Denis Maximov
Word Count – 1607/PIN 10562
The Logic of Westphal and Post Westphal Systems of International Relations in the Context of Fighting Against the Circumstances of the World Economic Crisis (subtopic: “Find the Next Wave to Ride on – New Business Strategies in the Changing World”) Denis Maximov
1. Introduction. Modern world face the problem of economic crisis now, which is not simple and not ordinary. Its circumstances forced to remember about boundaries between states themselves and between state and business. Moreover, it is a question of paramount importance to mention drastic circumstances of the crisis have not only economic origin. The whole economic system was not ready to face all emerged problems, and it could be partly explained with the unbalanced and inappropriate system of modern international relations, which heavily affect both world financial and trade systems. In my essay I want to focus on issue of international relations system and connected with it measures for preventing the crisis circumstances. Generally, the existing system of international relations is Westphal system, which was created after signing in 1648 the Treaty of Westphalia, peace agreement among European empires. It brought the religion out of the politics in Europe, but most importantly – constituted a state as the only actor in international affairs. From that moment till nowadays state keeps the status on the only legitimate actor in international relations 1 . But the 20th and the 21st centuries produced great challenges to the system of international relations. Westphal logic couldn’t respond anymore to reality in proper way mainly because of blurring the status of state as the only actor of international relations. This condition of the system some scientists (Marina Lebedeva, etc.) recognize as Post Westphal system of international relations2 . At the time of world economic crisis, started in 2007, the world institutional system became unable to face problems occurred during crisis in appropriate way. Massive bankruptcy, unemployment, impotence of main world economic regulators to control the processes – that are the characteristics in which world economy entered 2009. 2. The world is still living in Westphal, state-oriented logic. In spite of all the changes which took place in the world during past almost 5 centuries after stating sovereignty and state as the main characteristics of international political environment, at the term of crisis the most common way of finding escape is the turn to national state boundaries in the logic of state as unique and special savior 3 .
1
Neufield, Mark. The Restructuring of International Relations Theory. Cambridge: Cambridge University Press, 1995
2 3
Lebedeva, Marina. Privatization of World Politics. Moscow: Moscow Institute of International Affairs, 2008
Bartelson, Jens. A Genealogy of Sovereignty. Cambridge: Cambridge University Press, 1995
Denis Maximov
Post-Westphal approach to real contemporary world order is being crashed with crisis as well (by numerous economists) 4 – when the critical moment has come, nobody told about post-modern actors and their unique influence on the environment. The crisis has shown to theorists of ideal and liberal approaches to international relations and economy that realists, who always believed only in weapon and money as real resources of every times, were right. That’s also traditional understanding of competition – competition relying on state. As Henry Louis Mencken said “The cynics are right nine times out of ten”. But is it really so simple? Why state as an actor showed its dominance again? 3. Post Westphal form of world communications picture. In reality, the picture of the world has changed drastically. For more than 50 years European project of integration proves that there is a place for Post Westphal actors in the world, which are not correspond to state directly 5 . Furthermore, international terrorist movements, transnational corporations and etc. also proved its value on the world stage6 . Generally, international organizations, state, NGOs, business, transnational movements and etc. create new atmosphere of communication networks in contemporary world. At the time when boundaries again became important those who can and have abilities to break and overcome it will get unique competitive advantage in the fight for the best piece of pie. 4. Post Westphal logic of contemporary crisis facing. In XXI century, in contrary with 1970s and 1930s economic crises, we face multilateral world with many logic angles of analyzing. Apart from state, international organizations, NGOs, businesses (transnational, regional and in associations) have also become actors of world policy and world order change. That’s why binary way of reacting to crisis circumstances – using state as the only weapon in fight against crisis – couldn’t be told as wise strategy. When other actors of world policy came up, it is time to involve them to the processes of world economic processes stabilization. It is obvious that world needs in new international “mixed” organizations, which will unite at one discussion and communication area governments, businesses, NGOs and other Post Westphal actors. 5. Key factors for success of the entity during the crisis and boundaries revival. The current crisis could be called universal for all kind of actors in world policy as it negatively affects almost all of them. Let’s try to figure out some points of successful behavior for actors (generally for all of Post Westphal actors). Uniqueness of this speak is it brave trial of uniting all of them under the same roof. There are - trust (reputation resources, image value, experience’ successfulness); - flexibility (diversity of skills, education); - networking (amount of connections, level of popularity, abilities to overlap networks, abilities to use effectively information areas) and 4
Hull, John. The Credit Crunch of 2007: What Went Wrong? Why? What Lessons Can Be Learned? Rothman School Research Paper, 2008 5 Van Ham, Peter. Europe’s Post Modern Identity: A Critical Appraisal. International Politics, 2001 6 Lebedeva, Marina. Privatization of World Politics. Moscow: Moscow Institute of International Affairs, 2008
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- access to information (innovative and effective search skills). Making from pointed characteristics of contemporary success the matrix of mathematical evaluation, it is also could be assessment of entity’s competitiveness though these factors – TFNI-analysis system (look below, picture 1).
