1989 changed the world. But where now for Europe?

Year of revolutions: Mired in the narcissism of minor difference, Europe is failing to face up to the world its revolution helped to create
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So, closest to the ground, we have the stories of those individual human lives: of the young Czechs, Hungarians and east Germans, born in 1989, who are seizing and enjoying the chances of freedom, and of the many older, less well-placed people, who have had a rough time since, and are angry and disillusioned.

At the other extreme, we have the global dance of old and new superpowers. Potentially, there are now three of them: the US, China and the EU. The US is still the only genuine, three-dimensional superpower. When former presidents Gorbachev and George H W Bush got together with former chancellor Helmut Kohl in Berlin last week, Bush senior paid fulsome tribute to his friend "Mikhail". He could afford to be generous; after all, America won.

More accurately, the US emerged the winner, thanks partly to its own policies but also to the work of others. But it would be hard to argue that the US has used its subsequent two decades of supremacy very well – least of all, under Bush, son of Bush. The country has lived high on the hog, running up a pile of both household and national debt. It has not created a durable new international order. Now it has a wonderful president who wills that end, but probably no longer has the means.

China is the most unexpected winner of them all. Remember that when Gorbachev visited Beijing in the early summer of 1989 he had to be smuggled into the communist party leaders' Zhongnanhai compound through a side entrance, because so many protesters were filling Tiananmen square. China seemed to be on the brink of some kind of a velvet revolution of its own. But then came the 4 June massacre. A shudder reverberated across Eurasia, from Beijing to Berlin. China and Europe dramatically parted ways.

Traumatised both by the Tiananmen protests and by the collapse of communism in the Soviet Union and eastern Europe, China's communist party leaders systematically learned the lessons in order to avoid their European comrades' fate. Seizing the economic opportunities offered by globalisation, which itself was decisively catalysed by the end of European communism, they marched further down the road on which Deng Xiaoping (an individual to rank with Gorbachev in his impact on history) had launched them.

The result: a hybrid that can crudely be summarised as Leninist capitalism – something we simply did not imagine in 1989. And an emerging superpower with $2 trillion of reserves, holding the US in a financial half-nelson.

This is a fragile superpower, to be sure, with many internal tensions and contradictions, and too little freedom, but still a formidable competitor for western-style liberal democratic capitalism. Far more formidable, incidentally, than backward-looking, militant Islamism, which is a real threat but not a serious ideological competitor.



So, 20 years on, the question before us Europeans is this: can we recapture some of the strategic boldness and historical imagination of 1989? Or shall we now leave it to others to shape the world, while we snuggle down, Hobbit-like, in our national holes, and pretend there are no giants yomping overhead?