INTERVIEW
‘China’s breakthrough no miracle, but result of patient development strategy’
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Ferhan BayırRémy Herrera, a researcher at the University of Panthéon-Sorbonne and the National Centre for Scientific Research (CNRS), the largest research centre in France and the largest basic research centre in Europe, assessed China’s development dynamics from the past to the present.
A former consultant to the OECD and the World Bank, economist Rémy Herrera is also a former secretary of the World Forum for Alternatives (WFA) and a member of the International Crisis Observatory (OIC).
One of France’s leading Marxist economists and one of the most important critics of neoclassical economics, Rémy Herrera analyses not only the financial and socio-economic causes of the crises of capitalism, but also the countries that have adopted different development models by choosing alternative political-economic approaches to capitalism. In his work, Herrera takes a historical perspective on economic developments in Asia and Latin America, particularly in China and Cuba, and challenges the Eurocentric approach of the neoliberal school in its economic analyses of developments in these countries.
Remy Herrera answered Ferhan Bayır’s questions on the Chinese economy.
Let’s start with your books on China. Based on your research and observations during your visits to China, how do you interpret the much-discussed Chinese miracle?
Many people who comment on the high growth rate of China’s gross domestic product (GDP) that has been observed for decades use the term “miracle” to describe this phenomenon. In my view, it is not a miracle, but rather the result of a development strategy that has been planned and patiently and effectively implemented by the state and senior officials in successive Communist Party-led governments in this country.
Almost everywhere, in academic circles and in the dominant mainstream media, we read and hear that the “rise” of the Chinese economy is due solely to its “opening up” to globalisation. I would like to add that such rapid growth was only possible thanks to the efforts and achievements of the Maoist era. This opening up to globalisation has been strictly and continuously controlled by the Chinese authorities. It is only under this condition (control) that the opening up to globalisation can be considered to have contributed to the country’s undeniable economic success. This opening to globalisation has been able to have such a positive impact on China in the long term because it has been fully consistent with a coherent development strategy and has been subject to the imperatives of meeting domestic objectives and domestic needs.
It must be clearly understood that without the development of such a development strategy, which was clearly the work of the Chinese Communist Party, and – it must not be forgotten – without the energy expended by the Chinese people in the revolutionary process of implementing this development strategy, if the Chinese Communist Party had integrated the country into the world capitalist system, it would inevitably have led to the complete destruction of its national economy, even of its own existence, as has happened in so many other countries of the South and East. We must remember one fundamental point: For more than a century before the victory of the revolution in October 1949, “opening up” for the Chinese people meant first and foremost capitulation, destruction, exploitation, humiliation, decadence and chaos.
How does China’s success differ from Western development models?
The success of the development strategy implemented by the Chinese government and the many positive effects it has brought to the people of this country stand in stark contrast to the failure of the neo-liberal economic policies implemented in Western countries, which have generally been economically, socially, culturally and even morally disastrous for workers in the countries of the North.
Let me give a concrete example. The strength of Chinese state-owned enterprises is that they are not managed like Western international companies. Listed on the stock exchange and operating according to the logic of shareholder value, share appreciation and rapid return on investment, which requires maximising dividends paid to owners, these Western companies operate by squeezing a chain of subcontractors, local or international. But Chinese state-owned groups do not behave in this way. If they did, they would be acting in a way that would harm local small and medium-sized enterprises and, more broadly, the entire national industrial fabric. The compass that guides the majority of China’s large state-owned enterprises to profit or become profitable is not the enrichment of private shareholders, but the prioritisation of productive investment and customer service. Ultimately, it does not matter to Chinese SOEs that their profits are lower than those of their Western competitors, as long as they serve higher, long-term or national strategic interests, including stimulating the rest of the local economy and looking beyond the immediate vision of profit generation.
Can this model be defined in terms of a neoclassical or neo-Marxist model?
First of all, I believe that the Chinese do not see their development strategy as a “model”, nor do they seek to impose or export their development strategy. They simply believe that there are certain lessons to be learnt by different peoples of the world, but that different peoples with their own specific historical, social and cultural conditions should determine the ends and means of their own development. This perspective is also very different from the Western vision, which wants its “model” to be followed by all the countries of the world.
Neoclassical models have no place in China. Allow me to add that neoclassical economics, which is the hegemonic current or mainstream in economics today, serves no other purpose than to provide a theoretical and pseudo-scientific justification for the implementation of neoliberal policies, an ideology that opposes the practice of social justice and the development of public services. In reality, neoclassical economics is not a science but a science fiction or, as I have argued in a recent book (Confronting Mainstream Economics for Overcoming Capitalism), an ideology that claims to be scientific.
On the other hand, I believe that Marxism has not yet been overcome scientifically. I do not think that Marxism has any serious competitors today. Marxism remains relevant, not least because we still live in a world where the capitalist system is globally dominant, although there have been significant changes, and where a careful explanation of these changes is needed. Despite the numerous attacks on Marxism since its emergence, and despite the repeated claims that it is obsolete – that it is dead – Marxism is enduring, resilient, I would say “indestructible”, and at the same time Marxism is the main theoretical reference point for those thinking about the ways and conditions for a better world. Despite its frequent dogmatisation and the disappearance of the USSR and the Soviet bloc, sometimes to its detriment, Marxism today retains its essence and remains an irreplaceable reference for those struggling for socialism. It is therefore not surprising that it remains an important theoretical reference for China.
Has China based the implementation of its economic model on theoretical foundations?
I would say that the Chinese development strategy, aimed at maintaining and deepening the socialist transition, is based on a theoretical combination of elements drawn from both the main philosophical currents of traditional Chinese thought (especially Confucianism and Taoism, but also various other currents) and a mixed Marxism reinterpreted and modernised in the Chinese style. But it must be understood that this theory is closely linked to the analysis of practical experience. All this (the aforementioned theoretical structure and the analysis of practical experience) has made it possible to provide answers and appropriate solutions to today’s challenges and, in particular, to the many contradictions arising from them.
The Chinese concept of “socialism of the new era” is patient, persistent, concrete, pragmatic and effective, and at the same time it is not Manichaean (evaluating situations and things in a dualism according to absolute principles of good and evil, without nuances and intermediate states); it knows the long term and is not afraid of confronting contradictions or oppositions (e.g. those related to individual initiative or entrepreneurship), which are seen as complementarities and potentials rather than exclusions and substitutes.
One of the lessons to be learnt from “Chinese Marxism” is the idea of seeking harmony between opposites, within man, between people, between man and nature. Chinese political discourse emphasises ‘social harmony’ and ‘stability’ as fundamental values, and the search for ‘compromise’ and ‘consensus’ as the means to achieve them.
