Is Russia today saving our World from yet another totalitarianism, this time of a One World Dictatorship of Bankers and Their Military?
Russia’s Remarkable Renaissance
Something remarkable is taking place in Russia, and it’s quite different from what we might expect. Rather than feel humiliated and depressed, Russia is undergoing what I would call a kind of renaissance, a rebirth as a nation.
This despite or in fact because the West, led by the so-called neo-conservatives in Washington, is trying everything including war on her doorstep in Ukraine, to collapse the Russian economy, humiliate Putin and paint Russians generally as bad. In the process, Russia is discovering positive attributes about her culture, her people, her land that had long been forgotten or suppressed.
My first of many visits to Russia was more than twenty years ago, in May, 1994. I was invited by a Moscow economics think-tank to deliver critical remarks about the IMF. My impressions then were of a once-great people who were being humiliated to the last ounce of their life energy. Mafia gangsters sped along the wide boulevards of Moscow in sparkling new Mercedes 600 limousines with dark windows and without license plates.
Lawlessness was the order of the day, from the US-backed Yeltsin Kremlin to the streets. “Harvard boys” like Jeffrey Sachs or Sweden’s Anders Aaslund or George Soros were swarming over the city figuring new ways to rape and pillage Russia under the logo “shock therapy” and “market-oriented reform” another word for “give us your crown jewels.”
The human toll of that trauma of the total collapse of life in Russia after November 1989 was staggering. I could see it in the eyes of everyday Russians on the streets of Moscow, taxi-drivers, mothers shopping, normal Russians.
Today, some two decades later, Russia is again confronted by a western enemy, NATO, that seeks to not just humiliate her, but to actually destroy her as a functioning state because Russia is uniquely able to throw a giant monkey wrench into plans of those western elites behind the wars in Ukraine, in Syria, Libya, Iraq and well beyond to Afghanistan, Africa and South America.
Rather than depression, in my recent visits to Russia in the past year as well as in numerous discussions with a variety of Russian acquaintances, I sense a new feeling of pride, of determination, a kind of rebirth of something long buried.
Take the sanctions war that the Obama administration has forced Germany, France and other unwilling EU states to join. The US Treasury financial warfare unit has targeted the Ruble. The morally corrupt and Washington-influenced Wall Street credit rating agencies have downgraded Russian state debt to “junk” status. The Saudis, in cahoots with Washington, have caused a free-fall in oil prices. The chaos in Ukraine and EU sabotage of the Russian South Stream gas pipeline to the EU, all this should have brought a terrified Russia to her knees. It hasn’t.
As we have earlier detailed, Putin and an increasing number of influential Russian industrialists, some of the same who a few years ago would have fled to their posh London townhouses, have decided to stand and fight for the future of Russia as a sovereign state. Oops! That wasn’t supposed to happen in a world of globalization, of dissolution of the nation-state. National pride was supposed to be a relic like gold. Not in Russia today.
On the first anniversary of the blatant US coup in Kiev that installed a hand-picked regime of self-professed Neonazis, criminals, and an alleged Scientologist Prime Minister Andriy Yansenyuk, hand-picked by the US State Department, there was a demonstration in downtown Moscow on February 22.
An estimated 35,000 to 50,000 people showed up—students, teachers, pensioners, even pro-Kremlin bikers. They protested not against Putin for causing the economic sanctions by his intransigence against Washington and EU demands.
They protested the blatant US and EU intervention into Ukraine. They called the protest “Anti-Maidan.” It was organized by one of many spontaneous citizen reactions to the atrocities they see on their borders. Internet satirical political blogs are making fun of the ridiculous Jan Paski, until last week the fumbling US State Department Press Spokesperson.
Not even an evident False Flag attempt in the London Financial Times and Western controlled media to blame Putin for “creating the climate of paranoia that caused” Boris Nemtsov’s murder is being taken seriously. Western “tricks” don’t work in today’s Russia.
And look at US and EU sanctions. Rather than weakening Putin’s popularity, sanctions have caused previously apolitical ordinary Russians to rally around the president, who still enjoys popularity ratings over 80%. A recent survey by the independent Levada Center found 81 percent of Russians feel negatively about the United States, the highest figure since the early 1990s “shock therapy” Yeltsin era. And 71 percent feel negatively about the European Union.
The renaissance I detect is evident in more than protests or polls, however. The US-instigated war in Ukraine since March 2014 has caused a humanitarian catastrophe, one which the US-steered German and other western media have blocked out of their coverage.
More than one million Ukrainian citizens, losing their homes or in fear of being destroyed in the insane US-instigated carnage that is sweeping across Ukraine, have sought asylum in Russia. They have been welcomed as brothers according to all reports.
