In an interesting piece published in The Globalist yesterday, Pascal Lamy, the director-general of the World Trade Organization argued that all negotiating is domestic. Lamy asserts that, particularly in the context of the global financial crisis, there is little reason for optimism regarding global diplomacy. According to him,
The “Westphalian shield” allows all nations to dismiss any requirements coming from the global system to safeguard humanity’s longer-term survival as acts of interference in its internal, national affairs. The shield of sovereignty was not to be pierced.
This is an interesting concession from the man who oversees the World Trade Organization and, at least until recently, had been desperately trying to bring the United States, the European Union, and other major economies to agreement on a new round of trade liberalization. Indeed, Lamy’s argument raises a couple of interesting questions for students of global politics.
First, how do domestic politics and international diplomacy interact? There’s a rich literature on two-level games in international relations dealing with this topic, suggesting the relationship is not as simple as we might like to think.
Second, what is the basis for cooperation in international negotiations, particularly international economic negotiations? For liberal IR scholars, the gains from trade outweigh the costs, so we should prefer liberalization to non-liberalization. But the failure of the WTO to conclude the Doha Round (and the Seattle Round before that) suggests that states do not always behave in ways that the theory suggests they should.
Finally, how does the sovereignty of states, the “Westphalian shield” as Lamy terms it, undermine the prospects of international diplomacy? Realist IR scholars have long asserted that the presence of sovereignty creates an anarchic international system in which cooperation is difficult to maintain. In this context, collective goods problems frequently emerge. What’s interesting about Lamy’s position is the degree to which he appears to have embraced the realist framework.
What do you think? Does the anarchic system of the international system undermine the possibility of cooperation in economic relations between states? If so, how can we explain the general trend of greater cooperation and coordination between states since the end of World War II? Does the global financial crisis affect the calculation of states in new ways? Let us know what you think.