Quad: The way ahead and the key challenges

The Quadrilateral Security Dialogue (QSD) consisting of India, Australia, Japan, and the US has been pitching in favor of a ‘Free and Fair Indo-Pacific’ ever since the first meeting between representatives of member states in November 2017.

Shinzo Abe, the current Prime Minister of Japan, actually proposed this arrangement about a decade ago. Diplomatic engagement began, and joint military exercises were even held, but a change in guard in Australia, as well as Chinese complaints to member states, resulted in the end of the arrangement. Given the increasing focus on the ‘Indo-Pacific’ region and the strengthening of strategic ties between all four countries, reticence was finally shed and representatives of the four countries met in November 2017, on the eve of the East Asia Summit in Manila. The main aim of the alliance, thus in other ways, has been to check China’s assertiveness, especially in the South China Sea, and democracy has been one of the key binding factors between the Quad. The U.S. State Department, after the meeting in November 2017, issued a statement that the United States is “committed to deepening cooperation, which rests on a foundation of shared democratic values and principles.”

More recently, the joint statement issued after the meeting between Trump and Australian Prime Minister Malcolm Turnbull in February 2018, reiterated the point about a Free and Open Indo-Pacific. Said the joint statement between both countries: Continue reading


Underrated & overrated libertarian thinkers

Here is my take on Tyler Cowen’s views on libertarian thinkers who are either overrated or underrated in shaping the libertarian tradition. Please be aware that I think libertarianism and classical liberalism are two different strands of liberal thought, as argued in more detail in an earlier post here at NOL and in my latest book. Please also note that my judgement will be particularly informed by their views on international relations.


  1. Hans-Hermann Hoppe – completely esoteric ideas about international relations, especially his erroneous and ill-thought idea about private defence through private insurance companies.
  2. Deepak Lal – no complaints about his general work, but his praise for empires was deeply disturbing, even though he meant well. Liberalism and globalization do not need empires, no matter how civilized – in the Oakeshottian meaning – they are meant to be.
  3. Ron Paul – I admire Ron Paul in many ways, but his ideas for ‘a foreign Policy of freedom’ are not much better than Hoppe’s. ‘peace, commerce, and honest friendship’: nice Jeffersonian goals, bad underlying analysis, not least about human nature.


  1. Friedrich Hayek – a far more sophisticated thinker on international relations than he is ever given credit for.
  2. Adam Smith – nowadays erroneously equated with ‘trade leads to peace’ fairly tales. Yet any reader of the complete two volumes of the Wealth of Nations recognizes that the book is also a lot about war and foreign policy, as are his Lectures on Jurisprudence and even a bit in The Theory of Moral Sentiments. Together these make for a full and sophisticated position on international affairs.
  3. David Hume – basically the same as Smith.
  4. Robert Jackson – ok, I am taking liberties here. I do not think Jackson would consider himself a classical liberal or libertarian. But his writings on international relations are important and often have a classical liberal leaning, especially The Global Covenant.

2018 Hayek Essay Contest

The 2018 General Meeting of the Mont Pelerin Society will take place from September 30 – October 6, 2018 at ExpoMeloneras and Lopesan Hotels in Meloneras, Gran Canaria, Canary Islands. As with past general meetings, the Mont Pelerin Society is currently soliciting submissions for Friedrich A. Hayek Fellowships. The fellowships will be awarded through the Hayek Essay Contest.

The Hayek Essay Contest is open to all individuals 36 years old or younger. Entrants should write a 5,000 word (maximum) essay that addresses the quotation(s) and question(s) detailed on the contest announcement (available at the above link). The deadline for submissions is May 31, 2018. The winners will be announced on July 31, 2018. Essays must be submitted in English only. Electronic submissions should be sent in PDF format to this email address (mps.youngscholars@ttu.edu). Authors of winning essays must present their papers at the General Meeting to receive their award. The essays will be judged by an international panel of three members of the Society.