That is a human response that has untold resonances among ordinary Russians. Because of the wonders of YouTube and smart phone videos, Russians are fully aware of the truth of the US war in eastern Ukraine. Russians are becoming politically sensitive for the first time in years as they realize that some circles in the West simply want to destroy them because they resist becoming a vassal of a Washington gone berserk.
Rather than bow to the US Treasury’s Ruble currency war and the threat that Russian banks will be frozen out of the SWIFT (Society for Worldwide Interbank Financial Telecommunication) international interbank clearing system, something likened to an act of war, on February 16, the Russian government announced that it had completed its own banking clearing network in which some 91 domestic credit institutions have been incorporated. The system allows Russian banks to communicate seamlessly through the Central Bank of Russia.
That is inside Russia among banks that otherwise were vulnerable even domestically to a SWIFT cut. Russia joined the Brussels-based private SWIFT system as the Berlin Wall crumbled in 1989. Today her banks are the second largest users of SWIFT. The new system is inside Russia.
Necessary, but not sufficient, to protect against SWIFT cutoff. The next step in discussion is joint Russia-China interbank clearing independent of SWIFT and Washington. That is also coming.
The following day after Russia’s “SWIFT” alternative was announced as operational, Chinese Vice Foreign Minister Cheng Guoping said China will build up its strategic partnership with Russia in finance, space and aircraft building and “raise trade cooperation to a new level.”
He added that China plans to cooperate more with Russia in the financial area and in January Russia’s First Deputy Prime Minister Igor Shuvalov said that payments in national currencies, de-dollarization, were being negotiated with China. China realizes that if Russia collapses, China is next. Failing empires try desperate measures to survive.
Russians also realize that their leaders are moving in unprecedented ways to build an alternative to what they see as a morally decadent and bankrupt American world.
For most Russians the disastrous decade of poverty, chaos and deprivation of the Yeltsin era in the 1990’s was reminder enough what awaits should Russia’s leaders again prostitute themselves to American banks and corporations for takeover, Hillary Clinton’s infamous “reset” of US-Russian relations she attempted when Medvedev was President.
Russians see what the US has done in neighboring Ukraine where even the Finance Minister, Natalia Jaresko, is an American, a former State Department person.
Russia and its leaders are hardly trembling behind Kremlin walls. They are forging the skeleton of a new international economic order that has the potential to transform the world from the present bankruptcy of the Dollar System.
Moscow and Beijing recently announced, as I discussed in a previous posting, their project to create a joint alternative to the US credit rating monopoly of Moody’s, S&P and Fitch. President Putin’s travel agenda in the past year has been mind-boggling. Far from being the international paraiah Washington and Victoria Nuland hoped for, Russia is emerging as the land which has the courage to “just say No!” to Washington.
Russia’s president has been in Cyprus where possible basing for the Russian navy was discussed, in Egypt where General al-Sisi warmly welcomed the Russian leader and discussed significant economic and other joint cooperation. Late last year Russia and the BRICS states agreed to form a $100 billion infrastructure bank that makes the US-controlled World Bank irrelevant. The list grows virtually every day.
The special human side
For me, however, the most heartening feature of this Russian renaissance is in the generation which is today in their late thirties to early forties—young, highly intelligent and having experience of both the depravity of Soviet communist bureaucracy but as well of the hollow world of US-led so-called “free market capitalism.” I share some examples from the many Russians I have come to know in recent years.
What is unique in my mind about this generation is that they are the hybrid generation. The education they received in the schools and universities was still largely dominated by the classical Russian science. That classical Russian science, as I have verified from many discussion with Russian scientist friends over the years, was of a quality almost unknown in the pragmatic West.
An American Physics professor from MIT who taught in Moscow universities in the early 1990s told me, “When a Russian science student enters first year university, he or she already has behind them 4 years of biology, 4 of chemistry, of physics, both integral and differential calculus, geometry…they are starting university study at a level comparable to an American post-doctoral student.”
They grew up in a Russia where it was common for young girls to learn classical ballet or dance, for all children to learn to play piano or learn a musical instrument, to do sports, to paint, as in classical Greek education of the time of Socrates or Germany in the 1800s. Those basics which were also there in American schools until the 1950s, were all but abandoned during the 1980s. American industry wanted docile “dumbed-down” workers who asked no questions.
Russian biology, Russian math, Russian physics, Russian astrophysics, Russian geophysics—all disciplines approached their subject with a quality that had long before disappeared from American science. I know, as I grew up during the late 1950’s during the “Sputnik Shock,” where we were told as high school pupils we had to work doubly hard to “catch up to the Russians.”
There was a kernel of truth, but the difference was not lack of American students working hard. In those days we worked and studied pretty hard. It was the quality of Russian scientific education that was so superior.
