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A World in Turmoil - Canadian Politics and Public Policy www.policymagazine.ca - Policy Magazine
www.policymagazine.ca                            March—April 2020

               Canadian Politics and Public Policy

            AThe
              World  in Turmoil
                 Conservative
                        Leadership

$6.95                                                Volume 8 – Issue 2
A World in Turmoil - Canadian Politics and Public Policy www.policymagazine.ca - Policy Magazine
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                                                      departures                                                    train time                    car time*                         of travelling                of travelling by                    by choosing
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 Ottawa             Toronto                             Up to 20                        450 km                      4 h 25 min                      4 h 46 min                           $487                              $49                                $438

 Ottawa             Montréal                            Up to 12                        198 km                      1 h 50 min                      2 h 21 min                           $230                              $37                                $193

 Ottawa             Québec City                          Up to 8                        482 km                      5 h 39 min                      4 h 47 min                           $510                              $49                                $461

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Fares and conditions are subject to change without notice. TMTrademark owned by VIA Rail Canada Inc.
A World in Turmoil - Canadian Politics and Public Policy www.policymagazine.ca - Policy Magazine
In This Issue
                                              Canadian Politics
                                              and PublicFrom
                                                         Policy
                                                    2        the Editor / L. Ian MacDonald
                                                          The World in Turmoil
       Canadian Politics and
          Public Policy
                                                    3 	Jeremy Kinsman
                                                         Canada’s Role in a World of Turmoil

         EDITOR AND PUBLISHER                        6 	Robin V. Sears
                                                         A China Reality Check
            L. Ian MacDonald
     lianmacdonald@policymagazine.ca
            ASSOCIATE EDITOR
                                                    10	
                                                       Dennis Horak
                                                       U.S.-Iran Relations: Lessons for Canada From the Ukraine
              Lisa Van Dusen                              Airlines Tragedy
       lvandusen@policymagazine.ca
          CONTRIBUTING WRITERS
                                                    13 Suzanne   Fortier
                                                        Letter From Davos: A Powerful Telescope Into the Future
             Thomas S. Axworthy,
       Andrew Balfour, Yaroslav Baran,
     Derek H. Burney, Catherine Cano,
                                                    15	Elizabeth  May
                                                         Australia: Ground Zero of Climate Politics
       Margaret Clarke, Rachel Curran,
      John Delacourt, Susan Delacourt,              The Conservative Race
        Graham Fraser, Dan Gagnier,
     Helaina Gaspard, Martin Goldfarb,
      Sarah Goldfeder, Patrick Gossage,
                                                    17	
                                                       Yaroslav Baran
                                                       The Road to Toronto: Pathway to Power
  Frank Graves, Shachi Kurl, Brad Lavigne,
       Kevin Lynch, Jeremy Kinsman,                 19     eoff Norquay
                                                          G
                                                          The Conservative Leadership: Waiting for Content
    Peter Mansbridge, Carissima Mathen,
        Elizabeth May, Velma McColl,
     David McLaughlin, David Mitchell,              21	
                                                       Brian Topp
                                                       Party Members Don’t Pick Leaders, and They Should
       Don Newman, Geoff Norquay,
      Fen Osler-Hampson, Kevin Page,
          Robin V. Sears, Brian Topp,
                                                    24     olumn / Don Newman
                                                          C
                                                          Thanks, but No Thanks
          Lori Turnbull, Jaime Watt,
            Anthony Wilson-Smith                    Budget Preview
                WEB DESIGN
                Nicolas Landry
           policy@nicolaslandry.ca
                                                    25	
                                                       Kevin Page with Kyra Carmichael, Nicholas Liban Dahir,
                                                       and Hiba Khan
                                                          Budget 2020: Managing Risk and Uncertainty
         SOCIAL MEDIA EDITOR
            Grace MacDonald
      gmacdonald@policymagazine.ca
                                                    27   Helaina Gaspard and Emily Woolner
                                                        	
                                                         Budgeting for Well-Being
    GRAPHIC DESIGN & PRODUCTION
            Monica Thomas                           Canada and the World
       monica@foothillsgraphics.ca
                                                    29    Shachi Kurl
                                                           A Canadian Divide Over Barricades, Pipelines and
                    Policy
                                                           Indigenous Reconciliation
    Policy is published six times annually
    by LPAC Ltd. The contents are
    copyrighted, but may be reproduced
                                                    31    Philip J. Cercone
                                                          Can’tLit? Complacency and Canadian Publishing Policy
    with permission and attribution in
    print, and viewed free of charge at the         35	
                                                       L. Ian MacDonald
                                                       Leo: A Life, Well-Lived
    Policy home page at
    www.policymagazine.ca.
                                                    BOOK REVIEWS
    Price: $6.95 per issue
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                                                    38 Review by Lori Turnbull
                                                        Truth Be Told: My Journey Through Life and the Law
    Communications, 1165 Kenaston                         Beverley McLachlin
    Street, Ottawa, Ontario, K1A 1A4
    Available in Air Canada Maple Leaf              39    Review by Anthony Wilson-Smith
                                                          The Fight for History: 75 Years of Forgetting, Remembering and
    Lounges across Canada, as well as                      Remaking Canada’s Second World War
    VIA Rail Lounges in Montreal, Ottawa                   Tim Cook
    and Toronto.
    Now available on PressReader.                   40     eview by Daniel Béland
                                                          R
                                                          Democracy in Canada: The Disintegration of our Institutions
                                                          Donald J. Savoie
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A World in Turmoil - Canadian Politics and Public Policy www.policymagazine.ca - Policy Magazine
2

                               From the Editor / L. Ian MacDonald

                               A World in Turmoil
    W
               elcome to our issue on A          by its almost hysterical reaction to the   Rona Ambrose, Pierre Poilievre and
               World in Turmoil, in which        January 11 re-election of President        John Baird, all of whom said “Thanks,
               we look at some of the re-        Tsai Ing-wen in Taiwan.”                   but no thanks”. That left former Pro-
    cent global issues—from China to             When it comes to the Middle East and       gressive Conservative Leader Peter
    Iran to climate change—facing us all.        Gulf states, the credentials of Dennis     MacKay the default frontrunner and
    For Canada, as always, the question is       Horak, former head of mission in Iran      MP Erin O’Toole, for the moment, a
    about our place, and role, in the world.     and later ambassador to Saudi Ara-         distant second. Veteran Conservative
    From the end of the Second World             bia, are as solid as they come. On the     strategist Yaroslav Baran looks at the
    War 75 years ago, to the end of the          shooting-down of Ukraine Airlines          road to the Toronto convention, while
    Cold War nearly half a century lat-          Flight 752, which claimed the lives of     Geoff Norquay considers the players.
    er, Canada’s place was with its allies       57 Canadians and 29 permanent Ca-          In terms of process, Brian Topp looks
    and its role was as a middle power           nadian residents, Horak sees it as the     across from the NDP gallery and sug-
    in the struggle of democracy against         tragic outcome of decades of hostili-      gests party members should have a
    tyranny, and of free markets versus          ty between Washington and Tehran,          greater say than a preferential on-line
                                                 with Canada caught in the crossfire.       ballot, as is the case with the Conser-
    state economies.
                                                 “Future incidents,” Horak writes, “are     vatives. And Don Newman handicaps
    The fall of the Berlin Wall in 1989 and                                                 the race in his column.
                                                 a near certainty.”

