THE STRATFOR WEEKLY
29 May 2003

by Dr. George Friedman

The G8 and Its Crisis of Relevance

Summary

The meeting of the G7 (now the G8) used to be the major diplomatic event
of the year. For the past generation, the major G7 powers met to manage
the world. The managers included countries like Japan and Canada --
significant economic powers, but not military players. But the world has
changed and the G8 meeting has lost its pivotal significance, precisely
because many there are only economic powers. U.S. President George W.
Bush's decision to cut his attendance at the G8 meeting short by a day
so that he could get on with his more important diplomacy in the Arab
world is emblematic of how the world has changed.

Analysis

The annual summit of the G8 will take place on May 31 and June 1.
Present will be the leaders of France, Britain, Canada, Germany, Italy,
Japan, Russia and the United States. Although the meeting will go for
two days, it will be the first meeting of G8 leaders since the Iraq war
and U.S. President George W. Bush's first encounter with the leaders of
the three major opponents of the war: France, Germany and Russia. The
meeting, in part, will be a test of whether the post-Cold War system of
global leadership, as expressed in the concept of the G8, still has any
practical meaning.

In part, the United States is already signaling the relative importance
of the G8 in the general scheme of things. Bush will leave early to
attend a summit at Sharm el Sheikh in the Egyptian Sinai -- with the
leaders of Egypt, Saudi Arabia and Qatar -- on June 1. The next day, he
will attend a critical meeting between Israeli Prime Minister Ariel
Sharon and Palestinian Prime Minister Mahmoud Abbas. On June 5, he will
go to CENTCOM headquarters in Doha, Qatar, to meet with commanders and
troops.

A short while ago, the G8 meetings were the pivotal point in global
diplomacy. Presidents did not cut these meetings short to get on with
other pressing business--there was no more pressing business. There is
now, and Bush does not want to loiter at the G8 meeting. It is not clear
that this is an intentional slight, although we have little doubt but
that the meetings in the Middle East could have been scheduled
differently. It is even more striking if it is unintentional, as it
indicates that Bush now takes it as a matter of course that U.S.
priorities have shifted.

The geography of U.S. concerns has shifted dramatically. During the
1990s, the U.S. vision was that this was a world of opportunities. The
G7 countries were all economically significant, even if some were
militarily insignificant. The geography of the world focused on economic
development, and these nations drove economic development. The inclusion
of Russia in the original G7 meetings was done with some hesitation.
Russia's economic powers seemed to exclude it from the group. It was
included as a reluctant concession. In a world in which borders and
military power were seen as increasingly archaic, the G7 meetings of the
world's greatest economic powers were seen as the arena in which the
world's expanding economic horizons would be managed.

That is not the U.S. view of the world since Sept. 11, 2001. This is no
longer a world of opportunities. It is a world of danger. The danger
originates in the Islamic world and it is a danger that must be faced
militarily. Therefore, the G8 countries are, except in particular
circumstances, not particularly relevant. The geographic diffusion of
these countries reflects a decade that's passed. The United States is
now geographically focused. Thus, the president will leave a meeting of
global leaders to spend three days in Arab countries -- Egypt, Jordan
and Qatar -- to deal with geopolitical and military issues.

A schism has developed within the G8 that does not involve only the
French, German and Russian opposition to the war in Iraq. That
opposition there, but the issue is much deeper. The G8 represented a
generation that thought that economic issues had supplanted all other
issues. Japan and Canada were there because they had economic
significance. From the Bush administration's point of view, this is an
outmoded view of the world. It does not address American hopes and --
above all -- fears. Nothing that any of these powers have to say
compares to what Saudi Arabia's Crown Prince Abdullah or Palestinian
Prime Minister Mahmoud Abbas might have to say.

