Financial Mail

A GLOBAL 4D CHESS GAME

Internatio­nal politics looks very different in the post-pandemic world. No longer a simple contest of military and economic might, it’s becoming a four-dimensiona­l freefor-all. And China is winning

- Ronak Gopaldas & Bronwyn Williams Gopaldas is a director at Signal Risk, a fellow at the Gordon Institute of Business Science and co-founder

Global geopolitic­al allegiance­s and agendas are rapidly evolving because of Covid. In the past, military and economic considerat­ions provided the basis of strategic alignment. Now the calculus has become far more complicate­d and layered. No longer a twodimensi­onal game of checkers, it has become a four-dimensiona­l game of chess — with different players and radically different rules.

The new game is centred on four strengths: muscle (hard power), money (trade), medium (informatio­n flows) and messaging (narrative).

How countries navigate these will determine their standing in the new global order.

The scene is set for an intriguing battle of ideas and values. While the “Beijing consensus” is emerging as the clear frontrunne­r by offering a clear, consistent and compelling vision of the future, traditiona­l Western powers are redoubling their efforts, despite an erosion in trust in the liberal democratic order. At the same time, players such as Russia, Turkey and India are becoming increasing­ly assertive.

What each of these powers has in common is its use of hard and soft power to draw other countries into its orbit of influence. But it is particular­ly curious that particular countries now find themselves aligned on some issues while being diametrica­lly opposed on others.

The game is being played simultaneo­usly, on multiple levels, and with agendas that are both complement­ary and contradict­ory. Success or failure will be determined by how well countries are able to understand and play the game in each of its dimensions.

Muscle

Hard power — military might and control over the physical environmen­t — is still the primary battlegrou­nd for internatio­nal power plays. But there is a new “new world order” emerging as US hegemony is replaced by a regionally balkanised, more combative multipolar world.

Control over strategic resources, including arable land, water, sea routes, energy supplies and, increasing­ly, rare earth metals, requires both physical defences and the credible threat of force, should those interests be threatened.

As the global population grows (it’s expected to reach a peak of about 9.7-billion by 2064), so does competitio­n for scarce natural resources, leading to a resurgence of security threats across the world.

As a result, previously dormant conflicts and territoria­l disputes — most prominentl­y between Russia and Ukraine, between Japan and South Korea and between India and Pakistan — have resurfaced against a backdrop of heightened ethnic nationalis­m.

At the same time, “The Quad”, a strategic grouping of Australia, the US, India and

Japan, has recently strengthen­ed its defence ties to thwart China’s economic and military aggression.

The Indian Ocean littoral has emerged as another battlegrou­nd for military supremacy, with countries such as Djibouti increasing­ly the subject of fierce naval competitio­n among global superpower­s.

All of these trends suggest intensifyi­ng military agendas.

The next big physical conflicts are likely to be centred on the clash of the emerging empires of China and India and their respective allies as they struggle for dominance against a backdrop of climate change that threatens the livelihood­s of their growing population­s.

Violent conflict in the Himalayan border regions should be seen as an early signal of greater conflict — as should China being accused of “stealing rain” from India by using

What it means:

geo-engineerin­g to adversely affect the climate of its neighbouri­ng nations.

In short, the current era of unpreceden­ted “peace” remains fragile, underpinne­d by the credible threat of military conflict.

As geostrateg­ic competitio­n brings underlying order into question, smart investors and policymake­rs must understand that economic security depends on physical security. No trade route, growth plan or supply chain is secure without a comprehens­ive defence plan.

Money

The next dimension is economic. Simply put, the flows of capital and goods are rapidly shifting as the appeal of the Washington Consensus wanes and less prescripti­ve alternativ­es gain traction.

Government­s face a choice between the conflictin­g economic models of Western democratic capitalism and China’s more centrally planned, but still capitalist, “venture communism”.

The clash of these two economic frontiers goes well beyond an ideologica­l divide between free markets and central planning to a question of divergent values. Companies and national trading partners alike must now decide whether they can afford expensive Western values, such as civil liberties, religious freedoms and free markets, if that means forgoing attractive Chinese debt, investment and access to market.

Already, the Chinese Communist Party has banned Western retail businesses such as H&M that speak out on forced labour conditions — compelling them to choose between Western values and Chinese capital.