Teaching of the sciences especially, in Russia or the Soviet Union, had been strongly influenced by the German education system of the 1800s, the so-called Humboldt Reforms of Alexander von Humboldt and others.
The strong ties in Russian education with classical 19th Century German culture and science went deep, going back to the time under Czar Alexander II who freed the serfs in 1861, following the example of his friend, Abraham Lincoln.
The ties were deepened to German classical culture later under Czar Alexander II prior to the 1905 Russo-Japanese War when the brilliant Sergei Witte was Transport Minister, then Finance Minister and finally Prime Minister before western intrigues forced his resignation.
Witte translated the works of the German national economist Friederich List, the brilliant opponent of England’s Adam Smith, into Russian. Before foreign and domestic intrigues manipulated the Czar into the disastrous Anglo-Russian Entente of 1907 against Germany a pact which made England’s war in 1914 possible, the Russian state recognized the German classical system as superior to British empiricism and reductionism.
Many times I have asked Russians of the 1980s generation why they came back to Russia to work after living in the USA. Always the reply more or less, “The US education was so boring, no challenge…the American students were so shallow, no idea of anything outside the United States…for all its problems, I decided to come home and help build a new Russia…”
Some personal examples illustrate what I have found: Irina went with her parents to Oregon in the early 1990s. Her father was a high-ranking military figure in the USSR. After the collapse he retired and wanted to get away from Russia, memories of wars, to live his last years peacefully in Oregon.
His daughter grew up there, went to college there and ultimately realized she could be so much more herself back in Russia where today as a famous journalist covering US-instigated wars in Syria and elsewhere including Ukraine, she is making a courageous contribution to world peace.
Konstantin went to the USA to work as a young broadcast journalist, did a master’s degree in New York in film and decided to return to Russia where he is making valuable TV documentaries on dangers of GMO and other important themes.
Anton stayed in Russia, went into scientific and business publishing and used his facility with IT to found his own publishing house. Dmitry who taught physics at a respected German university, returned to his home St Petersburg to become a professor and his wife also a physicist, translates and manages a Russian language internet site as well as translating into Russian several of my own books.
What all these Russian acquaintances, now in their late 30s or forties share is that they were born when the remnants of the old Soviet Russia were still very visible, for better and for worse, but grew to maturity after 1991.
This generation has a sense of development, progress, of change in their lives that is now proving invaluable to shape Russia’s future. They are also, through their families and even early childhood, rooted in the old Russia, like Vladimir Putin, and realize the reality of both old and new.
Now because of the brazen open savagery of Washington policies against Russia, this generation is looking at what was valuable. They realize that the stultifying bureaucratic deadness of the Soviet Stalin heritage was deadly in the USSR years. And they realize they have a unique chance to shape a new, dynamic Russia of the 21st Century not based on the bankrupt model of the now-dying American Century of Henry Luce and FD Roosevelt.
This for me is the heart of an emerging renaissance of the spirit among Russians that gives me more than hope for the future. And, a final note, it has been policy among the so-called Gods of Money, the bankers of London and New York, since at least the assassination in 1881 of Czar Alexander II, to prevent a peaceful growing alliance between Germany and Russia. A prime aim of Victoria Nuland’s Ukraine war has been to rupture that growing Russo-German economic cooperation.
A vital question for the future of Germany and of Europe will be whether Germany’s politicians continue to kneel to the throne of Obama or his successor or define their true interests in closer cooperation with the emerging Eurasian economic renaissance that is being shaped by President Putin’s Russia and by President Xi’s China.
Ironically, Washington’s and now de facto NATO’s “undeclared war” against Russia has sparked this remarkable renaissance of the Russian spirit. For the first time in many years Russians are starting to feel good about themselves and to feel they are good in a world of some very bad people. It may be the factor that saves our world from a one world dictatorship of the bankers and their military.
First published by our partner The-4th-Media under tittle: “Russia Saves the World from a One World Dictatorship of Bankers and Their Military”.
Russia Readies to Host XII BRICS Summit
Under Russia’s BRICS Chairmanship 2020, President Vladimir Putin will host Heads of State of Brazil, China, India and South Africa via videoconference on 17 November. Initially planned to take place in St. Petersburg in July, it was cancelled due to current coronavirus pandemic.
The leaders will discuss the strengthening and further development of cooperation within the framework of BRICS, including in the context of the global political and socioeconomic consequences of the COVID-19 pandemic.
In addition, the leaders will focus on significant and complicated issues or questions relating to geopolitical to socioeconomic spheres, transformations on the global landscapes in the 21st century. The meeting will adopt a working document that will further reinforce the position and development of the group.
