EAI-CCGA Soft Power Conference (Summary)

In February 2009, Dennis Blair, Director of National Intelligence, stated in the U.S. Senate that "America's top short-term security challenge is the global economic crisis and its geopolitical consequences." He further noted, "The global economic crisis has increased criticism of the free market economy, which may make it difficult to achieve America's long-term goals... Questions are already growing about America's role in leading the global economy and international financial structure... and China has an opportunity to strengthen its (international) position." Director Blair's concerns encompass worries about America's soft power, that is, the appeal of U.S. policies that makes other countries desire what the U.S. desires.

The East Asia Institute and the Chicago Council on Global Affairs (CCGA) held a two-day workshop to discuss the implications of the financial crisis on the soft power and national influence of South Korea, the United States, China, and Japan in East Asia. The main questions discussed at this workshop were as follows:

1. Is the financial crisis threatening the post-war security order in the Asia-Pacific region?

2. Has the "American model" suffered irreparable damage? And has the financial crisis empowered ideologies that challenge Western values regarding governance and international order?

3. How has the financial crisis affected the relative influence of South Korea, the United States, China, and Japan?

Based on the discussions at the workshop, this report presents the following 11 analytical points:

• In terms of regional order, the 2008 global financial crisis is being understood through the prism of the 1997 Asian financial crisis.

• Economically, China has emerged stronger after the financial crisis, while Japan has weakened.

• Interest in multilateralism continues to grow. Despite the possibility that initiatives like the G20 or regional-level initiatives may not yield significant results, the soft power or appeal of multilateralism continues to increase.

• The financial crisis has acted as a pressure for China to play a greater role regionally.

• However, South Korea and Japan will also continue to be major actors. In a context of growing interest and demand for multilateralism, both countries are indispensable to pan-Asian multilateral initiatives.

• The dichotomous distinction between American and Chinese economic models is flawed. Therefore, the assertion that the strengths of the American economic model are relatively weakening compared to the Chinese alternative is also inaccurate.

• The Chinese government is not using the financial crisis to criticize the American model domestically.

• The damage to American soft power means that America's capabilities are facing difficulties militarily and economically, not that its worldview is being abandoned.

• While international interest in understanding China is increasing, this does not mean a desire for what China represents. Other countries clearly distinguish between what they want from China in economic terms and what they want in political-diplomatic terms, and similarly recognize that China's economic desires from other countries are distinct from its political-diplomatic desires.

• China tends not to leverage soft power effectively because it is unaccustomed to accepting international criticism as a routine part of political dialogue.

• America's allies continue to pursue the same goals as the United States, but they are concerned about America's capacity to achieve those goals.

The East Asia Institute (EAI) and the Chicago Council on Global Affairs (CCGA) jointly held a conference in October 2009 on the theme "Implications of the Financial Crisis on American, Chinese, South Korea, and Japanese Soft Power in East Asia."