There are many concepts in Chinese Marxism which differ from the concept of “class struggle” in Western Marxism, and which Western Marxism generally views with suspicion as characteristic of conservative regimes. To ignore these concepts is to forget their special meaning in Chinese thought as “reconciliation of opposites” and “positive dialectics”. These concepts mean, for example, that there is a dynamic balance between individual self-interest and social needs, between individual and collective interests, and between needs and moral demands. To simplify, we can say that since Mao, the Chinese have believed in a form of progress based on spiral development that tends to smooth out and mitigate contradictions. In this context, socialism ceases to be a project of perfection (a vision alien to Chinese thought, a vision that rebels against the absolute) and becomes a process of construction in motion.
How would you assess the similarities and differences between China’s economic model and that of the post-World War II Soviet Union and the countries of Eastern Europe or the Balkans?
For some years, the People’s Republic of China maintained a “Soviet-style economic model”, which was introduced immediately after the victory of the October Revolution in 1949. However, the PRC abandoned this model when it broke away from the USSR in the early 1960s. After joining the Council for Mutual Economic Assistance (CMEA or COMECON) in 1950, China left in 1961 and decided to formulate its own development strategy, on its own and for itself. And, frankly, it did so much more effectively than the Soviet Union or the countries of Central and Eastern Europe.
Between 1978 and 1982, China faced a series of economic problems that reflected the difficulties of the post-Mao transition and the implementation of the so-called “opening-up” structural reforms. In particular, the period 1985-1986 saw the introduction of the 1984 tax reform, which was one of the turning points towards a market economy. Then, during the collapse of the USSR and the Soviet bloc, there was a very short-lived experiment that could be described as “neo-liberal”, which was quickly interrupted and abandoned, but the result of this experiment was a sudden and severe economic downturn in 1990-1991, accompanied by an explosion of corruption. It must be acknowledged that the Chinese central government has since fought corruption with great vigour and some success. Fortunately, China has rejected the neo-liberal option that has devastated so many economies around the world. And it has chosen to maintain socialism, which today provides a measure of prosperity for the vast majority of its population.
To what extent do Western Marxists who claim that China has adopted capitalist methods correctly assess China’s financial/wealth growth?
In debates among Western Marxist writers, the vast majority of authors argue that the Chinese economy is capitalist. David Harvey, for example, says that he sees the Chinese economy as “neoliberalism with Chinese characteristics”, where since the 1978 reforms there has been a kind of market economy with more and more neoliberal components, operating within a framework of centralised control that he describes as very authoritarian. I disagree with him. Panitch and Gindin analyse the consequences of China’s integration into the world economic system and see it less as an opportunity for China to redirect global capitalism than as a repetition, this time by China, of the “complementary” role previously played by Japan in providing the United States with the capital flows necessary to maintain its global hegemony, which in turn has led to a tendency in China to liberalise financial markets, eliminate instruments to control capital movements and weaken the foundations of the power of the Chinese Communist Party. I think these writers are wrong.
Other Marxists, Chinese or foreign, certainly fewer in number but no less important, continue to argue that the political-economic system currently in place in China, although comparable or close to “state capitalism”, leaves open a wider range of possible trajectories for the future. For my part, I take this idea so far as to argue that the Chinese system today still contains the essential elements of socialism. Once this has been said, the interpretation of the nature of this system becomes compatible with “market socialism”, which in my view still rests on pillars that clearly distinguish it from capitalism. For my part, I would say that although there are capitalists in China (and there are many billionaires), it is not possible to describe the Chinese system as capitalist. Of course there are elements of “state capitalism”, but I prefer to speak of the Chinese system as “market socialism”, or rather “socialism with the market”. I think we have to take the Chinese seriously when they talk about “socialism with Chinese colours”. This is not just propaganda; it is a reality, it is their reality.
At the monetary and financial level, for example, it is worth noting that the Chinese authorities have been able to cope with the power of the financial markets, but they have also been able to build a “great wall of money” by defending the national currency, the yuan. They have managed to put money at the service of development. Very powerful strategic planning, whose techniques have been made more flexible, modernised and adapted to today’s needs, and thus much more effective, is a distinctive feature of the socialist path. State control of the currency and of all the major banks is a sine qua non, as is close supervision of the activities of financial institutions and of the behaviour of foreign companies operating in the country. Once again, it is the state that controls capitalism in China, not the other way round. At least that has been the case so far.
What is the significance of Deng Xiaoping for China today? Is there a connection or disconnection between Xi Jinping’s political and economic decisions and those of Deng Xiaoping?
Deng Xiaoping’s definitive rise to the pinnacle of power began in August 1977 with the 11th Congress of the Chinese Communist Party and the subsequent push for deep economic reform that began in late 1978. Deng’s idea was not to abandon socialism, but to find ways to lift the vast majority of Chinese out of poverty and enable the country to achieve what the establishment called a “moderately prosperous” society. Since Xi Jinping, the development strategy has been reaffirmed as socialist, and the country’s overall policy orientation has been more in favour of the less affluent sections of the population and the less developed regions of the country.
The difficulty in understanding “Chinese socialism” stems from the refusal of its leaders to interpret it as the banalisation of scarcity or the “sharing of misery”. What the leaders of the Chinese Communist Party sought to do, and succeeded in doing, was to lift the great mass of the Chinese people out of poverty under Mao and up to the level of a “moderately prosperous” society under Deng Xiaoping. Since then, as a logical continuation of the revolution, their desire has been to pursue a socialist transition in which the vast majority of the population now has access to prosperity, especially a wide range of consumer goods, and can enjoy abundance. Wouldn’t that be killing two birds with one stone and proving that socialism can and must overcome capitalism?
Could you elaborate on China’s economic growth?
It is wrong to say, as we often hear, that the high growth rate of gross domestic product (GDP) in the Chinese economy is due to the capitalism adopted since 1978. Quite the opposite. Economic growth has been high because the Chinese state, under the authority of the Communist Party, has managed to prevent capitalism from taking control of the country and, as a positive reflection of this, has redistributed wealth throughout society on a large scale. I should add that, even if we want to believe that the Chinese system is capitalist (which I do not), it would be wrong to claim that China’s high growth has only been observed since 1978. This is because the country’s economic growth was already very, very high under Mao, much higher than in any other country with a planned economy, and even higher than in many industrialised Western countries. Western leaders want to hide this fact because it is unbearable for them to admit that a socialist country can be successful, especially more successful than capitalist countries.
