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A Dangerous Interregnum

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Authors: Zlatko Hadžidedić and Adnan Idrizbegović*

Less than two months are left for the transition of government in the United States of America. Not a long period, but sufficient to trigger processes that the next American administration would not be able to reverse. There are no reasons to doubt that President Trump, who still refuses to concede the election defeat, will try to make the future of the Biden Administration as difficult as possible. In this context, let us remember that President Trump hails the abandonment of the nuclear treaty with Iran as his highest achievement, so it would be reasonable to assume that he would do almost anything in his power to make this very step irreversible. The question of whether that includes the option of a military attack on Iran, therefore, hangs in the air.    

We are witnessing a current concentration of American air power in Iran’s neighbourhood. This particularly refers to strategic B52 bombers and F16s from American bases in Europe. Further arrival of F35s in the region would increase the likelihood of an attack on Iranian nuclear facilities. This likelihood might also be increased with the announced arrival of the aircraft carrier Nimitz into the Gulf waters. As news agencies reported, the military option of that type had already been seriously considered by President Trump and his advisors, although it did not enjoy a high degree of support among the highest US military officers. In the forthcoming period, as long as Trump sits in the White House, it is realistic to expect that this dispute between the military and the Administration will gain in intensity, given the fact that President Trump’s team is well-known for its stubborn sticking to its original agenda.

In this context, it must be noted that the nuclear treaty with Iran was declared as one of President Obama’s greatest foreign policy successes. The Joint Comprehensive Plan of Action (JCPOA) is a detailed agreement with five annexes reached by Iran and the P5+1 (China, France, Russia, the United Kingdom, the United States, and Germany). The nuclear deal was endorsed by UN Security Council Resolution 2231, and Iran’s compliance with the nuclear-related provisions of the JCPOA was verified by the International Atomic Energy Agency (IAEA). It was a groundbreaking agreement that satisfied security concerns of Americans, Iranians, Arabs, Europeans, as well as others, opening the gates for Iran’s readmission onto the global scene. By adopting this treaty, Iran left its position of a pariah state. By betraying the treaty, President Trump has transformed the favourite role of the US as a leader of the free world into that of a pariah state. Does that imply his willingness to go even further in his rejection of all norms of international law, by launching a military action against Iran’s nuclear infrastructure, as a logical continuation of his unlawful withdrawal from the ratified international treaty? 

From President Trump’s perspective, such an action should prevent a quick and easy return of the US to the treaty in the post-Trump period. A war in the Gulf should lead to an instant rise of oil prices; consequently, it should also lead to the strengthening of the US dollar, linked to the prices of oil. In the times of the failing global economy, additionally burdened by the crippling effects of the pandemic, this would be the most favourable impetus to the withering economy of the US. The rise of oil prices would also have a negative effect on the manufacturing-oriented economies of American competitors in China and Europe. This rise would also strengthen the military industrial interests in the US, commonly backing the Republican Party, potentially at the expense of the financial ones, which traditionally stand behind the Democratic Party. 

A thorough, or even only partial, destruction of the Iranian nuclear programme would certainly be the most favourable outcome for hardliners on both sides, and President Trump probably sees it as a chance to either remain in power despite the election results, or to undermine the position of the future Administration. No doubt, that would trigger a robust return of Iranian hardliners to power in the forthcoming elections, which would probably close the door to negotiations with Iran for the President-elect. Most likely, it would give a strong push to the Tehran radicals to renew the nuclear programme, this time exclusively for military purposes. Since an attack itself would probably be launched from the US military bases in the region, it would also trigger an Iranian retaliatory attack on these countries. Such a development would probably strengthen homogeneity among the cornered Arab NATO countries, such as Saudi Arabia, United Arab Emirates, Kuwait, Jordan, Bahrain, and Qatar, pushing them further into Israeli arms. This would also bring the Sunni-Shiite rift beyond the point of repair. Needless to say, most hardliners, not only in the West, would be absolutely delighted with that result. 

