Preface to Enhancing Global Governance in a Fragmented World: Prospects, Issues, and the Role of China

CCG's open-access book, contributed by 30 leading think tankers, is available for free download on the Springer website.

The CCG book, Enhancing Global Governance in a Fragmented World—Prospects, Issues and the Role of China, invites 30 leading figures from the global think tank community to provide a contextual analysis of multilateralism and global governance with a focus on China in detail. Its preface is published here to encourage readers to explore this insightful work, which is available for free download on the Springer website.

Preface

In a world of momentous change, we still have a long way to go to achieve mutually beneficial and long-term development. The internal and external factors influencing China’s development have seen profound and complex changes that present both challenges and opportunities, which has made decision-making more difficult than ever before. In such a complicated international environment, the question of how to take advantage of these opportunities, cope with new challenges, improve global communication and cultivate real soft power require logical, professional, and systematic research to support decision-makers. This is true for countless countries around the world, but in particular for China as it enters a new stage of development, and one of the key players in answering these questions is think tanks.

Dr. James G. McGann, the late global leader in the analysis of think tanks at the Lauder Institute, and director and founder of the Think Tanks and Civil Societies Program (TTCSP), defines think tanks as public policy research analysis and engagement organizations that generate policy-oriented research, analysis, and advice on domestic and international issues, thereby enabling policy-makers and the public to make informed decisions about public policy.

The function and importance of think tanks have increased markedly since the end of World War II and become even more valuable today as the pace of change accelerates, geopolitical complexity increases and the world has to deal with international crises that no country can address on its own. Think tanks have become key resources for government and other decision-makers on a variety of issues, forming an integral part of an increasingly multilateral world where not only state actors, but business and academia can influence development on a global level.

Multipolarity, multispeed globalization, and yawning gaps in global governance— our current world is characterized with these three features that exert countervailing pressures on the international order. Today, countries not only compete for economic, scientific, and technological advantages, but also advantages on soft power centered of ideas, institutions, and culture. Think tanks, as the source of innovative ideas, are becoming the new focus of soft power competition.

It is in this context that I and Mabel Lu Miao founded the Center for China and Globalization (CCG) in 2008. Over the years, CCG has grown into one of China’s leading non-governmental think tanks and a firm believer in the power of think tanks to influence decision-making processes and find balanced solutions to global issues.

CCG maintains regular contact with think tanks and research institutions around the world including the Aspen Institute, Brookings Institution, Carnegie Endowment for International Peace (CEIP), Center for Strategic International Studies (CSIS), RAND Corporation, Cato Institute, The Heritage Foundation, the Center for American Progress (CAP), Council on Foreign Relations, Bruegel, French Institute of International Relations (IFRI), European Policy Centre (EPC), The Körber Foundation, Global Solutions Initiative (GSI), Institute for International Political Studies (ISPI), Barcelona Institute for International Studies (IBEI), Polish Institute of International Affairs (PISM), The S. Rajaratnam School of International Studies (RSIS), Asian Research Institute (ARI) at the National University of Singapore, Sejong Institute, Institute of Strategic and International Studies (ISIS) Malaysia, Asian Development Bank Institute (ADBI), Observer Research Foundation (ORF) in India, Research Institute of Economy, Trade and Industry (RIETI) in Japan, The Global Foundation in Australia; Center for International Policy-Africa (CIP), the Brazilian Center for International Relations (CEBRI), and many others, regularly inviting researchers to share their views via both online and offline forums, to search for various solutions to the ills that currently plague the world and a way to create a future in which everyone benefits. CCG also hosts annual events including China Global Think Tank Innovation Forum and China and Globalization Forum, gathering experts from government, industry, universities, and research institutions to discuss and share insights on the compelling common challenges we face and far-reaching trends shaping the future of our world. Such open and face-to-face exchanges give us a deeper understanding of the long-term trends shaping the future of our world, and an opportunity to build consensus addressing the common challenges.

In recognition of its contribution and influence, CCG was granted official special consultative status by the Economic and Social Council of the United Nations (ECOSOC) in 2018. In the 2020 Global Go To Think Tanks Index by the University of Pennsylvania Think Tanks and Civil Societies Program (TTCSP), CCG ranked 64th among top think tanks worldwide and was listed as one of the top 50 “best independent think tanks.”

CCG continues to play this role by driving interactions that leverage Track II Diplomacy. Aware of the importance of in-person exchanges, especially in the context of COVID-19 when these basically came to a halt, CCG was the first Chinese nongovernmental think tank to travel to other countries even before China had lifted restrictions in order to rekindle relationships and discussions on key issues. Beginning in late-2022, CCG began a series of Track II Diplomacy activities that took a team of experts throughout Europe, Asia, and North America, reaching out to individuals and organizations that were key in restarting global discourse on important issues related to China, not least of which was the role of global think tanks. We found that despite the obstacles caused by the pandemic, our counterparts and people in other countries are still eager to get to know more about China.

