WORLD WORLDWIDE ITALY News Journal Update - (en) Italy, UCADI #170: Towards a multipolar world (ca, de, it, pt, tr)[machine translation]

 In the last issue of the newsletter we reported the re-establishment of

diplomatic relations between Iran and Saudi Arabia to signal the transformation
of the world from bipolar to multipolar.[1]We pointed out that the new structures
are taking shape on the world scene for which, prefiguring the vision of the
world, we must see it as made up of continental blocks, of homogeneously managed
areas made up of China, India, Russia which are flanked by areas such as the
Middle East which tend to establish cooperative relations on the basis of common
interests such as that established by the Arab countries and the other BRICS
countries.A trait common to these countries is constituted by the possession of
nuclear devices since the war in Ukraine has made even the most rebellious
understand that the only possibility of carrying out an independent policy is
that of being able, if necessary, to resort to atomic weapons as an instrument of
deterrence to ensure their place in international relations and ensure that they
are not prisoners of the military blackmail of the superpower of the moment.
It is quite clear that such a world arrangement is an alternative to the bipolar
one, designed by the USA and cultivated by it to justify and support their
hegemony. However, there is another terrain onto which the clash necessarily
moves and it is that of economic and commercial exchanges and therefore of the
currency used for this purpose.
It should not be forgotten that as a result of the war in Ukraine and the
consequent Western sanctions, Russia was forced to carry out its business and
develop its trade using currencies other than the dollar. Furthermore, the
country has not forgotten that in the aftermath of the conflict, Western banks
seized Russian deposits for a value of 300 million dollars, effectively
committing a theft against the country and is therefore looking for a new
currency that would allow economic and commercial exchanges without the dollar.
Therefore, in response to the sanctions, Russia trades abroad in currencies other
than the dollar using the respective national currencies in exchanges with China
but also with India, Iran A step in this direction is the decision of March 30,
2023 of the Brazilian government to sign an agreement with China under which
trade between the two countries will take place in their respective currencies,
without using the US dollar. This means that trade will take place in Brazilian
reals and yuan, rather than in dollars, as was the case in international
transactions. To understand the importance and weight of this choice, it must be
remembered that China is Brazil's main trading partner. Trade between the two
countries reached $150 billion in 2022, with $89.7 billion exported by Brazilians
to China. Half (48%) of Chinese investments in Latin America are made in Brazil,
which exceeded 70 billion dollars between 2007 and 2020. Therefore, Meloni will
be sorry, but the real Mattei plan is being adopted by China which, similarly to
the manager of ENI, promotes equal exchanges to the benefit of the economies of
the weaker countries, at the same time obtaining the non-secondary result of
weakening the US economy from the ground up and to prevent US welfare from
depending in part on its domination of international trade through its control of
the currency. We can finally say the Bretton Woods agreements on the
international monetary system to be adopted are definitively exhausting their
function and their role.

The role of the BRICS countries

This strategy long cultivated by China, which has always been forced to engage in
the currency market to the point of owning 967.8 billion dollars of US government
debt (according to what was declared by the US Treasury Department) to support
its role on the international market , has slowly begun to disengage (- 13
billion compared to the previous month) in a non-random coincidence with the
Chinese-led BRICS Summit last June. On that occasion, China placed on the agenda
the reorganization of the global order as a consequence of the pandemic and,
above all, of the Russian invasion of Ukraine, with the aim of countering the
growth of international isolation deriving from the ties and snares imposed by
the United States with sanctions on Putin's Russia.
China is well aware that in the last twenty years the economy of the BRICS
countries has grown much faster than the Western economic system. Is aware that
in 2022, these countries comprise more than 41% of the world's population, 24% of
world GDP and about 16% of international trade; he also knows that Argentina,
Iran and Algeria have formalized their request to join the group, while it has
been speculated that Saudi Arabia, Egypt, Senegal, Nigeria, Turkey, Indonesia and
others may also join: BRICS are increasingly interconnected with the Shanghai
Cooperation Organization (SCO), of which China, Russia, Kazakhstan, Kyrgyzstan,
Tajikistan, Uzbekistan, India and Pakistan are members.
The Chinese project to build an international consensus alternative to the
West-centric one is based on the support of developing countries, it is not easy
to implement and requires a long time and prudence, but in terms of gradualness
and patience, the Chinese are masters: in the meantime, yes they are satisfied
that OPE, in concert with Russia, decreases oil production by one million barrels
a day to sustain its price, aware that Russian supplies will continue at
favorable prices.
Furthermore, they proceed with caution so as not to clash with India, a rival
country which at the same time maintains relations with the pro-Western countries
of the Indo-Pacific: it knows well that enlarging the BRICS means in fact giving
life to a new entity formed by a number potentially infinite number of new
members. This means identifying clear access criteria for candidates, overcoming
any vetoes of historical members. To do this, first of all, it is necessary to
clarify what relationships are established with its bank, the New Development
Bank, which in 2021 had already opened to the entry of Egypt, Uruguay, Bangladesh
and the United Arab Emirates.

And Europe

Instead of tying itself to the US bandwagon, Europe should take note of what
economic reality tells us: already today the world has become multipolar and no
longer unipolar, the dollar's yielding position is over or in any case is coming
to an end. The sanctions against Russia have produced, as a reaction, the
accelerated development of the BRICS which are in full expansion, while a
management of the territories that is homogeneous by area is emerging, which in
some cases exceed the size of the nations and which have nuclear deterrence as a
common trait.
The world domination by US and Western finance, which has had a central,
commanding role in the capitalist mode of production is concretely questioned.
Furthermore, a change in the role of trading currencies constitutes a change in
the balance of power, not just an economic fact.
The era in which the role of the dollar as a currency used for international
exchange guaranteed the United States a position of rent is over.
It follows that it is convenient for Europe to promote a new cooperation between
the peoples and countries of the whole world, strengthened by the fact that it
still represents for the world economy and for China itself, promoter of change,
an indispensable market for prosperity and development of all. So it is time that
Europe took care of its own interests by adopting autonomous relations policies
with the various international players.
To do this it is necessary to break the umbilical cord, actually of
subordination, which binds it to the United States and therefore, instead of
strengthening NARO and arming itself, promote peace and coexistence among
peoples, distancing themselves from a sovereign and dirigiste vision of the
world, leaving the USA and its main vassal, the United Kingdom, to their fate.

[1]The editorial staff, PACE. Political Growth Newsletter, UCADI, 169, March 2023

Gianni Cimbalo

http://www.ucadi.org/2023/04/18/verso-un-mondo-multipolare-2/
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