According to President Trump’s orders, the ongoing withdrawal of the American troops from Afghanistan, Iraq, as well as Syria, must be completed 5 days before the transfer of power to the Biden Administration. The withdrawal itself (complete or partial) shall leave an enormous strategic gap, for which there is no alternative to fill the void. Such an exit strategy is without precedent in the American military history, especially given the monumental costs attached to the invading enterprise that took place in these three countries. President Trump’s orders, therefore, imply that another gigantic calculus may be at play this time, a calculus of lasting global significance. Let us remember that an absolute departure of all foreign troops from the region was, actually, Iran’s demand after the assassination of the commander of the Iranian Republican Guard, Kasseem Suleymani. Does that mean that President Trump has accepted Iranian rules, or even supremacy, in the Gulf? Does it mean that President Trump would abandon American allies in the Middle East, from Israel to Saudi Arabia? And what will happen with oil, hitherto controlled by American companies, which exploited it due to the American military presence? Of course, if President Trump is not abandoning literally all American positions, alliances and interests in the region, it is likely that he must have some other strategic rationale. Perhaps cutting the military expenditures sounds acceptable to the ears of the American public. However, it is not sufficient to justify the magnitude of the shift.

The hasty withdrawal of the US troops, however, serves one clear purpose: it deprives Iran of available American targets for its potential retaliation attempts, and inevitably redirects Iranian wrath at the American allies in the Gulf. Thus the withdrawal not only increases the probability of President Trump’s military adventure against Iran, but also leaves the Arab allies between Iran and Israel, to choose their strategic sponsor. The question is, whether the recent secretive meeting between the Saudi Prince, Mohammad bin Salman, and the Israeli Prime Minister, Benjamin Netanyahu, is to be interpreted in this context?

In any case, the heaviest weight of the American absence in the region will fall on Israel’s shoulders. The Israelis know that an attack on Iran would bean option that could provide Israel with a necessary timeframe to adjust to these new realities and acquire a projected control over their Arab neighbours. A strategic importance of the attack would, therefore, require participation of Israel’s military. As the Israelis know it too well, detrimental effects on the Iranian nuclear programme are essential for the very existence of the state of Israel, since the Islamic Republic Iran is finally in the position to capitalise its long-lasting struggle against American dominance in the Middle East and gain strategic control over the entire Levant and the Gulf, so as to be promoted into a global player. The level of communication between President Trump and Prime Minister Netanyahu suggests that certain promises may have been made to the Israelis that an American attack on Iran’s nuclear facilities is imminent. However, the assassination of the Iranian main nuclear scientist, Mohsen Fakhrizadeh, attributed to the Israeli intelligence agencies, might be interpreted as an attempt to undermine the Iranian nuclear programme without a full-scale attack, either because the Israelis do not believe in its feasibility, or because they are trying to avoid it, given its long-term consequences that eventually might prove unfavourable for Israel’s position.

There might be one more option at play, bearing in mind President Trump’s favourite „art of a deal“ strategy: a secret deal between the current US Administration and Iran, that the US leaves the Shiite world (Iraq, Syria, and Lebanon, plus control over Afghanistan in potential partnership with Pakistan) to Iranian domination, in exchange for Iranian tacit permission to have the plutonium generator in Arak – suitable for development of a military nuclear programme – bombed and temporarily destroyed by the US. That option would buy several years to both the US and Israel, with a significant postponement of Iran’s eventual production of a nuclear weapon. To the other side, it would give Iran a chance to improve its geopolitical position as one of the two main powers in the region, in interim coexistence with Israel as a de facto leader of the Arab NATO alliance. Under these circumstances, a Shiite bloc led by Tehran, separating Sunni Arab countries from Turkey and Russian influence, might be a favourable development for the US. The questions are, of course, to what extent it would be acceptable to Israel, and to what extent it would draw Iran into overstretching, and effectively, into economic weakening.        

