Globalization, the buzz word of the late 20th century and the beginning of the 21st, was initially much extolled for the societal benefits that were to come. Two decades into the new century, the assumptions that globalization was based on, the actual way that benefits accrued and a host of unintended consequences have come squarely into the headlights. Unfortunately, the Trudeau Liberal government is stuck in the past, and is not looking in the right direction. But first, some context. As part of this much-hyped wave of globalization, China under President XI announced in 2013 perhaps the most ambitious project of all, the so-called New Silk Road, usually referred to as the One Belt One Road initiative. The publicized idea was to connect Asia, Europe, Africa with China by land and sea. To accomplish this, Chinese banks would make loans to participating countries for building infrastructure. As this initiative developed, it also included sea links to South America.But, voices in African countries, soon followed by others, complained that the loans from China were a debt trap: China was pressuring debtors and threatening their sovereignty. Whether or not this is accurate, the perception is certainly there. More importantly, some countries complained about the unadvertised geopolitical grand plan behind the initiative. It was notable for its lack of private sector involvement and transparency, the neglect of human capital development in participating countries, environmental concerns of the projects and that the economic benefits in participating countries were overstated and one thing more, that the projects were unsustainable.Recently, Italy pulled out of its agreement with China, citing the last two items above as the reason. Now, Sri Lanka is changing its position.Sri Lanka (formerly Ceylon) is a large island nation off the south-east coast of India. Once, it was a self-sufficient food producer. However, it initiated the UN’s green agricultural policies, which significantly decreased farm output and plunged the country into poverty. It has been struggling ever since. It too signed on to the One Road,One Belt initiative and China helped finance a major port. But when Sri Lanka could not make payments on the loan, China took control of the port. Part of the problem was that the benefits for Sri Lanka were overestimated. It was the same with another China-financed project, a new international airport. This did not generate the benefits the Sri Lankan government were hoping for, either. In April, the government announced that contracts to manage the boondoggle airport were signed with private sector firms from India and Russia. The dream of the One Belt One Road Initiative seems tarnished.The USA and India now have a partnership as of 2023, on emerging technology, defence, health and climate, that cements closer ties between the two Indo-Pacific nations. There is also the India-UN Development Partnership Fund helping projects in 61 countries, new rail and shipping links with the Mid-East underway and other Indian initiatives alone or in cooperation with global partners such as the EU. These projects will compete with China’s outreach.Millions of Canadians and Americans have long realized that globalization as understood over the past forty years, had initially left them out of those receiving benefits. COVID-19 drove home experts’ worries that Canada and America as well as allies and friends would be hard pressed with critical manufacturing outsourced to offshore facilities.How is Canada responding to these shifting geopolitical realities and the need to secure Canada’s self-sufficiency? Well, the Trudeau Liberals have downplayed the election interference findings, Prime Minister Trudeau himself is in a tit-for-tat feud with India, Canada is still not self-sufficient in medical supplies (although trying,) and the first (and uncelebrated) oil running through the newly completed Trans-Mountain Pipeline... did not go to allies.Let’s hope that unlike the present PM who lives in the globalized past, the next prime minister will address the concerns in the 2020s and beyond.Dr. A.W. Barber is the former Director of Asian Studies at the University of Calgary. He is internationally active and has wide-ranging interests.
Globalization, the buzz word of the late 20th century and the beginning of the 21st, was initially much extolled for the societal benefits that were to come. Two decades into the new century, the assumptions that globalization was based on, the actual way that benefits accrued and a host of unintended consequences have come squarely into the headlights. Unfortunately, the Trudeau Liberal government is stuck in the past, and is not looking in the right direction. But first, some context. As part of this much-hyped wave of globalization, China under President XI announced in 2013 perhaps the most ambitious project of all, the so-called New Silk Road, usually referred to as the One Belt One Road initiative. The publicized idea was to connect Asia, Europe, Africa with China by land and sea. To accomplish this, Chinese banks would make loans to participating countries for building infrastructure. As this initiative developed, it also included sea links to South America.But, voices in African countries, soon followed by others, complained that the loans from China were a debt trap: China was pressuring debtors and threatening their sovereignty. Whether or not this is accurate, the perception is certainly there. More importantly, some countries complained about the unadvertised geopolitical grand plan behind the initiative. It was notable for its lack of private sector involvement and transparency, the neglect of human capital development in participating countries, environmental concerns of the projects and that the economic benefits in participating countries were overstated and one thing more, that the projects were unsustainable.Recently, Italy pulled out of its agreement with China, citing the last two items above as the reason. Now, Sri Lanka is changing its position.Sri Lanka (formerly Ceylon) is a large island nation off the south-east coast of India. Once, it was a self-sufficient food producer. However, it initiated the UN’s green agricultural policies, which significantly decreased farm output and plunged the country into poverty. It has been struggling ever since. It too signed on to the One Road,One Belt initiative and China helped finance a major port. But when Sri Lanka could not make payments on the loan, China took control of the port. Part of the problem was that the benefits for Sri Lanka were overestimated. It was the same with another China-financed project, a new international airport. This did not generate the benefits the Sri Lankan government were hoping for, either. In April, the government announced that contracts to manage the boondoggle airport were signed with private sector firms from India and Russia. The dream of the One Belt One Road Initiative seems tarnished.The USA and India now have a partnership as of 2023, on emerging technology, defence, health and climate, that cements closer ties between the two Indo-Pacific nations. There is also the India-UN Development Partnership Fund helping projects in 61 countries, new rail and shipping links with the Mid-East underway and other Indian initiatives alone or in cooperation with global partners such as the EU. These projects will compete with China’s outreach.Millions of Canadians and Americans have long realized that globalization as understood over the past forty years, had initially left them out of those receiving benefits. COVID-19 drove home experts’ worries that Canada and America as well as allies and friends would be hard pressed with critical manufacturing outsourced to offshore facilities.How is Canada responding to these shifting geopolitical realities and the need to secure Canada’s self-sufficiency? Well, the Trudeau Liberals have downplayed the election interference findings, Prime Minister Trudeau himself is in a tit-for-tat feud with India, Canada is still not self-sufficient in medical supplies (although trying,) and the first (and uncelebrated) oil running through the newly completed Trans-Mountain Pipeline... did not go to allies.Let’s hope that unlike the present PM who lives in the globalized past, the next prime minister will address the concerns in the 2020s and beyond.Dr. A.W. Barber is the former Director of Asian Studies at the University of Calgary. He is internationally active and has wide-ranging interests.