                                                                                            E
    the demise of Soviet communism,
    were supposed to herald a geopoliti-         The world’s most important annu-                 lsewhere, Kevin Page previews
    cal realignment, an era of peace and         al conference of ideas is held by the            Budget 2020, with the collabo-
    prosperity led by the United States,         World Economic Forum every January               ration of several of his students
    with Canada in its customary role as         in Davos, featuring a strong Canadian      from the Institute for Fiscal Studies
    an honest broker. Now, the post-Cold         contingent led by the likes of Suzanne     and Democracy while IFSD Director of
    War New World Order that seemed              Fortier, Principal and Vice-Chancellor     Governance Helaina Gaspard and re-
    inevitable in 1989 has been usurped          of McGill. Fortier is currently Chair of   search assistant Emily Woolner look
    by a different New World Order, one          the WEF’s Global University Leaders’       to a better world of budget transpar-
    with decidedly different values.             Forum, and shares her impressions          ency and vision. Meanwhile, pollster
                                                 from this year’s WEF. She was struck       Shachi Kurl offers a timely look at the
    There’s no better guide for this tour
                                                 by two Davos reports, Jobs of Tomor-       mood of Canada on rail blockades,
    d’horizon than our own lead foreign
                                                 row and Schools of the Future. She con-    pipelines and reconciliation with In-
    affairs writer and former senior dip-
                                                 cludes: “I hope to give members of the     digenous peoples.
    lomat Jeremy Kinsman. “Our foreign
                                                 McGill community the opportunity           On the Canadian book industry, Philip
    policy belief system, the mantra of co-
                                                 to be local and global shapers.”           Cercone of McGill-Queen’s University
    operative liberal internationalism,” he
    writes, “is being challenged, especial-      On the heels of her excellent report-      Press looks at Canadian publishing,
    ly in our own neighbourhood.” But            ing from the Madrid COP25 in our           acclaimed internationally for writers
    it isn’t just Donald Trump. There are        last issue, former Green Party leader      such as Margaret Atwood, but strug-
    other actors, in China, Russia, Iran         Elizabeth May delivers her take on         gling to grow market share at home.
    and elsewhere pushing the world              the Australia bushfires as just one fac-   Finally, I was privileged to work with
    away from democracy.                         tor making Australia ground zero of        Sen. Leo Kolber on his best-selling

    O
                                                 climate politics. “We are operating in     2003 memoir Leo: A Life, and offer a
              ur Robin Sears knows Asia          a fog,” she concludes, “or maybe it’s      tribute on his recent passing, at 90.
              and China like his own back-       just the smoke.”

                                                 C
              yard, having worked as Ontar-                                                 And we offer three reviews of impor-
    io’s Tokyo-based representative, and                loser to home, we’re now in         tant Canadian books—Lori Turn-
    later in the private sector in Hong                 the spring of the Conserva-         bull on Beverley McLachlin’s mem-
    Kong. Our cover image speaks vol-                   tive leadership race, marked        oir, Truth Be Told, a judge’s fascinating
    umes, with Hong Kong residents tak-          in the early going by the successive       life; Anthony Wilson-Smith on Tim
    ing to the streets in late 2019 to protest   standing-down of first-tier candidates.    Cook’s The Fight for History, on Can-
    an extradition bill pushed by Beijing.       Usually, the opposition leader is          ada and the Second World War, and
    Sears writes that China’s obdurate “re-      viewed by the party as a prime minis-      Daniel Béland on Donald Savoie’s De-
    fusal to give an inch towards reconcil-      ter in waiting, especially in a minority   mocracy in Canada.
    iation in Hong Kong, is now matched          Parliament. Tell that to Jean Charest,     All must-reads. Enjoy.

    Policy
A World in Turmoil - Canadian Politics and Public Policy www.policymagazine.ca - Policy Magazine
3

Canada’s Role in a World
of Turmoil
After the end of the Second World War in 1945 and                                     panied the Berlin Wall’s fall in 1989.
                                                                                      That ignited a decade when we as-
following the fall of the Berlin Wall in 1989, Canada                                 sumed more open and cooperative so-
played an important middle power role in the post-war                                 cieties would be de rigueur. It seemed
and post-Cold War spread of democratic values and free                                inevitable that national impulses
                                                                                      and expectations would be mediated
market economies. But that’s not the shape or direction                               through universal cooperative inter-
of today’s emerging world of turbulence. Our lead for-                                national rules and institutions.
eign affairs writer Jeremy Kinsman asks the pertinent                                 So it goes. Our national interest is as
Canadian question: what is Canada’s role in this new                                  vested as ever in cooperative rules-
                                                                                      based internationalism, but we can’t
world of turmoil?                                                                     hang on to old international in-
                                                                                      stitutions, habits of thought, and
                                                                                      world rankings that are overtaken by
                                                                                      new realities.
Jeremy Kinsman                             “How am I doing?”                          But we are stuck with our geogra-

A
        fter 75 years, our foreign poli-   One day an older lady pleaded, “May-       phy. Still, we needn’t bow to Mon-
        cy belief system, the mantra                                                  tesquieu’s dictum that geography
                                           or! Please make it like it was...Make it
        of cooperative liberal interna-                                               is all that drives our fate. It’s also
                                           like it used to be.”
tionalism, is being challenged, espe-                                                 our leverage.
cially in our own neighbourhood.           “Lady,” he said, “It was never as good
                                                                                      We shall always be emphatically
                                           as we think it was...But I’ll try.”
A contagion of competitive national-                                                  North American, though our geo-
istic illiberalism and misremembered                                                  graphic self-concept is enlarging as
nostalgia is pushing back against the              Of course, today’s                 we add our sense of our North, as in
                                                                                      “From Sea to Sea to Sea.”
forces of globalization and change.                turmoil roiling the
Borne on the winds of populist slo-        world shows a drastic                      Canada’s outward view is themati-
gans—“Make America Great Again,”
                                           change in mood from the                    cally very different from that of the
or (Brexit’s) “Take Back Control”—it                                                  Trump White House. We need to stay
venerates old identities, status, and      internationalist optimism
                                                                                      unapologetically globalists, and con-
values.                                    that accompanied the Berlin                tinue energetically to strengthen ties
Change happens. Its impact on world
                                           Wall’s fall in 1989. That                  with like-minded internationalists as
rankings has created an increasingly       ignited a decade when we                   “the other North America.” We need
                                           assumed more open and                      to work together to reboot the world’s
fierce U.S. resistance to China’s chal-
                                                                                      belief in liberal internationalism.
lenge to U.S. primacy, catching Can-       cooperative societies would
ada in the middle.                         be de rigueur.                             It’s worth reflecting on how it lost
                                                                                      ground.
Confidence and turbulent change
have always interacted in contrary                                                    It happened the way Hemingway de-
global cycles.                                                                        scribed in The Sun Also Rises, how
                                                                                      bankruptcy happens: at first, “gradu-
Upheaval in the 1970s had left many

                                           O
                                                                                      ally. Then suddenly.”
older Americans reeling, and long-                  f course,today’s turmoil roil-
ing for times gone by. Ed Koch, the                 ing the world shows a dras-       The nineties had a golden surface.
ebullient mayor of New York, con-                   tic change in mood from the       Western stock markets boomed, pro-
tinuously checked their pulse asking,      internationalist optimism that accom-      pelled by new tech. China and India

                                                                                                          March/April 2020
A World in Turmoil - Canadian Politics and Public Policy www.policymagazine.ca - Policy Magazine
4
                                                                                             services devastated the reputation of
                                                                                             the capitalist system in the eyes of
                                                                                             millions. But again, Canadians de-
                                                                                             fied the crisis. Our prudent finan-
                                                                                             cial regulations kept us on dry land
                                                                                             from the flood of bankruptcies that
                                                                                             affected ordinary people almost ev-
                                                                                             erywhere else.