I have to say that the goal of the Chinese Communist Party is not to take over everything economically, but to maintain political control over everything. The two are not synonymous. Chinese leaders have repeatedly said that the coexistence of public and private activities, both encouraged within a mixed, hybrid system, is the chosen means to develop the country’s productive forces as much as possible and raise the level of development. The use of all means, including attracting foreign capital and importing advanced technologies, is not aimed at abandoning socialism, but at improving the living conditions of the population and deepening the process of socialist transition begun in 1949. Paradoxically, China remains a developing country, as evidenced by its still modest GDP per capita. This process will be long, difficult, full of contradictions and risks, and its course remains largely uncertain. However, I think it is worth stressing that this system still has many features that are clearly different from capitalism and which, in my opinion, are related to the realisation of a socialist project and the potential for its reactivation, which leads us to recommend taking the speeches of the country’s political leaders seriously.
Does China’s meeting with President Biden signal a shift from economic dominance to a more pronounced political presence in the international arena, especially in Africa, Latin America and the Middle East, and in its attitude towards Russia? Does China want to become the centre of a multipolar world?
China has no desire to replace the United States as the world’s dominant power. China has neither the will nor the mentality to do so. On the other hand, it is clear that China is trying to contribute to the construction of a multipolar world, as opposed to the unipolar world in which the United States has so far ruled unchallenged (and admittedly in a highly aggressive manner). China’s leaders seek universal peace and balance in international relations. But it is clear that they will defend their country’s sovereignty without submitting to foreign domination.
Regarding the “trade war” between the US and China, we have co-authored a paper with Chinese authors entitled “Turning One’s Loss Into a Win? The US Trade War With China in Perspective’, which we co-authored with Chinese authors, shows that the ratio of labour hours integrated into trade between the two countries since 1978, compared to the same amount of trade exchange, is higher in China than in the US, and that there is an unequal exchange of value between them in favour of the US and to the detriment of China. In other words, the fact that China has run an increasing bilateral trade surplus over the last decade should be seen in the light of the fact that (according to our calculations) it has benefited the United States in particular in terms of the labour hours included in exports.
In such a paradoxical context, the outbreak of the trade war against China in 2018 can be interpreted as an attempt by the US administration, then led by President Trump, to slow down the slow and steady deterioration of the US trade advantage vis-à-vis its main emerging rival, China.
How is China organising international economic relations for a multi-power world to counter US dominance? Given the examples of the Shanghai Cooperation Organisation and the BRICS, can a global payment system be created in the near future to counterbalance the dominance of the US dollar?
China has realised that the two pillars of US domination of the world capitalist system are military and monetary. That is why it has actively participated in the creation of strategic alliance networks such as the Shanghai Cooperation Organisation and economic alliance networks such as the BRICS grouping. He also realised that these two pillars are interdependent and therefore fragile. That is why he launched a number of innovative and bold initiatives.
I refer to some of them in another book (Money, published by Palgrave Mcmillan). For example, China is planning to challenge the prevailing order in the oil market, of which it is the world’s largest importer. Since 2018, China has decided to promote yuan-denominated oil futures contracts on the Shanghai International Energy Exchange, which is accessible to foreign investors, in order to compete with references such as London Brent and New York West Texas Intermediate (which set the standard for defining crude oil prices and futures contracts for this commodity on Wall Street), which were undisputed in this field until this year.
In this context, China and Russia (already forming an economically dynamic – and militarily deterrent – alliance that could be a reliable counterweight to the United States) have decided to launch a new global alternative currency, called “petro-yuan-gold”, which could displace the dollar. Petro-yuan-gold is a global currency project based on oil, a basic commodity, and linked to gold, a feat no longer within Washington’s reach. Indeed, China’s advantage lies not only in its high GDP growth rate, but also in the fact that it is the world’s largest producer and buyer of gold, with Russia in third place, ahead of the United States. In 2018, Beijing took the initiative to promote a broad oil-yuan-gold trading facility on the global energy exchange. Then came the implementation of metal-yuan-gold. China offered to exchange the yuan it receives for gold for oil supplies and metal purchases. These events will have a significant impact on the global system.
Having persuaded Iran and Saudi Arabia to engage in diplomatic talks, can China achieve similar success in resolving the conflicts between Russia and the West, as well as the ongoing Israeli-Palestinian conflict?
China has, of course, been playing an increasingly important and positive role in defusing existing international conflicts for a number of years. We saw this recently in the war in Ukraine between NATO and Russia, led by the United States, and then in the war between Israel and Palestine, supported by the United States and the European Union. Not long ago, we saw China speak out to prevent the outbreak of a conflict between Iran and Pakistan. We can think of China as the voice of many countries of the South that are seeking the path of development and not the path of war. That is why it is so important to analyse carefully what China wants and says.
China’s international strategy is based on five principles: 1) respect for sovereignty and territorial integrity; 2) mutual non-aggression; 3) non-interference in internal affairs; 4) equality and mutual benefit; 5) peaceful coexistence. One would have to be in bad faith not to recognise that China’s statements on preserving peace and promoting the peaceful resolution of existing conflicts are being respected. And it must be remembered that China has never in its modern history pursued an expansionist colonial policy. Today, it does not want to revive the climate of the “Cold War”, which is contrary to the concept of peace among nations. China opposes all military alliances and has never joined a military coalition, not even against ISIS. It has not established any military bases abroad, except for one in Djibouti, which it presents as a “simple logistical facility” in a sensitive maritime location. The contrast with the Western powers, especially the United States, which has a history of coups and military interventions, is striking. “Cooperation” is the keyword of Chinese policy, along with the priority given to development and the “win-win” principle.
Can China take a more proactive stance in promoting regional and global peace in the midst of the US war economy? How should the Belt and Road project be assessed in this situation?
The military-industrial complex plays a crucial role in the economy of the United States, but it has also reached an extremely worrying dimension, threatening what the West likes to call “democracy” (which it respects less and less at home and almost never beyond its borders). With more than half of the world’s military expenditure and more than 1150 military bases around the world (I calculated this in my article “Notes on US Bases and Military Staff Abroad”), the United States is in an economic crisis, in a difficult situation and is gradually pushing the whole world towards total war. They are more and more openly expressing their desire to shift the axis of new conflicts to the Far East, especially to Taiwan. China must resist this US provocation and push towards war, but at the same time it must defend its interests and territory. Taiwan is one of them. Reunification therefore remains a priority for Beijing. The US administration is fuelling the arms race that once brought the USSR to its knees. But the escalation of this dangerous race is no longer enough to influence a China in good economic health and armed with a sufficient deterrent.
More generally, it is important to understand that capitalism, trapped in a systemic crisis, can no longer find solutions to its problems through the logic of maximising immediate profits and is becoming more dangerous. Between company bankruptcies and mass unemployment, stock market crashes and banking instability, the likelihood of a worsening of the systemic crisis of capital is extremely high today. All the conditions are in place for the contradictions in the system to become even more pronounced, especially since very few reforms have been carried out since the 2008 crisis. The most urgent issue at the moment is to put an end to the “organisation” of the world system through war under the domination of the United States of America. The defence of peace is a priority. Consequently, we must pull the plug on the war machine operated by the financial oligopolies by subjecting it to public and democratic control.