In a real sense, al Qaeda has succeeded in at least part of its mission.
Osama bin Laden's view was that the Islamic world had not been treated
with respect or fear by the Christian world for centuries. Bin Laden has
succeeded in changing that. The U.S. president has far more respect --
and fear -- of the opinions of the leaders of Egypt or Iran or Turkey
than he has for the leaders of France or Germany. Again, this is not
simply because of their opposition to the war. Japan can be included in
this group and it didn't oppose the war. Rather, it deals with the
manner in which al Qaeda has redefined the world for the United States.
>From the diffused geography of global economics, the United States has
focused on a more concentrated geopolitics of its war with al Qaeda. In
the mind of the world's leading power, al Qaeda has moved Islam ahead of
economics.

This poses a serious problem for the G8. The world is in the midst of an
economic slowdown, which is mild in historical comparison, but
disconcerting after a decade of economic dynamism. There are issues that
the G8 needs to discuss -- particularly the weakness of the dollar,
which is helping U.S. exports. The Europeans and Japanese traditionally
have expected at least collaboration and usually leadership from the
United States on these issues. That isn't going to happen this time. The
United States is pursuing its own policies without much concern for the
effect on the global economy. Its deficit is driven by war, and war has
priority. The weak dollar helps U.S. exports, and that is fine by the
United States.

Until Sept. 11, the United States saw itself as the leader of the global
economy, with a particular responsibility to help manage the
international economic system. It no longer views the world that way.
First, it sees economics as less important than other issues. Second,
the war on al Qaeda is forcing Washington to adopt economic policies
that pose problems for the others. Third, the United States is prepared
to accept immediate advantage in trade over long-term damage to allies.

That last word is, of course, one of the keys. It is unclear that the
United States views the other seven countries as allies, at least not as
a group. The Bush administration views the fact that the weak dollar is
wreaking havoc with the German economy as another way in which to punish
the Germans. The fact that France is being torn by strikes generates
quiet satisfaction. Active American hostility toward the French and
Germans does not extend to the others, but there is a sense that -- save
Britain -- the others were not there in any substantial way when the
United States needed them and that therefore the United States is under
no obligation to be there for them.

The G7 (pre-Russia) used to be a meeting of allies talking primarily
about economic matters. Not only have economic matters been demoted, but
the nature of the alliance has been called into question. Europeans like
to say that friends can disagree and remain friends. The U.S. view is
quite different: Friends do not disagree over matters of fundamental
importance. The disagreement over Iraq was not a disagreement over
passing issues, but the unwillingness of France, Russia and Germany to
give the United States the benefit of the doubt on a matter that
Washington regarded as a matter of fundamental national interest. From
Washington's point of view, if these countries could not automatically
support the United States over Iraq, what issue would generate automatic
support? And if there are no issues on which support is automatic, then
in what sense is there an alliance? NATO was built on the assumption
that an attack on one is an attack on all -- automatically.


There are, therefore, two things working here. First, the needs of the
United States have changed. The G8 no longer has the key to the things
that the United States wants the most, even if member countries were
operating within the context of an alliance. Second, it is no longer
clear that these countries are allies, prepared to support each other in
a predictable way. The Bush administration now views the G8 as a group
of countries with a common interest in economic growth and stability,
but not with a common commitment to the war the United States sees
itself as in. Therefore, the G8 doesn't address American needs.

Russia is an exception that proves the rule. The U.S. administration
will continue to cultivate Russia -- not because it is an economic
power, but because of geopolitics. Russia intersects U.S. interests in
the Islamic world. It is a Central Asian power, as the United States has
become. Its cooperation in the region, and its Chechen problem, create a
commonality of interest. Russia certainly is not a U.S. ally, but it
shares a common interest with the United States that the other G8
members do not. It also has a deep interest in controlling events in the
Islamic world. There is nothing automatic in the U.S.-Russian
relationship, but there is at least a common, overriding interest.

The truth is that in 2003, the United States no longer has a common,
overriding interest with the rest of the G8, Britain excepted. The U.S.
obsession is not their obsession, the U.S. nightmare is not their
nightmare. Therefore, their concerns and needs are not the same as those
of the United States. Bush's decision to leave the G8 a day early so
that he can get on to more important things symbolizes a fundamental
shift in the way the world works: The news this week will not come out
of Evian, it will come from Sharm el-Sheikh, Aqaba and Qatar. That makes
this a very different world than the one we lived in a few years ago.

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