                                                                                             Obama won office just as the still un-
                                                                                             derestimated 2008 financial crisis was
                                                                                             unfolding. His distinct preference for
                                                                                             multilateralism renewed the hopes of
                                                                                             internationalists. Moreover, his belief
                                                                                             that “yes, we can,” helped to fuel the
                                                                                             Arab Spring of protests and uprisings
                                                                                             against authoritarian governments in
                                                                                             the Islamic world.
                                                                                             Except for Tunisia’s, they failed.

                                                                                             M
                                                                                                       oreover, while Canada em-
                                                                                                       braced Obama’s interna-
                                                                                                       tionalism,       democracy-
                                                                                             averse China and Russia, even India,
                                                                                             chose to pump up nationalist pride
                                                                                             and purpose. To some extent, they
    U.S. President George H.W. Bush and Soviet President Mikhail Gorbachev during a press    gamed the international economic
    conference at the Helsinki Summit on September 9, 1990. Wikimedia photo                  system which they regarded as serv-
                                                                                             ing the interests of the established
                                                                                             economic powers who designed it.
    began their accelerated ascension to             Unfortunately, in 2003, the U.S.        The World Trade Organization stag-
    the world Premier Economic League,               and U.K. rushed to an unnecessary       gered into increasing irrelevance.
    lifting hundreds of millions into the            invasion of Iraq that catastrophi-      Rising countries resented the assump-
    middle class.                                    cally turned the Middle East into       tion they should just imitate West-
                                                     the world’s first failed region. Jean   ern liberal ways. On the other hand,

    W
               e celebrated the end of the           Chrétien made the right call, to stay   many of the best and brightest in the
               Cold War, an outcome en-              out of what presidential candidate      post-communist countries of Europe
               abled by Mikhail Gor-                 Barack Obama would later term “this     emigrated to the West. This depletion
    bachev. But we were naive to think               stupid war.”                            by emigration induced phobic antip-
    that it was bound to be welcomed                                                         athy to phantom immigration, espe-
    as win-win for everybody. Despite                                                        cially Muslim, as the grotesque Syr-
    George H.W. Bush’s thoughtful ad-                        Moreover, while                 ian civil war and conflict with ISIS
                                                                                             spewed millions of refugees across
    vice, American triumphalism began                        Canada embraced                 porous European borders (though
    to make resentful Russians feel like             Obama’s internationalism,               paradoxically, not to the post-com-
    losers. U.S. neo-conservatives dis-
    missed grievance over NATO expan-
                                                     democracy-averse China and              munist countries in question).

    sion to Russia’s borders. “We won.               Russia, even India, chose to            Populist nationalist leaders exploited
    Get over it.” So, Vladimir Putin’s re-           pump up nationalist pride               the fever of resentment, contesting
    covering Russia went rogue.                      and purpose.                            liberal Western values. Demagogues
                                                                                             marshalled nationalist, ethnic, and
    On 9/11, 2001, the roof fell in on                                                       sectarian majorities against plural-
    complacent Western narcissism. Ji-                                                       ism, change, and established “elites”
    hadist terrorism became a new global                                                     at home and abroad. They also be-
    scourge. Borders hardened, including                                                     gan to disassemble the checks and
    our own with the U.S. Societies re-pri-          In 2008, the evidence of endemic fi-    balances of democracy in favour of
    oritized for a new kind of war.                  nancial fraud in Western financial      authoritarian power. The contagion

    Policy
A World in Turmoil - Canadian Politics and Public Policy www.policymagazine.ca - Policy Magazine
5
of nationalist populism metastasized              Our Canada-U.S. working levels function day-to-day
to Western democracies where “left-
                                                  pretty well in mutual functional interest. Basic
behind” workers blamed “global-
ization” and the remorseless ener-        friendships endure and sooner or later will again prevail in
gy of change for the export of their      defining the bilateral relationship.
jobs and the hollowing-out of their
communities.

Amplified by errant and irresponsi-
ble monetized social media, political
polarization eviscerated the centre,
where compromise can live. As Wil-        dition treaty stipulates for extradi-     government will keep its composure
liam Butler Yeats put it in The Second    tion. Yet, for decades, Canada has        and accept that we have to navigate
Coming a century ago,                     opposed the extraterritorial appli-       the world on terms that suit our in-
                                          cation of U.S. law to foreigners, and     terests. Lining up behind the Trump
“Things fall apart; the centre cannot     abroad. It is baffling why Canadian       administration in an adversarial G-2
hold. ........                            Justice officials who, according to       contest is not the way to go.
The best lack all conviction, while       the treaty, represent the U.S. case in
the worst                                                                           Trump’s ascent wasn’t an accident.
                                          Vancouver court hearings continue
Are full of passionate intensity.”                                                  America today is what it is, polar-
                                          to present over-the-top arguments
                                                                                    ized, dysfunctional, and unreliable
                                          that Canada should extradite the
Thus, “America First!” became a win-                                                at the top. As Lester Pearson once
                                          ambushed Huawei executive.
ning presidential slogan in 2016,                                                   said, we shouldn’t shy from giving
supplanting Obama’s international-        In a cynical and deplorable reprisal,     the Americans a kick in the shins ev-
ist leadership. Tariffs and sanctions     the furious Chinese jailed two inno-      ery so often. Our Canada-U.S. work-
were weaponized against partners          cent Canadians. It was a very harsh       ing levels function day-to-day pretty
who resisted the systematic undoing       warning to all and sundry that Chi-       well in mutual interest. Basic friend-
of international agreements to tame       na has real red lines at stake in this    ships endure and sooner or later will
humanity’s greatest threats, nuclear      new era of all-out competition with       again prevail in defining the bilater-
weapons, and global warming.              the U.S. Unfortunately, it prompt-        al relationship.
                                          ed a phobic wave of anti-Chinese re-