Our experience engaging with the international community over the years has given us a deeper understanding of how think tanks can be an important force in promoting global economic, political, diplomatic, and cultural exchanges and cooperation. The Track II Diplomacy activities carried out by think tanks can complement official diplomacy, effectively improving a country’s international narrative, upholding national interests, and promoting people-to-people exchanges.

To share our understanding, we have published several research reports on think tanks, including The Fourth Branch of Government of Great Powers, Global Think Tanks, and Global Think Tanks 2.0, providing a systematic and comprehensive introduction and analysis of think tanks in countries around the world, summarizing the development experience of world-renowned think tanks, and analyzing the new context and challenges Chinese think tanks face and presenting advice for promoting the development of Chinese think tanks. We hope our interactions with our overseas counterparts will be helpful to other Chinese think tanks.

Enhancing Global Governance in a Fragmented World: Prospects, Issues, and the Role of China is our latest effort to welcome leading figures from the global think tank community to share their views on a range of issues from multiple angles that can then be turned into policies to tackle common challenges. In the course of compiling this latest volume in the China and Globalization series, two main themes emerged that were both telling and timely—multilateralism and global governance. Global governance, while not a new concept, has been revisited many times as the world continues to recover from the ravages of the COVID-19 pandemic. Doubts on globalization had been building even before the pandemic and COVID-19 simply accelerated key trends that were already shaping future geopolitics and the world economy. Many countries responded to perceived and real security threats by focusing on regional supply chains and adopting policies of reshoring or friend-shoring. Meanwhile, for many in the developing world, which have benefited from a globalized world, there has been a call for a new type of globalization that is flatter, more multilateral, and more egalitarian, which will also impact the future of global governance. China has been a major advocate for this new phase of globalization, calling on both developing and developed countries to explore new avenues for trade and development that are both inclusive and mutually beneficial and will in turn shape the future of global governance.

In this book, we will explore key themes such as multilateralism and globalization from the perspective of think tanks from nearly every continent, searching for various solutions to the ills that currently plague the world, and exploring how to best create a future in which everyone benefits. We will also be looking at these issues specifically from the perspective of China and its role in global development.

The book is divided into four distinct parts that transition through different layers of multilateralism and global governance, providing a contextual analysis of the major themes within multilateralism and global governance both from theoretical and practical perspectives that focus on China in detail, but also examine the world as a whole.1 It is our hope that this will provide the reader with a logical, organic overview of current discussions on key topics and provide insightful perspective on important issues.

The first part, titled “The Argument for Multilateralism,” examines various views on multilateralism and its importance in today’s changing world, from a rising Global South and shifts of power toward Asia, to the importance of supporting and nurturing existing multilateral mechanisms. This part begins with a plea for multilateralism from Arancha González Laya at the Paris School of International Affairs at Sciences Po, which addresses global threats currently facing the world and how a reformed version of multilateralism could be the answer. Next, Markus Engles of the Global Solution Initiative proposes the idea that multilateralism is a prerequisite for sovereignty in a world where many global issues go beyond national borders, behooving us to consider national sovereignty in the context of an increasing multilateral world.

Piet Steel, Chairman of the Europe-Asia Center, re-examines the challenges and potential catastrophes the world faces, while also exploring the various ways in which we can work together to reach a necessary consensus. Next, Grzegorz Kołodko of TIGER, a research institute at Kozminski University in Poland, provides a detailed economic analysis of similar pitfalls in the current global context by asking the question of whether we are entering an era of peaceful development or war economies. To close out this part, Paolo Magri of the Italian Institute for Political Studies proposes that interdependence could be the key to a new interpretation of multilateralism, essentially a “glue” that could continue to bind the world together.

The second part of this book, “China’s Role in a Multilateral World,” takes a closer look at China by examining how its relations and interactions with the world, past and present, have resulted in its unique role and potentially decisive contribution to the future of multilateralism. The first contribution of this part comes from Daniel Ikenson of Ikenomics Consulting, who examines how great power rivalry will impact the multilateral trading system by comparing the preeminence of the United States and the rising influence of China. Next, Michael Yeoh of the KSI Strategic Institute for Asia Pacific looks more closely at themes of interconnectedness and interdependence in the context of the China-ASEAN partnership, including the challenges and opportunities that it presents. The next contribution comes from Michael Schumann and Urs Unkauf of Germany’s Federal Association for Economic Development and Foreign Trade and examines “change through trade” in the context of a multipolar world and how economic diplomacy can bring about more understanding at the international level.

Continuing the theme of trade and finance from a more global level, Bert Hofman and P. S. Srinivas of the National University of Singapore’s East Asian Institute look at China’s complex relationship with multinational development banks and how, as a driver of behind the New Development Bank and Asian Infrastructure Investment Bank, China has the potential to make a significant impact on the future of the international financial system. As part of China’s continued integration into global financial systems, the internationalization of the RMB, or Chinese Yuan, is the focus of the next contribution by Dubravko Radošević of the University of Zagreb, who provides a detailed analysis of China’s unique approach to making the RMB one of the world’s major currencies.

In a broader context, Henry Huiyao Wang and Mabel Lu Miao of the Center for China and Globalization examine how a new paradigm of economic globalization can reshape the world order in the context of a multipolar world as we transition out of a period of “hyper-globalization” and what this means for the future of global governance.