As stipulated by the guidelines, Russia took over the rotating presidency of the BRICS from Brazil. Since its establishment, BRICS has come a long way from an informal venue for exchanging views on current issues on the international agenda to an absolutely mature and stable network of multilateral interaction on diverse issues on international and domestic agenda of the five BRICS countries.
Now BRICS has a multilateral structure, and become an association pushing for fair, democratic and multipolar world order. Russia has agreed to strengthen and promote strategic partnership in all key areas of BRICS activities, such as politics and security, the economy and finance, educational and cultural ties.
The theme of the Meeting of the Leaders of BRICS is “BRICS Partnership for Global Stability, Shared Security and Innovative Growth.” They will discuss the enhancement of their countries’ trade and economic collaboration and coordination at international stage or platforms.
It plans to end its chairmanship with a strong set of new agreements, including the already agreed upon BRICS Anti-Terrorism Strategy and the updated Strategy for Economic Partnership to 2025. This document defines guidelines and priorities of cooperation and gives a new impetus to development of trade and investment cooperation among the five countries.
It further provides a number of initiatives to strengthen sector-specific cooperation among the members. The people-to-people and cultural ties, as well as contacts between experts and civil society representatives are already expanding.
Despite the current global situation due to the spread of the coronavirus infection, the activities under the Russian BRICS Chairmanship in 2020 have been carried out in a consistent manner. Since January 2020, a number of events have already been organized, including via videoconferencing.
Russia’s Foreign Minister Sergei Lavrov has reiterated that deepening the strategic partnership in BRICS is one of Russia’s foreign policy priorities.
Over the past decade, the group has proved to be a relevant and well-respected format of cooperation. The BRICS countries maintain solidarity in strengthening collective principles in global affairs; they advocate respect for the sovereignty and sovereign equality of all states, and are deeply convinced that any conflicts should be resolved by peaceful means only.
The group collectively defends the principles of a more just world order based on respect for the norms and principles of international law and the United Nations Charter.
According to procedure, each BRICS member takes over the chairmanship for a year. Russia last chaired BRICS in 2015, held a summit in the provincial city of Ufa. Russia also presided over the group back in 2009, before BRIC turned into BRICS following South Africa’s accession. The five BRICS countries together represent over 3.1 billion people, or about 40 percent of the world population.
The 2000 Declaration on Strategic Partnership between India and Russia
On October 3, 2000, Prime Minister Atal Bihari Vajpayee and President Vladimir Putin cemented India-Russia bilateral ties with the signing of the historical agreement, the “Declaration on the India-Russia Strategic Partnership.” Two decades since the signing of the agreement, bilateral relations are hailed to have chartered new levels of cooperation amid fast changing regional and global scenarios. While shouldering mutual interests and concerns, the strategic partnership has been at the cusp of litmus test, as it has endured events such as the 9/11 terrorist attack, colour revolutions, the Georgian War, the economic depression in 2008, the 26/11 Mumbai attack, the Crimean referendum and its aftermath and the current COVID-19 pandemic. It is therefore worth reflecting on the two decades of a seemingly positive bilateral engagement between India and Russia. It is important to analyse how the agreement signed in 2000 has played a role in the continuum of ensuring the mutual understanding, peaceful cooperation and reliability between the two strategic partners. This is also an opportunity to critically evaluate the magnitude of our strategic relationship and the changes in the foreign policy priorities since 2000. Given the current global context, the key question is how prepared are India and Russia for insulating the strategic partnership amid the challenges in the post pandemic world?
The Declaration of Strategic Partnership (2000) was signed at a time when the momentum in the bilateral relations between India and Russia post-Soviet collapse had fatigued due to several factors. But the most crucial factor of them all was the renewal of the 1971 Indo-Soviet Treaty of Friendship and Cooperation in 1993. The renewed 1993 Treaty had almost written off the bilateral engagement, as Russia clarified that it was no longer willing to make any defence commitment during the time of any external military threat to India – a key security clause (Article IX) that constituted the very core of the 1971 Indo-Soviet Treaty.
The Strategic Partnership Treaty signed in 2000 gave a new lease of life as it restored India-Russia relations to respectable levels.Both the countries realised the need to develop a multifaceted bilateral cooperation in all possible spheres of defence, energy, space, nuclear, science and technology etc. India’s strategic partnership with Russia since then has been unique, intense and substantive in many ways. Mainly, the Treaty led to the institutionalization of high level political interactions through annual bilateral summits – a key feature of the agreement to foster extensive collaboration and dynamism in the partnership. The twenty annual bilateral summits held so far between India and Russia have in particular seen major agreements and initiatives undertaken to strengthen the partnership to higher levels.
