Power shift

Enterprise - - Letters -

The Russo-Chi­nese joint ven­ture of in­tro­duc­ing petro-gold in­stead of the petro-dol­lar has ush­ered in a mul­ti­po­lar or­der of eco­nomic con­fig­u­ra­tion. Dol­lar­i­sa­tion, which was dis­guised as a form of re­con­struc­tion in the post-WW 11 dev­as­tated Europe mor­phed into an in­stru­ment of eco­nomic ex­ploita­tion. The in­tro­duc­tion of the dol­lar as in­ter­na­tional trad­ing cur­rency led to a form of neo-im­pe­ri­al­ism that af­fected the po­lit­i­cal and eco­nomic re­sources of de­vel­op­ing coun­tries. How­ever, in the wake of the post­mod­ern era, the Thucy­dides Trap – when a ris­ing power causes fear in an es­tab­lished power – is in­evitable and jus­ti­fied.

The Chi­nese gov­ern­ment’s an­nounce­ment to re­place the US dol­lar with the Yuan for Pak-China trade is a clear in­di­ca­tion of Amer­ica’s de­clin­ing mon­e­tary hege­mony and ex­ploita­tion. Brics and AIID are al­ter­na­tives to the Bret­ton Woods sys­tem of mon­e­tary man­age­ment. China’s plans to in­clude 11 coun­tries into Brics will fur­ther pave the way for re­gional eco­nomic in­te­gra­tion and con­nec­tiv­ity. The Ru­ble-Yuan swap deal has trans­formed Brics into an anti-dol­lar al­liance. The Brics Cen­tral Bank’s cur­rency swaps will by­pass the dol­lar, which will turn out to be a de­fec­tive re­place­ment of the cap­i­tal­ist-dom­i­nated IMF. This could be a wa­ter­shed in struc­tur­ing and ex­pand­ing mul­ti­lat­eral in­sti­tu­tions from re­gion­al­ism to glob­al­ism. Trump’s with­drawal from the Paris Cli­mate Change Agree­ment and the Trans-Pa­cific Part­ner­ship along with the dras­tic cut of $185 mil­lion to the UN fund will re­sult in the de­cline of its global lead­er­ship role. As nature ab­hors a vac­uum, China and her al­lies will fill it.

Saeed Ul­lah Khan Wazir

Islamabad

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