This is where the great project of the Silk Road comes in, already partially implemented: land routes – the “Belt” – and sea routes – the “Road”. This cooperation is of particular interest to Asian countries, because China has neighbours, both near and far, such as in the Middle East, that do not have sufficient investment for their development, and also because China sees advantages that could stimulate the development of its own western provinces, which are lagging behind in terms of development compared to those on China’s eastern coast. African countries are also interested because they are the ones most affected by “underdevelopment” (as the West calls it). We cannot say that this cooperation is perfect, as it focuses more on the supply of raw materials, but it is very important for African countries that China provides infrastructure, builds hospitals and roads in exchange for the supply of raw materials.
The Silk Roads go all the way to Europe, which creates resentment because it comes from a strategic competitor. If the European economies are in principle capable of developing themselves and have sufficient investment, why do some of them welcome Chinese investment so much? The reason is obvious: the governments of European countries with economies in recession or even in decline, victims of neo-liberal austerity, debt reduction, spending cuts and privatisation imposed by the European Union, are ready to sell their assets to the highest bidder and see Chinese investment as a means to develop themselves. China has made many investments outside the European Union, particularly in the Balkans. It is therefore not surprising that 17 Eastern and Southern European countries, 11 of which are members of the European Union, have joined the Silk Road initiative.
The Silk Road does not stop at the Euro-Asian continent and Africa. Cooperation with the countries of Latin America and the Caribbean is already well advanced, especially with the poorest countries in the region. Development assistance is provided mainly through the Silk Road Fund (a sovereign wealth fund) and loans from public banks at favourable interest rates. However, China does not want to be the sole financier of this project and wants to involve all countries that are able to participate in these loans, and which, unlike the World Bank or the International Monetary Fund, do not impose politico-economic conditions on the countries they finance, in loans for infrastructure that will form the basis for rapid development.
This is what led to the creation of the Asian Infrastructure and Investment Bank, which today has almost a hundred members (France, Germany and the United Kingdom are members of the Asian Infrastructure and Investment Bank, but the United States of America, which, unlike the IMF and the World Bank, cannot control it, is obviously not a member; China, the bank’s largest shareholder, explicitly excludes its veto).
All in all, the Silk Road has grown enormously in just a few years: 124 countries, representing two-thirds of the world’s population, and 24 international organisations have signed agreements.
He should insist that it be made clear that this project is intended to exclude all political considerations. It is an initiative “open to all countries” with no other objective than common development. But there are also partnerships that focus on economic cooperation and the construction of multilateral trade zones, as in the case of the Regional Comprehensive Economic Partnership, which will create the largest such zone in the world, with three billion inhabitants and 30% of world GDP. And in such partnerships, US hegemony will be challenged, especially as trade and investment will no longer be conducted in dollars but in national currencies.
Finally, we are realising that it is capitalism itself that has become unsustainable. It is obvious that this system, which is essentially dedicated to infinite and unlimited accumulation, is incompatible with a finite and finite planet. Capitalism destroys any kind of social harmony with the logic of creating ever greater inequalities. China claimed to achieve development by controlling these dynamics of capitalism. But now it is these dynamics that have to be limited. “Chinese” market socialism will have to gradually move away from capitalism if it is to realise a truly alternative path for humanity. This is the real goal; according to the Chinese authorities, and more explicitly today, certain features borrowed from capitalism are borrowed to be used “until the bridge is crossed”, they are not a long “detour” in the socialist transition on the road to communism.
Some of the author’s related works:
HERRERA, Rémy (2023), Dynamics of China’s Economy: Growth, Cycles, and Crises, (book’s coauthor with Zhiming Long), 375 p., December, Leiden/Boston: Brill. ISBN : 978-90-04-52402-6.
– (2023), Value, Money, Profit, and Capital Today, (book’s editor), 328 p., September, London: Emerald, ISBN : 978-1804-55-7518.
– (2023), La Chine est-elle impérialiste ?, (book’s editor), 192 p., February, Paris: Éditions Critiques, ISBN: 979-10-97331-45-0.
– (2023), « Turning One’s Loss Into a Win? The US Trade War With China in Perspective », (article’s coauthor with Zhiming Long, Zhixuan Feng and Bangxi Li) Research in Political Economy, n° 39, p. 31-50, London.
– (2023), « La Chine (vue de France), une inconnue ? Sur les contradictions, la dialectique, la morale et le socialisme », (article’s coauthor with Tony Andreani and Zhiming Long), Revue de Philosophie économique, vol. 24, n° 1, p. 167-189, Paris.
– (2022), Money – From the Power of Finance to the Sovereignty of the Peoples, (book’s author), 337 p., August, New York: Palgrave Macmillan, ISBN : 978-981-19-28475.
– (2022), Confronting Mainstream Economics for Overcoming Capitalism, (book’s author), 347 p., July, New York: Palgrave Macmillan, ISBN : 978-3-031-05850-9.
– (2021), Imperialism and Transitions to Socialism, (book’s editor), 272 p., September, London: Emerald, ISBN: 978-18-00437-05-0.
– (2021), « Guerre(s) et crise(s) globales : sur leurs relations systémiques », (article’s author), Marchés & Organisations, vol. 2021/2, n° 41, p. 139-155, Paris.
– (2021), « Is China Transforming the World? », (article’s coauthor with Tony Andreani and Zhiming Long), Monthly Review, vol. 73, n° 3, p. 21-30, New York.
– (2019), La Chine est-elle capitaliste ?, (book’s coauthor with Zhiming Long), 196 p., February, Paris: Éditions Critiques. ISBN : 9791097331139.
– (2013), “Notes on US Bases and Military Staff Abroad,” (article’s coauthor Joëlle Cicchini ), Journal of Innovation Economics & Management, 2013/3, n° 42, p. 147-173, Brussels.
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INTERVIEW
“The current interests of German capital coincide with the CDU-SPD coalition”
Published
20 hours agoon
14/11/2024Germany’s long-swinging SPD-Greens-FDP coalition government (“traffic light”) has collapsed. The collapse seems to have started when the FDP raised the flag to its coalition partners over the budget and the constitutional debt brake. But the German economy’s problems, which began before the Ukraine war and the anti-Russian sanctions, combined with high inflation, energy costs and a declining export market in China, have once again led to Europe’s largest economy being labeled a “sick man”.
Arnold Schölzel, a member of the editorial board of Junge Welt, Germany’s daily left-wing newspaper, argues that Germany’s growth, the war in Ukraine and the simultaneous financing of social expenditures have come to an end and that the FDP’s demand for sharp social cuts is in fact the program of the next federal government.
