as the end of Narendra Modi’s honeymoon period. While it is not a rejection of the prime minister’s development agenda, it highlights the reality that his Bharatiya Janata Party (BJP) has built previous electoral victories on a divided opposition.  Its implications may well spread far beyond Delhi.

Sensing Modi’s likely ascendency, many Western countries expended energy in courting him in the run-up to last year’s election. For the previous decade, many had ostracized Modi for his response to the 2002 riots that occurred in Gujarat while he was chief minister (CM). The belief that Modi was the likely prime minister, coupled with the desire to strengthen relations with India, as well as the fact that he had been cleared of complicity in the riots in each court case, meant that past concerns were put to one side. Underpinning this recalibration was a belief that Modi was a changed man; the earlier firebrand had transformed into a managerial technocrat, focusing on development issues — providing power to farmers for instance — in Gujarat.

The 2014 general election campaign did little to change that impression. The BJP’s success was built on a promise of development — house-building, access to sanitation and so forth. Progress has understandably been slower than many would have hoped. But the Delhi election does not change the fact that if successful strategies are put in place to begin delivering on promises made by, say, the third year of the current parliament, Modi may well be able to preside over a 10-year transformation of India.

Modi has also been wooing foreign investment. His bonhomie with foreign leaders, whether Chinese or American, is a powerful signal that India is open for business. India’s economic boom in the middle of the last decade was driven in part by positive investor sentiment. The subsequent realization that ‘red tape’ was still an impediment to business helped drive the slowdown. Recreating a feel-good wave could well boost economic growth; if it coincided with better governance, it could even become self-sustainable.

The Delhi election doesn’t change this, either. It reduces Modi’s air of invincibility and will mean that he faces genuine opposition, admittedly from a chief minister rather than in the Lok Sabha, the lower house of parliament. The fact that it is India’s capital will give new Delhi CM Arvind Kejriwal much greater prominence internationally than any other CM. But given that both Modi and Kejriwal won landslides on a platform that reflected an aspiration for change rather than a promise for some form of community-based redistribution gives them a (relatively) shared agenda.

If Modi’s vision is to be implemented, it necessarily requires cooperation with chief ministers. Clearly, that is easier if states are BJP-controlled, and BJP-controlled states can be used to test economic reforms. But if a vision is to be India-wide, there has to be some level of cooperation with the majority of states, which do not have BJP governments.

Until the Delhi election, the BJP had been performing strongly in recent state elections. It may well continue to do so and edge closer to a majority in the upper house of parliament, the Rajya Sabha. But one takeaway from both the general election and the Delhi election is that the BJP is far from a majority party. It won a majority of seats in the Lok Sabha with a little over 30 per cent of the vote. Its vote was concentrated geographically, and the opposition was divided. In the Delhi election, it won 32 per cent of the vote. The obvious takeaway is that a divided opposition benefits the BJP. If the economy booms, more parties are likely to want to join hands with the BJP. If it does not, and if the opposition was united (admittedly, a very big if), the BJP will struggle to win two terms.

An alternative takeaway is that the social base of the BJP needs to be widened. The reaction to US President Barack Obama’s recent speech, in which he mentioned the need for religious tolerance, suggests sensitivity towards communal issues. Delhi witnessed a number of small-scale communal incidents — including vandalism against churches — in the run-up to the state election. If such incidents were replicated in the run-up to the Bihar election later this year, the outcome may well be much worse.

Any switch towards a more Hindutva-focused agenda would seem likely to encourage the consolidation of non-BJP parties. A serious outbreak of communal violence while Modi is PM will be bad for India, but also troubling for the West. Having portrayed himself in a presidential manner, Modi would struggle not to take some responsibility.

Thus, sticking with a development agenda must be imperative. The Delhi election should be seen as a blip for the BJP, a demonstration of the value Indian voters place on development and reinforce the need to focus on delivering that development. While voters may be getting impatient, what’s important is where India stands at the time of the next election.

This article was originally published in the Indian Express.

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Professor Brown will examine how Xi Jinping has consolidated authority since becoming head of the Communist Party in 2012 and explore what his goals are for the future of China. Is Xi trying to cement his own power or protect the interests of the party by guiding it towards a more sustainable rule?

This talk will introduce the key arguments in CEO China: The Rise of Xi Jinping, the speaker’s full-length, English language study of Xi, his background, current position and core beliefs.
 

On the surface, the Indian economy is performing well, and the popularity of Narendra Modi, the prime minister elected on the promise of liberalizing reform two years ago, is holding up. Christine Lagarde, the managing director of the International Monetary Fund (IMF), has referred to India as a ‘bright spot’ in the slowing global economy. According to them, growth equalled China’s last year at 7.3% and has now taken the lead as the world’s fastest growing economy. Yet some joke that India’s prospects look brighter the farther away you are.

The panel will reflect on Modi’s two years in power and discuss what they think the government got wrong and what they got right. They will question whether India’s resurgence can be sustained into the future, and discuss what this actually means for the prospects of India’s 1.3 billion people, as well as the balance of power in Asia and beyond.

This event is organized in association with the Lee Kuan Yew School of Public Policy at the National University of Singapore.

The field of Indian foreign policy is rich and wide ranging, offering new empirical material across a broad array of topics and relationships. This article reviews three recent books on the subject, with an eye towards evaluating change amid continuity in the pursuit of Indian foreign policy. This scholarship calls out for a new paradigm to understand India’s changing position and actions at global, regional and domestic levels. I argue that Indian foreign policy can and should be seen through the prism of an open border, interdependence framework, wherein both the domestic and global levels are analysed in a linked manner. While the literature surveyed here does not yet offer a new paradigm, some common findings suggest the need for new approaches. We also need to find and use new sources of data and seek ways to measure institutional effects in foreign policy. The task of measurement and theoretical modelling is made more challenging by the need to theorize the linkages across levels and to measure foreign policy variables in different countries simultaneously.