Connect with us

Americas

The Evolutionary Processes for New Models to End the Dominance of the United States

Published

on

This article attempts contributing to the debate and discussing some aspects of the evolutionary preocesses and the search for new possible models by a few countries that are dissatisfied with the unipolar system and the world dominated by the United States. The United States has outstretched its political and economic interests around the world, China has similarly and strategically extended its tentacles across both the Atlantic and the Pacific. It has moved south conquering Africa, and intensifying commercial operations in the Central Asia regions including the former Soviet republics – the backyard of the Russian Federation. That however, Russia considered itself as a global power. While still struggling and raising shoulders, many experts say, it has little global influence and authoritarian compared to China.

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 its position, especially its trade, investment and economic muscles.

Monitoring mainstream news and information reports indicated that Russia has been teaming up with China and India (and that could be interpreted as BRICS platform initiative) and a few other external countries in the process of establishing a new global economic system. On the other hand, its aim is to break the unipolar system, and defeat American hegemony around the world. Some experts have argued that successive White House administrations have maintained the status quo. Due to socialist economic planning and their advancement of the notions of international cooperation and peace even among states with varying social systems, there has been tremendous progress in the areas of international solidarity.

The Brazil, Russia, India, China and South Africa (BRICS) grouping is a manifestation of the role of Beijing, Moscow and Pretoria along with the other states which have varied in regard to their political orientation in recent years. These new alliances are perceived as a threat to the role of the United States, Britain and the Europen Union since they are not participant-members and cannot directly impact the agendas and goals established by the BRICS.

But a careful study and analysis monitored by this author vividly show that Russia has some limitations. Its external economic footprints is comparatively weak. And its external policies are hardly promoting its economic models. The geopolitical reordering of the world cannot simply be achieved through war or challenging the West’s political influence in its various global domains. The economic component is possibly the most significant of the ongoing tug of war between Russia and its western detractors.

In the global South for instance, Russia is still struggling to win the hearts of leaders. It however needs an excellent broad public outreach policies to permeate the message of new global order, at least, to the middle class. It has to enlist the understanding of its aims using the communication tools in addition to its own diplomatic statements and globe-throttling juicy rhetoric. Russia has to invest in all these if it really wanted to succeed in leading the world.

As Dr. Ramzy Baroud, a journalist and the Editor of The Palestine Chronicle, wrote recently “the Middle East, especially the Gulf region, is vital for the current global economic order and is equally critical for any future reshaping of that order. If Moscow is to succeed in redefining the role of Arab economies vis-à-vis the global economy, it would most likely succeed in ensuring that a multipolar economic world takes form. Russia is clearly invested in a new global economic system, but without isolating itself in the process.”

In the past few months, Russia exited many international organizations, instead of sustaining its membership and using those plaform to propagate its new global mission. Some experts and academics describe Russia making a desperate attempt at reversing the alarming trend in the world’s economic affairs. In order to win this battle, Russia needs a designed geopolitical outreach scheme and strategies for exert economic influence to match its dreams. It has rather gone into self-isolation, with much heavy-handed criticisms against the United States and Europe. 

With the rapid geopolitical changes leading to repartitioning and creating new global order, and Russia, over the course of the last decade, has been desirously strengthening its Greater Eurasian Union alongside with others, such as the Collective Security Treaty Organization (CSTO) and BRICS. The Greater Eurasian Union focuses on the economic integration and supporting economic development among the members, and expected to build its structure and method of functions by replicating the European Union. 

The CSTO, a military alliance consisting of mostly the former Soviet republics (Russia, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan), and signed the Collective Security Treaty in 1992. Its primary task is to collectively depend the territorial sovereignty of these member states.

The BRICS member countries (Brazil, Russia, India, China and South Africa) collectively represent about 26% of the world’s geographic area and are home to 2.88 billion people, about 42% of the world’s population. Historically, the first meeting of the group began in St Petersburg in 2005. It was called RIC, which stood for Russia, India and China. Then, Brazil and subsequently South Africa joined later, which is why now it is referred to as BRICS.

South Africa was a late minor addition to the group, to add a “bridgehead to Africa” says Charles Robertson, Chief Economist at Renaissance Capital. All the BRICS countries are facing economic challenges that need addressing urgently. The BRICS is keenly aware of the importance of contributing to Africa’s development agenda. 

“So, it could expand because the BRICS are under-represented in the global financial architecture. Europe and the United States dominate institutions like the International Monetary Fund (IMF) and the World Bank, and to some extent many others,” explained Robertson.

According to him, “Russia and others in the BRICS would like to see larger power centres emerge to offer an alternative to that Western dominated construct. That is reasonable enough – providing there are countries with the money to backstop the new institutions, such as China supporting the BRICS bank, and if the countries offer an alternative vision that provides benefits to new members.”

