Connect with us

Economy

China’s rise in Post-Pandemic World Order: A Serious challenge for Dollar Diplomacy

Published

on

The insurgency of colossal negative effectiveness of SARS-CoV-2 from Dec-2019to Post 2020 world is a Multidimensional model rather than that of an Unidimensional model of devastation. It has not confined it’s impact within the public health emergency rather on the Economic risks (rise of unemployment, steady growth of inflation rate, disruption of supply chain, outflow of capital and slowdown of FDI), Societal risks (rise of chronic trauma, increase of psychological anxiety and stress, Coronaphobia) ,Technological risks (Cyberattacks, Fraud of database, inflows of unemployment at workplace) and Geopolitical risks which includes restraints on cross border free flow of peoples and goods, scrapping of foreign aid & rise of Humanitarian Crisis and so on throughout the world for a prolonged period of recession.

As far as Bullying on rise of superpower status is concerned from BC (Before Coronavirus) to the post pandemic world order some political and economic experts has been adhering the notion that China will continue it’s stability and predictability in the area of economic growth from the Asian periphery to over the western hegemonic powerhouse, meanwhile particularly for USA, China has possess its counter balance (yuan(¥) therapy over the dollar diplomacy by formulating  strong apparatus for domestic supply chain and logistics support through approaching the calibrated approach both in national and international market.

In the recent couple of years China has adamantly pushed its ambitious objectives like ‘Going Global Strategy’,‘Made in China 2025’ and ‘China Standards Initiative in2035’,and through the Xi Jinping’s foreign policy strategy and it’s massive investment policy in the area of Research and Development (R&D) especially in qualitative approach of development in the critical areas of emerging technologies such as 5G (Huawei) , Artificial Intelligence (AI), Internet of Things (IoT), Machine Learning and Computing etc. But unfortunately China has been facing it’s trade rivalry with the US, Australia, and territorial confrontation with India along the Line of Actual Control (LAC) and unlawful incursion of China in South China Sea, East China Sea, Senkaku Island and with the dispute over the other Islands  like Paracel Island (China & Vietnam), Scarborough Shoal Island (China & Philippines) and Spartly Island dispute over multiple stakeholders like China, Vietnam, Malaysia, Brunei, Philippines and other non-littoral members of South China Sea, which has creating a partial challenge for China to push it’s Huawei and ZTE (Zhongxing Telecommunication Equipment) technology throughout the world level.

As per the security concerns of 5G technology Huawei of China has faced a serious challenge by the Cyber Experts on the threat of national security, sovereignty and it’s incursion on the national interest of the independent nations and stealing of data by the Chinese intelligence. Whereas China will suffered its major setback in it’s fiscal deficit.

Is Bullying of rising China the Challenge for Dollar Diplomacy…?

In this catastrophic situation of economic crisis both developed and developing countries has been trying to stabilize their domestic economy crisis by rolling out the various rejuvenating plans for instance USA government has followed by direct benefit transfer around US$2000 per individuals to their bank accounts, in recent 21 July 2020 European Union has approved Next Generation EU  €750 billion proposed stimulus package for 27 member countries with the longest time period from 2021-27, and India has also followed some stimulus economic assistance in the MSMEs sectors and 1.7 trillion package for the poor family in order to lift its economic damage from Coronavirus Outbreak. Similarly as far as China is concerned it is not crystal clear what kind of fiscal and monetary stimulus they have adopted in order to revive it’s economy from being slaughtered by pandemic.

Optimistically, China is very much vibrant over the achievement of it’s realist value of national interests and rising superpower status by projecting various multibillion dollar projects like BRI, $900 New Silk Road, CPEC and maritime trade projects, logistics supports and so on. As far the economic stability and viability in post pandemic world situations is concerned the major economists has been predicting that the Asian economy  will be possible to stabilize it’s economic crisis as partially effective than that of the western dollar economy, because the western part of the world especially USA has been severely triggered by Covid-19 and it’s economic response towards the pandemic by comparing the Asian periphery is very high.