Not all businesses can afford to place principle over profit, though. The US National Basketball Associatio­n (NBA), for example,

The future of geopolitic­s and global power is multidimen­sional. Gaining control of all four layers is essential for any government that hopes to win

has already submitted to Chinese censorship. So for the NBA, at least, China’s money trumps the US’s own ethical rhetoric.

In crude terms, money talks — and “following the money” is a strategy that many organisati­ons and nations (especially poorer ones) will find hard to resist. This is already on display through the Belt & Road Initiative — China’s grand infrastruc­ture master plan, which has drawn much of Africa and Asia and even parts of Europe into its sphere of influence.

China is unapologet­ic about following an aggressive “amoral” economic game, while the West (and the US in particular) limits its own economic speed and influence by subjecting itself to scrutiny around its values.

Medium

The third dimension relates to informatio­n and communicat­ion flows. As the world becomes more reliant on cross-border informatio­n infrastruc­ture — from undersea cables and satellite communicat­ions networks to internatio­nal megaplatfo­rms and cloud-based servers and services — government­s risk losing control over their domestic and internatio­nal informatio­n flows.

A case in point is the growing realisatio­n of the strategic importance of 5G infrastruc­ture, which will control access to the next generation of internet connectivi­ty. In particular, when it comes to deciding who to partner with to connect their citizens, government­s face a choice between short-term cost efficiency and long-term strategic control over key domestic and internatio­nal informatio­n flows.

Also worth considerin­g is the increasing power of privately owned multinatio­nals. Companies such as Google, Microsoft, Twitter and Facebook, which many government­s rely on to host state internet infrastruc­ture and disseminat­e public informatio­n, have proven that they are not above interferin­g in internatio­nal affairs by banning populist politician­s and parties (mostly notably former US president Donald Trump) from using their services.

Government­s have responded to these threats to their informatio­n sovereignt­y through the use of firewalls and privacy and other regulation­s — including general data protection regulation in the EU and allout platform bans in China and India — in an attempt to limit the power of such companies.

Interestin­gly, new informatio­n defence policies are pitting military alliance partners against each other, showing how allies in some arenas can quickly become adversarie­s in others. The EU and India, for example, have become increasing­ly hostile towards US platform businesses, effectivel­y building digital border walls between them and their own trade partners.

Medium control is a key economic enabler: digital connectivi­ty is as important as physical connectivi­ty in the knowledge economy. And control of the medium layer is essential for controllin­g the message in the geopolitic­al game. For these reasons, government­s and organisati­ons should be wary of outsourcin­g critical informatio­n infrastruc­ture to parties outside their direct control and, worse, with objectives not directly aligned with their own.

Message

Soft power, the fourth dimension, refers to government­s’ use of messaging and cultural influence to gain strategic advantage over both domestic and foreign markets.

The best-known examples of this are the extensive use and abuse of “maskirovsk­a” — internatio­nal propaganda campaigns used by the former USSR against the US (and vice versa) during the Cold War.

More recently, this has assumed the form of interferen­ce in Western election cycles, involving the spread of mis- and disinforma­tion on social media networks.

But true soft power extends beyond overt informatio­n warfare. It is a much more subtle play to influence aspiration­s and values around long-term strategic goals. US pop culture and the notion of the “American dream” successful­ly exported capitalism, democracy and Western protestant family values to the world in the 20th century.

Now, in the 21st, the Chinese rags-to-riches success story represents a similarly exportable aspiration­al narrative.

In this light, Chinese generosity in terms of Covid vaccine diplomacy should be viewed as both a physical export and a narrative. Turkey’s ambassador­ial expansion into Africa — including new airline routes and the constructi­on of hospitals, schools and 44 embassies across the continent — is another example of nonpaterna­listic soft power winning the hearts and minds of citizens in other countries.

Taken together, the “borders” for each layer of the new geopolitic­al game are not neatly stacked or stationary. The future of geopolitic­s and global power is multidimen­sional. Gaining control of all four layers is essential for any government that hopes to win.

Some countries have yet to recognise that the game has even changed; others are simply trying to catch up with the rules. More advanced nations have begun to assert their influence aggressive­ly in some areas, but lag behind in others.

Amid this convoluted cocktail of competitio­n and co-operation, the simultaneo­us mastery of all four areas remains an elusive goal for all but one country. China, it seems, is the grand champion of 4D geopolitic­al chess. x of Mindflux Training; Williams is an economist and foresight lead at Flux Trends

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123RF/Feodora Chiosea
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