“Now is a very good time to show that BRICS members and relations between them are an alternative to the format existing in the West,” Executive Director at the Russian National Committee for BRICS Research, Professor Georgy Toloraya, told the Kommersant, a Russian daily business newspaper, adding that “BRICS favours order, compliance with agreements and development.”

Moreover, plans are in store to expand the group to include Argentina, Turkey, Indonesia and some other African countries. According to Toloraya, India is currently opposed to expanding BRICS fearing that new members will support China. On the other hand, Moscow argues that “the entrance ticket” to the group is independence and sovereignty, and under no circumstances, potential candidates be called China’s satellites.

There are not so many countries like that—they would include Indonesia, Mexico, Turkey, Egypt and Iran. But then, there are certain political requirements for new members, including recognition of BRICS values and core foreign policy principles, he said, and added “initially, the goals and tasks were very modest, primarily focusing on the economy and the coordination of efforts toward attaining more ambitious goals.”

Understandably some leaders are advocating for multipolar system. Primarily due to geopolitical tensions, rivalry differences and competition to lead the world, Russia is currently pushing an initiative for creating a group. In June 2022, Russian State Duma (the lower house of parliament) Speaker Vyacheslav Volodin wrote on Telegram that the United States and its allies are destroying economic ties by their sanctions policy, but at the same time creating new points of growth in other countries.

“The move by Washington and its allies to cut the existing economic ties has created new points of growth in the world,” he pointed out. According to the parliament speaker, Western sanctions are leading to the establishment of another group of eight nations – China, India, Russia, Indonesia, Brazil, Mexico, Iran and Turkey – that is 24.4% ahead of the old group of developed countries in terms of Gross Domestic Product (GDP) and purchasing power parity.

“The United States, with its own hands, has created conditions for countries willing to build an equal dialogue and mutually beneficial relations to actually establish a new G8 group with Russia,” Volodin noted.

Understandably, there is a Group of Seven (G-7), an inter-governmental political forum, that includes highly developed countries. These are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. In addition, the European Union is a non-enumerated member. Its members are the world’s largest IMF advanced economies and wealthiest liberal democracies.

According to reports, the group is officially organized around shared values of pluralism and representative government. As of 2020, the collective group accounts for over 50 percent of global net wealth (which is US$418 trillion), 32 to 46 percent of global gross domestic product, and approximately 770 million people or 10 percent of the world’s population.

Its members are great powers in global affairs and maintain mutually close political, economic, social, legal, environmental, military, religious, cultural, and diplomatic relations. From 2022, Germany has taken over the rotating presidency of the G-7, following the presidency of the United Kingdom.

Russia dismembered itself from the group. This prompted the U.S. President Donald Trump’s reiteration that Russia should be readmitted to the group, instigation of a trade war with China, increased tensions in Iran, Trump’s alleged reluctance to attend the conference and a number of international crises made the 2019 G7 meeting in Biarritz, France the most divided since its inception. 

Following Trump’s previous rescinding of his signature to a joint communiqué agreed in 2018 due to an alleged slight from Canadian Prime Minister Justin Trudeau, French President Emmanuel Macron agreed that the group would not issue a joint communiqué at the Biarritz conference. Since then, Russia has remained critical about the group, basing its argument that the G-7 has no relevance to exist as there the members meet at Group of Twenty (G-20).

Similarly to the above argument, if the establishment of another new Group of Eight nations – China, India, Russia, Indonesia, Brazil, Mexico, Iran and Turkey – and compared to BRICS – Brazil, Russia, India, China and South Africa, it follows that BRICS will have to be absorbed by the new Group of Eight organization, and thus pushing out South Africa. 

Lucio Blanco Pitlo III, a Research Fellow at the Asia-Pacific Pathways to Progress Foundation, argued that the already established BRICS may have better chances of enticing new members. The new members could be Argentina, Egypt, Indonesia, Kazakhstan, Nigeria, United Arab Emirates, Saudi Arabia, Senegal, and Thailand that participated in recent consultations. 

In fact, UAE along with Bangladesh and Uruguay became the first expansion members of BRICS’ National Development Bank (NDB), last September. But the timing makes parties cautious. With no permanent secretariat and a fixed hub, at least the NDB fixed its headquarters in Shanghai, and further establish its regional offices in South Africa (Johannesburg).

As the world is facing massive challenges, it also requires international collaboration and cooperative solutions, importantly not to grossly endanger the economic prospects of poor and underdeveloped countries. Here live millions and millions of impoverished population.

Indonesia is hosting the G-20 summit in Bali this November and is doing its best to insulate the meeting from politics. Whether Indonesia is capable to arbitrate between angry clashing superpowers is simply unpredictable. The chances of a sudden rapprochement between the United States and China – let alone between the US and Russia – are exceedingly low.