Schölzel points out that the CDU/CSU, which seems to be opposed to loosening the constitutional debt brake, is preparing to back down in a new government. Schölzel believes that there are still nuances between the parties and that this will be one of the issues of the upcoming election campaign.
Noting that German capital has interests in Eastern Europe and Ukraine, the journalist reminds that Eastern Europe in particular is a “reserve of cheap labor” for German industry and underlines that capital supports pro-war policies. Therefore, it is highly likely that the German economy will go along with the militarization of society from now on.
Schölzel sees the Alternative for Germany (AfD) as a “continuation of the CDU/CSU” and believes that the interests of German capital lie in a CDU-SPD coalition.
‘FDP ANNOUNCES PROGRAM FOR THE NEXT GOVERNMENT’
As it turns out, the collapse of the traffic light coalition in Germany was in fact long overdue. An economic crisis “invented” by the Ukraine war and anti-Russian sanctions, and defeats in this year’s European Parliament and East German state elections, had shown that the government’s time had come. Does the collapse lie simply in the difference in economic programs between the FDP and the SPD-Greens? How far do the parliamentary parties differ in their proposed solutions to the economic and political crisis in Germany?
This government was a wartime government from the start. It entered the USA’s proxy war in Ukraine with considerable financial resources and waged an economic war against Russia – with devastating consequences not for Russia, but for German industry. She accepted the blowing up of the Nord Stream 2 Baltic Sea pipeline, presumably by the US-government. As a result, the German economy has been in recession for two years and is at the bottom of the list in terms of growth among the industrialized countries. This pushed the state budget to its limits. The simultaneous financing of growth impulses, war and social benefits is no longer possible. The FDP wanted sharp social cuts. In doing so, it announces the policies of the next federal government.
‘EASTERN EUROPEAN COUNTRIES A RESERVE OF CHEAP LABOR FOR GERMAN INDUSTRY’
The reactions to Chancellor Scholz and his government from the German business community are also striking. All the spokespeople of capital, especially the industrialists, align themselves with the CDU/CSU and demand immediate elections, citing the return of Donald Trump and the Ukrainian War as justification. But when it comes to the debate on the constitutional debt brake, there seems to be no unity. Is the debt brake really that important? Is it possible to support Ukraine, fight against Trump’s potential tariffs and at the same time reduce the German national debt?
The German capital was and is in agreement with Scholz’s war course. It has sharply reduced economic ties with Russia and also supports a hostile policy towards China, albeit more cautiously. Both industry and the CDU/CSU have now declared their willingness to reform the debt brake. They demand subsidies for industry and arms deliveries to Ukraine. The German economy has long-term interests there – as in all of Eastern Europe. The Eastern European countries serve as a workbench for German industry and as a reservoir for cheap labor. German industry sees it as Germany’s backyard. There are still differences on the question of how deep the social cuts should be. This will probably be the focus of the election campaign.
Does the German state see the economic restructuring program and the militarization of the state, the economy and society as one and the same? The new conscription law, the debate on conscription and the modernization of the Bundeswehr seem to be propagandized as a way out of the crisis. Parliamentary Commissioner for the Armed Forces Eva Högl said last summer that young people learn “structure, comradeship, a sense of duty” in the Bundeswehr, “all qualities from which the economy also benefits”. Are we facing a plan to militarize the economy?
Yes, those in power are concerned with the militarization of society as a whole. They say this quite openly: The Bundeswehr should advertise in schools – there is a new law for this in Bavaria. The healthcare system is gearing up to treat large numbers of injured people. The German War Minister Boris Pistorius (SPD) summarized this in the term “war capability”. It would have to be produced in four to five years because Russia would then probably attack NATO. Overall, it is a reactionary-militaristic restructuring of the state in which, above all, civil rights are restricted.
‘FASCISM IN GERMANY WAS REHABILITATED BY THE UKRAINE WAR’
When it comes to the Israeli aggression in Gaza, the AfD and the Greens support the same parliamentary bill. Similarly, when it comes to the “fight against irregular migration”, the CDU/CSU almost matches the AfD. Although all parties refuse to cooperate with the AfD, is it possible to say that AfD policies have already become “mainstream” in German politics? In any case, the AfD is likely to play a role in Germany’s future.
The AfD is a continuation of the politics of the CDU/CSU. The difference: It allows open fascists in the party. The CDU and CSU have been fighting racist incitement against migrants and asylum seekers for 40 years. The AfD has taken this over and expanded it: it has increased racism and consciously encourages violence. The AfD has always been on Israel’s side because of the oppression and murder of Muslims. This has increased further with the current genocide in Gaza. The Greens are the most bellicose German party today. They use racist clichés against Russia in the Ukraine war and completely agree with the racist position of the Netanyahu government. The Greens denounce any criticism of Israel’s policies as anti-Semitism and are successful in doing so. Because of the fascists in the AfD, there are still reservations among other parties at the federal level about working with the AfD. Things are different at the state level; cooperation works in the municipalities. Since fascism there was rehabilitated in Germany, particularly with the war in Ukraine, it may well be that the AfD will also be accepted at the federal level in a few years. As long as it still pretends to strive for peace with Russia, this is unlikely.
‘CONDITIONS ARE BEING CREATED FOR GREATER INDEPENDENCE FOR GERMAN IMPERIALISM’
It can also be linked to the question above: The cry for a “strong and decisive government” has an important place among the voices rising from within the ruling class. The polls indicate that the CDU/CSU would be the winning party in a possible federal snap election. Can the CDU/CSU alone meet this demand for a “strong and stable government”? Will German politics be forced to turn to “non-political” actors or institutions?
The date of the next federal election was negotiated between the CDU/CSU and SPD. This is symptomatic: they communicate despite all the rhetoric. As things currently stand, only a coalition of both parties can form the next government. In my opinion, this also corresponds to the current interests of the German capital. The ruling class is not yet committed to an authoritarian regime domestically, but is preparing the conditions for it. In terms of foreign policy, it cannot yet break away from the USA, but is striving for a stronger leadership role in the EU and perhaps in NATO. This also creates the conditions for greater independence for German imperialism in the future.
The Turkic Investment Fund, the first international financial institution of the Turkic world, is preparing to announce its policy document on January 1, 2025. Ambassador Baghdad Amreyev, President of the Turkic Investment Fund answered our questions.
You are quite new to the financial international cooperation institution. And you had your first Board of Directors meeting in May. Could you tell us what the outcomes of that meeting were, and what is the roadmap for implementing the strategies and resolutions that were discussed there?
As you know, the decision to establish the Turkic Investment Fund was made by the leaders of the Turkic world at their summit in Samarkand in 2022. In November 2022, they signed a special agreement for the establishment of the Turkic Investment Fund, which is the first financial mechanism and institution of the Turkic world. I was appointed as the founding president there.