Please feel free to share this announcement with any individuals who may have an interest in submitting an essay for consideration of a fellowship award. All questions may be directed to the MPS Young Scholars Program Committee by email at mps.youngscholars@ttu.edu or phone at +1.806.742.7138.

MPS Young Scholars Program Committee


Paul Romer, the World Bank and Angus Deaton’s critique of effective altruism


Last week Paul Romer crashed out of his position as Chief Economist at the World Bank. He had already been isolated from the rest of the World Bank’s researchers for criticizing the reliability of their data. It seems there were several bones of contention, including the accusation that Chile’s current social democratic government falsified data contributing to some of its development indicators. Romer’s allergic reaction to the World Bank’s internal research processes has wider implications for how we think about policy research in international NGOs.

Continue reading


In foreign affairs, don’t ignore “soft power”

Israeli Prime Minister Benjamin Netanyahu, during his 6 day visit to India (January 14-19, 2018), made some interesting points. While arguing in favor of the advantages of hard power over soft power, Netanyahu stated:

I like soft power, but hard power is usually better. You need F-35s (fighter jets), cyber, a lot of intelligence… Where does the power for hard power come from? It comes from economic power.

Interestingly, India in recent years, under current Prime Minister Narendra Modi, has been focusing on promoting its Soft Power through a number of ways such as popularizing Yoga (The United Nations declared June 21st as International Yoga Day), Ayurveda, reaching out to its Diaspora, and rekindling Buddhist linkages with neighbours in South Asia as well as South East Asian and East Asian countries including China.

Modi has reiterated the relevance of “soft power” on more than one occasion. Even in the context of India-Israel relations, soft power has played a key role. There have been efforts toward renovating historical sites of Jews in India, and there has been an outreach towards Jews of Indian origin now settled in Israel. There have been efforts to strengthen educational linkages between both countries. During the visit of Israeli President Reuven Rivlin in November 2016, MOU’s were signed between the Hafia University of Israel and the Welingkar Institute of Management (WeSchool), and IDC Herzliya, Israel with the SP Jain School of High Technology. The joint statement issued during Netanyahu’s visit to India also made references to the importance of people-to-people linkages, the opening of an Indian cultural centre in Israel in 2018, and an MOU in film co-production.

The point made by Netanyahu has been made by a number of realists. Joseph Nye, who first put forward the concept of “soft power” as being the ability to influence outcomes without the use of force, later on argued in favour of the right blend of “hard power” and “soft power,” dubbing it as “smart power”. Along with Richard Armitage, Nye even set up a Commission on Smart Power. The concept was of course popularized by Former Secretary of State Hillary Clinton, who at the confirmation hearing before the Senate Foreign Relations Committee in 2009, stated:

We must use what has been called smart power, the full range of tools at our disposal—diplomatic, economic, military, political, legal, and cultural—picking the right tool, or combination of tools, for each situation. With smart power, diplomacy will be the vanguard of our foreign policy.

While there is absolutely no doubt that economic and hard power does give an impetus to soft power, it is also a bit of a stretch to totally dismiss “soft power.” Many would argue for instance that apart from geopolitical factors, soft power did give an edge to the US over the USSR, and later on over China, for a very long time. In recent years, China has been trying to focus on “soft power,” so much so that in the past decade, a large number of Confucius Institutes have come up in different parts of the world (over 500 in around 140 countries) including roughly 100 in the US. Apart from this, China has been trying to attract foreign students, and also tourists from across the world. Even its ambitious connectivity project, One Belt One Road, which has clear economic motives, is being packaged as part of its “soft power.”

In conclusion, “soft power” cannot be a determining factor, but it does play a significant role in strengthening bilateral relations, as well as building a positive image for countries. While we live in an age where being transactional is confused with being a pragmatist/realist. US President Trump too has been dismissive of “soft power,” and by his insular approach towards immigration, and indifference towards democratic values he has given up on two of the essential components of American Soft Power. Dismissing “soft power” because it does not help in achieving any tangible outcomes is one of the shortcomings of such transactionalism, and is an excessively simplistic view of a very complex debate.


