Strategic hedgers? Australia and Canada's defence adaptation to the global power transition

Abstract

The intensification of rivalries between the US and China, and, in recent years, between the US and Russia, has deeply affected how middle powers relate to these great powers. Scholars have argued that middle powers are increasingly adopting “hedging” strategies to maximize their benefits and limit the consequences of the great power competition for their security and status. This paper revisits the concept of hedging and assesses whether two prominent US allies—Australia and Canada—have resorted to hedging in place of conventional alternatives like bandwagoning and balancing. The paper systematically compares Australia's and Canada's threat perceptions and defence policies to ascertain whether they have shifted their policies in the wake of the US's relative decline. Since our study began, in 2008, we have found instances where the two allies resorted to hedging. However, evidence shows that when pressured to make a choice, Australia and Canada have closed ranks with the US against revisionist powers. Our paper suggests that threat perceptions play a fundamental role in this. Going forward, it would suggest that the US is in a stronger position than commonly assumed. As the competition between Washington and revisionist great powers increases, the former's ability to build credible coalitions is expected to improve as it will rely on more dependable allies.