F
      irst gradually, then suddenly,                                                In the meantime, our national inter-
                                          porting in Canadian print media, and
      internationalist Canada was                                                   ests call for determined defence of
                                          calls for counter-reprisals against the
      mugged by the increasing-                                                     international cooperation, and resis-
                                          Chinese. We resisted those, but clear-
ly dominant nationalist reality. Yet,                                               tance to nationalist populism. The
                                          ly, the rosy lens which for some time
we managed a defensive save of our                                                  most effective promotion of democ-
                                          had blurred the real nature of new
most important relationship by ne-                                                  racy is by the vivid example of in-
                                          China’s old-style communist leader-
gotiating an upgrade of NAFTA. We                                                   clusive and responsive governance
                                          ship needed an updated prescription.
completed a comprehensive 21st                                                      at home that works. The crisis over
                                          With wary eyes wide open, we need
century economic cooperation agree-                                                 the Wet’suwet’en territory is a test.
                                          that relationship.
ment with the EU. But with the other                                                Resilience and capacity to navigate
of the three great economic powers,       China’s profound crisis over the          deftly challenging surprise “events”
China, it went sour.                      coronavirus epidemic has been a           like the Iranian plane catastrophe
                                          chastening experience, jarring their      and our breakdown with China
The emerging U.S./China rivalry           enormously successful top-down na-        also test us.
blindsided us into entrapping Hua-        tional development narrative. But
wei’s Meng Wanzhou at YVR on be-                                                    There will always be combative Ca-
                                          it has permitted Canadian and Chi-
half of a vindictive U.S. Department                                                nadian political voices condemning a
                                          nese officials to connect and coop-
of Justice. The U.S. sought to hob-                                                 smile for the Iranian or Chinese for-
                                          erate. It may have increased mutual
ble China’s principal competitor for                                                eign minister as inappropriate, who
                                          confidence so that we can resolve our
global telecommunications primacy                                                   judge that reaching out to communi-
                                          shared hostage problem.
with an indictment for Iranian sanc-                                                cate is a sign of weakness.

                                          M
tions-busting that had nothing to do
                                                     eanwhile, the old U.S. neo-    But it never is.
with Canada.
                                                     conservative security blob
                                                                                    Contributing Writer Jeremy Kinsman
This isn’t the place to re-litigate the              is pumping up the neces-       is a former Canadian Ambassador
argument that Meng Wanzhou cer-           sity of a new Cold War against Chi-       to Russia and the European Union,
tainly did not commit a crime that        na, along with hard-line solidarity       and High Commissioner to the U.K.
would merit at least a year’s impris-     against other enemies, notably Rus-       He is a Distinguished Fellow with the
onment in Canada that the extra-          sia, and Iran. Hopefully, the Trudeau     Canadian International Council.

                                                                                                        March/April 2020
A World in Turmoil - Canadian Politics and Public Policy www.policymagazine.ca - Policy Magazine
6

    Protesters in Hong Kong demanding democratic reform, October, 2019. Former Hong Kong resident Robin Sears writes that Beijing’s intractability on
    Hong Kong is now matched by its fixation on Taiwan’s newly re-elected government. Wikimedia photo

    A China Reality Check
    As the “peaceful rise” China’s leaders promised amid the Robin V. Sears

                                                                                                       T
    country’s stunning socioeconomic progress has proven to          his was to have been a year of
    be bumpier than anticipated, the tension between Bei-            celebration of the half-century
                                                                     anniversary of Canada’s land-
    jing’s global ambitions and the rules-based international mark recognition, in 1970, of the
    order have escalated. Veteran political strategist Robin People’s Republic of China. Instead,
    Sears, who spent six years as Ontario’s agent general for we  are close to a state of paralysis in
                                                               government-to-government relations.
    Asia and a further six in the private sector in Hong Kong, The bilateral dynamic has not been
    writes that now more than ever, Canada must proceed this bad since the global outrage over
                                                               the People’s Liberation Army crack-
    with caution.                                              down on protesters in Tiananmen
                                                                                                       Square in 1989. Some China watchers
                                                                                                       say things have never been this chilly.
                                                                                                       Canada is not alone in facing a more
                                                                                                       unpredictable and obdurate China.
                                                                                                       Not only is the United States enter-
                                                                                                       ing round two of a potentially disas-
                                                                                                       trous trade war; Australia, Germany,
                                                                                                       Sweden and many other nations are

    Policy
7
all experiencing the consequences                   The Chinese refusal to give an inch toward
of a China too easily offended and
too often over-reacting to perceived
                                                    reconciliation in Hong Kong is now matched by
slights. China appears to be drifting      an almost hysterical reaction to the January 11
toward the brink of confrontation          re-election of President Tsai Ing-wen in Taiwan. Taiwan is
on several fronts.                         the most emotionally charged file in China’s relations
We need to recognize that our com-         with the world.
mercial interests in this relationship,
while of strategic importance to us
more than to China, cannot always
take precedence over maintaining the
post-war consensus on the rules gov-
erning members of the internation-         the Treasure Island featuring video of       American, Japanese and Taiwanese
al community. We have made these           fighters circling Taiwan. At the same        command and control systems in tar-
choices before. We supported—albe-         time, in the real world, the Chinese         geted cyber-attacks. A military offen-
it, too late—tough sanctions on apart-     air force broke a three-decade old con-      sive or targeted cyberattack against
heid South Africa at some commercial       vention and flew fighter jets across the     Taiwan’s economy, energy grid or
cost to Canadian business.                 line in the Taiwan Strait separating the     other infrastructure could draw the
                                           island from the mainland. One of Chi-        U.S. and the West into an unprece-

T
        he Chinese refusal to give an      na’s two aircraft carriers (two more are     dented, status-testing escalation.
        inch toward reconciliation in      currently under construction) made
                                                                                        Former U.S. Secretary of State and Chi-
        Hong Kong is now matched by        two passes in the Taiwan Strait in less
                                                                                        na expert Henry Kissinger, who more
an almost hysterical reaction to the       than two months; again, a first. In a
                                                                                        than any other has defined and de-
January 11 re-election of President        bombastic reaction to the landslide
                                                                                        fended the West’s efforts to find a way
Tsai Ing-wen in Taiwan. Taiwan is the      re-election of President Tsai, the offi-
                                                                                        to work with China, has pleaded for
most emotionally charged file in Chi-      cial Chinese response called the result
                                                                                        an understanding of our long-term
na’s relations with the world. China’s     a “fluke,” said her victory had been
                                                                                        goals and the time required to achieve
claim on Taiwan as an integral part of     achieved through massive “cheating,”
                                                                                        them. Kissinger draws on the similar-
the nation goes back to the 19th cen-      and declared the winner “evil.”
                                                                                        ities today with World War One. He
tury. Chiang Kai-Shek’s flight to Tai-     The world has never been here before.        points out that every statesman in the
wan and his successful bloody seizure      Today in China the world faces a rich        spring of 1914 would have behaved
of the island, cheated the PLA of their    and increasingly powerful authoritar-        very differently if they could have seen
final victory over their hated enemy,      ian state, integral to the global econo-     what horrific consequences would un-
his Kuomintang army.                       my. The Soviet Union by contrast may         fold as a result of their choices that
                                           not have been “Bangladesh with bal-          summer. They did not have that abil-
Since the creation of the People’s Re-
                                           listic missiles,” in the dismissive words    ity, but we have no such excuse.
public of China (PRC) in 1949, the
                                           of American super-hawk Richard Per-
Chinese Communist Party (CCP) has                                                       The Communist Party of China’s for-
                                           le, but neither was it a true global su-
been obsessed by ‘unity’ with Taiwan.                                                   eign policy, until Deng Xiaoping,
                                           perpower. Strategies to counter Soviet
They reconciled with one faction of                                                     echoing that of centuries of Chinese
                                           power and influence when the world
the Kuomintang (KMT) in the 70s,                                                        emperors, had one centre of gravity:
                                           was easily bifurcated into capitalism
only to be enraged by the creation of                                                   the defence of the motherland. Chi-
                                           and communism will not apply here.
a successful political competitor in                                                    na never attempted to occupy distant
                                           China today is not simply integrated
Ms.Tsai’s party, the Democratic Pro-                                                    foreign territories, only those on its
                                           into the economy in ways the USSR
gressive Party (DPP). In the unending                                                   borders. Foreign imperial adventures
                                           never was, it is absolutely crucial to it.
ironies of Chinese history, the CCP                                                     simply did not contribute to the de-
                                           Cold War era policies of isolation can-
and the rump of the KMT are now                                                         fence of Chinese territory. Mao and
                                           not apply here.
allies, but in today’s KMT, the CCP                                                     even Deng would probably have been