We then began preparing the establishment agreement, and in a very short period of time, we finalized the agreement. On March 16, 2023, during an extraordinary summit of Turkic leaders in Ankara, the finance and economy ministers of our countries signed this establishment agreement in the presence of our leaders. It was a truly historic moment.
By the end of 2023, the ratification process was completed in our parliament, and as per the agreement, the Fund officially came into force on February 24, 2024. This is what we consider the “birthday” of the Fund.
A lot of organizational work has been completed since then. On May 18, as the President of the Turkic Investment Fund, I convened the inaugural meeting of the Board of Governors, which is the highest governing body of the Fund.
Cevdet Yılmaz, The Vice President of Türkiye also participated in that meeting, right?
Yes, The Vice President of Türkiye, His Excellency Mr. Cevdet Yılmaz, also participated in and chaired this meeting. It was a great honor for us.
The meeting was highly successful, and the Governors made several key decisions, including the completion of the institutionalization of the Fund. They also established the Board of Directors and gave them instructions to prepare key procedural documents and other necessary actions.
Since then, in June and August, I convened two meetings with the Board of Directors, during which we made crucial decisions for the commencement of the Fund’s operational activities. Establishing the operational structure and preparing the investment policy are ongoing tasks.
Our investment policy, in particular, is still being drafted.
The investment policy is still underway, then.
Yes, it is still underway. This is an essential document, as it will outline the priorities of the Fund, specify which projects we will focus on, and what our role will be.
During the first meeting of the Board of Governors, Mr. Ramil Babayev from Azerbaijan was appointed as Director General of the Turkic Investment Fund, responsible for managing the Fund’s operations.
Once the investment policy is finalized and the management structure is fully in place, we will be ready to commence operational activities.
I understand that your policy preparations are still in progress, but can you give us a sense of which key sectors or industries the Turkic Investment Fund will support?
Yes, our priorities are quite clear, and I have spoken about them on many occasions. First of all, it’s important to note that the Turkic Investment Fund serves multiple purposes. If we only needed to finance projects within our own countries, there would have been no need to establish a new fund. We already have numerous funds and banks for that.
However, the Turkic Investment Fund was established not only for financing projects within our countries but also to contribute to the economic integration of our nations. The Fund’s main focus will be to finance joint projects that promote integration and cooperation among our countries. This is vital for the unity and economic strength of the Turkic world.
Could you elaborate on the concept of economic integration for the Turkic world?
Any political or economic block has its final causes. Our goal is to bring together our economies to unite the potential to serve the Turkic world. Economic integration means working together to strengthen our economies and unite our economic potential. We are seven countries. By encouraging trade, facilitating investments, and supporting joint ventures in areas such as infrastructure, energy, and transportation, we aim to build a stronger and more united Turkic world.
What do you mean by “economic integration”? Are you talking about a common Turkic currency or infrastructure as part of this integration?
Economic integration doesn’t necessarily mean having a single currency or unified infrastructure, at least not initially. It’s more about deeper engagement in each other’s economies through joint projects, especially in key sectors such as energy, transportation, and small and medium-sized enterprises (SMEs).
Our goal is to create an economic and political bloc that can work towards common objectives, much like the European Union or other regional groups. We need to support each other’s economies and collaborate on joint projects that benefit all our countries. This is a key condition for the unity of the Turkic world.
I understand the Fund was the missing part in the Turkic world. Now, you believe that you filled this gap.
The Turkic unity has been very fresh. The Organization of Turkic States and other related cooperation organizations were established 10-15 years ago only. It is very short period. Of course, we need time. I am sure the Turkic Investment Fund will accelerate this process.
We need to work together to make our economies more competitive and resilient. Over time, the Turkic Investment Fund aims to become the primary financial tool for promoting economic integration within the Turkic world.
One of the Fund’s key priorities is to attract foreign investments into our countries. There are two ways to do this: First, by supporting national projects and encouraging foreign partners to participate, and second, by collaborating with other international financial institutions, such as the European Bank for Reconstruction and Development, Asian Development Bank, and Islamic Development Bank, among others.
Of course, we are not able to finance ourselves for huge projects but those financial institutions are so eager to contribute to our projects.
Well, Ambassador Amreyev, I understand that you have a positive cooperative perspective regarding other powers in Asia in terms of both institutions and countries. But at the same time, they bring some kind of geopolitical challenges. China, Russia, some other neighbouring European countries… How would Turkic Investment Fund navigate these geopolitical challenges? Following this, another question could be that: If the Turkic block rising as a global power and Turkic Investment Fund wants to be an active player in finance sector, how would you sustain your strategies given those facts?
The investment fund is a financial institution, not a political organization. This is why the Turkic Investment Fund is not involved in the geopolitical competition or challenges of today’s troubled world. Yes, we recognize the dramatic challenges facing the global community, but addressing those is the job of politicians. As financiers, our role is to contribute to cooperation rather than competition. By focusing on cooperation, we can help mitigate some of these global challenges and reduce the intensity of international competition.
Our role, therefore, is a positive one, working with other economic and financial institutions. Through constructive cooperation and joint projects, we aim to support and promote collaborative efforts in our complex world.
On the other hand, we also recognize that globalization has significantly increased competition worldwide. Consequently, our countries face challenges in attracting investments. This competition is real, and our goal is to help our countries navigate these challenges and become more competitive. By successfully supporting the growth of our economies, we can play a crucial role in enhancing the competitiveness of our nations.
Currently, six countries are full members of the Turkic Investment Fund—Türkiye, Azerbaijan, Kazakhstan, Kyrgyzstan, Uzbekistan, and Hungary. We also expect that Turkmenistan will join as the seventh full member soon. Additionally, the Turkic Investment Fund is open to cooperation with non-member institutions. Our establishment agreement allows other countries to join if they meet the required conditions and agree to the terms. This allows for constructive cooperation with external partners as well.
Regarding international financial institutions, we are open to working with all of them. We are already in negotiations and have observed a growing interest from various financial institutions in collaborating with us. By working with large financial funds, banks, and institutions, we can participate in significant development and infrastructure projects within our member countries.
These large financial institutions recognize the need for cooperation, and this implies substantial investments in major infrastructure projects. For example, there is growing interest in expanding energy infrastructure in Kazakhstan and Turkmenistan, particularly in light of the Russia-Ukraine war, which has increased the importance of the Turkic world for Europe. We know that the European Union plans to invest billions of euros in energy projects within the Turkic region. Can you give more information about the projects?
Large infrastructure projects are costly and require the participation of multiple financial institutions. As I mentioned, the European Bank for Reconstruction and Development, as well as several Asian banks, are keen on establishing such cooperation. We already have several projects in the pipeline, particularly in the energy sector to be financed. While Kazakhstan, Turkmenistan, and Azerbaijan are oil and gas producers, what we need now is more cross-border energy infrastructure such as pipelines and powerlines to transport these resources efficiently.