Whatever the calculus of the outgoing Trump Administration, the incoming Administration of the President-elect Biden has no interest in allowing that such dangerous developments take place. If President Trump orders an attack on Iran in the last 5 days of his mandate, right after the departure of the American troops from the region, all its negative consequences will be attributed to the Biden Administration, crippling their announced initiatives to stabilise the world affairs. For, Its geopolitical consequences could be numerous: a takeover of the Middle East by the strengthened Iranian radicals; a possible nuclearisation of Saudi Arabia, Turkey, and maybe Egypt; a further rapprochement between Iran and Russia, this time in the sphere of strategic nuclear cooperation, which would eventually terminate the Western influence in Eurasia. 

By going in that direction, President Trump would promote the strategy of „poisoning the well“ to the future Democratic Administration, depriving it of prospects for relevant foreign policy results in its next 4 years. Eventually, that might lead to the second coming of Trump; and then, to a burial of American democracy and implementation of an authoritarian one-party regime, as desired by the Republican radicals ever since the mid-1970s. 

*Adnan Idrizbegović, Independent researcher, Sarajevo, Bosnia-Herzegovina

Dr. Zlatko Hadžidedić is the founder and director of the Center for Nationalism Studies, in Sarajevo, Bosnia-Herzegovina (www.nationalismstudies.org).

Americas

Gallup: Trump Globally the Least Respected U.S. President This Century

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On January 15th, the Gallup World Poll issued its preliminary report for their upcoming “Rating World Leaders: 2021” report. It shows the results that have been tabulated for 60 of the 135 countries where they annually sample global public opinion about U.S. leadership. One especially clear finding from it is that when their final report for all 135 countries will be issued, it will show that among the three U.S. Presidencies on which Gallup has internationally surveyed — which are only the three U.S. Presidents in this century — Trump is clearly the one who is globally respected the least, even lower than George W. Bush was respected.

Here are the findings, in each of the 60 nations, and the percentage increase or decrease from Gallup’s last completed survey report, “Rating World Leaders: 2020”:

“Approval of U.S. Leadership Across 60 Countries and Areas”

“Do you approve or disapprove of the job performance of the leadership of the United States?”

%  “Approve”:

  • Dominican Republic, 66% was 56% in 2020
  • Cameroon, 62 was 61
  • Georgia, 61 was 43
  • Zambia, 56 was 26
  • Albania, 56 was 67
  • Philippines, 55 was 58
  • Uganda, 53 was 47
  • Mauritius, 50 was 59
  • Zimbabwe, 50 was 59
  • Ecuador, 43 was 34
  • Colombia, 42 was 41
  • Moldova, 40 was 45
  • Brazil, 40 was 38
  • Japan, 39 was 34
  • Kyrgyzstan, 34 was 32
  • Namibia, 34 was 31
  • Bulgaria, 32 was 26
  • Cambodia, 32 was 49
  • Hong Kong, Special Administrative Region of China, 31 was 31
  • Poland, 30 was 59
  • South Korea, 30 was 41
  • Bolivia , 30 was 31
  • Australia, 29 was 23
  • Taiwan, Province of China,    28 was 40
  • New Zealand, 26 was 17
  • Mexico, 26 was 17
  • Malta, 26 was 30
  • Ethiopia, 25 was 37
  • Argentina, 24 was 26
  • Ukraine, 24 was 32
  • Greece, 21 was 19
  • Croatia, 21 was 25
  • Morocco, 21 was 22
  • Serbia  , 20 was 19
  • Ireland, 20 was 30
  • Finland, 20 was 20
  • Slovenia, 19 was 20
  • Cyprus, 19 was 27
  • Tunisia, 19 was 24
  • Italy, 19 was 22
  • France, 18 was 23
  • Russia, 18 was 11
  • Netherlands, 18 was 20
  • Canada, 17 was 22
  • Spain, 17 was 23
  • Chile, 16 was 16
  • Estonia, 15 was 17
  • United Kingdom, 15 was 25
  • Denmark, 14 was 24
  • Turkey, 13 was 12
  • Slovakia, 13 was 28
  • Norway, 12 was 15
  • Portugal, 12 was 14
  • Belgium, 12 was 17
  • Sweden, 11 was 12
  • Switzerland, 10 was 13
  • Austria, 9 was 11
  • Iran, 6 was 6
  • Germany, 6 was 12
  • Iceland, 5 was 9

Remarkably, Gallup doesn’t poll in China on this question. (Nor does Pew.)