                                           O
has a very weakened ally. Beijing has                                                   deeply skeptical about the PLA Navy
                                                    n Taiwan, we may be ap-
been blocked at every turn by an in-                                                    setting up a provocative naval base on
                                                    proaching a dangerous prec-
creasingly independent nation of citi-                                                  the Horn of Africa, for example. The
                                                    ipice. Chinese military ca-
zens, many of whom identify as Tai-                                                     massive Chinese Djibouti base is lit-
                                           pacity is reaching the level at which
wanese first and Chinese second.                                                        erally beside even larger U.S., French
                                           a “successful” invasion could be con-
Evidence of this obsession was re-         templated. According to some mili-           and other military bases and assets
vealed by the PLA Air Force a few          tary observers in Taiwan and Wash-           along that vital shipping corridor.
months ago when they released a pop        ington, China already has the ca-            What makes this situation unique,
video titled, My War Eagles Are Circling   pability to render blind and useless         and in no way vulnerable to the

                                                                                                            March/April 2020
8
    “Thucydides trap” whereby when one          Seen from the perspective of the Unit-       hardly rational responses to a public
    great power rises to displace another,      ed States and the West however, Chi-         health crisis. They reflect the ambigu-
    war is the result, is this: China, unlike   na’s efforts to buy influence across vast    ity of Chinese leaders’ thinking about
    Sparta, or Carthage, or even Germa-         swathes of territory beyond its borders      the use of state power in a crisis.
    ny, is already a superpower—militar-        with the Belt and Road infrastructure

                                                                                             T
    ily and economically—woven deeply           initiative, its efforts to threaten access         wo threads of Chinese history
    into the fabric of the global economy.      to the South China Sea, its complete               —the justifiable angst of its
    There is no realistic economic decou-       rejection of international legal deci-             rulers about their domestic
    pling possible, except at a cost of tril-   sions about free passage, its rapidly ex-    survival and a suspicion of the non-
    lions and decades of destructive effort.    panding blue water navy, and its ris-        Chinese world—still form part of
                                                ing rhetorical aggression towards its        the culture of the leadership of the
                                                neighbours, paint a picture of a sober-      CCP today.
             China, unlike Sparta,              ing new strategic threat.
             or Carthage, or even                                                            A secure party in power does not in-
                                                China has, according to some intelli-
    Germany, is already a                       gence observers the largest and most
                                                                                             vite international opprobrium and
                                                                                             waste billions of dollars building “re-
    superpower—militarily and                   capable network of spy agencies in the       education” camps for its citizens. A
    economically—woven deeply                   world. There’s an emerging consensus         secure leader does not regularly pro-
    into the fabric of the global               that it is at least coming to be Ameri-      claim the unshakeable future of his
                                                ca’s equal in this domain.
    economy. There is no                                                                     rule—unless he worries that that
    realistic economic                          Yet no vision is sufficient to under-        may not be the case. In finding the
                                                                                             right balance, therefore, in a stra-
    decoupling possible.                        standing China’s sometimes baffling
                                                                                             tegic analysis of China’s intentions
                                                behavior without the inclusion of a
                                                final layer: China and the CCP are,          and likely future choices, each factor
                                                and always have been, deeply insecure        deserves weight.
                                                about their place in the world and           It is true that China often presents it-

    H
                                                their legitimacy in power. The Chi-          self on the global stage with a provoca-
              ere is an indication of the       nese Communist Party has not had             tive arrogance. There is no monolithic
              challenge: General Motors al-     as deeply insecure as Xi Jinping since
              ready sells far more cars in                                                   ‘China Inc.,’ but across many of its in-
                                                its first. Mao’s feared class enemies        stitutions, one can hear the tension in
    China that it does in the U.S. Does         “swarmed like flies” around him at all
    anyone believe those ratios will be re-                                                  their leaders’ public statements, veer-
                                                times. That Xi is in power at the same       ing between overweening confidence
    versed in a market 1.4 billion of still     moment as America’s most deeply in-
    mostly car-less buyers vs. the declin-                                                   and a hesitation revealing an underly-
                                                secure president in memory doesn’t           ing uncertainty. And there is the im-
    ing U.S. market? The core of China’s        enhance global stability.
    drive toward technological self-suffi-                                                   pact of history in other ways. A popu-
    ciency is the ability to manufacture        Deep insecurity is common among              lar aphorism used by Chinese leaders
    leading-edge semiconductor chips.           Chinese leaders, and understand-             to explain their differences to western
    Most experts suggest that they are at       able. After all, there have been very        critics is “Remember, we are the sec-
    least a decade away from catching up        few changes of emperor in Chinese            ond generation in all the years of the
    with today’s chips. A leader in that        history—over three millennia—that            Chinese history that does not have to
    sector, is ironically, Taiwan.              have not been violent. The history of        worry about starvation or war…that
                                                the CCP itself is one of regular, often      changes one’s perspective somewhat
    We face a multi-layered complexity in                                                    on what’s important, and how fast
                                                bloody factional battles. The years
    today’s strategic puzzle, with one lay-                                                  one can move.”
                                                between Deng Xiaoping’s death and
    er being economic, another military,
                                                Xi’s installation for life, only a few
    and a third managing China’s global                                                      In stark contrast to the authoritarian
                                                decades, are the only exception in a
    ambitions. Seen through the eyes of                                                      angst above them is the surging confi-
                                                century, delivering smooth changes
    a hardline PLA general, China’s stra-                                                    dence and creative optimism of more
                                                of leadership.
    tegic position is one of a nation dan-                                                   affluent, well-educated young Chinese
    gerously encircled by increasingly          The response to the Wuhan coronavi-          citizens than ever in the country’s his-
    well-armed neighbours who treat the         rus is another example of an insecure        tory. As you listen to young Chinese
    motherland with disrespect. After all,      state’s management of a crisis: first        business leaders brag about their plans
    Korea, Japan, Taiwan, Mongolia, Ka-         denial and concealment, then partial         to compete with the world ... to com-
    zakhstan, India, Burma, Malaysia, Sin-      disclosure, followed by massive over-        pete with the best, be victorious in
    gapore, Vietnam, Indonesia, and the         reaction. Locking down 56 million of         sports, electronic gaming, AI and on
    Philippines all regard China with in-       your citizens and then bringing much         and on, one cannot but be impressed
    creasing suspicion.                         of your economy to a standstill are          by their dynamism.