Additionally, in 2010, the bilateral ties were further elevated with the signing of the “Special and Privileged Strategic Partnership.” Arguably, the partnership between the two countries has been successfully reflected in many instances at regional and global platforms. India, along with BRICS member states, abstaining its vote during the United Nations General Assembly referendum against Russia for its accession of Crimea in 2014 and Russia’s unequivocal support to India on the Kashmir issue are few cases in point.
Regarding strategic partnership in sensitive spheres of cooperation between India and Russia, defence cooperation continues to be one of the major boosters for engagement between the two countries. India has acknowledged Russia’s contribution in assisting the former in military power projection and preserving its national security interests. Although in recent times there is downgrading in the purchase of Russian defence equipment by India, the cooperation in this sphere has been unassailable given that it has progressed from buyer-seller relations to joint research development and production, high-end technology transfer that has encouraged India’s quest for indigenous defence capabilities. From the induction of INS Vikramaditya to the joint production of BrahMos missile, India-Russia defence cooperation has achieved new capacities through acquisitions and joint development. In fact, Russia’s resurgence as a military power in recent times is conducive to India’s domestic initiatives such as the Make in India project. The finalising of the S-400 missile defence system agreement between India and Russia despite the threat of imposition of CAATSA sanctions has shown India’s predictable resistance to external pressures given its historical ties with Russia.
Indo-Russian nuclear cooperation constitutes an important element of our strategic partnership. The Kudankulam Nuclear Power Plant (KNPP) has become one of the biggest success stories of India-Russia cooperation. As Unit 1 and Unit 2 start commercial operation, the process for reactor buildings of Units 3 and 4 have already begun. With the construction of 12 nuclear power plants planned, India-Russia nuclear cooperation has indeed reached new heights. India, Russia and Bangladesh signed a trilateral agreement in March 2018, for the construction of a NPP in Rooppur, Bangladesh.
Energy diplomacy has been another major element of the strategic partnership, since Russia, an export-oriented energy country, will aim to leverage its energy card with India, an import-oriented energy market. India’s interests in the Arctic, for instance, especially energy resources, are a crucial aspect for India’s growing energy security needs. India received its very first delivery from Russia’s Arctic LNG Plant. This is seen as a great step towards strengthening India-Russia energy cooperation.
The bilateral partnership, which has a global strategic connotation, has seen both the countries enthusiastically promote the idea of building a multipolar world order and changing the global financial structure. In this regard, both India and Russia have envisaged promoting a harmonious global order based on international law and collective decision-making that includes developing countries and is not monopolised by developed countries alone. India and Russia, along with other players such as China, have succeeded in establishing non-western organisations such as BRICS and SCO. The member states have, within their capabilities and limitations, established mechanisms that address economic and strategic interests, such as the New Development Bank. While BRICS and SCO have become tools of political signalling on issues related to global affairs, there however exist asymmetries among the member states with regard to economic growth performance, distribution of resources and military strength. Additionally, although China is a member of such multilateral organisations, at the individual level Beijing has exercised assertive posturing that has caused concern in India. This can be seen by its irrational border claims and actions in the Indian Ocean region. The role of Russia especially during the time of crisis between India and China is therefore anticipated to be non-partisan and meaningful.
When the Treaty of Strategic Partnership was signed in 2000, the world was at the brink of a war on terrorism after the 9/11 terrorist attacks on the World Trade Centre. Both India and Russia, at their respective level, joined the bandwagon on the global war on terror. Both parties, as bilateral partners which have been victims of terrorist attacks, voiced their interests and concerns in combating terrorism and related activities. India and Russia have therefore cooperated at bilateral and multilateral levels. For instance, through Regional Anti-Terrorist Structure, SCO member states participate in joint anti-terrorism exercises. India and Russia also share the mutual interest of preventing the proliferation of weapons of mass destruction and their possible acquisition by terrorist groups.
While both India and Russia assert their distinctive identity in world politics respectively, the strategic partnership has seen close coordination of foreign policy interests to a wide range of international and regional issues. Both countries firmly believe that intensification of the Indo-Russian strategic partnership can help respond to the challenges thrown up by global changes in a more effective way. While both India and Russia have a diverging approach on the Indo-Pacific narrative, one cannot deny that the two countries understand the need for strengthening maritime security and freedom of navigation in accordance with the universally accepted principles of international law. This includes combating piracy at sea and providing humanitarian aid during natural disasters. The two countries have shown keen interest in restoring peace and stability in Afghanistan. Eurasian integration has been a key priority in the India-Russia strategic partnership. Russia understands that in its quest for “greater Eurasia,” India is a vital player for its huge market potential, economic growth performance, military strength and enhanced position in international affairs.
