Peter Costello tells America to lift its game

August 23, 2005

The Treasurer is worried about the United States' poor image in the world, writes Tony Parkinson.

PETER Costello has gone further than anyone else in the Howard Government in spelling out bluntly to influential Americans the dangers — to them, and the rest of the West — if the United States does not work harder and smarter to overcome its global image problem.

The Treasurer used an important platform at the weekend, the annual Mel Sembler lecture to the Australian-American Leadership Dialogue, to attempt to dissect some of the factors driving anti-American sentiment. Before an audience brimming with key policymakers and opinion leaders from the US, the Liberal deputy went beyond his usual focus on the economic agenda to deliver some pointed analyses of where and how America had to lift its game.

Some construed this speech as a none-too-subtle attempt by the heir-presumptive to establish points of difference from what many see as the unconditional, come-what-may, pro-Washington disposition of Prime Minister John Howard. Yet Costello's message could not be said to have been churlish or chiding.

It suggested discomfort and concern about the undercurrent of animosity towards America, and its role in the world. Just in case anyone was in any doubt, Costello gave his thoughts a second airing in a follow-up interview with Laurie Oakes on Nine's Sunday program.

In Australia, Costello said, the US was being unfairly maligned by what he saw as a left-wing bias in schools and universities. In Europe, there was envy and resentment about America's rise to global pre-eminence. In many countries, there was a backlash to some of the Hollywood-driven mass culture the US exports to the world.

Whatever the motives for this hate-fest, Costello argued, Washington could not afford simply to shrug it off. It had to work assiduously to improve its public diplomacy.

Much easier said than done, of course.

How do you reason with blind prejudice, such as the extreme hatred of all things American within the Islamist creed? How do you attempt to convince the quasi-religious anti-globalisation movement that corporate America is not the embodiment of all evil?

How do you explain to conservative parents in Asia or the Middle East that the menu of sex and violence served up by Hollywood, which they see as corrupting their children, is not symbolic of any American values, other than the right to freedom of expression?

How do you quell fears among small-to-medium powers that they will be overwhelmed by US economic and military dominance?

Costello noted that President George Bush had recently appointed one of his most effective political operatives, Karen Hughes, as Under-Secretary of State for Public Diplomacy. He appeared to be heartened by this signal that the White House knows it has a problem.

He also borrowed the advice of Henry Kissinger, who argues the world's sole superpower should try to act "as if it were still living in a world of many centres of power".

During his speech, there was no hint of any questioning of US grand strategy in the greater Middle East, or the global war on terror. On these critical issues, Costello allowed no daylight between his stance and that of the Prime Minister.
But within his own portfolio interests, Costello raised three issues where Australia had taken a different tack. Implicit was a suggestion that Washington might sometimes have something to learn from its friends.

First, the different reactions to Indonesia's plight during the Asian economic meltdown of 1997-98. When Washington lined up behind a long list of demands for immediate and dramatic structural economic reform, Australia lodged strong objections, fearful of the effect on Indonesia's economic and political stability.

Then, there is the divergence of view about the timetable for the liberalisation of China's economy. Both countries welcomed the recent devaluation of the Chinese currency. But while the US is inclined to see the debate largely in terms of reducing what are viewed as China's unfair competitive advantages, Costello argues the imperative is for China to adopt a measured and orderly approach to market reforms. Australia's priority is to avoid any risk of undermining the economic stability of East Asia.

Third, Costello reiterated Australia's calls for much-needed progress in reducing trade barriers, of which the corruption of world agricultural markets by massive production subsidies, in the European Union, the US, and Japan remains the biggest chokepoint in global trade negotiations. On this, Costello delivered a crisp, curt message: "We are not a self-contained economy. We are an open trading economy … if the world resorts to a shoot-out on subsidies, the US might think it can win. We know we would lose."

As the Treasurer went on to say, none of these represent a huge strategic divide. On matters of global significance, the alliance partners remain very much in sync.

But Costello also stressed the importance of the US taking greater account of the views of its allies, and for allies such as Australia to be forthright in stating when and where they think the superpower has got it wrong, especially on the politics of the neighbourhood.

Senior Americans say they are in favour of plain speaking between close friends. Whatever else may be said of Costello's comments on the alliance in these past days, nobody can accuse him of shirking that responsibility.

Tony Parkinson is a senior columnist.

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