This weekend marks US President Joe Biden’s first month in the Oval Office, which means it is still early days for any concrete foreign policy decisions to have been taken. Thus far, Mr Biden has limited himself to feel-good postures on complex global issues. On February 19, he will deliver a virtual address at the Munich Security Conference on the “importance of our transatlantic ties and the need for the United States and Europe to take on global challenges”. For the moment, such posturing does the job of soothing frayed nerves.
All too soon though, a harder metric will be employed. Mr Biden's performance will be measured against his promises, not least the bold pledge that America has returned to the world stage as a values-driven leader. But will the world and Europe, in particular, buy it?
Is the world even willing to follow America’s marching orders?
Much will depend on what sort of leadership Mr Biden proposes. The usual term for American presidents is "leader of the free world". But that is a relic of the Cold War era and a categorisation ripe for retirement. Which phrase, if any, could Mr Biden replace it with?
Not too long ago, former US President Barack Obama, an evocative writer, suggested that America reinvent its engagement with the world because “what was lost during the Trump presidency” was the US administration’s ability to “set the agenda” at summits and so on. Now, in this multipolar world, said Mr Obama, the US can’t walk into a room and demand everyone fall into line. Instead, it has to understand the interests of the key players, lead by example, and play the roles of “convener … persuader”.
US President Joe Biden (R) and US Vice President Kamala Harris meet with governors and mayors in the Oval Office in Washington, DC, US, on 12 February. EPA
But even to serve as convener of the free world, Mr Biden would have to keep in mind three cold, hard facts.
First, while Europe is relieved to have a more dependable partner in the White House, the experience of the Trump years has shifted strategic thinking towards a new vision of "European sovereignty".
Second, the so-called “Washington Consensus” – the international institutions and alliances that helped shape global politics for much of the 20th century – needs to be reimagined.
There is a welcome sense of realism in official briefings about Mr Biden's hopes and plans
Third, part of the reinvention must include the retooling of the global economy. Much will depend on the outcome of ongoing efforts to agree on the efficient taxation of multinational companies, digital services taxes (DST) and international trade rules that return to their original purpose of raising living standards across the board. This is where Mr Biden could play a crucial role. American involvement in shaping viable proposals would reassure the hesitant and nudge the recalcitrant. Its support for a global consensus would help set the tone for collaboration rather than conflict. As Mr Obama noted in his pitch for America to take up the role of world-convener: “if we didn’t set the agenda, nobody else had the combination of technical skill, bandwidth, diplomatic experience, relationships, trust and power to be able to stitch together various interests to arrive at something like a Paris accord.”
One month into the Biden administration, is there any sign it will take up the somewhat humbler task of convener – not leader – of the world? Will Mr Biden’s America lead, as he has promised, “not by the example of our power, but by the power of our example”?
There are some encouraging developments. Days ago, Mr Biden's administration reversed Mr Trump's block on the appointment of Nigerian-born US national Ngozi Okonjo-Iweala as director-general of the World Trade Organisation (WTO). The seven-month leadership void at the 164-country global trade body was finally filled on February 15.
There are welcome indications too that the US and the EU want to collaborate on getting the WTO’s dispute settlement system back in business, particularly on the issue of state subsidies. In December 2019, the Trump administration crippled the WTO with a two-year effort to block judicial appointments to its trades-disputes court. Meanwhile, Brussels, Washington and Tokyo are said to be open to working on a joint proposal to tighten subsidy rules.
The US has also signalled interest in negotiating taxation of multinational companies with Mr Biden’s treasury secretary Janet Yellen telling the US Senate at her January 19 confirmation hearing that it is better to “avoid a race to the bottom in corporate taxation”. She also indicated a willingness to consult on digital taxes. The Biden treasury department also recently appointed three scholars of international tax policy, which suggests a new seriousness about dealing with US tax rules for multinational corporations and negotiating international tax policy changes at the Organisation for Economic Co-operation and Development (OECD). That said, it’s thought the complexity and controversial nature of the DST issue means it is unlikely to be resolved by multilateral consensus by mid-2021, the point at which several OECD countries are set to enforce the charges.
Finally, there is a welcome sense of realism in official briefings about Mr Biden's hopes and plans. For instance, before his first phone call as president with his Chinese counterpart Xi Jinping, an unnamed American official confessed that Mr Biden's strategy would be driven by awareness that "the lion's share of the history of the 21st century is going to be written in the Asia-Pacific".
Despite it all, there are occasional flashes of scepticism bordering on cynicism overseas about Mr Biden’s intentions. In The Netherlands, some are calling Mr Biden “Trump with manners” simply because he toughened “Buy American” procurement rules and seems to be overwhelmingly focused on the domestic crises that beset the US right now.
But this is a precipitate judgment. It’s just too soon to tell.
Rashmee Roshan Lall is a columnist for The National
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Ep1:A recovery like no other- the unevenness of the economic recovery
Ep2:PCR and jobs - the future of work - new trends and challenges
Ep3:The recovery and global trade disruptions - globalisation post-pandemic
Ep4:Inflation- services and goods - debt risks
Ep5:Travel and tourism
Christopher Robin
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Three stars
2021 World Triathlon Championship Series
May 15: Yokohama, Japan
June 5: Leeds, UK
June 24: Montreal, Canada
July 10: Hamburg, Germany
Aug 17-22: Edmonton, Canada (World Triathlon Championship Final)
Nov 5-6 : Abu Dhabi, UAE
Date TBC: Chengdu, China
Women’s World T20, Asia Qualifier, in Bangkok
UAE fixtures Mon Nov 20, v China; Tue Nov 21, v Thailand; Thu Nov 23, v Nepal; Fri Nov 24, v Hong Kong; Sun Nov 26, v Malaysia; Mon Nov 27, Final
(The winners will progress to the Global Qualifier)
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
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BBC business reporters, like a new raft of government officials, are being removed from the national and international hub of London and surely the quality of their work must suffer.
The currency conundrum
Russ Mould, investment director at online trading platform AJ Bell, says almost every major currency has challenges right now. “The US has a huge budget deficit, the euro faces political friction and poor growth, sterling is bogged down by Brexit, China’s renminbi is hit by debt fears while slowing Chinese growth is hurting commodity exporters like Australia and Canada.”
Most countries now actively want a weak currency to make their exports more competitive. “China seems happy to let the renminbi drift lower, the Swiss are still running quantitative easing at full tilt and central bankers everywhere are actively talking down their currencies or offering only limited support," says Mr Mould.
This is a race to the bottom, and everybody wants to be a winner.
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Fifa Club World Cup quarter-final
Esperance de Tunis 0
Al Ain 3 (Ahmed 02’, El Shahat 17’, Al Ahbabi 60’)