Notably, Trump is more disapproved-of in Europe than in any other part of the world. (Also, as Pew reported on 16 December 2020, “In Europe, more trust Putin than Trump.”)

Those percentage-changes that we’ve just shown total to a decline, among all 60 countries, of 121 percentage-points (-121%), or, almost exactly, a -2% change from the 2019 findings that had been reported in Gallup’s “Rating World Leaders: 2020”.

Gallup says that “until all of Gallup’s 2020 fieldwork is complete in a few months, it is still too early to say that the U.S. will see its worst ranking in the history of Gallup’s World Poll.” However, Gallup’s “Rating World Leaders: 2020” report covered 135 lands, and the 60 lands that they have tabulated as of now, for the 2021 report, seem to be a representative sampling of all of those 135, and collectively those 60 populations have reduced their respect for America’s leadership by 2%. In the 2020 report, the global level of approval for America’s leadership was 33%. The all-time-low had been the 30% figure in 2017, Trump’s first year, a finding which was based on Trump’s promises, not on his performance. The upcoming final Gallup report “Rating World Leaders: 2021” will — if the results from those 60 lands do turn out to be representative of the global findings — produce a 31% global approval level by all of the approximately 135 lands that will be covered in it. For each of Trump’s four years, then, the global percentages will have been (for each one of his four years) 30%, 31%, 33%, and (now, in his final year) 31%. Each year, it was even lower than the prior record low, of George W. Bush, had been, at 34% in 2008

There was higher disapproval than approval of America’s leadership during the Presidencies of George W. Bush and of Donald Trump than there was approval of either U.S. President’s leadership. Strikingly, however, there was higher approval than disapproval during (and throughout) the two terms of office of Barack Obama. That Nobel Peace Prize winner was/is internationally admired. (Crazy, but true: he was an international charmer.)

Here are summarized (with links to the evidence regarding) the actual chief international achievements of each of these three U.S. Presidents:

George W. Bush: destroying Iraq, and destroying Afghanistan.

Barack Obama: destroying Syria, and destroying Ukraine, while continuing Bush’s destructions of Iraq and of Afghanistan.

Donald Trump: destroying Iran, and destroying Venezuela, while continuing his predecessors’ destructions of Iraq, Afghanistan, Syria, and Ukraine. He also made the destruction of Palestine even worse than it had previously been.

So, the question regarding incoming U.S. President Joe Biden will be whether he will continue this tradition further, or reverse it. Because, it’s really all the same tradition, throughout all three U.S. Presidencies this century. By contrast, global perceptions are that those three U.S. Presidents were drastically different from one another.

On 15 September 290290, Pew bannered “U.S. Image Plummets Internationally as Most Say Country Has Handled Coronavirus Badly” and reported that:

The publics surveyed also see Trump more negatively than other world leaders. Among the six leaders included on the survey, Angela Merkel receives the highest marks: A median of 76% across the nations polled have confidence in the German chancellor. French President Emmanuel Macron also gets largely favorable reviews. Ratings for British Prime Minister Boris Johnson are roughly split. Ratings for Russian President Vladimir Putin and Chinese President Xi Jinping are overwhelmingly negative, although not as negative as those for Trump.

Right above that was this graph, which shows starkly the false European perception that Barack Obama was vastly superior to George W. Bush and Donald Trump:

Apparently, most Europeans have no problem with a U.S. President who continues America’s use of torture, and who continues America’s legal immunity of prosecution for banksters, and who imposes ethnic cleansing abroad, and who aims for achieving a U.S. first-strike ability to conquer Russia by a sudden nuclear blitz attack. Style is everything, for them; substance is nothing, to them. Why didn’t they like Hitler? Is it only because he did it to them?

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Americas

Why won’t Bowdich evoke 9/11 now?