India needs to work harder, both in its own backyard and in its near-abroad

While there is absolutely no doubt that Donald Trump has on more than one occasion sent harsh warnings to Islamabad – calling upon Pakistan to give up its support for terrorist groups or face the consequences – Trump’s predecessors had begun to reduce aid to Pakistan. During the Obama years, for example, American aid to Pakistan dropped from over 2 Billion USD in 2014, to a little over 1.1 Billion USD in 2016.

In his latest tweet, Trump minced no words, saying that Pakistan had fooled the US all these years, and that US will not take this lying down:

The United States has foolishly given Pakistan more than 33 billion dollars in aid over the last 15 years, and they have given us nothing but lies & deceit, thinking of our leaders as fools. They give safe haven to the terrorists we hunt in Afghanistan, with little help. No more!

Trump tweeted early morning on New Year’s Day.

Earlier in the year, during his August speech pertaining to Afghanistan, Trump had categorically stated that it no longer could be business as usual, and that Pakistan needed to stop extending support to the Haqqani network and other groups. Said the US President:

We have been paying Pakistan billions and billions of dollars, at the same time they are housing the same terrorists that we are fighting. But that will have to change. And that will change immediately.

A number of senior officials in the Trump Administration, such as the Secretary of State Rex Tillerson, Defence Secretary Mattis, and Vice President Mike Pence have hinted that harsh steps for Islamabad are a real possibility, some of which include not just withdrawal of aid to Pakistan, but also the removal of Pakistan’s non-NATO ally status.

During his recent visit to Afghanistan, Pence stated that President had put Pakistan on notice. Said Pence: “President Trump has put Pakistan on notice. As the President said, so I say now: Pakistan has much to gain from partnering with the United States, and Pakistan has much to lose by continuing to harbor criminals and terrorists.”

In an oped written for the New York TimesTillerson stated:

Pakistan must contribute by combating terrorist groups on its own soil. We are prepared to partner with Pakistan to defeat terror organisations seeking safe havens, but Pakistan must demonstrate its desire to partner with us.

China – which has strategic and economic interests in Pakistan, with the primary one being the China-Pakistan Economic Corridor (CPEC) – has stood by Pakistan. While reacting to Trump’s August 2017 address, State Councillor Yang Jiechi said:

“We should attach importance to Pakistan’s important role in Afghanistan and respect Pakistan’s sovereignty and legitimate security concerns.”

India’s reactions

New Delhi has understandably been closely observing these events. Trump’s warnings to Pakistan are viewed as positive news for India, and the Trump Administration has also pleased New Delhi by speaking against violent groups that are targeting India. The US, for example, has lent support to India’s demand for declaring Jaish-E-Muhammed (JEM) Chief, Masood Azhar, a designated terrorist by the UN (this move has of course been stalled by China).

Realists in New Delhi will however be keeping an eye on the following issues.

First, sections of the political class in Pakistan, as well as old hands in the American administration will not allow things between Islamabad and Washington to go downhill. A number of Pakistani politicians, such as Sherry Rehman, have already stated that while Pakistan should have its own independent policy, and it should not be submissive, it need not be excessively aggressive. While such politicians may not publicly say so, the fact is that there is a large swath of the Pakistani population which may not be very comfortable with the US, but is even more uncomfortable with the increasing Chinese presence in Pakistan as a consequence of CPEC.

In the US too, there are sections in the State Department which follow the approach of engaging with moderate forces in Pakistan given the country’s strategic importance. There is a section of the US establishment which does not want Pakistan to totally drift away from Washington’s orbit, mostly because China is beginning to take a larger role in the whole of South Asia, including Afghanistan. One of the declarations of the first Foreign Minister-level trilateral dialogue between China, Pakistan, and Afghanistan was the extension of (CPEC) into Afghanistan.