Building the transportation network is important, not just for production but also for consumers. That’s why we see growing interest from other international financial institutions. Our national governments have plans, and I know Kazakhstan, Turkmenistan, and Azerbaijan are involved in initiatives to build gas pipelines from Turkmenistan to Azerbaijan, Türkiye, and Europe. Our countries and our European partners are paying great attention to these projects.
There are also other energy projects in the Turkic world. For example, there are major plans to build an energy plant in Kyrgyzstan that will serve Uzbekistan and Kazakhstan. These huge infrastructure projects are already being studied by various financial institutions, and there are numerous areas for cooperation. Of course, we are closely working with our governments, monitoring their priorities, plans, and programs. We also consider the decisions made by national governments and at our summits and intergovernmental commissions, ensuring that we align with the priorities of our member states, which are our shareholders.
We know that Hungary, for example, has been highly appreciated by the Organization of Turkic States (OTS) for its contributions, especially during its EU presidency. Hungary’s role in connecting Europe and the Turkic world is considered very important. At the same time, Hungary has officially stated that it is contributing a significant amount of money to the Turkic Investment Fund. Can you give more information on this?
Yes, this is not a secret. The fund was initially established by five member states, and then Hungary joined with an equal share. Each country contributed $100 million, making the initial capital of the fund $600 million. As I’ve mentioned, this starting capital will be significantly increased in the coming years to make the fund more competitive and attractive for cooperation with other international financial institutions.
Will the shares always remain equal?
Not necessarily. The initial capital was contributed in equal shares, but additional capital may be decided later and won’t necessarily follow the same distribution. As for Hungary, it has joined as a full member with the same share as other members. I must say that Hungary has played a very constructive role in Turkic cooperation since they joined the Organization of Turkic States in 2018. Hungary actively participates in all cooperation mechanisms alongside other OTS member states. Recently, I was in Budapest, where we finalized Hungary’s accession to the fund, making them a full member. Hungary truly plays an indispensable role in connecting the Turkic world to Europe, and between the European Union and the Organization of Turkic States. We appreciate Hungary’s role, and I believe it will continue to grow in the future, contributing not only to the integration of the Turkic world but also to its global integration into the world economy through closer cooperation with the EU.
Just to clarify about the contributions to the fund—how much will be each country paying? For instance, in Türkiye, there is discussion about whether Türkiye is contributing state funds for projects like energy infrastructure and pipelines in Kazakhstan and Turkmenistan. People are curious about the exact figures to be transferred from treasury to the investments in other countries.
As with any international financial institution, all decisions regarding project financing and prioritization will be made by the Board of Directors. The interests and contributions of each country will be considered, and there won’t be any “losers”—only winners.
Thank you very much for this great interview, Ambassador. It sounds like many things are still in progress, but can you give us one headline for now? Which region of the world is most likely to cooperate with you on large-scale projects in the near future? Will it be Europe, Asia, Russia, or the Gulf countries? What will be the biggest surprise regarding Turkic Investment Fund cooperation?
First of all, the Turkic Investment Fund is a newly established financial institution, and we will commence our operational activities on January 1, 2025. We are in close contact and negotiations with financial institutions in Europe, Asia, the Islamic world, and the Arab world. We see strong interest from their side, and we are equally eager to develop relationships with them.
I think the biggest surprise will be our success in the Turkic region, within our member states. We are seriously committed to contributing to the economic development of our countries and supporting entrepreneurs who are working together on joint projects. We are here to support them and encourage more joint ventures among the Turkic countries and their companies.
As I mentioned, the ultimate goal is to contribute to greater economic integration among the Turkic countries, which will serve as the foundation for a more united Turkic world. This is our main purpose.
Thank you, Ambassador Baghdad Amreyev, for this diplomatic interview. We look forward to hearing more after January 1, when the policies, investments, and projects of the Turkic Investment Fund are officially launched.
INTERVIEW
We asked experts about BRICS – 3: What are the challenges facing the member countries?
Published
3 weeks agoon
28/10/2024As the fallout from the BRICS Summit in Kazan, the capital of the Republic of Tatarstan in the Russian Federation, continues, we put questions about the agenda to Dr. Nina Ladygina-Glazounova, the General director of the BRICS & SCO Innovative Diplomacy Centre.
Ilber Vasfi Sel: Mrs Nina, you also attended the summit in Kazan. You are already continuing your work as a “professional “bricsologist” in the institution of which you are the General director and co-founder. For Vladimir Putin, the President of the Russian Federation, the summit is seen as both symbolic and practical. What do you think? How do you assess the significance of this summit for Russia? How will this summit affect Russia’s global agenda? There are also competing countries within BRICS. Given the rivalries and conflicts among the member countries, how do you see the BRICS goal of deepening cooperation in various fields?
Nina Ladygina-Glazounova: The significance of the BRICS Summit in Kazan for Russia lies primarily in the complete failure of the West’s policy of isolating Russia, demonstrating recognition of Russia’s long-term importance on the world stage, despite the general tensions. The BRICS Summit in Kazan has become the event of the century, bringing together heads of delegation’s from Azerbaijan, Armenia, Bahrain, Bangladesh, Belarus, Bolivia, Congo, Cuba, Indonesia, Kazakhstan, Kyrgyzstan, Laos, Malaysia, Mauritania, Mongolia, Nicaragua, Palestine, Serbia, Sri Lanka, Tajikistan, Thailand, Turkey, Turkmenistan, Uzbekistan, Venezuela, Vietnam and Republika Srpska (an entity of Bosnia and Herzegovina).23 of them were at the level of Heads of State and Government not only from the BRICS member countries (Russia, Brazil, United Arab Emirates, China, Egypt, Ethiopia, India, Iran, South Africa and Saudi Arabia as an invited country), but also from the countries of the Global South, which showed great interest in the Summit, as well as the heads of five international organisation’s: the United Nations (Secretary-General – Antonio Guterres), the Eurasian Economic Commission (Chairman – Bakytjan Abdiruli Sagittayev), the Commonwealth of Independent States (Secretary General – Sergei Lebedev), the State of the Union of Russia and Belarus (State Secretary – Dmitry Mezentsev), the Shanghai Cooperation Organisation (Secretary General – Zhang Ming) and the BRICS New Development Bank (Bank President – Dilma Rousseff).
We asked experts about BRICS – 1: Can the independent BRICS payment system succeed?
The declaration issued on the 23 of October, after the meetings of the Sherpas and heads of delegations of the BRICS countries, the way to promote the institutional development of BRICS adopted by consensus, and for the first time in history of BRICS, the countries included in the union are not specified in the first paragraph of the declaration.