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“Day of fire”. That’s how House Speaker Nancy Pelosi referred to the Capitol insurrection, which happens to be the exact same phrase President George W. Bush used on the occasion of 9/11. That is not coincidental. But why won’t the FBI draw 9/11 parallels now?

In spring last year, when I was running for UN Special Rapporteur on freedom of speech, in a leaked memo to the New York Times, FBI Deputy Director David Bowdich was quoted in a reaction to the Black Lives Matters protests. Bowdich maintained that the protesters should be arrested under an outdated racketeering law from the 1940s. The leaked memo showed that Mr Bowdich considered the social justice movement “a national crisis” comparable to 9/11. The hundreds of thousands of people mourning and marching across the country, unified by the simple thought that no life should be taken lightly, for nothing, were actually similar to terrorists in the eyes of the FBI who wanted to charge them as racketeers. Why won’t Bowdich evoke 9/11 now, when it comes to far-right actual terrorism? We are talking about plans to blow up buildings and assassinate law-makers.

There is evidence appearing now through the courts that the Trump mob indeed intended to capture and assassinate congressmen. A new court filing by federal prosecutors says that Trump supporters intended to “capture and assassinate” elected officials during the Capitol riot.

The FBI has a misplaced terrorism obsession with the progressive left, while lightly ignoring the far-right, which is by far the more violent and much more organized group. The Capitol events security mishandling demonstrated a different attitude when it comes to the latter group.

There is a difference between street clashes with police in social justice protests that have gone overboard and have turned violent, on one hand, and placing bombs at political buildings, plans to kidnap and assassinate politicians, and violent usurping of the certification of a democratically elected president. The difference should be obvious, and yet the FBI is pursuing its obsession with the left voices, largely ignoring the violent extremists and the real violent terrorism threat on the far right, as recently revealed by an Intercept investigation.

In a public statement, the FBI made sure that the public understood its own misguided standard used in the threat assessment in the Capitol attacks by the Trump mob, namely the aspirations vs intentions test. The FBI official explained that the FBI needs to consider that some online activity and planning by the far right could simply be “keyboard bravado”. So, “keyboard bravado” is now the new “locker room talk”.

It is not surprising that the FBI uses different standards to assess the threat on the far-left and on the far-right. Former FBI director Hoover called Martin Luther King “one of the most dangerous negroes in America”. MLK was far from a hero for the FBI. It is not uncommon for the FBI even today to mischaracterize center-left voices of reasonable progressives who are anti-violence, pro-rights and pro-equality as far-left anarchists and communists, magnifying the threat on the left while ignoring the bigger threat on the right. Calling reasonable center-left Democrats anarchists and communists is a classical President Putin move. Let’s recall that ahead of the presidential elections in November, Russian President Putin endorsed Biden and the Democrats as communists whom we would get along with, in order to discredit them.

Let’s look at the actions and the security measures present around the two types of crowds. In a recent interview I wondered why FBI deputy director Bowdich won’t evoke 9/11 now in relation to far-right terrorism, in the context of the methods that the FBI sometimes uses to suppress and deal with progressive voices.

The FBI have opened mow many cases for “domestic terrorism” into the Capitol attack and it is true that they are saying that they are treating these cases as “international terrorism” but where is the FBI public condemnation of terrorism? We have not seen public statements by the FBI director Christopher Wray and FBI deputy director David Bowdich. Why won’t Bowdich come out and evoke 9/11 now, just like he did with the Black Lives Matter movement?

America has a long way to go to recover from the damage that Trump and his cronies spread across the various US agencies have done to democratic principles and human rights. The Trump institutional capture of key agencies such as the FBI and the CIA, let alone DOJ, has led the country into a downward spiral. I myself just launched a $1 UN lawsuit against the Trump circle at the UN, in attempt to clear the Trump circle also from the UN.

The capitol events were an embarrassment for the FBI who failed the due diligence standard of the reasonably expected measures that should have been taken in a similar situation because they were dealing with the President’s supporters. Then, the FBI decided to justify their inaction with the false “keyboard bravado” explanation, which does not explain anything.