In 18 July, 2020 US Department of Defense published an article which cites the Defense Secretary Dr. Mark T Esper pointed  out that, “We (USA) are in an era of great power competition… and that means that our top strategic competitors are China then Russia,” he said China is bigger problem, he said as it has the population and economic to displace the United States. It’s very clear to me and anybody who understands China that they have the ambition to displace USA certainly from the origin and preferably on the Global stage. Mark also pointed about the Chinese wants to rewrite the rules if the international order that have served the nations of the world.

Both China and Asian countries has very good experience of multilateralism  protectionist measures over the past lessons from “Asian Contagion” of 1997 (Asian Financial Crisis) in order to stabilize their devaluation of currency value with the US dollar. Aftermath the Economic and Monetary Union pushed it policy of Economic Integration by formulating the “Chiang Mai Initiative” or ASEAN+3 in 2001 which consists of ten Asian countries with China, Japan & South Korea. It was developed as a parallel circulation of new currency against US dollar and Euro under the cumulative proposal of Regional Monetary Unit (RMU). Yes, it has as an ultimatum for China and particularly for Asian countries to unanimous officials circulation for enforcement against dollar currency.

Positively, we can say China has cited some long- term potential development may become an economic superpower but will not be able to match the overall strength of the USA.

Post Graduate Student in Political Science Department of Politics and International Studies Pondicherry University, Puducherry, India.

Continue Reading
Comments

Economy

St. Petersburg Forum Offers Unlimited Business Opportunities

Published

on

The 24th St. Petersburg International Economic Forum (SPIEF’21), unique business forum that is highly expected to bring together politicians, corporate business directors and investors from different parts of the world, is set to take place June 2-5 as the epidemiological situation begins to stabilize in Russia.

That however, the Russian Federal Service for the Oversight of Consumer Protection and Welfare (Rospotrebnadzor) with organizers promise everything in its power to ensure that the event is held with all the necessary measures in place to prevent the spread of coronavirus, and strictly in compliance with the recommendations given by the World Health Organization (WHO).

Roscongress Foundation, the organizer, says on its website that it has decided to create new infrastructure for comfort and safety of participants in view of the coronavirus pandemic. For instance, PCR test conducted at access to the venues, catering, sanitizing the premises, and providing participants and staff with personal protective equipment.

Thermal imaging control will be provided. Medical stations at the venue provided with the necessary equipment and medicines. There will be ambulances and resuscitation vehicles, including teams of English-speaking doctors. All spaces of the site equipped with air recirculation units and decontamination devices, among other measures for all participants visiting the events in St. Petersburg city.

Hans Kluge, Director of the World Health Organization (WHO) Regional Office for Europe, together with Anna Popova, Head of Federal Service for the Oversight of Consumer Protection and Welfare (Rospotrebnadzor), will hold a special briefing for participants on pandemic situation and its control in Russia and around the world.

Kremlin Spokesman Dmitry Peskov told the Russian local media that President Vladimir Putin plans to take part in the plenary session of the St. Petersburg International Economic Forum (SPIEF). “But Putin will be there in person,” Peskov reaffirmed his earlier statement, and further informed that in-person forum will be held in strict accordance with health and safety measures, the president received the first vaccination shot on March 23 and the second on April 14.

Over the years, this forum has strengthened multifaceted business ties, facilitated broadening relations and the development of cultural dialogue between Russia and many foreign countries. According to Roscongress Foundation, a number of foreign countries, keen on making solid business presentations and equally seek partnership opportunities for mutually beneficial cooperation, have already registered their participation.

Traditional inter-country business dialogues are planned as part of SPIEF featuring representatives of business communities of Italy, Germany, France, the United States, India, Africa, Finland, Japan, Latin America, Middle East, as well as the EAEU-ASEAN business dialogue. Under the umbrella of SPIEF, international meetings in business room format will be held with the participation of representatives of Roscongress Foundation’s international partners and businesses in the corresponding world regions.

Apart from the main business programme, SPIEF will also host the SME Forum, Youth Economic Forum, SCO, BRICS and ASEAN events, B20 Regional Consultation Forum, Creative Business Forum and Drug Safety and Security Forum, as well as events on Arctic and African agenda.