Delving more deeply into the topic of global governance, Tobby Simon of the Synergia Foundation takes a closer look at China’s inroads into global governance, analyzing the current world order and its vision of a more decentralized and hybrid form of global governance that incorporates both state actors and private entities. Next, Kent Calder of the SAIS Reischauer Center for East Asian Studies at Johns Hopkins University looks at the rise of the “global political city” in the context of Beijing and how its interpretation of global trends will be crucial in determining China’s global role and its contributions to global governance. Building on this further, Zamir Awan of the Global Silk Route Research Alliance specifically focuses on China’s governance system from its ancient foundations to modern cases of good governance and the various elements that have led to China’s successful development.

In another aspect of China’s role in global governance, Jasna Plevnik of the Geoeconomic Forum Croatia looks at China’s role in the post-Cold War order in terms of modernization and stabilization, specifically how the country has and continues to contribute to stability despite attempts by the USA to maintain economic and geopolitical dominance. Next, Stephen Roach of the Paul Tsai China Center at Yale Law School explores how to put an end to the dueling false narratives that have become the norm in the US-China rivalry and to find away to avoid escalation and achieve resolution. Taking a more regional focus, Keng Yong Ong and Tiang Boon Hoo of the S. Rajaratnam School of International Studies at Nanyang Technological University focus on the US-China strategic competition in the context of Southeast Asia and the potential for regional countries to play a more active role in managing related negative externalities.

As we wrap up this part, Omar Mjenga of the Centre for International PolicyAfrica provides a uniquely African perspective on how partnership with China can influence a new world order, emphasizing the power of South-South cooperation and the unique role of FOCAC. Next, this part includes a comprehensive analysis of China’s role in enhancing global governance in a fragmented world from Steve Howard of The Global Foundation, emphasizing common goals and path ways for the world using the United Nations Sustainable Development Goals as a springboard. Finally, this part concludes with an analysis of Faiz Abdullah from the Institute of Strategic and International Studies Malaysia, looking at how China has been working to sustain cooperation in a fragmented world from a Malaysian perspective through initiatives like the BRI and GSI, among others, as well as the concept of “Malaysia Madani” as a philosophy to bridge East and West.

In the final part of this book, titled “A New Vision for the Global Governance,” we examine the possible ways out of the current fragmented state of the world and explore a future of mutually beneficial goals to which all nations can ascribe. It begins with a unique perspective on Europe’s future in a contested global environment from Fabian Zuleeg of the European Policy Centre, who looks at current issues and challenges in terms of the Russia-Ukraine conflict as a watershed moment not only for Europe, but also for the world in terms of policy response and how nations may act together to preserve the global order. This is followed by observations on the role of large corporations in global governance from Timo Gerrit Blenk and Lena Schorlemer of Agora Strategy, focusing on five key pressure points and how corporations can serve as “executers” and “facilitators” of policies in global governance.

Stepping back for a broader view, Emanuel Pastreich of The Asia Institute takes a global perspective on the future of cyberspace as a part of global governance in an increasingly digital world, proposing an international “Constitution of Information” to set standards on which all nations can agree to manage cyberspace. Mehri Madarshahi of the Institute for Public Policy at the South China University for Technology, continues this conversation by emphasizing that any new form of global governance must serve all, highlighting the increasingly important role of China in the process of moving toward a less unipolar world in which multiple competitive ideologies coexist. Finally, to round out this part and the entire book, Pascal Lamy, Vice President of the Paris Peace Forum, shares his views and recommendations on how to reshape the global order, calling for a new approach to the fundamental institutions and values on which they are based, emphasizing a more universal and inclusive approach to setting these standards. Mr. Lamy also goes into detail as to how this may be implemented by providing several scenarios with specific steps to be taken.

Clearly, a common, central theme through all of the contributions outlined above is the need for a more universal, inclusive, and multilateral approach to reforming global governance and the world order that includes all nations. It is in this spirit that the world can walk out of the shadow of what Pascal Lamy terms a “polycrisis” that affects nearly all nations—this includes climate change, geopolitical instability, or the protection of sovereignty and national security in a radically changing world.

Think tanks are essential in analyzing current trends and providing potential solutions that aid governments, international organizations as well as businesses in finding solutions that are beneficial to all. The inclusion of as many stakeholders in this process will ultimately ensure that the future of global governance is multilateral in nature and more representative of a world that is increasingly balanced, whether it be in terms of East-West or North-South relations. COVID-19, like many previous pandemics, has claimed countless lives, so will climate change and other crises if we keep arguing and seeing others as rivals. In the end, there is little difference between West and East, or North and South, when we are facing existential threats as a common community of all mankind.

Beijing, China

May 2024

Henry Huiyao Wang, Ph.D. Founder and President of Center for China and Globalization (CCG)

Mabel Lu Miao, Ph.D. Co-founder and Secretary-General of CCG

Enhancing Global Governance in a Fragmented World—Prospects, Issues and the Role of China is available for free download on the Springer website.