The FBI are now running social media campaigns for the collection of evidence on suspects in the Capitol attacks but the truth is that the FBI does not need random people to phone them and point them to the bad guys. The FBI follow these groups and people, they know everything. It’s just a question of choice as to when to bring out the collected over time evidence. The FBI is in a hurry now only because there is public and social pressure to do something. All of America is watching what will happen to the bad guys.

A couple of days ahead of the Capitol events, I noted on Twitter that Homeland Security acting Secretary, Chad Wolf, was on a trip to Cyprus, while America was “burning”.  The Cyprus frictions in the European Mediterranean seem like a holiday now, in comparison to the Capitol events. Several days later, Wolf resigned.

With the news that President Trump intends to issue over 100 new pardons during his last two days in office, the question of justice for the Capitol events is as relevant as ever, as it is reasonably expected that some of the pardons could relate to the Capitol attacks.

It is safe to say that former Attorney General Bill Barr is not missed by many people. The Trump supporters’ cases would not have received fair treatment at the Department of Justice under his watch. The new Attorney General in the Biden Administration, judge Merrick Garland, in fact, might discover that many cases from the Bill Barr time will have to be reopened.

The top security priority now is President-elect Joe Biden’s inauguration on Wednesday, 20 January, while Trump holds a separate rally. The Capitol events served as a warning.

Looking forward, it is time for American democracy to demonstrate its elasticity. And legal justice necessarily has to be a part of that, ignoring phony calls for “unity” and “healing” made by the criminals themselves who are trying to escape justice now.  There can’t be unity without ensuring justice first.

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Americas

Latin America and China: The difficulties in relations and Covid-19

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The relations between China and Latin America have developed positively, but some problems and challenges are also being faced. Firstly, the intensified strategic and economic competition between China and the United States has increased the negative impact on the relations between China and Latin America. Trump’s Administration already used zero-sum competition and Cold War mentality to mark Sino-U.S. relations, believing that China’s rise in Latin America could upset the U.S. order in the Western Hemisphere.

Back in February 2018, during a visit to Latin America the then Secretary of State, Rex Tillerson, said that China was using its economic influence to bring Latin America into its sphere of influence, and criticised it as seeking a new imperial power for its geopolitical expansion.

In 2018, Rand Corporation published the 400-page report At the Dawn of Belt and Road. China in the Developing World. The report pointed out that China’s contacts in Latin America and its geopolitical advantages held back the U.S. presence in the region.

Specifically, the report explored China’s economic, political and security roles in Southeast Asia, Oceania, Central Asia, South Asia, the Middle East, Africa and Latin America and the Caribbean.

The report also analysed China’s bilateral relations with key States in each region. Finally, it dealt with the negative consequences of the Chinese strategy towards developing countries for the United States. Therefore, it maintained that strategists and decision-makers in the Armed Forces, and all U.S. military staff, needed to focus on China and anyone interested in developing international relations with that country. An attitude of threat not only towards China.

Another factor preventing – at least apparently – the development of China-Latin America relations is the retreat of Progressives and the advance of Conservatives in the landscape of political change in the Subcontinent: this poses a challenge to the development of mutual relations.

2017 and 2018 were general election years in thirteen Latin American countries. In Brazil, Argentina, Chile, Peru and other countries, the old traditional and left-wing parties lost elections. Therefore, Latin America is divided into two camps: one is the left-wing one represented by Cuba and Venezuela, and the other is the right-wing camp composed of Brazil, Chile, Colombia and Peru.

Conversely, the fast development of China-Latin America relations from 2003 to 2013 was favoured by the political atmosphere of the left-wing camp. Currently, however, the transition from the Left to the Right tells us that some countries rely on the United States in terms of development projects and ideologies. Therefore, the political transition has become an additional challenge for the development of relations between China and Latin America.