    Policy
9
They study abroad in the hundreds of       Institute survey published late last      national standards on basic human
thousands and then maintain the in-        year showed unfavourable views of         rights. With our allies, this requires
ternational friendships and networks       the country had risen to 66 percent       constant and vigorous pushback.
they develop there. They are proud         from 51 percent in 2018. The data also    We must continue to press for the re-
Chinese nationalists in many cases,        reveal an increasing number of Cana-      lease of our two hostages but resist the
but equally at home in the world. It       dians—70 percent—saying human             temptation to tie their fate to China-
will be interesting to watch the in-       rights should be more important than      U.S. relations, or China’s overall hu-
evitable culture clash between their       trade opportunities in Canada’s deal-     man rights record. As one of the na-
ebullient international confidence         ings with China.                          tions determined to maintain an
and the xenophobic suspicions of to-                                                 international order of agreed rules, we
day’s party leaders.                                We have had prime                may not always be able to take stands
Canada has a long and deep connec-                  ministers from Pierre            that serve immediate Canadian com-
tion with the Chinese people, begin-                                                 mercial interests in China. Ensuring
                                           Trudeau to Brian Mulroney
ning with doctors like Norman Bet-                                                   the safe return of the two Michaels is
hune and missionaries devoting their
                                           and Jean Chrétien who made                one of those occasions.
                                           themselves globally respected

                                                                                     F
lives to medical care and education—
and a mostly unsuccessful religious        interlocutors with the                          or Canada now, our challenge
                                                                                           is to encourage China to move
conversion project. The relationship       Chinese leadership. We                          back from the brink. To per-
grew through massive wheat sales be-
                                           dropped the ball badly under              suade Beijing that its interests will
gun by John Diefenbaker during some
very hard years in China. It continued     Stephen Harper, recovered                 always be better served absent con-
                                           briefly with Justin Trudeau,              frontation, and that the costs of con-
through Pierre Trudeau’s courageous
                                                                                     frontation would probably be fatal
step in granting diplomatic recogni-       and are today at a deeper                 for the future of the CCP in power if
tion to China half a century ago. We       and more challenging                      they played out militarily. Laying out
have had prime ministers from Pierre
Trudeau to Brian Mulroney and Jean         impasse than ever.                        these benefits to the reputation and
                                                                                     status of China is not “going soft on
Chrétien who made themselves glob-
                                                                                     China.” It’s what is required to avoid
ally respected interlocutors with the
                                                                                     what Kissinger somberly intones as
Chinese leadership. We dropped the
                                                                                     “making the 21st century as tragic
ball badly under Stephen Harper, re-
                                           As intractable as the gap may seem        and bloody as the one before.”
covered briefly with Justin Trudeau,
and are today at a deeper and more         between Beijing’s sabre rattling and      In all our years of nimbly balanc-
challenging impasse than ever.             Canadian diplomacy, threatening to        ing our relationship with the Sovi-
                                           punish China through sanctions or         ets, the Chinese and other authori-

A
        s we learned in dealing with       visa restrictions will not move Chi-      tarian regimes, we know three things
        the equally insecure Leonid        nese thinking. We need allies, not vol-   to be true: quiet diplomacy can work,
        Brezhnev and his successors,       ume. Setting rules, establishing pro-     megaphones can’t; that we need to of-
leaders worried about their survival       portionate consequences for breaking      fer proof of the benefits that will flow
do not respond well to public threats.     them, especially when they happen in      from the path we offer, as opposed to
Pressure must be applied, but most ef-     Canada, or to Canadians, is a must.       the dramatically higher costs of con-
fectively in private and with predict-     We should learn from the Australians’     frontation; and finally, that we speak
able regularity and determination.         sad experience in this regard.            with one voice along with our many
All reports suggest that that is exactly   Canada must wrestle with three kinds      powerful allies.
the path our new ambassador, Dom-          of policy conundrum. In each case,        Canada has shown great skill in build-
inic Barton, is pursuing today as he       whatever choices are made, they will      ing coalitions to win peace and avoid
struggles to find a path that could        only be effective if their tools and      conflict, even if it is only a violence-
lead to the release of Michael Kovring     goals are supported by a network of       free frozen peace, in Suez, in Cyprus,
and Michael Spavor in the face of the      like-minded nations. We have our na-      in South Africa and elsewhere. As
continuing legal battles surrounding       tional interests, we have our commer-     China and the West move closer to
Huawei CFO Meng Wanzhou—quiet,             cial interests and we have the defense    confrontation, it’s again time we put
relentless pressure.                       of the values of the international com-   those special skills to use.
While public opinion in China on the       munity, of which we are a respected
                                                                                     Contributing Writer Robin V. Sears, a
captivity of the two Canadians and         leader. The Chinese are attempting,       principal of Earnscliffe Strategy Group in
the ongoing conflict over Ms. Wan-         however maladroitly, to change the        Ottawa, lived and worked in Tokyo as
zhou may be impossible to discern ac-      post-war consensus on internation-        Ontario’s Agent General for Asia for six
curately, views of China among Cana-       al values and law—most egregious-         years, and later in the private sector in
dians have changed. An Angus Reid          ly with respect to honouring inter-       Hong Kong for a further six years.

                                                                                                           March/April 2020
10

     The bodies of Ukrainian victims of the Iranian downing of Ukraine Airlines Flight 752 arriving at Kiev airport on January 19, 11 days after the
     tragedy also took the lives of 57 Canadian citizens and 29 permanent residents of Canada. The Presidential Office of Ukraine photo

     U.S.-Iran Relations:
     Lessons for Canada From the Ukraine Airlines Tragedy

     The shoot-down of a Ukraine airlines flight that killed Dennis Horak

                                                                                                            T
     57 Canadians in January was the latest chapter in a de-           he shoot-down of a Ukrainian
     cades-long legacy of U.S.-Iran tensions marked by tragedy.        airlines flight outside Tehran
                                                                       in January was a reminder of
     Canadians paid the heaviest price this time, but it high- how quickly and unpredictably ten-
     lighted the need for Canada to fully re-engage in the sions with Iran can tragically esca-
     Persian Gulf, however difficult that might be. Dennis late.      Simmering hostilities between
                                                                the United States and Iran were ig-
     Horak, former Canadian head of mission in Tehran and nited, took the region to the brink
     later ambassador to Saudi Arabia, shares exceptional in- and the outcome could have been
                                                                catastrophic. The incident didn’t be-
     sights into the region and Canada’s role there.            gin with the assassination of Iranian
                                                                                                            General Qassem Soleimani; nor are
                                                                                                            tensions likely to end with the subse-
                                                                                                            quent walk-back from the edge.