Picture 1. Simplified pattern of TFNI-analysis system logic plan 6. Key strategies for the entity during the crisis time. There are also key recommendations for universal entity (in the meaning of all forms of actors in modern world – state, NGOs, business and other factors of world policy) could be figured out: 1) using of complicated mixed networks = ensuring stability 2) an openness of connections for new initiatives and ideas = getting innovations 3) a will to convert activities and understanding of the possibility to face that need = flexible approach 4) a constant care about environment = productive atmosphere building 5) work on trust resources = getting maximum capabilities for way-outs from the crisis time. 7. Strive to political integration: first spillover. At the time of the crisis strive to political integration and new integrative initiatives would rise apart from declining of economic cooperation initiatives. It’s kind of spillover effect: economic integration should be replaced by political in order to keep the integration itself as a process on the way. As most of the countries, as Westphal logic children, will use unilateral methods of internal economic resources getting (through taxes, cutting expences, etc.), they will have to persuade people that hard times will go away and future prosperity will come, which could be made through informative campaigns for political unions against crisis. This spillover is a perfect chance for “frozen” integration projects to come forward. It could also break the integration crisis in the EU, crashing the egoistic logic of member states in political
Find the Next Wave to Ride On - New Business Strategies in the Changing World
Denis Maximov
sphere. Many political scientists, who gave up with idea of Europe as a federal state, now are coming back to this idea 7 . 8. Rising importance of non-material values: second spillover. During the crisis in XXI century there is unique thing – material values are going down in their value and non-material values become the basement for recovery. It is also could be explained as the form of spillover – of non-material values to material. Ideology and entrepreneurial spirit would become effective instruments in fighting against negative circumstances of the world economic crisis. Using of information flows for making productive and generous anti crisis environment will help to maintain stability in societies. It is very hard work, because replacing material values with non-material equivalents need in attentive assessment of measures. 9. The new institutional balance for the world. As Lyndon LaRouche said many times 8 , we created misbalances ourselves all the time trying to support the structures and institutions, which are not answering to challenges of modern reality (World Bank, etc.). Of course, LaRouche ideas often could be found as too radical, it’s hard to oppose to several key points of his approach to analyzing of world economic and political systems. There is a need in serious revise and restructuring or maybe even abolishing of some world regulators. It is not only the crisis of financial system, which appeared because of irrational behavior and unbalanced risks. It is not only the crisis of financial and economic system it’s also the crisis of “service economy” and “investments economy”, created on the path for finding new mode of production which should help to balance economic growth throughout the world. 10. Conclusion. For now we see patterns of behavior in Westphal logic made in Post Westphal environment of actors. What can we do? I propose two philosophical approaches to the problem: a) To enlarge role of non-state actors and its involvement in anti-crisis measures b) To initiate new form of institutional balance in Post Westphal world Both of them are quite hard in terms of practice. But it is obvious, that offering any practical solutions at the moment has no sense, because the dominance of Westphal logic is reality of nowadays. And that is the thing, with what we have to work most attentively now through exchanging opinions in effective discussions all over the world. Bibliography 1. Neufield, Mark. The Restructuring of International Relations Theory. Cambridge: Cambridge University Press, 1995 2. Lebedeva, Marina. Privatization of World Politics. Moscow: Moscow Institute of International Affairs, 2008. 7
Hilton, Will. The Idea of Europe. Federal Union, 2007 LaRouche, Lyndon. The Greatest Economic Crisis in Modern History. LaRouche Webcast, 2006
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3. Bartelson, Jens. A Genealogy of Sovereignty. Cambridge: Cambridge University Press, 1995. 4. Hull, John. The Credit Crunch of 2007: What Went Wrong? Why? What Lessons Can Be Learned? Rothman School Research Paper, 2008 5. Van Ham, Peter. Europe’s Post Modern Identity: A Critical Appraisal. International Politics, 2001 6. Hilton, Will. The Idea of Europe. Federal Union, 2007 7. LaRouche, Lyndon. The Greatest Economic Crisis in Modern History. LaRouche Webcast, 2006 Â
Find the Next Wave to Ride On - New Business Strategies in the Changing World
Denis Maximov
Global Initiatives Symposium in Taiwan 2009