11 April 2015

China-US: Avoiding the ‘Improbable War’

By Jared McKinney
April 10, 2015

If the United States is the colossus that bestrides the world, its command to history is simple: Stop. The problem with America’s imperative is, as distinguished Yale historian Paul Kennedy remarked in 2010, “history, unfortunately, has a habit of wandering off all on its own.”

A recent diplomatic episode shows that this is a lesson the U.S. remains uninterested in learning. As readers ofThe Diplomat will know, in 2010, the IMF, with the support of the Obama Administration, passed a series of reforms that would shift member quota shares (and voting rights) to reflect the dynamics of a changing world economy, especially the economic growth of the BRICS grouping (Brazil, Russia, India, China, South Africa). For the past five years, the U.S. Congress has refused to ratify the IMF reform because many Republicans aregenerally dubious about international financial cooperation and because they fear it would give China more influence while decreasing U.S. influence (the second argument is prima facie spurious, as America would still remain the only member state with veto powers). As a result of Republican intransigence on the question of reform, the IMF is becoming less relevant to world economic cooperation. This has led IMF chief Christine Lagarde to proclaim “I will do belly-dancing if that’s what it takes to get the US to ratify.” But not even that threat was able to sell reform to the Republican Senate.

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