                                                                                                            This is a decades-long conflict that
                                                                                                            shows no sign of being resolved.
                                                                                                            Both sides are driven by fundamen-

     Policy
11
tally different conceptions of each
other’s goals and motivations. That is
unlikely to change. For Canada, the
incident underscored the reality that
what happens in the Persian Gulf can
reverberate globally and highlighted
the need to be better equipped to ad-
dress those regional eventualities.

Iran’s missile launch against a civil-
ian airliner in January was a trage-
dy with historic roots. The U.S.-Iran
tensions that created the conditions
for the attack have been a fact of life
in the Gulf for decades. For Tehran,
the story tracks back to Washington’s
role in the overthrow of their elect-
ed Prime Minister, Mohammad Mos-           Prime Minister Justin Trudeau shakes hands with Iranian Foreign Minister Muhammad Javad Zarif
sadegh, in 1953. For the Americans,        on February 14 on the margins of the Munich Security Conference. Trudeau said they discussed
                                           compensation for victims’ surviving families back in Canada. Tehran Times photo
the genesis was the hostage crisis in
1979-80. But whatever the origins,
the U.S.-Iran conflict has produced a
                                           the next flare-up will occur—and the            By all accounts, Iran was verifiably
long and grim legacy marked by suc-
                                           January incidents may even have re-             complying with the terms of the
cessive catastrophes (including a pre-
                                           stored some level of deterrence—but             agreement when Donald Trump de-
vious shootdown of an Iranian civil-
                                           future incidents are a near certainty.          cided to the pull the plug. But for the
ian airliner by the U.S. in 1988) and
                                                                                           administration, that was beside the
sustained regional instability.
                                                                                           point. The deal, in its view, was con-
The latest chapter actually began in               It’s hard to predict                    ceptually flawed. Its scope was too
the summer of 2019, with the Iranian               where or how the                        limited and one-sided in Iran’s fa-
bombing of two oil tankers in the Per-     next flare-up will occur—                       vour. The administration’s decision
sian Gulf and an attack on a Saudi oil                                                     to withdraw and apply “maximum
                                           and the January incidents                       pressure” (which included enhanced
refinery. But it was the attack on an
Iraqi military base that killed an Amer-   may even have restored                          sanctions) was aimed at forcing a
ican contractor and wounded sever-         some level of deterrence—                       weakened Iran back to the table to re-
al U.S. service personnel that set the     but future incidents are a                      open and expand the agreement. Iran
key events in motion. Iran was wide-                                                       rejected U.S. demands immediately.
                                           near certainty.
ly held responsible for these incidents.                                                   It relaunched previously restricted
                                                                                           elements of its nuclear program and
The death of an American was clear-                                                        stepped up its kinetic actions in the
ly a red line for the U.S. and they                                                        region. The violent events in the Gulf
responded with an unprecedented                                                            last summer were intended as a mes-

                                           T
assassination of a senior regime of-                                                       sage: If Iran could not sell its oil, they
                                                   he proximate cause of the
ficial—Soleimani. While the Iranian                                                        had the ability prevent others from
                                                   spike in violent incidents over
leadership promised a harsh response,                                                      doing so, too.
                                                   the past several months can
their retaliation—missile strikes on
                                           be traced back to the Trump admin-              While Trump’s withdrawal from the
two U.S. air bases in Iraq—was suffi-
ciently measured to allow both sides       istration’s decision in May 2018 to             JCPOA was clearly a spark for the re-
to claim victory and climb back from       walk away from the Joint Compre-                cent flare-up, the JCPOA was never a
the edge. Ironically, it was the cit-      hensive Plan of Action (JCPOA),                 launchpad for an era of U.S.-Iran dé-
izens of a third country, Canada,          commonly known as the Iran nu-                  tente and reconciliation. The JCPOA
who suffered the most from the con-        clear agreement. Signed in 2015, the            was not meant to be a panacea. It was
frontation when Iran shot down the         deal essentially traded restrictions            a limited agreement tied narrowly to
Ukraine International Airlines flight      on Iran’s nuclear program for lim-              one specific item on a rather long list
on January 8, killing 57 Canadians.        ited sanctions relief. The agreement            of Iran-related grievances. U.S. and
The relatively quiet pause in hostili-     was widely lauded for putting the               regional concerns about Iran are driv-
ties between Washington and Tehran         Iran nuclear problem on the back                en as much by Tehran’s support for
since then is likely only a temporary      burner, but it had its critics, particu-        terrorism, its increasingly sophisti-
lull. It’s hard to predict where or how    larly among U.S. Republicans.                   cated missile program and, especial-

                                                                                                                  March/April 2020
12

                                                                                              O
     ly, its destabilizing actions across the     sense; it is a destabilizing influence in             ttawa needs to learn from
     Middle East as they were by the nu-          a fragile region. But pressure tactics               the crisis and realize that Ca-
     clear program. Iran’s actions on these       aimed at curtailing Iran’s regional ac-              nadian interests are best
     other files was uninterrupted during         tivities or gutting its missile defenc-     served by maintaining relations—
     the JCPOA period. Its decisive and           es, while fomenting domestic unrest         even uncomfortable ones—to be
     bloody intervention in Syria, its sus-       to create bottom-up pressure on the         ready to respond when things go
     tained manipulation of Iraqi politics        leadership, only inflame irredentist        badly. This is especially true in a re-
     for sectarian advantage, its continued       fears and spawn Iranian responses           gion as volatile and as populated
     support for Hezbollah and Hamas, its         that can, as we have seen, quickly spi-     with Canadians as the Gulf. There are
     backing of the Houthis in Yemen and          ral out of control. There are no easy       important obstacles to reopening in
     its unrelenting hostility to Israel were     answers and the differences may, in         Iran, with the Justice for Victims of
     unaffected by the nuclear agreement.         fact, be irreconcilable.                    Terrorism Act being the principal bar-
     Washington’s provocative withdraw-                                                       rier. It would be irresponsible to re-
     al from the JCPOA and Iran’s reac-                                                       turn Canadian diplomats to Tehran
                                                          The government                      with the threat of further seizures of
     tion to it added a dangerous layer of
     complexity to an already volatile re-                managed the                         Iranian property in Canada under the
     gion, but it is was not the source of        consular crisis stemming                    Act hanging over the relationship.
     the problem.                                 from the shoot-down as well                 The risk of Iranian retaliation would
                                                                                              be high given Tehran’s historical dis-
                                                  as could be expected under