Said the Chinese Foreign Minister:

So China and Pakistan are willing to look at with Afghanistan, on the basis of win-win, mutually beneficial principles, using an appropriate means to extend CPEC to Afghanistan.

Both New Delhi and Washington will closely watch this development.

Apart from Beijing, Pakistan will rely on Saudi Arabia to soften Washington’s approach vis-à-vis Pakistan. The Sharif brothers, both Nawaz and Shahbaz, have strong connections in Saudi Arabia and while there were speculations that the Saudis were trying to broker a deal between the Pakistani military and the Sharifs, there is also a view that there’s an understanding between the Pakistani army and the Sharifs, and that the latter would use their links in the Saudi establishment to soften the Trump Administration, which has strong ties with Riyadh.

In conclusion, there is an increasing awareness with regard to the nexus between the Pakistani army and terror groups targeting India. Yet New Delhi should be more realistic in its calculations, and it needs to not just bank on Washington. Instead, India should also leverage its economic ties with Riyadh and Beijing to put more pressure on Pakistan. While there is no doubt that strategic convergence with Washington has increased phenomenally, Trump’s harsh words against Pakistan are not just driven by any conviction, but also by simple transactionalism. This very transactionalism has also created space for China to become more pro-active in South East Asia and South Asia. New Delhi thus needs to be pragmatic, deft, and leverage its economic rise more effectively.


Ayn Rand and International Politics

In a previous post I promised to write about Ayn Rand and her views on international politics, based on a recently published article.

I find Ayn Rand a fascinating figure in libertarian history, for a number of reasons. Her life style and ways she went about it in her life are so far distanced from me, that made me curious. Some of her philosophical ideas are great, others do not appeal to me at all. I plainly admire her for making the moral case for capitalism and individualism, which stands out in the economist-dominated libertarian tradition.

I am on the one hand annoyed by the way she fostered such cult-like circle of followers, in her own day and after her death in 1982, that led to dogmatism and intellectual isolationism, which goes against all basic academic standards I think are crucial.

On the other hand, I think the people at the Ayn Rand Institute do a great job preserving her legacy and attempting to widen her appeal. Overall, I am convinced that no matter what your take on this fascinating figure or her work is, Rand deserves to be studied in academia, because she remains influential to this day, especially in the US, and left a serious collection of writings that warrant intellectual analysis, even by people who do not consider themselves Randian.

Against this background I made a comparison between mainstream liberal theories of International Relations (IR) and the ideas on world affairs of Ayn Rand. The brief summary of the first is as follows:

  • World peace is attainable, in the belief that humans are rational enough to overcome war and conflict.
  • The nation is seen as a problematic actor in world affairs. Its room for maneuvering needs to be curtailed, including the importance of the balance of power between states, and the alleged influence of ‘war mongering’ diplomats and the so-called military-industrial complex.
  • Peace oriented foreign policies can be fostered by domestic institutional arrangements, most notably democracy (democratic peace theory).
  • In the international realm, there is an important role for intergovernmental and non-governmental organizations, regimes and international law (liberal institutionalism), which aim to overcome or neutralize the effects of the logic of power politics.
  • International trade is also expected to foster peace, often in combination with the alleged pacifying influence of interest groups and public opinion of foreign policy decision-making.
  • A recent addition is the broad support for humanitarian intervention.

To keep this blog at readable length I will not go into the details of Rand’s writings, but limit myself to her main views on these ideas, which should be seen in the context of her fierce opposition to the Soviet Union and its allies in the Cold War, and her concern for America losing its super power position through internal causes, not least the loss of the individual liberty-enhancing spirit among the American people.