Strategic partnership in space, science and technology has been a bulwark in the bilateral relations between India and Russia since the Soviet era and has continued to remain one even today. In fact, both countries have agreed to expand their relations in the aerospace sphere, an area of traditional cooperation for decades. More than 500 joint projects involving scientists and research institutes from both countries have been undertaken within the framework of various initiatives since 2000.
While critically evaluating the two decades of strategic partnership between India and Russia, it is tempting to compare India’s strategic partnership with other major global players and the strategic partnership that it shares with Russia. The new realities of the dynamic nature of international relations have definitely posed a challenge to the partnership. The pursuing of an all-alignment foreign policy has caused a certain level of discomfort in the bilateral relations. India’s growing proximity with the U.S. and Russia’s compromised defence cooperation with China and mending of ties with Pakistan in recent times has caused anxiety in the strategic partnership between India and Russia. One possible inference that one can draw is the constant comparison to the current India-Russia partnership with that of the nostalgia of Indo-Soviet ties. But one needs to bear in mind that compared to the strategic partnership that both India and Russia share with other major players, there are limitations and shrouded with lack of trust. India’s defence relations with U.S., for instance, is yet to make any substantive development in joint production and restrictiveness about its technology compared to Russia’s generosity to sharing defence technology and Russia’s relations with Pakistan is eclipsed with lack of trust and understanding. As for Russia-China relations, there is growing speculation of a possible role reversal in the partnership given China’s growth in global politics in recent times.
However, there are few stumbling blocks in India-Russia defence cooperation, especially the shifting trends in partnership, for example defence engagement between Russia and China. Russia’s current cooperation with China has emerged exclusively, as it includes cooperation in sensitive fields, such as strategic missile defence, hypersonic technology, and the construction of nuclear submarines. With Russia now collaborating with China on sensitive military equipment, allowing for the latter to be well equipped with similar and more advanced capabilities, China is a major security concern for India. Hence, given the way warfare has evolved over the years, collaboration in advanced future weapon systems, including quantum technology and artificial intelligence, should be enhanced further between India and Russia.
Indo-Russian relations are undoubtedly at the cusp of a litmus test. Nonetheless, the strategic partnership should see the future of Asia beyond the U.S. and China factors, and both India and Russia can play a decisive role in promoting their mutual interests in the region.
The rapid and uncontrollable spread of COVID-19 in the past seven months has impacted the global order and the interconnected systems. Reflecting the spirit of the partnership in times of crisis, India coordinated with Russia in organising the repatriation of Russian nationals. Russia also welcomed India’s goodwill gesture to send medical supplies to help fight the virus.
Critics have often pointed out that the strategic partnership is yet to achieve its full potential, given the fact that some of the spheres of cooperation continue to be remain obsolete, for instance, the economic relations. Additionally, given nearly 70 years of diplomatic relations, soft power capabilities, cultural diplomacy, academic exchange programmes, and labour migration are at an imperceptible status.
Trade and investment remains the weakest link in our strategic partnership and falls far short of our potential, which unfortunately is not commensurate with our high-level political cooperation. Post the announcement of the Strategic Agreement in 2000, which largely promotes the strengthening of economic relations between India and Russia, the trade cart received much required upgrade. Potential areas of trade have been explored, which include trade and investment, energy, nuclear, science and technology, pharmaceuticals, IT, steel, diamonds, fertilizers, infrastructure, heavy engineering and food products. Exploring economic prosperity, sustainable development, and free movement of people, information, knowledge, ideas and greater institutional links has also become crucial.
In fact, both countries have set a target of $30 billion worth of trade turnover and $30 billion investment in each other’s country by the year 2025. It is also heartening that new options are being explored to further expand the domain of economic cooperation, Eurasian integrity, regional cooperation, free trade agreements, connectivity and trade corridors have gained the utmost importance in the annual bilateral summits in the past two decades. The two countries have also set up mechanisms such as Intergovernmental Commissions. For example, Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC), the International North South Transport Corridor and the Eurasian Economic Union, which have emerged as immediate priority areas for strong economic cooperation between the two countries.
The Russian Far-East is another region for potential economic engagement. India’s presence in the Eastern Economic Forum (EEF) is aimed at developing trade, commerce, investment, railway infrastructure, steel plants, defence, space, ports and shipping. India has successfully participated in the annual EEF, with Prime Minister Narendra Modi calling for an “Act Far East” policy and announcing $1 billion line of credit for the development of the Far East. Other than these developments, our economic ties are focused on exploring the potential of sub-regional cooperation. Sub-regional cooperation has emerged as one of the prospective areas of cooperation and regional connectivity to add further impetus to the economic cooperation between India and Russia. The key goal is to cement and institutionalise cooperation between the States and Union Territories of the Republic of India and Provinces of the Russian Federation.
