The post-dol­lar sum­mit in Ufa: “The Silk World Or­der”

The Diplomatic Insight - - News - Mahdi Dar­ius Nazem­roaya

Get ready for ground shat­ter­ing geopo­lit­i­cal changes. At the cross­roads of Asia and Europe, it has been de­cided that the Rus­sian city of Ufa will be the point of con­ver­gence for all the ini­tia­tives and projects of the Silk World Or­der of trade and in­te­gra­tion that China and Rus­sia are spear­head­ing. Ufa, which is the cap­i­tal of Rus­sia’s Bashko­r­tostan, is be­ing used to si­mul­ta­ne­ously host an ex­tra­or­di­nary sum­mit for both the BRICS—which has in­creas­ing be­come an al­ter­na­tive fo­rum to that of the G7—and the Shang­hai Co­op­er­a­tion Or­ga­ni­za­tion (SCO) re­spec­tively from July 8 to 9 and from July 9 to 10, 2015.

The Com­ing To­gether of Eura­sia and Be­yond

The joint BRICS and SCO sum­mit in Ufa has been or­ga­nized by Moscow as the si­mul­ta­ne­ous holder of both the ro­tat­ing chair­man­ships of the BRICS and the SCO. It is no co­in­ci­dence, how­ever, that the Sev­enth BRICS and Fif­teenth SCO sum­mits have been amal­ga­mated as one large in­ter­na­tional sum­mit. The Krem­lin has used the op­por­tu­nity to bring Rus­sia’s part­ners to­gether. This is part of the in­te­gra­tion process of the Silk World Or­der. There will be joint BRICS and SCO ses­sions and many im­por­tant ex­changes and dis­cus­sions about a new archetype for the world. One in­for­mal ses­sion at Ufa will not only in­clude all the mem­bers of the BRICS and the SCO, but will also in­clude all the mem­bers of the Eurasian Eco­nomic Union (EEU), ac­cord­ing to in­for­ma­tion dis­closed by Rus­sian Pres­i­dent Putin’s aide Yury Ushakov to the Rus­sia media days be­fore the sum­mit in Ufa. Aside from Brazil and South Africa, since all the mem­bers of the BRICS and the SCO are lo­cated in Eura­sia, the Krem­lin saw it as per­ti­nent that the EEU be in­volved in some type of dis­cus­sion about the de­vel­op­ment of the Eurasian space. In essence this means that Ar­me­nia will be at­tend­ing the joint BRICS and SCO sum­mit in Bashko­r­tostan, since all the other mem­bers of the Eurasian Eco­nomic Space are ei­ther full SCO mem­bers or, in the case of Be­larus, an SCO di­a­logue part­ner. Ac­cord­ing to the Mer­ca­tor In­sti­tute for China Stud­ies (MERICS) in Ber­lin, which as­serts that the BRICS-SCO-EEU talks are «a sign that Rus­sia is aim­ing for po­lit­i­cal block­build­ing,» the Re­pub­lic of Azer­bai­jan and Turk­menistan will also take part in in­for­mal meet­ing of the BRICS, SCO, and EEU. [1] The Eurasian and global con­ver­gences in Ufa are clear. Us­ing the links that al­ready ex­ist be­tween the two, China’s New Silk Road and the Rus­sian­led Eurasian Eco­nomic Union will be­gin a roadmap to fuse to­gether in Bashko­r­tostan as the piv­otal axis of ro­ta­tion in the Eurasian space. This is a con­tin­u­a­tion of the high-level dis­cus­sions that were an­nounced by both Chi­nese Pres­i­dent Xi Jin­ping and Putin on May 8 on the Xi Jin­ping’s ar­rival to Moscow, ahead of the Vic­tory Day cel­e­bra­tions on May 9, 2015.