  • In contrast to classical liberals from Smith to Hayek, Rand did indeed think that world peace would be attainable, but only in an Objectivist world. Among rational men living according the Objectivist principles there would be a harmony of rational interests. Yet in the current world there was also abundant irrational behaviour, bad morality, and other grounds for dispute.
  • The main causes of war were not material issues, domestic interests, institutional arrangements, or the structure of the international system. Rather, war was rooted in human nature. It went back to the tribal era, when brute force was the prime rule of conduct. The (socialist) dictatorships were contemporary examples in her mind, with their lack of respect for the rights of their own citizens, and those of foreigners alike. ‘Statism needs war, a free country does not’.
  • Rand was inconsistent in her valuation of the power of public opinion. She noted that most people often do not want war. Yet the origins of war still lay with those civilians, also in non-democratic regimes, because they failed to reject the doctrine that it was right and justified to achieve goals by physical force. If people put up with a dictatorship like the Soviet Union, or decided not to flee, they were co-responsible for the deeds, and deserved the same fate as their government.
  • Rand recognized that individuals live in groups or communities, but she regarded respect for tribal roots, ethnicity, and regional languages as uncivil and, above all, irrational and a limit on individual liberty. Ethnicity was also an important cause of war. Nationalism was perhaps less abstract than Marxism, but it was at least as vicious in stirring emotions such as hatred, fear, and suspicion. Therefore rational people would altogether disregard their roots as guides in (political) life.
  • Rand had two positions on the issues of sovereignty and intervention, depending on the moral character of the nation in question. Sovereignty was a right that had to be earned, but could also be forfeited. If a nation fully respected the principle of individual rights, it’s right to sovereignty was morally secured and should be respected by other nations. However, if a state violated the rights of its citizens it would lose its sovereign rights. ‘A nation ruled by brute force is not a nation, but a horde, whether led by Atilla, Genghis Khan, Hitler, Khrushchev, or Castro.’
  • Dictatorships were outlaws and could therefore be invaded as a matter of choice for the free nations, although there was no duty to do so. The right to self-determination and sovereignty only existed for free nations, and for societies seeking to establish freedom.
  • Yet this way, anarchy loomed. Rand divided the world into three groups of countries. First, countries complying to the Objectivist principles, with full sovereign rights. Second, countries on their way to freedom, often referred to as ‘mixed economies’, or half-way houses between freedom and dictatorship. Third, countries not worth existing, such as dictatorships and tyrannies. Unfortunately, the world lacked fully free countries. The mixed economies did not have unlimited right of intervention, they could only interfere when another country seriously breached Objectivist principles, for example by establishing one party rule, enacting censorship laws, executing people for political offences without trial, or nationalizing or expropriating private property.
  • Rand acknowledged the perpetual influence of power in world politics. The character of international politics was, and always had been among states, a balance of power game.
  • The US army was under domestic, non-patriotic attack for its virtues, for being a competent and strong force. It was unwise to cut the defence budget, while -in another contrast to liberal IR thought- ‘the military-industrial complex’ was ‘a myth or worse’.
  • Statism at the international level, in the form of ‘a planetary community’ and other cosmopolitan ideas had to be rejected. The collaboration of semi-free countries with communist dictatorships in the UN was evil and stood in contrast to reason, ethics, and civilization. The UN provided the Russian camp with prestige and moral sanction, suggesting that ‘the difference between human rights and mass slaughter is just a matter of opinion’.
  • Another point of contention with the social liberals was development cooperation. Foreign aid was nothing but ‘altruism extended to the international realm’.
  • While, in contrast to social liberals, she lacked faith in international law as such, Rand did regard international treaties as firm obligations.
  • Also, Rand saw peaceful effects of laissez-faire capitalism, because it was based on the recognition of self-interest by free individuals and the non-initiation of force. Capitalism fostered a society of traders. Therefore the essence of Objectivist foreign policy had to be free trade.

To briefly sum up: Rand’s writing show that not all liberals are peace-seeking cosmopolitans, attempting to minimise the role of the nation, the balance of power, the military, and warfare in international relations. She rejected most forms of international governmental organization and other expressions of liberal institutionalism. Often her ideas lack sufficient (legal) detail, while they are also centred on America, and hence limited to the perspective of an influential super power with large military capacity. Yet her writings show that fostering liberty in international relations can be done in several ways, and that different liberals have different ideas about the route towards that goal.