To further bolster India’s FAR ambitions, an Indian Chief Ministers delegation of four Indian states led by the Commerce and Industry Minister of India Piyush Goyal visited Vladivostok to explore the opportunities and potential of business to business (B2B) cooperation in the FAR. With the introduction of the Russian Homestead Act and India being host to one of the largest agricultural farmers’ immigration in the world, the need for both India and Russia to tap the potentials of agricultural sector is crucial. Regional connectivity needs due attention, hence the successful execution of alternative economic corridors and maritime trade corridors, such as Chennai-Vladivostok, needs prompt engagement.
The major impact of the pandemic has prompted countries to explore alternate market destinations and shifts in the business environment. The crisis has opened opportunities for countries such as India and Russia to reposition themselves in the global supply chain. Russia, with its efforts to attract investment to the Far East, and India, with its huge manpower and existing available manufacturing units, should be endorsed as potential and suitable alternatives for manufacturing, instead of developed nations.
Despite the seemingly successful bilateral relations between India and Russia, the strategic community is incomplete if there is shortfall in establishing strong people-to-people engagement. Since the Soviet collapse, bilateral relations have seen minimal cultural diplomacy, academic exchange and labour migration. Perhaps new vistas of cooperation could be explored to promote soft power capabilities between the two countries, such as cinema, which has always been one of the most successful foreign policy tools to enhance cultural exchange and people-to-people contact between countries.
The film industry is a great medium for spreading narratives, and in India movies have an immense following as well as impact on the minds of the population. India and Russia collaborated in movie production during the Soviet era, however, the trend did not last long due to the fall of the Soviet Union, among other factors. The time is right for both India and Russia to collaborate in the entertainment industry, especially through joint production of movies and creating powerful narratives related to bilateral cooperation. India and Russia must concentrate more on the content of the movie rather than joint production alone, as for the audience the content matters more than the producer. Moreover, it can have an everlasting impact on the minds of the Indian population if the content projects a Russian character aiding/collaborating with an Indian protagonist in a movie in bringing down an antagonist. Also, the Indian movie industry is always on the look for exotic locations in foreign lands. Hence, in order to attract the Indian movie industry, Russia could look into easing travel and other shooting permissions within its jurisdictions. Such an effort would not only bring closer industry ties, but also be able to showcase the Russia and its rich culture to the Indian population, thereby acting as a window of promotion for Russian tourism.
Regarding geopolitical realignment, today the global community is seeking pragmatic internationalism. The role of India and Russia is crucial in their efforts to diffuse the multipolar world system. This is also relevant for regional alliances to actively engage politically and economically, which should help bilateral relations between the two countries elevate to a higher pedestal in post-pandemic world order.
The current global situation has given rise to some daunting challenges for the partnership once again. Some of the challenges in the post pandemic world are linked to the disruptions being caused to the international order by traditional and non-traditional threats such as climate change, cyber security, health security, data protection, secure communication challenges etc. Nurturing hopes for stability and prosperity in Eurasia in the post pandemic world, bilateral relations between India and Russia and their proactive role in regional mechanisms such as SCO, Eurasian Economic Union (EAEU), and Russia-India-China (RIC) are viewed as an integral part of this construct. Regional connectivity needs due attention including the successful execution of alternative economic corridors and maritime trade corridors.
In conclusion, the signing of the milestone agreement in 2000 was the outcome of developments that took place in bilateral relations between India and Russia after the fall of the Soviet Union. The main aim of the agreement was to elevate the partnership to new level of cooperation and put speculations and uncertainties in the relationship to rest. Over the past twenty years of relations, the partnership has seen many ups and downs. Nonetheless, this has not allowed any major damage that could impact or lead to any serious conflict of interest between the two countries. Having said that, the coveted relations built over the years cannot be taken for granted. In this regard, apart from political elites and bureaucrats playing a crucial role in enhancing the relations, academicians, artists, students, the research community, think tanks and educational institutions should contribute to forming the true essence of the partnership. The youth, in particular, need to draw inspiration from each other’s rich history and cultural relevance, carrying forward the vision for a long-term partnership. The engagement of both countries in the international ecosystem in the post pandemic world has become even more relevant, as it has given rise to new challenges and opportunities. The strategic partnership between India and Russia nevertheless needs to insulate the mutual interests from challenges that emerge from within and from external factors. Perhaps, the need for a reality check and serious introspection will be crucial as the challenges are only set to grow given the dynamism of international relations.
From our partner RIAC
United States, Russia or China: The Struggle for Global Superpower
Despite its large population of 1.5 billion which many have considered as an impediment, China’s domestic economic reforms and collaborative strategic diplomacy with external countries have made it attain superpower status over the United States. While United States influence is rapidly fading away, China has indeed taken up both the challenges and unique opportunities to strengthen, especially its economic muscles.
