![]() ![]() What havoc will climate change cause is still not fully comprehended. Supplant that with challenges premiered in the last few years. The world shall cease to be a world of neatly divided orders. ![]() This is the world our children and grandchildren will inherit. The financial world is getting there and the US other than twisting and turning arms or fighting a rearguard battle to somehow stave off the inevitable has nothing else to fight this rapidly enveloping onslaught. Crypto currencies will topple what little is left of the hold of the US dollar. Even India, the new kid on the block, is offering the Indian rupee as a tradeable denomination. This is when another set of tradeable currencies supported by China and Russia is making the rounds. The unnecessary war in Ukraine - subscribed and funded by the western world and the commodities super-cycle resulting from it - compounded by supply chain difficulties triggered by Covid, and disruptions in oil and gas - triggered by the US to keep Europe under its domain by cutting off European dependence on Russia - means the western world is in throes of self-created crises without a solution on offer. It is still the commanding currency in international trade but is under increasing threat of being marginalised or replaced as it faces increased buffets in the American and European economies amid a looming threat of stagnation if not recession. The financial world is increasingly unsure of the unquestioned domination the US dollar has enjoyed over the years. The rise of China accompanies signs of an alternate order in the making. Russia too remains buoyant despite the war it is tangled in. China soon stood at the same mantle or better than the American economy - in numbers the Chinese economy is only marginally lower but in resilience it is the strongest economy on earth. ![]() China kept progressing unbridled, feeding the frenzy of a consumptive American economy which had stopped producing and based itself on imports, mostly from China. This was the moment when Francis Fukuyama felt that ‘history had ended’ with two of America’s nemeses - China and Russia - embracing the model to plug into the global financial system. The Western hemisphere - NATO, EU, and US allies - traded with each other supported by the strength of the IBRD - forerunner to the World Bank - and the IMF, both products of the post war American order.Īs the USSR dissolved into Russia and China rose, both subscribed to the capitalist model designed initially at Bretton Woods, governed later by the WTO and underwritten by the US dollar as the currency of international acceptability. It was a stable disorder with the world divided into two camps. Status quo was the name of the game geopolitically while the economic world was forged into capitalist and socialist denominations. The end of WWII imposed an order which was underwritten by the domination of the two superpowers, the US and the USSR, neatly tied into a Cold War which delineated where one belonged and to what social and political philosophy one subscribed. The writer is a political, security and defence analyst. ![]()
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