     T
             he underlying issues run deep-                                                   respect for diplomatic immunity. Re-
             er. At their core, U.S.-Iran ten-
                                                  the circumstances. But the                  pairing ties with Saudi Arabia should
             sions reflect entrenched per-        absence of a Canadian                       be easier. It will require face-saving
     ceptions of their respective goals and       diplomatic presence                         measures for both sides, but that is
     motivations. For the U.S., the Islamic       undeniably complicated an                   what diplomats do—when they have
     Republic is an inherently destabiliz-                                                    the requisite political backing.
                                                  already tragic and stressful
     ing and malevolent force in the Mid-
     dle East; ideologically driven to un-        situation for the families.                 Both moves will be challenging (and
                                                                                              some distance from the shootdown
     dermine U.S. interests and influence.
                                                                                              will be needed to move forward with
     In their view, Iran’s desire to domi-
                                                                                              Iran). Neither country is popular and
     nate the region through support for
                                                                                              opposition to “rewarding” Riyadh
     sectarian proxies and terrorist groups
                                                                                              and Tehran by normalizing ties will
     is a threat to U.S. assets and allies that   So, where does Canada fit-in in all         be fierce in some quarters. But it is
     must be countered. It is a perspective       this? The short answer is, nowhere,         worth the effort.
     widely shared in the region.                 really. Ottawa has been blind to
                                                  what’s happening in Iran since the          The Gulf is a difficult and often frus-
     For Tehran, the U.S. is a hostile power
                                                  Embassy was closed in 2012 and it           trating region. U.S.-Iran tensions (fed
     that is determined to overturn the Is-
                                                  has been playing short-handed in            by and involving regional players like
     lamic Revolution (as it has been from
                                                  Saudi Arabia since the “tweet-storm”        Saudi Arabia) will remain, but the in-
     the start) and restore the dominant
                                                  in 2018 upended the bilateral rela-         ternational community has an obli-
     role it had under the Shah. Opposi-
                                                  tionship. These are the two key play-       gation to try and moderate or manage
     tion and resistance to the U.S. was
                                                  ers (with the U.S.) in the region and       them. As the January events demon-
     (and remains) a pillar of the Revolu-
                                                  Canada has no relations with one            strated, the brink is never far off and
     tion and it informs the views of the
                                                  and strained links with the other. But      the impact of tumbling over it will
     Supreme Leader, Ayatollah Khame-
                                                  the tragic events in January vividly        reverberate widely and, likely, tragi-
     nei (the only person in the country
                                                  underscored the fact that Canada can        cally. If Canada fancy’s itself as an
     whose views really matter). For the
                                                  no longer afford to pretend that what       important international player—wor-
     regime, Iran’s cultivation of region-
                                                  happens in the Gulf stays in the Gulf.      thy of G7, G20 and, even UN Securi-
     al allies and influence and its efforts
                                                  The Gulf matters and it can come up         ty Council membership—it would do
     to confront Washington’s regional
                                                  and bite you in ways you can’t al-          well to position itself to act the part
     “puppets” and, ultimately, drive the
                                                  ways imagine. The government man-           in a region with such broad and chal-
     U.S. from the region are defensive
                                                  aged the consular crisis stemming           lenging risks.
     measures designed to safeguard the
                                                  from the shoot-down as well as could
     Revolution and Iranian security.                                                         Dennis Horak was Canada’s
                                                  be expected under the circumstances.        ambassador to Saudi Arabia from
     Finding a way around these percep-           But the absence of a Canadian diplo-        2015-18 and head of mission/chargé
     tions and the behaviours they gener-         matic presence undeniably compli-           d’affaires in Iran from 2009-12.
     ate will be tough. They are self-rein-       cated an already tragic and stressful       He retired in 2018 after a 31-year
     forcing. Containing Iran does make           situation for the families.                 diplomatic career.

     Policy
13

Letter From Davos:
A POWERFUL TELESCOPE INTO THE FUTURE

Every year, when the world’s most politically and economi-                            ed by several decades in age, but unit-
                                                                                      ed by their determination and com-
cally engaged leaders gather in Davos for the annual World                            mitment to save our planet.
Economic Forum meeting, there is a Canadian contingent                                The objective of creating a carbon
working the hallways and gracing the panels. Since 2016,                              neutral future was discussed in a ses-
Suzanne Fortier, Principal and Vice-Chancellor of McGill                              sion that reported the disturbing sta-
                                                                                      tistic that only 33 percent of primary
University, has been part of that contingent. She shares                              energy is converted into useful energy
her experience and takeaways from the 2020 event.                                     for transport, industry and buildings.
                                                                                      Industry leaders on the panel not only
                                                                                      validated the figure but also promoted
                                                                                      realizing greater efficiency, particular-
Suzanne Fortier                            meeting was to carve my own Davos.
                                                                                      ly given that technologies required to
                                           The meeting’s program, with its rich

A
        s head of an international         and diverse choice of sessions, gives      do so are already available.
        university, I am privileged to     each participant the opportunity to
        have stimulating conversa-         have a unique “personalized” Davos                 A greater recognition
tions every day, whether with stu-         experience.
dents, researchers, partners, or col-                                                         among investors

                                           M
leagues from around the world. The                    y Davos journey this year       that climate risk is
discussions held at the World Eco-                    included topics that piqued     investment risk was evident,
nomic Forum (WEF) Annual Meeting                      my interest such as listen-
                                                                                      as was their anticipation
in Davos are ones I especially look        ing to Yo-Yo Ma talk about the pow-
forward to, as I believe that this gath-   er of narratives, the annual session       of a fundamental reshaping
ering of global stakeholders is a pow-     on the Global Economic Outlook and         of finance.
erful telescope into the future.           a presentation on the recent claim of
                                           quantum supremacy. The majority
I first began attending the WEF An-        of my time, however, was devoted to
nual Davos Meetings back in 2016,          topics that are much discussed at Mc-
and while every meeting is thought-                                                   The release of BlackRock’s annual let-
                                           Gill. I had the chance to participate
provoking, they are also very differ-                                                 ter to CEOs, a few weeks ahead of the
                                           on panels that covered important
ent from one year to the next, reflect-                                               meeting, and its observations on cli-
                                           subjects such as education, of course,
ing the main agenda items on the                                                      mate change resonated throughout
                                           but also addressed mental health is-
global scene.                                                                         the meeting. A greater recognition
                                           sues, steps for increasing social inclu-
                                                                                      among investors that climate risk is
                                           sion, and the future of work.
The 2020 Annual Meeting was the                                                       investment risk was evident, as was
50th anniversary of the establishment      Most would agree that climate change       their anticipation of a fundamental
of the WEF and capped off a year that      was at the forefront of discussions at     reshaping of finance.
was marked by social, economic, and        Davos. Very few attendees, if any, de-
geopolitical turmoil with rapidly shift-                                              The Striking a Green “New Deal” ses-
                                           nied that this was a pressing and ur-
ing realities. We saw flare-ups in for-                                               sion brought together politicians who
                                           gent issue concerning us all. But what
eign relations, civil uprisings and                                                   discussed “new deal” agreements that
                                           was most interesting was to hear voic-
clashes with governments, uncertain-                                                  link goals to combat climate change,
                                           es from so many different roles and
ty about the future of the planet, and,                                               social justice reforms and econom-
                                           perspectives all gathered in one place.
most recently, the spread of a life-                                                  ic development. They acknowledged
threatening health epidemic.               We heard the voices of activists, from     the challenge of bringing people on
                                           Greta Thunberg to Jane Goodall, two        board in the transition to a greener
Some wise advice I received be-            people featured on TIME’s 2019 list of     future. While there may be buy-in
fore attending my first WEF annual         the most influential people—separat-       on the importance of addressing cli-

                                                                                                           March/April 2020
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