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EU-LDC Network Conference 2004 

Multilateralism at risk - Beyond Globalisation - 2-3 April 2004, Brussels

Session 2: Frustrated multilateralism - the consequences - Summary

Recent events in the global, political and economic arena, such as the UN crisis instigated by the war in Iraq, the collapse of the WTO meeting in Cancun, and the growing anti-globalisation movement have led to a reversal in multilateral thinking, and a setback in the globalisation process. This session therefore focused on the current state of frustrated multilateralism, its consequences in developing countries, and the role of the EU in the context of frustrated multilateralism.

The first speaker, Fredrik Soderbaum, argued that the alternatives of multilateralism have been reduced since 9/11, and that the current world order can be explained as a tension between the US approach and the EU approach. The US approach, centred around the global war on terror, also referred to as the “unipolar movement”, is characterised by militarised leadership and military strength. The US approach is believed to be incompatible with the EU approach, also referred to as the “regionalist movement”, which focuses on plurilateralism and multilateralism built upon international law. The regionalist movement can be characterized by complexity, involving a variety of non-state and organizational actors; being open and compatible with an interdependent world order, without competing with multilateralism; and providing substance and solution to multilateralism by giving a foundation to regional movements. Further differences between the two approaches are that the EU approach is based on rational and secular choices, soft power, and long-term institutional arrangements that favour participation, whilst the US approach is characterised by temporary ad-hoc solutions, exclusive coalitions, and short–term institutional settings.

The main question raised by the speaker was which one of these two approaches represents the preferred form of future multilateralism and globalisation. It was argued that the regionalist movement implies region-to-region relations resulting in regional multilateralismor “multiregionalism”, which would be the more regulated and therefore the preferred form of future multilateralism and globalisation. Furthermore, it was believed that the interregional arrangements make the global environment more stable and predictable, while at the same time providing solutions and compromises to US unilateralism.

The second speaker, Knud Erik Jorgensen, discussed what role the EU plays in contemporary frustrated multilateralism; to what degree multilateralism plays a role in the EU’s identity politics; and what the connections are between the European identity, interests, and policies in contemporary frustrated multilateralism. The speaker believed that the image often presented as the US being unilateral and Europe being multilateral is profoundly wrong. The EU is far from being a pure multilateralist, since many relationships of the EU are strictly bilateral, and the EU is not framed from taking unilateral actions. Instead, multilateralism has to be looked at and analysed in a blurred fashion, where no pure multilateral strategy or unilateral strategy exists, and where each actor puts available strategies together in a preferred mixture.

The second speaker further commented on the issue of threats to multilateralism, and the consequences of frustrated multilateralism. It was believed that threats could emerge from within states as well as from outside the institution of multilateralism. States can undermine institutions from within, and NGO’s, civil society, political parties can undermine institutions from outside. The most serious threat to the multilateral institution was believed to come from within. It was further argued that the EU currently cannot, and does not have the capacity to change the institutions from within, whilst the US have this capacity, and do use it in order to influence and change the institutions within the current multilateral system.  

On the consequences of frustrated multilateralism, it was believed that these will appear in the form of instability, unavailability of collective goods, and the creation of core groups with a few actors negotiating and agreeing on policies to be accepted by many. However, the main question to be raised is whether many want to accept what few have negotiated and decided on. Four future scenarios of multilateralism were presented. In the first scenario, one would hope that the good old days come back but this was believed to be not very likely. The second scenario would involve more tomorrow of what we have today, i.e. a gradual break-up of multilateral institutions being replaced by unipolarity. The third scenario would involve new institutions/powers appearing. Finally, the fourth scenario presented would involve more of “minilateralism” to save the little from what is left of multilateralism.

The third speaker, Alice Sindzingre, analysed the national consequences of frustrated multilateralism and, more specifically, the consequences from the reform failures of the IFIs on a political and economic level in developing countries. It was argued that no consensus on the form of globalisation or policies to be implemented exists, but that the main reason for frustration is the lack of representation within the architecture of multilateralism. Thus, further reforms in terms of representation are needed within the IFIs. In relation to this it was argued that as Member States are represented individually, the EU currently lacks representation in many of the multilateral institutions, and has so far failed to put forward a common position. It was further believed that as long as development policy in the EU is not united, it will be difficult to present a common view, and influence multilateral institutions from within.

On the specific consequences in developing countries, it was claimed that the IFIs programmes have proven to deliver zero growth, particularly in Sub-Sahara Africa. A negative correlation is even found between policy reform and growth in developing countries, as shown inter alia by the IMF’s independent evaluation unit. It was argued that policies can only partially explain the lack of growth in developing countries, for there are many other factors at stake. These constitute of e.g. the structural characteristics of developing countries –such as geography and demography- and institutional development. Many institutions have pointed to the importance of these other factors that are not sufficiently addressed by the IFIs. For example UNCTAD has a very different diagnosis of the problem of lack of growth than the IFIs  -UNCTAD’s view is based on e.g. commodity dependence, poverty traps and debt traps- and, consequently, relevant policies are often significantly different from the ones presented by IFIs. The speaker further concluded that the political economy effect of reform failure in developing countries was erosion of the state in terms of lack of credibility and capacity of government, in addition to the lack of credibility and legitimacy of IFI reforms.

Among the several issues raised in the round table discussion, one was how the EU can make the US move in the preferred direction. It was believed that it is important to engage and inform the US public on EU policies and opinions with EU lobbying in Washington and New York, to create a media structure in the US to inform the US public on alternative views, and to present a common EU position as an alternative to the US.

The discussant of this session, Alfredo Valladao, said that the EU fails to take into account the paradox of multilateralism, i.e. in order to guarantee the multilateral system it is necessary to have some form of unilateral capacity of action. Multilateralism namely is a rule-oriented system, and rules only exist if you can enforce them, which requires some kind of unilateral strength of action. The EU currently does not possess the latter, since tensions within the EU’s own integration process inhibit the capacity to present a common approach.


Session 2: Speakers

Chair: Rehman Sobhan (Professor, Chair of the Centre for Policy Dialogue, Bangladesh)

Speakers: Fredrik Soderbaum (Researcher, Goteborg University, Sweden), Knud Erik Jorgensen (Associate Professor, University of Aarhus, Denmark), Alice Sindzingre (CNRS, Paris and SOAS, London)

Discussant: Alfredo Valladao (Professor, Institute of Political Studies Science Po-Paris, Chaire MERCOSUR)

Session 2 - Papers and Presentations
All files are downloadable files are Word documents unless specified otherwise.
Frustrated Multilateralism - The Unipolar Movement versus the Regionalist Movement - Fredrik Soderbaum
The European Union's International Identity: the Role of Multilateralism - Knud Erik Jørgensen
The Consequences of Multilateralism and Global Integration for Developing Countries: Assessing Economic and Institutional Reforms' Effectiveness - Alice Sindzingre

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