Af­ter failed at­tempts at dif­fer­ent venues,

In­dian Prime Min­is­ter Naren­dra Modi and Ira­nian Pres­i­dent Has­san Ro­hani are rekin­dling their strate­gic bonds that had been ne­glected by the gov­ern­ment of Modi’s pre­de­ces­sor, Prime Min­is­ter Man­mo­han Singh. The use of the Ira­nian port Chaba­har by In­dia for gain­ing ac­cess to Rus­sia and Cen­tral Asia through the North-South Cor­ri­dor

The Com­ing Silk World Or­der Be­ing Un­veiled in Ufa

While the New Silk Road and the EEC come to­gether in Ufa, the BRICS will put to­gether a de­vel­op­ment map while the SCO will out­line its ex­pan­sion plans for new full mem­bers. The ap­pli­ca­tions of In­dia, Iran, and Pak­istan for full mem­ber­ship will be ad­dressed. More­over, Egypt and sev­eral other coun­tries have ap­plied to join the SCO in come con­text. Ufa is be­ing used to stamp out a roadmap for the «Eurasian Cen­tury» and a Silk World Or­der that goes be­yond Eura­sia, which in­cludes ev­ery­thing from a transcon­ti­nen­tal mega rail­road net­work con­nect­ing the Ibe­rian Penin­sula to the South China Sea and to what has been dubbed as the «mod­ern city of the Eurasian con­ti­nent» in Be­larus. The US is clearly wor­ried about the Silk World Or­der that is emerg­ing. It has be­gun to pull out all the stops, from court­ing Brazil on the eve of the sum­mit in Ufa to calls for the Euro­pean Union to not join China’s bank­ing pro­ject. The Pen­tagon’s 2015 Mil­i­tary Strat­egy that ad­dresses the pos­si­bil­ity of con­fronta­tion with an up­dated «Axis of Evil» com­posed of China, Rus­sia, Iran, and North Korea is catered to Washington’s pro­cliv­ity to con­front the coun­tries that are chal­leng­ing a US­dom­i­nated in­ter­na­tional or­der. While Washington and NATO are mak­ing a gen­eral call to arms, the Chi­nese are busy build­ing trade in­fra­struc­ture and trans­port net­works. In Be­larus, the city of the Eurasian con­ti­nent» in the forests next to the Minsk Na­tional Air­port as part of what Bloomberg calls «a man­u­fac­tur­ing spring­board be­tween the Euro­pean Union and Rus­sia.» [2] Upon com­ple­tion, the new ex­por­to­ri­ented city in Be­larus, which is be­ing built on the route of the Euro­pean high­way that links Ber­lin, War­saw, Minsk, and Moscow, will be the largest man­u­fac­tur­ing and in­dus­trial park in Europe.

The US Dol­lar and Bret­ton Woods are Fin­ished

The Silk World Or­der that is be­ing shaped in Ufa will see the ex­ist­ing of the world un­rav­eled and re­placed by one that is no longer dom­i­nated by the tri­lat­eral group­ing of the United States, Western Europe, and Ja­pan. The mo­nop­oly of the World Bank and the In­ter­na­tional Mon­e­tary Fund, which The US dol­lar as a cur­rency in bi­lat­eral and mul­ti­lat­eral trade is be­ing scraped by the BRICS, SCO, and EEU— was par­tially aimed at de­rail­ing this by forc­ing re­newed de­pen­dence on the US dol­lar for energy trade. The BRICS New De­vel­op­ment Bank BRICS, is be­ing launched by Brazil, China, In­dia, Rus­sia, and South Africa. It is joined by the SCO De­vel­op­ment Bank and by the re­cently launched Asian In­fra­struc­ture In­vest­ment Bank (AIIB) in the as­sault on Bret­ton Woods. Gone are the days of un­chal­lenged US dom­i­na­tion. The ar­chi­tec­ture of the post-Sec­ond World War or post-1945 global or­der is now in its death bed and a Silk World is emerg­ing and its com­ing is be­ing trum­peted from Ufa as the SCO strength­ens and the BRICS in­sti­tu­tion­al­izes it­self as the corner­stone of a new multi-po­lar world or­der.

NOTES

[1]Gabriel Domínguez, «What to ex­pect from the SCO, BRICS sum­mits in Rus­sia,» Deutsche Welle, July 6, 2015. [2]Ali­ak­sandr Kudryt­ski, «China Builds EU Beach­head With $5 Bil­lion City in Be­larus,» Bloomberg, May 26, 2013.

Un­der the orig­i­nal ti­tle: The US Dol­lar and Bret­ton Woods are Fin­ished: The BRICS/SCO Sum­mits in Ufa Mark the Start of a “Silk World

Or­der”, by the Strate­gic Cul­ture Foun­da­tion on July 10, 2015. The writer is Canad­abased so­ci­ol­o­gist, spe­cial­ized in the Africa, Mid­dle East and Cen­tral Asia geopol­i­tics. He is a Re­search As­so­ciate of the Cen­tre for Re­search on Glob­al­iza­tion (CRG).

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