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For a quarter-century, the Washington Consensus provided the paradigm for the international orientation of the United States. Coined by an economist in 1989 to refer to 10 points of neoliberal-ish economic theory agreed upon in practice by the IMF, World Bank, and US government, several are now openly flouted by Trump:
—"Invoking language not heard since the 1930s," he won't continue to support development efforts or international cooperation.
—He has promised to return manufacturing to American shores by reversing free trade, even though "unfair" free trade isn't to blame for the sector's decline and his policies will only benefit billionaires.
—The rejection of the TPP, supported by the centrists in both parties, might be the single biggest blow to the Washington Consensus (and China's gain).
The new administration has drafted drastic executive orders that would pull funding from the United Nations and potentially pull the US out of the Paris Agreement, causing alarm at international organizations that wonder if their operations (including health, peacekeeping, and development) can continuee without US funding.
While the orders use Palestinian membership as the reason for ceasing funding, it seems more likely that is an excuse for a general turn away from internationalism.
Jan 26, 2017If [Trump] were to impose punitive (and unjustifiable) tariffs on Chinese imports, the EU is likely to follow suit in order to protect its producers from a surge of Chinese imports. China would then feel obliged to retaliate. The system of trade rules could collapse.
↩︎ Financial Times
Jan 26, 2017In the 1940s, America First was an antisemitic group that called on the US government to appease Adolf Hitler in World War II. Today, it’s become the de-facto tagline of American policy.
↩︎ In These Times
Know your right: The InfoWars perspective on Davos is now in the White House, after all.
Jan 26, 2017Davos participants can elect to imitate what the organization presents as the average refugee experience—women are forced to wear headscarves and banned from talking to men they don’t know, everyone is given identity cards and a family history, and then they are told to run into the dark.
↩︎ BuzzFeed
The general sense among the elite is that they'll just be able to ride this one out. After all, the elites have always ruled (and always spawned fear). But every sign is that they'll be willing to double-down on illiberalism: "A democratic winter is about to descend. Those who are in the best position to stop it won’t—because they don’t have to." That's partially because for business leaders, a surprising reality is playing out; China is waiting in the wings as a new champion for business-friendly globalism, ready to lead the Beijing Consensus. President Xi Jinping more or less made that appeal directly at Davos, characterizing himself as the only adult left to be trusted with the world's business.
In interesting ways this mirrors Nazi Germany's experience. The key failure wasn't about the rise of a xenophobic far right—that element is always there. It's that the business elite welcomed them as a matter of political expediency, legitimizing hate and providing the resources for it to gain official power.
