Lagos, Gusenbauer See Progressive Policies Following Economic Crisis

September 30, 2009  

In a recent lecture on progressive policy, Professor at Large Ricardo Lagos Escobar and Visiting Professor Alfred Gusenbauer addressed the changing role of the United States in the global political system. Lagos, who served as Chilean president from 2000-2006, and Gusenbauer, a former Austrian Chancellor, returned continually to the theme of political cooperation and solidarity.

Lagos began the lecture by addressing the breakdown of an international equilibrium of power. While the US remains the world’s foremost superpower, its government cannot act in isolation to resolve global environmental, economic, or political issues. Lagos further discussed the topic of political consensus and questioned whether America could assert its own value system in an international theater.

Throughout the talk, Lagos advocated Obama’s strategy of political cooperation and supported his attempts to reform America’s image after the Bush administration. Lagos clarified Obama’s position with a quote from Bill Clinton, who called for the “US to lead by the power of example rather than the example of our power.” America, Lagos predicted, will increasingly relinquish its role as policeman of the world and instead opt for cooperative action with foreign powers. While the United States will remain a key player in the global sphere, other nations must also shoulder the burden of environmental and economic reform.

Gusenbauer followed up Lagos’ contribution with an initial discussion of the global economic crisis. While the world economy could sustain modest growth in 2010, Gusenbauer anticipated that the effects of the expansion would not be uniform. India and China, for instance, will likely experience significant growth, but Europe will still face challenging levels of unemployment. This varying impact will force certain countries in economic decline to readdress their relationships with other nations that retain a surplus. Gusenbauer called for a united international response to these economic issues and argued for the continuation of stimulus policy. In order to avoid deficit spending, countries could follow the example of Spain and enact an “anti-crisis tax” on capital gains.

For Gusenbauer, the transnational efforts to resolve issues of global significance signaled the beginning of a new age. “I think the 21st century begins now… if we understand that in historic and programmatic terms for the first time we have an agenda for this 21st century… an agenda that is addressing the most ardent political and most ardent economic and social issues of mankind.”

Gusenbauer concluded his portion of the lecture by stressing the need for drastic changes if America is to reduce its energy consumption by 91 percent come 2050. The environmental issue, he posited, is not a matter of money and for that reason will be more difficult to resolve than the economic crisis. Gusenbauer also stated that changes in the global political landscape will accompany fluctuations in the world economy. The maintenance of regional stability in the Middle East is therefore of paramount importance. The economic issue, however, is but one part of a larger puzzle. It is the progressive response to these global crises, Gusenbauer predicts, that will come to characterize the 21st century.

By Watson Institute Student Rapporteur Zak Leonard ‘10