The central theme of the Forum is A Collective Reckoning of the New Global Economic Reality. The business programme includes more than a hundred events divided into four tracks touching upon the issues of global and Russian economy, as well as social and technological agenda.

Joining Forces to Advance Development is the key track of the business programme. It includes sessions on economic recovery and international cooperation, discussions on Eurasian integration, transformation of global trade, effectiveness of business during the pandemic, global energy market, recovery of food market, and sustainability of national healthcare systems.

The second theme block of the business programme focuses on national development targets, the anti-crisis agenda for strengthening long-term potential of the economy, investment climate in Russian regions, shaping of Russian research and technology space, development of the financial market, creation of circular economy, and functioning of strategically important industries.

Discussions under the New Technology Frontiers track will feature the topics of international cooperation in science, digital sovereignty and information security, healthcare digitalization, tech ethics and others.

The Human Factor in Responding to Global Challenges theme block will talk about cultural codes of the new reality, collaboration in international education projects, and new skills and employment models in a post-COVID world. Moreover, there are sessions on the development of creative industries, sport and education.

The Russian Small and Medium-sized Business Forum is an annual event held as part of SPIEF to discuss the current state of small and medium-sized businesses and measures to enhance their role in the Russian economy. It is, however planned that the focused sessions encompass the key aspects of support and development for small and medium-sized enterprises.

“Small and medium-sized business is the foundation of the economy and a key indicator of the current status of socioeconomic development. As we are looking towards the future, it is essential to develop and implement long-term programmes that will give a new impetus to the development of SMEs,” said Anton Kobyakov, Adviser to the Russian President and Executive Secretary of the SPIEF Organizing Committee.

“We plan to discuss all the proposals in details at the SME Forum because they determine how small and medium-sized businesses will thrive in the future. Small and medium business is the largest employer and a guarantor of socioeconomic stability and the dynamic development of society. The development of entrepreneurial education, cooperation among small and big businesses, and the development of youth entrepreneurship, among other issues,” he said.

With a similar view and position, SME Corporation CEO Alexander Isayevich said “Entrepreneurs need to understand how to work in the new economic realities and what support measures the state will continue to provide. In addition, it is crucial for entrepreneurs to have high-quality non-financial services. The sessions, attended by a wide range of experts, will help to find optimal solutions not only for the SME sector, but also for the entire economy. We always advocate an open dialogue with business, as this is the principle that underlies our new development strategy.”

As part of Youth Day programme, the most promising undergraduate and postgraduate students, as well as young scientists from Russia’s leading universities and scientific organizations will participate in the St. Petersburg Forum.

“It has become a good tradition for talented young scientists and students to take part in SPIEF, it is a leading business event that brings together unique experts from all areas of the economy. Participation opens up limitless opportunities for young people to exchange experience and gain new knowledge,” said Andrey Fursenko, Aide to the President of the Russian Federation.

There will also be large-scale different cultural events. For instance, Qatar plans an exhibition – “Qatar between Land and Sea, Art and Legacy” – this exhibition is a great opportunity for people from around the world to explore the very precious elements of the Qatari and Middle Eastern tradition and lifestyle, such as handmade carpets and artifacts, pearls, and antique jewelry, which makes it a magical journey through history.

St. Petersburg forum is highly-considered as an important step forward in developing and strengthening investment‑related collaboration. As one of the biggest economic forums in Russia, it yearly gathers several thousands of participants, including representatives of ministries and government bodies, financial and investment organizations, startups, and tech and innovation companies, and representatives of the media.

Despite the adjustments made due to the pandemic, there are for all participants interesting and useful initiatives for comprehensive interaction as the key objective is to create opportunities and friendly conditions to consolidate links between Russia and the world.

