{ "title": "Leading the Way", "sourceUrl": "https://www.imf.org/en/publications/fandd/issues/2022/09/leading-the-way-book-review", "canonical": "https://www.imf.org/en/publications/fandd/issues/2022/09/leading-the-way-book-review", "overlayPath": "/en/publications/fandd/issues/2022/09/leading-the-way-book-review/index.md", "summary": "China’s dramatic growth and its implications for the world economy have fueled new books at a pace commensurate with the subject", "sections": [ { "heading": "Overview", "content": "- Book reviewed: The United States vs. China: The Quest for Global Economic Leadership by C. Fred Bergsten.\n- Publication details as given: Polity Press, Cambridge, UK, and Medford, MA 2021, 362 pp., $29.95.\n- Review author: VIVEK ARORA, deputy director in the IMF’s Middle East and Central Asia Department.\n- Review published in F&D Magazine, September 2022." }, { "heading": "Central thesis and framing", "content": "- Bergsten’s central argument: the United States inevitably will have to share global economic leadership with China.\n- He rejects strategies premised on “containing” China or persuading China to adopt Western views as fanciful.\n- Key proposed approach: “conditional competitive collaboration” — collaborative US-China leadership on key global economic issues, conditional on each country’s fulfilling its obligations in the international economic system.\n- Emphasis on differentiating between global and regional arenas and being flexible about the balance of leadership on specific issues." }, { "heading": "Proposed contours of US–China cooperation", "content": "- Collaborative consultation on systemic matters involving global public goods (example given: climate change).\n- Flexibility in leadership balance:\n - China may have greater sway on development finance.\n - The United States may have greater sway on international financial and monetary issues.\n- Multilateral trade reform package should be completed with China involved in writing the rules.\n- Economic leadership should be decoupled from issues such as national security and values.\n- Traditional alliances should be restored to strengthen international consensus on key global matters." }, { "heading": "Recommendations regarding international financial institutions and cooperation", "content": "- Bergsten envisions eventual broad equivalence between China and the United States at the IMF, including on quotas and voting parity, with countries accepting related obligations and requirements.\n- Discusses questions for the Fund including:\n - Its location.\n - Its governance.\n - The role of the IMF’s Special Drawing Rights (SDRs) in global finance.\n- Supports mutual integration into each other’s institutions (example: US integration into China-led institutions such as the Asian Infrastructure Investment Bank) and a complementary rather than confrontational approach to initiatives such as the Belt and Road Initiative." }, { "heading": "Domestic policy prescriptions", "content": "- Calls for domestic reforms in the United States to underpin the outward orientation of US economic policy and its global economic role.\n- Specific domestic priorities highlighted:\n - Stronger social safety nets.\n - Mechanisms to address the inequalities associated with globalization, which provides large aggregate gains but distributes them unequally." }, { "heading": "Assessment and caveats from the reviewer", "content": "- The book is noted for breadth of perspective and depth of knowledge, especially on international economic issues.\n- Caveat: the issues are seen from an essentially US perspective; the landscape may look different from perspectives in China, Europe, Japan, or elsewhere.\n- The reviewer notes there is a broader literature from around the world (examples named in the review: Yukio Hatoyama, Robert Kagan, Yan Xuetong) that offers additional viewpoints.\n\nSource: F&D Magazine book review by VIVEK ARORA, September 2022 — review of C. Fred Bergsten, The United States vs. China: The Quest for Global Economic Leadership.\n\n---\n\n Content in this bundle\n\n- Leading the Way\n - Leading the Way (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Leading the Way (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/fandd/issues/2022/09/leading-the-way-book-review" } ], "bullets": [ "[Markdown version](/en/publications/fandd/issues/2022/09/leading-the-way-book-review/index.md)", "[Structured JSON version](/en/publications/fandd/issues/2022/09/leading-the-way-book-review/index.json)", "[Bundle manifest](/en/publications/fandd/issues/2022/09/leading-the-way-book-review/bundle-manifest.json)", "Authors: VIVEK ARORA", "Published: July 12, 2022", "Book reviewed: The United States vs. China: The Quest for Global Economic Leadership by C. Fred Bergsten.", "Publication details as given: Polity Press, Cambridge, UK, and Medford, MA 2021, 362 pp., $29.95.", "Review author: VIVEK ARORA, deputy director in the IMF’s Middle East and Central Asia Department.", "Review published in F&D Magazine, September 2022.", "Bergsten’s central argument: the United States inevitably will have to share global economic leadership with China.", "He rejects strategies premised on “containing” China or persuading China to adopt Western views as fanciful.", "Key proposed approach: “conditional competitive collaboration” — collaborative US-China leadership on key global economic issues, conditional on each country’s fulfilling its obligations in the international economic system.", "Emphasis on differentiating between global and regional arenas and being flexible about the balance of leadership on specific issues.", "Collaborative consultation on systemic matters involving global public goods (example given: climate change).", "Flexibility in leadership balance:", "Multilateral trade reform package should be completed with China involved in writing the rules.", "Economic leadership should be decoupled from issues such as national security and values.", "Traditional alliances should be restored to strengthen international consensus on key global matters.", "Bergsten envisions eventual broad equivalence between China and the United States at the IMF, including on quotas and voting parity, with countries accepting related obligations and requirements.", "Discusses questions for the Fund including:", "Supports mutual integration into each other’s institutions (example: US integration into China-led institutions such as the Asian Infrastructure Investment Bank) and a complementary rather than confrontational approach to initiatives such as the Belt and Road Initiative.", "Calls for domestic reforms in the United States to underpin the outward orientation of US economic policy and its global economic role.", "Specific domestic priorities highlighted:", "The book is noted for breadth of perspective and depth of knowledge, especially on international economic issues.", "Caveat: the issues are seen from an essentially US perspective; the landscape may look different from perspectives in China, Europe, Japan, or elsewhere.", "The reviewer notes there is a broader literature from around the world (examples named in the review: Yukio Hatoyama, Robert Kagan, Yan Xuetong) that offers additional viewpoints.", "**Leading the Way**" ], "related": [ { "title": "Leading the Way", "role": "document", "sourceUrl": "https://www.imf.org/-/media/files/publications/fandd/article/2022/september/book-review-arora.pdf", "summary": { "path": "/-/media/files/publications/fandd/article/2022/september/book-review-arora.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/fandd/article/2022/september/book-review-arora.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/fandd/issues/2022/09/leading-the-way-book-review/index.md", "json": "/en/publications/fandd/issues/2022/09/leading-the-way-book-review/index.json", "bundleManifest": "/en/publications/fandd/issues/2022/09/leading-the-way-book-review/bundle-manifest.json" }, "generatedAtUtc": "2026-09-15T18:07:57.692Z" }