On October 22, Vladimir Putin took part, via videoconference, in the final plenary session of the 17th Annual Meeting of the Valdai International Discussion Club. The Valdai Discussion Club was established in 2004, with a goal is to promote dialogue between Russian and international intellectual elite, and to make an independent, unbiased scientific analysis of political, economic and social events in Russia and the rest of the world.
Putin touched on a wide range of different issues. What particularly interesting was his assessment of the changing politics and the economy, and rating of the global superpower. “The world has changed several times. Meanwhile, time increasingly and insistently makes us question what lies ahead for humanity,” he said during his interactive speech with the participants.
In effect, the post-war world order was established by three victorious countries: the Soviet Union, the United States and Great Britain. The role of Britain has changed since then; the Soviet Union no longer exists, while some try to dismiss Russia altogether, according to Putin.
Indeed, the Soviet Union is no longer there. But there is Russia. In terms of its economic weight and political influence, China is moving quickly towards superpower status. Germany is moving in the same direction, and the Federal Republic of Germany has become an important player in international cooperation. At the same time, the roles of Great Britain and France in international affairs has undergone significant changes, he further explained.
The United States, which at some point absolutely dominated the international stage, can hardly claim exceptionality any longer. Generally speaking, does the United States need this exceptionalism? he asked rhetorically, and further cited that powerhouses such as Brazil, South Africa and some other countries have become much more influential in the world.
Amid the current fragmentation of international affairs, there are challenges that require more than just the combined capacity of a few states, even very influential ones. Problems of this magnitude, which do exist, require global attention. International stability, security, fighting terrorism and solving urgent regional conflicts are certainly among them; as are promoting global economic development, combating poverty, and expanding cooperation in healthcare. That last one is especially relevant today.
Arguably, China has worked on all that is now recorded as its grandiose achievements. It has systematically transformed its economy at the same time, maintained the political structure. Its major cities and coastal areas are far more prosperous compared to rural and interior regions. It brought more people out of extreme poverty than any other country in history. China reduced extreme poverty by 800 million.
As expected of any development process, there are still problems. Nonetheless, the level of public support for the government and its management of the country is high, with 80 – 95% of Chinese citizens expressing satisfaction with the central government, according to a 2019 survey.
That compared with Russia, Putin explained that Russia has to begin from the scratch. Lenin spoke about the birthmarks of capitalism, he reminded, and added that “It cannot be said that we have lived these past 30 years in a full-fledged market economy. In fact, we are only gradually building it, and its institutions. Russia had to do it from the ground up, starting from a clean slate. Of course, we are doing this, taking into consideration, developments around the world. After all, after almost one hundred years of a state-planned economy, transitioning to a market economy is not easy.”
On other way round, it is necessary to take a closer look at, in fact a complete insight into the approach, economic capability and the services by the Chinese. China has such a diverse landscape, with investment and trade around the world. According to the World Bank, China has the largest economy and one of the world’s foremost infrastructural giants. China is the world’s largest exporter and second-largest importer of goods.
China holds 17.7% of the world’s total wealth, the second largest share held by any country. It has the world’s largest banking sector, with assets of $40 trillion and the world’s top 4 largest banks all being in China. In 2019, China overtook the US as the home to the highest number of rich people in the world, according to the global wealth report by Credit Suisse. It has the highest number of rich people in the world’s top 10% of wealth since 2019. There were 658 Chinese billionaires and 3.5 million millionaires.
China’s Belt and Road Initiative has expanded significantly over the last six years and, as of April 2020, includes 138 countries and 30 international organization. Along with Brazil, Russia, India and South Africa, China is a member of the BRICS group of emerging major economies.
In recent years, the country has significantly strengthened bilateral ties with Asian countries such as China and India, with Latin American countries. An important aspect of Russia’s relations with the West is the criticism of Russia’s political system and over human rights. On the other hand, Putin’s leadership over the return of order, stability, and progress has won him widespread admiration.
After the United States, the European Union and other countries imposed economic sanctions after the annexation of Crimea and a collapse in oil prices, the proportion of middle-class could decrease drastically.
The population moves forth and back, Russia has to support its economy with increasing population. Since 2006, the Russian government started simplifying immigration laws and launched a state program for providing assistance to voluntary immigration of ethnic Russians from former Soviet republics. In one of his previous speeches, Putin declared that Russia’s population could reach 146 million by 2025, mainly as a result of immigration.
Sprawling from the Baltic Sea to the Pacific Ocean, Russia has more than a fifth of the world’s forests, which makes it the largest forest country in the world. With it’s extensive mineral and energy resources, Russia is a major great power and has the potential to become a superpower. Russia can regain part of its Soviet era economic power and political influence around the world.
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