About the SPIEF’21 Organizer: Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of international conventions and exhibitions; and business, public, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

Continue Reading

Economy

On the Role of Sovereign Wealth Funds (SWFs) in Supporting a Green Recovery

Published

on

Perhaps one of the few areas where a consensus is crystallizing across the major powers of the global economy is on the urgency of advancing the green environmental agendas and reducing the carbon emissions. Global institutions such as the IMF are emphasizing the need for a green recovery to take hold in the world economy as the global community emerges from one of the starkest crises in the past century. The world’s sovereign wealth funds as a powerful force in international financial markets could play a vital role in advancing green projects as well as green finance. This is particularly relevant for Russia, where the National Wellbeing Fund could be partly invested into green financial instruments.

At this stage there is a number of global networks and initiatives that bring together the world’s largest institutional investors, including sovereign wealth funds, to drive the green investment agenda. These include European Long Term Investors, the Institutional Group on Climate Change and the Network on Climate Risk. Some of the wealth funds from the Middle East, including the Abu Dhabi Investment Authority, the Kuwait Investment Authority, the Qatar Investment Authority and the Public Investment Fund of Saudi Arabia, are signatories to the One Planet SWF Framework. The meeting held by the International Forum of Sovereign Wealth Funds in 2016 “participants highlighted that SWFs are particularly well-positioned to become trailblazers in green investment”.

Recent data and surveys reveal a growing integration of the green agenda into the decision-making and strategies of the world’s sovereign wealth funds. These were the findings of an inaugural survey of 34 sovereign wealth funds, representing 43% of the world’s sovereign funds, conducted in September by the International Forum of Sovereign Wealth Funds and the One Planet Sovereign Wealth Funds .

The survey reveals that climate-related strategies represent more than 10% of portfolios for 30% of responding wealth funds. The survey also found that these funds made 18 investments in agriculture technology, forestry and renewables opportunities in 2020 at a total value of $2 billion, up from eight investments valued at $324 million in 2015. Overall, according to the survey “sovereign wealth funds have invested more than $5 billion in agritech, forestry and renewables opportunities over the past five years as part of an increased push toward climate change-aware investing”.

Just over a third of responding funds (36%) have a formal climate-change strategy in place, with 55% of these funds adopting the policies since 2015 and 30% since 2018.

The survey came up with the following recommendations to wealth funds based on the survey findings:

· to adopt and implement climate-related strategies;

· to seek appropriate talent and expertise;

· to explore board member and executive education;

· to use metrics to show not only climate impact but also comparable returns and risk reduction;

· to communicate to all stakeholders the strategic importance of climate change;

· to partner with peers and international initiatives to share experience and generate greater leadership from within the wealth fund network.

The latter recommendation dovetails the recent Valdai Club initiative to enhance cooperation among the largest sovereign wealth funds against the backdrop of the Covid pandemic. In particular, in 2020 the Valdai Club together with Shafi Aldamer and Curran Flynn from King Fahd University of Oil and Minerals advanced the proposal to create a platform for the sovereign wealth funds (SWFs) of G20 countries to boost long-term cooperation, direct investments, and the formation of bilateral/trilateral/multilateral investment accords. The findings of this policy brief were included in the T20 communiqué, which encourages the G20 to promote “the creation of a platform that would bring together the sovereign wealth funds of its members, possibly in coordination with the International Forum of Sovereign Wealth Funds.”

Such a platform would encourage the G20 states to strengthen their economic cooperation, bolster mutual interests, improve multilateralism, and develop opportunities for their SWFs. Additionally, it would act as an emergency tool in easing the impact of a global crisis, such as the current COVID-19 pandemic, as it can be employed as an anti-crisis measure via the investments of the G20 states’ SWFs. One important venue of cooperation for such a platform for sovereign wealth funds could be the elaboration of green investing principles and benchmarks for the major sovereign wealth funds, which in turn would support the advancement of a green recovery in the global economy in the aftermath of the Covid pandemic.

As regards Russia’s sovereign wealth funds, most notably the National Wellbeing Fund (NWF), which by Q1 2021 has accumulated more than USD 180 bn in overall resources there may be a case for investing part of the liquid reserve into green instruments, including sovereign green bonds. In particular, the investment guidelines for the NWF may involve a formal target on the share of green assets in the Fund’s portfolio. These in turn may include corporate and sovereign green bonds from advanced economies as well as an allocation reserved for Russia’s corporate and sovereign green bonds. The latter would potentially deliver a significant boost to the development of Russia’s green bond market. Currently green bonds account for just 1.5% of total corporate bonds outstanding in Russia and the emergence of sizeable demand from Russia’s sovereign wealth fund would raise the potential growth for this very important market segment.