Another crisis point is the impact of the pandemic. Here are some data regarding the Covid-19 cases until January 17, 2021:

Latin America: 16,753,447

North America: 23,091,187 (USA: 22,423,006; Canada: 668,181)

Europe: 28,291,217

Asia: 18,549,010

Africa: 3,059,974

Oceania: 56,556

Latin American countries record relatively high urbanisation rates, with peaks of 70-80%. Large cities are very densely populated, with a high percentage of informal employment and weak national control abilities, which create the conditions for the spread of Covid-19.

On the other hand, the United States-which is the worst affected country in the American Continent – has increased the repatriation of illegal immigrants from Mexico and Central American countries for reasons of epidemic prevention and control, thus further aggravating the situation in these already disadvantaged countries.

Why is the pandemic in Brazil so severe? The indifference of President Bolsonaro’s government towards the epidemic, as well as ineffective measures and omissions in control are the main reasons for the spread of the epidemic in Brazil. The first case was discovered in Brazil on March 12, 2020 and the epidemic soon began to spread throughout the country, which currently records 8,131,612 cases and 203,580 deaths.

Brazil’s former Health Minister, Nelson Teich, advocated isolation, but Bolsonaro’s philosophy is different. He believes that imposing quarantine curbs economic development. Health Minister Teichresigned. The new Minister is Gen. Eduardo Pazuello, who has no medical training and no experience in managing public health disasters.

An official of the Brazilian Ministry of Health said that the number of people infected by the pandemic is officially eight million, but it has actually exceeded ten million. This unprecedented public health crisis has triggered economic recession and could lead to new social unrest. These are all new challenges.

The impact of Covid-19 on the entire Latin American region is very severe. According to the World Bank statistics, it has been the most severe crisis ever since the Great Depression in the 1920s and 1930s. The blow to the region is reflected mainly in four aspects:

1) exports have declined.

2) The prices of raw materials have fallen. Due to reduced demand, prices have inevitably fallen. Recently, everyone has seen a drop in copper prices, especially as Peru and Chile, the copper mining centres of the world, have been forced to close their mines due to the impact of the pandemic.

3) Tourism has collapsed. Latin America is a kind of cultural-exotic attraction for North Americans and Europeans. With Covid-19, there is no way for tourism and passenger transport to go back to the traditional levels of normalcy.

4) The inflow of remittances has decreased significantly. They are one of the main driving forces for economic development in the area, especially in regions like Central America and countries like Mexico.

The Latin American immigrants working in the United States put aside the money they earn and send it to their families – a key source of income for Latin America. As the U.S. economy has been severely hit, also remittances have been significantly reduced, to the detriment of the entire subcontinent.

With specific reference to Covid-19, it should also be mentioned that on June 24, 2020, the U.S. Congress held a full-scale hearing and invited a number of U.S. experts to express their views.

Those experts included Robert Evan Ellis of the Strategic Studies Institute of the U.S. Army War College. One of the main points he made was that the U.S. government should strengthen its support for Latin American allies to prevent China from using ‘medical diplomacy’ to expand its sphere of influence in Latin America, along with advances in supply chains, strategic acquisitions and loans to troubled governments, while the West remains economically weakened and politically distracted by the Covid-19 pandemic.

Hence, in his view, the United States should resolutely stop China’s technological expansion in Latin America. This means that the United States should not acquire and share Chinese medical know-how.

Ultimately, the pandemic has not changed China’s goals or overall strategy. It provides an unprecedented opportunity for China to move forward with its implementation. With the help of the Chinese government’s controls on its population to impose and enforce quarantine, and thanks to its huge financial reserves and leverage on the economy, China is emerging from the crisis (albeit certainly weakened) ahead of most Western and non-Western countries.

The pandemic and its health, economic and other effects are likely to persist and continue to weaken the United States and Europe for some time. The interplay between partial economic reopening and the time needed to develop, test and massively produce a vaccine will extend this process.

In Latin America and in other less developed parts of the world, the situation is likely to be far worse. Less capable public health systems, large informal sectors, vulnerable small and medium-sized enterprises, as well as limits to governments’ ability to borrow money to protect vulnerable populations, and the related economic sectors will put pressure on economies as they suffer from Western countries’ declining investment and demand for their exports. In China, on the other hand, things are being solved.

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