Monday, April 25, 2022

The Shifting Balance of Power

 It is difficult to predict the course of events when action is happening on the ground. Like the war between Russia and Ukraine. While this war may have started from the aggressive policies of the west and the mistrust of Russia towards anything NATO, we need to look at how the immediate future is going to shape up.

There is no doubt that the west now has the bit between the teeth and is backing the Ukrainian war effort to the hilt. In the west, a lip service was being paid to the compulsions faced by Russia.

Russia has always been seen as the enemy of the west and was never really integrated into the comity of nations even after the fall of the USSR. The result was that the mistrust between the two sides persisted. The west with its economic clout never really cared because they did not feel the need to help the Russians. Technology was and is still monopolized by the west, especially America.

This war is being watched by all the world and every country is drawing different conclusions from what is happening on the ground.

American and European aid is now pouring into Ukraine and Poland. But there are other perspectives on this situation. Sitting in India the strategic thinkers view this differently. China is elephant in the room. India is concerned about China trying to do a Ukraine in Taiwan. Also, the China Pakistan axis has been worrying India for the past decade. The situation in Afghanistan has been relegated to the backburner since this war started but is very much relevant for the countries in this region.

India has not criticized Russia for the invasion and has bought Russian oil. The sanctions imposed by the US on Russia has jeopardized purchases of Indian arms which is a major concern. India is also concerned that Quad may not live up to its expectations as the current political stance taken by her has rankled the other members, especially the US.

Despite China calling Russia its strategic partner, Russia does not fully trust China. China has a penchant of looking exclusively for its own interests. The Russians are opening up a trade route along the Arctic Circle as the Arctic ice thaws. China is eyeing this development and wants to invest heavily into this infrastructure. Russia has reservations about letting China increase their presence in this area as China may completely swamp the infrastructure with their economic clout. Thus, the Russo-Chinese friendship may be one of convenience rather than trust.

The NATO is not politically united either. Europe buying most of its energy from Russia is still a sore point with the US. In all this upheaval, countries are feeling insecure as strategic agreements signed earlier do not look so dependable now. It is every nation for itself. The US has sanctioned a $2b budget to help Ukraine. May experts are pointing out that Putin declaring war on Ukraine has benefitted the arms manufacturers.  

 The big institutions like the G7, G10, G20, IMF, World Bank have lost some their importance in the order of things. To a certain extent so has NATO. China today is the world’s largest creditor. The dollar itself may not be able to hold on to its Reserve Currency status as countries look at alternative payments systems to avoid the diktats of the US. This war comes on the heels of the pandemic which has imposed unprecedented hardships on the people of the world. Governments across the world do not want to impose more hardships on their people. Thus, there is a reluctance to align with the sanctions regime.

As to who will lead the world is the question being asked all over the world by strategic analysts. The contenders could be the US, India, China. No other country in the world has been projected as of now. In Asia, India is best placed to lead the world. China is definitely a contender, however, its demographics do not favor such a role. Also, China is autocratic and lacks transparency in the working of its key institutions.

The geopolitics of the world is in a state of flux. Every nation is on the lookout for its own interest.  This is a transitory phase. Changing of the world order comes after decades of gradual and miniscule changes in the balance of power among nations. However, what the morrow brings will be very interesting to see indeed.  

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