From our partner RIAC

Continue Reading

Economy

5 things you should know about the state of the global economy

Published

on

Is this the year we overcome the global economic crisis caused by the pandemic? Are our jobs in danger? Who has lost the most in the crisis and what can be done to recover? As the UN Department of Social and Economic Affairs (DESA) prepares to launch the mid-year update of the 2021 World Economic Situation and Prospects (WESP) report, here are five things you need to know about the state of the global economy.

1) US and China bounce back, but a slow recovery for developing countries 

While economic output in the United States and China is expected to grow robustly and lift global growth, many developing economies are not expected to return to pre-pandemic output levels anytime soon. The pandemic is far from over for most developing countries where vaccination is advancing slowly, and fiscal pressures have intensified.

2) The situation of the most vulnerable has become even more precarious

Lockdowns and social distancing measures resulted in large job losses in contact-intensive and labour-intensive service sectors, which predominantly employ women. The pandemic has also exposed the vulnerability of informal employment, which is the main source of jobs in many countries and which offers less job security, social protection and access to healthcare.

3) Global trade recovery is strong, particularly in Asia

Merchandise trade has already surpassed pre-pandemic levels, buoyed by strong demand for electrical and electronic equipment, personal protective equipment (PPE) and other manufactured goods. Trade in services remains constrained by restrictions on international travel. While exports from Asian economies have soared, exports from Africa, Western Asia, and the Commonwealth of Independent States has stalled.

4) The COVID-19 crisis has inflicted more harm on women and girls

This crisis disproportionately affected women, who suffered significant job and income losses, contributing to the worsening of gender poverty gaps. Burdened by increased home care duties, many girls and women gave up on schools, and the workforce altogether. Returning to school and work might take longer or may not happen at all for many of them, further widening gender gaps in education, income and wealth.

5) Countries need to do more to address the uneven impact of the COVID-19 crisis

There is an urgent need for countries to formulate better targeted and gender-sensitive policies to drive a more resilient and inclusive recovery from the crisis. Though on the frontlines of the pandemic, women have been under-represented in pandemic related decision-making and economic policy responses. The severe and disproportionate impact of the pandemic on women and girls call for more targeted policy and support measures for women and girls, not only to accelerate the recovery but also to ensure that the recovery is inclusive and resilient.

Continue Reading

Publications

Latest

Africa1 hour ago

Hydro-projects in Africa: Interview with Vladislav Vasilyev

As widely known, Russia plans to hold the second Russia-Africa summit in 2022, as a further step to make inroads...

Europe2 hours ago

Belgrade and Pristina: Will a territorial exchange really happen?

The European Union is dialing up pressure on Serbia and Kosovo in an effort to convince Belgrade and Pristina to...

Americas7 hours ago

Weakness or calculation? How the pandemic undermined the US world leadership

Anyone watching the numerous doomsday movies, happily churned out by Hollywood, will see American doctors saving the planet from space-borne...

Defense11 hours ago

Prospects for a Settlement of the Libyan Conflict: Three Scenarios of the Mid-Term Forecast

More than ten years ago, in February 2011, the Arab Spring began in Libya. The armed uprising quickly escalated into...

New Social Compact13 hours ago

Discerning the Human Element Amid the Pandemic

“We are not human beings having a spiritual experience. We are spiritual beings having a human experience.” – Pierre Teilhard de...

Arts & Culture15 hours ago

“Kharibulbul” festival represents a multi-ethnic, multi-confessional and multicultural Azerbaijan

As a country of multiculturalism, Azerbaijan promotes the cross-cultural dialogue inside the country, but also at the regional level. The...

Europe17 hours ago

A leaderless ship: The Bulgaria’s political crisis and the storm to come

Internal and international tensions Politics tends to develop in a complex conundrum in all Balkan countries. Thus, never can observers...

Trending