What could this mean?
It can be assumed that the main reason is primarily due to the expansion and uncertain status of Saudi Arabia, which is still in the process of accepting its status as a full member, although it participated as an equal in most BRICS formats and meetings.
Particular attention was also paid to the media, ICT and the dangers of fake news and the dissemination of unverified information about our countries.
Thanks to the summit and the whole range of horizontal formats of this year, Russia was able to expand its opportunities to enter new markets during its year of its Chairmanship in the BRICS, which is certainly a positive moment, and the country should have followed this direction from the very beginning, from the moment of its formation, and not look only at Western countries as the main direction. Now, if we look at it as a “puzzle”, the process of diversifying the economy and moving away from production focused exclusively on components from abroad has begun, and the influence of foreign component manufacturers on us has gradually diminished. Russia has agreed to sign a comprehensive strategic partnership agreement with Iran.
Also, thanks to the summit, Russia was able to once again to discuss the main points and reach an agreement with Iran on signing a comprehensive strategic partnership agreement.
Today we can confidently say that the most powerful BRICS countries are Russia, China, India and Iran. In other words, countries that have become the antipode of the unipolar Western world… We can talk about a global union of BRICS countries that surpasses the G7 in its parameters, and this is about the economic future of our planet.
Despite their common objectives and their focus on a multipolar world, and despite the preservation of their own identities, the BRICS countries face various forms of competition and territorial challenges, especially with their neighbours.
China and India are both large emerging economies competing for the influence in global markets and the developing world, and have territorial disputes with each other. At the same time, India and China announced progress in resolving long-standing border issues with the help of Russia’s diplomatic efforts, and this was a significant achievement at the summit. We see geopolitical tensions between Russia and South Africa have emerged since the start of the special military operation. Russia and China are close partners in all areas, but there are areas in the individual political agendas of both countries where they may clash, such as in Central Asian countries like Kazakhstan.
During the summit, BRICS countries and their future partners drew attention to Palestine and the Middle East region as a whole, while nearly two billion Muslims around the world watched the events in Kazan. Many heads of delegation’s declared their position in support of Palestine, a very sensitive and fragile region that requires rapid peaceful coexistence and compliance with UN conventions. Accordingly, the Summit adopted a strong final declaration that underlined the importance of the Palestinian issue for the world Muslim community.
We see how Brazil is not very happy with Venezuela’s rapprochement with the BRICS and this is one of the main reasons why we do not see it in the list of partner countries (13 countries have been granted BRICS partner country status: Turkey, Kazakhstan, Uzbekistan, Algeria, Belarus, Bolivia, Cuba, Indonesia, Malaysia, Nigeria, Thailand, Uganda and Vietnam), like Pakistan is not on the list because of the position of India. But BRICS will not be a platform for confrontation in relation to the G7 due to different ideas about the world order in different states and civilizations. We have Narendra Modi, who builds his policy on resolving all conflicts in the world peacefully and through negotiations, but he very rarely touches on issues related to Pakistan… Because there has been a conflict between them for many years and at the same time we see how China and Russia are promoting Pakistan as a BRICS partner now.
Therefore, I believe that BRICS should promote mutually beneficial areas of cooperation, such as increasing trade turnover, mutual investment to avoid conflicts, it is necessary to resolve issues of demarcation of spheres of influence in certain regions “on the shore”, socio-humanitarian exchanges to allow us to get to know each other better and perhaps “bury the hatche” in the case of some countries, as well as regulate possible interventions in cultural expansion, like the Republic of Turkey is doing through “soft power”.
On the other hand, we have South America, that is very unstable in every sense, socially, politically, economically, and under the strong influence of the United States. But it is important to remember that when you come to the BRICS as a platform, you have to forget all this (competition and territorial challenges), because you have to think about the big picture and the global agenda. And the Kazan Summit, which can be called truly peaceful, was the event that brought together some of the participants in the BRICS+ format, for example, Armenian Prime Minister Nikol Pashinyan and Azerbaijani President Ilham Aliyev, to discuss advancing the bilateral peace agenda, including a peace treaty, border demarcation and other issues of mutual interest, and encouraged them to negotiate to resolve mutual issues that had previously stalled.
Summit declaration also describes the mechanisms already in place for foreign exchange reserves in national currencies. Although they are not yet as large and comprehensive as existing institutions such as the IMF and the World Bank, but they already pose a serious threat to them. The BRICS Pay mechanism has also been launched – a payment system project similar to the Chinese CIPS system and the international SWIFT system, to which you can link international payment cards Visa and Mastercard or national bank cards such as MIR, RuPay, China UnionPay and use it in the BRICS+ countries. A direct, clear and effective way to find collective solutions with the participation of developing countries is de-dollarization through the ever-wider use of national currencies and it is time for us to have what we call a new reserve currency.
The convergence of representatives of numerous civilisations and cultures, who unconsciously want to promote their own agendas for the good of their own countries, makes it difficult to take decisions towards something united on issues that are only open to the countries of the Global South, such as the reform of the UN Security Council or climate change (recall that Vladimir Putin also carefully hinted at this in his statement about using the green agenda to harm society).
It is clear that the role of the BRICS will increase, and the BRICS countries are already driving global economic growth, shifting the geopolitical landscape towards Eurasia and the South as a whole. According to the results of the current year, the average economic growth rate of the BRICS is estimated at 4 per cent. This is higher than the G7’s rate of just 1.7 per cent. With such a difference in economic growth rates, most of the increase in global GDP in the foreseeable future will be generated in the BRICS. OPEC Plus is actually part of the BRICS, and Russia and Saudi Arabia are actually the leaders there. They set global oil prices. But it is worth remembering that most of the trading platforms are owned by Western companies that lobby their interests to fight this, and it is necessary to unite for a common and prosperous future.
BRICS is different from the UN in that everyone sits at the same table and has an equal voice with a more equitable representation of member states. Perhaps BRICS can be an alternative to the UN in the future, the reform of which is advocated by all BRICS countries. But it will be a long process.
Aware of their problems and territorial disputes, the BRICS countries want to focus on a common agenda of global cooperation. From 1 January 2024, with the accession of new countries to the Union, strong ties and dialogue should be established in the name of a common goal, not just “a priori”, since such a format should not be based as an association on the Anglo-Saxon ideology with the primacy of the United States and European colonial powers. The Union has enormous potential to promote common interests and to foster multipolar global governance based on equality and respect.
BRICS as an association has enormous potential to advance common interests and promote multipolar global governance based on equality and respect. Consensus is also, on the one hand, a guarantee that the national interests of any participant are guaranteed, but also a factor that does not simplify the introduction of negotiations.
Ilber Vasfi Sel: Dr. Ladygina-Glazounova, Harici thank you for your comprehensive and insightful responses.
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