At the World Economic Forum, the President of the People's Republic of China has put an option for the role the West has abandoned decades ago: to govern and guide globalization.

China was given a large space at the World Economic Forum this year, which was opened in Davos on January 17, 2017. President Xi Jinping held an inspired programmatic speech in favor of globalization and a new model of international governance, that is worth reading carefully.

“They were the best days, they were the worst days”: so Dickens described the world of the industrial revolution. So did Xi Jinping choose to start his speech, citing the English writer, a symbol of the revolution that led the West to dominate the world.

A world full of contradictions, in which, however, - stresses the Chinese President - many of the problems do not depend on economic globalization: such as migratory flows, which must be tackled by bringing peace, promoting reconciliation and bringing a new political stability; or the financial crisis, which is the failing of regulation in that sector. Blaming globalization for these problems “is inconsistent with reality and will not help resolve them”.

Also because globalization, says the Chinese President, has “boosted global growth and facilitated the movement of goods, capital, scientific, technological and civilization advances, and interactions between people”.

So, China suggests, rather than erasing globalization, we should try to “guide it, mitigate its negative impacts and deliver its benefits to all states and nations”. And to say so is a country that has for a long time been isolated from economic globalization, coming then to the conclusion that, since it is a “historic trend”, it would be better to “take a courageous step and embrace the world market”, rather than remain in an illusory isolation. Because blocking the flow of goods, capital, technology and people is simply impossible.

In particular, China proposes to “find a balance between efficiency and fairness, and ensure that different countries, different social strata and different groups of people share the benefits of economic globalization”.

Xi Jinping explains that the main problem to be faced is the increase in inequalities between rich and poor, and between the north and the south of the world. To do this, we must first of all identify the causes:

1. “The lack of robust forces driving global growth makes it difficult to sustain a steady growth of the global economy”; global growth is at a minimum for seven years now, and the growth rate of world trade is lower than that of the world GDP;
2. “An inadequate world economic governance makes it difficult to adapt it to the new developments”, that is to say, a governance system that does not take into account that 80% of world growth is generated by emerging markets and developing countries is totally inadequate in terms of representativity and inclusiveness. In addition, the globalized production system (supply chain, industrial chain and value chain) has to come to terms with fragmented rules and closed systems;
3. “An uneven global development makes it difficult to meet people's expectations for a better life”, which is the most important challenge we have to face.

Solving these complex issues (growth, governance, and development model) is a task that is to be undertaken by all countries, because, recalls Xi Jinping quoting Henry Dunant, “our true enemy is not our neighboring country; it is hunger, poverty, ignorance, superstition and prejudice”.

Two days later, the new President of the country which has been leading the free world for a century would thunder: “America will start to win again” because “every nation has the right to put its own interests in the first place”, and in doing so “we will be protected by God”.

In short, to the American nationalism China responds with the proposal of a new multi-polar cooperative model to combat inequalities in the world and to bring humanity back to prosperity and progress.

First of all, Xi Jinping proposes, it is necessary to build a dynamic and innovative growth model, because innovation “is the primary force driving development”. A model that allows to overcome climate challenge and create work, exploiting the potential of the industrial revolution and the digital economy.

Secondly, we must “pursue a coordinated and interconnected approach to develop an open and win-win cooperative model”, because today humanity has become a community of destiny. States must “see their interests in a wider context and refrain from pursuing them at the expense of others”, abandoning protectionism, because no one comes out victorious from a trade war.

Thirdly, for the Chinese President states must develop a model of multilateral and fair governance, representing the new reality, in which all countries can participate in taking decisions, respecting the rules and honoring their promises, such as those made with the agreement on climate.

Finally, a fair, balanced and inclusive development model must be established, because only by building a community of destiny will we be able to create a better world.

China is pursuing an open, cooperative and multilateral model, promoting a shared development based on innovation, benefiting from globalization and contributing to it. In particular, at the international level, the Chinese President recalled how China is participating in the construction of a Free Trade Area among the Asia-Pacific countries, and a Regional Comprehensive Economic Partnership with the aim of creating a global network of Free Trade agreements.

Many elements have long led people to believe that the bipolar and then hegemonic American model has entered an irreversible crisis. Trump's election and the new role that China intends to take up may catalyze the process of creating a new governance- and development-model for globalization.

For Europe, it is an opportunity to establish itself as a protagonist in the balances of the new multilateral system, participating in global development in a cooperative and inclusive way. To do this, speaking with one voice on foreign trade and currency matters is necessary but not sufficient. Europe will need to complete its integration process with the creation of federal institutions, so as to put a single defense and foreign policy into practice, a minimum condition for the EU to play a role in the governance of globalization.

For us federalists, however, the task does not stop there, and cannot be focused solely on this dimension.

On the membership card that every MFE member holds in his pocket, there is a motto: “Uniting Europe to unite the world”. Today, as never before, these two goals appear to be structurally related. At the same time as the struggle for European unification, which becomes even more urgent in this regard, the Movement needs to stimulate more decisively its internal debate on world federalism, bringing up new instances to the UEF and deepening its relations with the World Federalist Movement. It is necessary to formulate as soon as possible a concrete political platform to address the challenge of building international democracy.

When the historical window opened to question the institutional structure of the old nation states, the federalists were found ready, and their contribution was significant. Can we say the same today, when the opportunity to redesign the power structures on the world scale opens up?

The crisis of the old model is a fact, the leadership for the new one is emerging quickly. As for the initiative, we cannot miss the opportunity that our voice be heard.

Translated by Lionello Casalegno