Russia and China’s strategic alliance is strengthening and China has resisted so many attempts for excluding Russia from international organizations. Both are staunch members of BRICS. On the other hand, China’s push for expanding BRICS’s roster may alleviate external pressures on its relations with Russia and its own actions in disputed spaces with neighbours. 

The author of this article has contacted several experts on this question. But for Dr. Pankaj Kumar Jha, an Associate Professor at O. P. Jindal Global University in Sonipat, Haryana, China and India border conflict will continue influencing BRICS. However, India and China are cooperating to develop alternate financial structures, cohesive guidelines within Asia and the global south on many issues such as trade, investment and developing an understanding so that dominance of the of west could be reduced to a minimum in global financial architecture, he said and added, “the foundation of cooperation in BRICS brings potential resources and critical development requirements under one umbrella.”

Questions about the future of BRICS are bound to be there especially when a new world order is being discussed. Drawing insipration from Quad plus, BRICS countries are also discussing BRICS plus format. The formation of new grouping G-8 is primarily a fusion of BRICS and VISTA (Vietnam, Indonesia, South Africa, Turkey, Argentina). The formation is primarily to connect BRICS to middle income and middle power countries, according his explanation.

Dr. Pankaj Kumar Jha concluded his argument: “This geopolitical configuration is in exploratory phases, undoubtedly meant to bring a new axis of Russia-China but inclusion of Mexico , Indonesia and Turkey has its own strategic baggage. How much successful this grouping would be is still a matter a conjecture. From geopolitical point of view, much would depend on how sanctions on Russia shapes up and the post-coronavirus recovery of China.”

Professor Aslan Abashidze, Head of the Department of International Law of the Russian University of Peoples’ Friendship and Member of the Scientific Advisory Board under the Ministry of Foreign Affairs explained to the author of this article that in general, international associations in the form of international intergovernmental organizations or integration associations emerge on the basis of prerequisites that may be of a different nature: political, defensive, cultural, et cetera.  

The emergence of such “para-organizations” as the Group of Seven (G-7), Group of Eight (G-8), Group of Twenty (G-20) is associated with the inability of international institutions of the global level to meet the increased needs of modern development in the face of growing challenges in the form of pandemics, financial crisis et cetera.  

The invitation and then exclusion of Russia from the Group of Seven (G-7) and similar unilateral restrictive measures of the “collective” West headed by the United States control all institutions of global control, including the International Monetary Fund and the International Bank for Recontruction and Development, force other states that are not inferior in their raw material, human and intellectual potentials to the United States and the European Union to seek their own development path. 

Therefore, it does not matter whether BRICS, or the unification of China, India, Russia, Indonesia, Brazil, Mexico, Iran and Turkey, will be more viable or not. The main thing is that the process of searching for new models by the states dissatisfied with the United States policy has started, which means the end of the dominance of the United States in all spheres of international relations. At some point, the West, headed by the United States, will have to negotiate new models of international economic and other relations, based on new international treaties that ensure equality of all states. 

According to Professor Abashidze’s conclusion is that “until this is achieved at the global level, Russia, China and India will establish trade relations on national currencies and therefore it will be attractive and beneficial to other states, not only from the Asia-Pacific region, but also from Latin America, the Middle East and Africa.”  

Whether Russia, China and India and a number of countries, there are arguably variations in political, economic and cultural capabilities. Russia’s President Vladimir Putin last year explained in one of his speeches that after the collapse of the Soviet era, Russia has to begin from the scratch. It was the ideological confrontation between the West and the East that gave birth to Soviet era. 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 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 organizations. Along with Brazil, Russia, India and South Africa, China is a member of the BRICS group of emerging major economies.

Nearly all the experts contacted for this article have the arguable points. They acknowledged the fact that the countries seeking multipolar system have to address problems of the less developed world. In addition, judging from their lengthy discussions, one key factual description is given – the western dominance and imperial approach of the United States. These imperialist endeavors aimed at maintaining the political and economic domination of the world’s population has created enormous difficulties for peoples globally including the working class, nationally oppressed and impoverished living within the western capitalist countries.

The emerging new coalition group is feasible and coming up at the crucial time when over the last two decades, the United States, Britain, the European Union (EU) countries and their allies globally, have been embroiled in numerous imperialist interventions resulting in destabilization, military interventions, proxy wars and the expansion of western imperialism throughout Africa, Asia and Latin America.

MD Africa Editor Kester Kenn Klomegah is an independent researcher and writer on African affairs in the EurAsian region and former Soviet republics. He wrote previously for African Press Agency, African Executive and Inter Press Service. Earlier, he had worked for The Moscow Times, a reputable English newspaper. Klomegah taught part-time at the Moscow Institute of Modern Journalism. He studied international journalism and mass communication, and later spent a year at the Moscow State Institute of International Relations. He co-authored a book “AIDS/HIV and Men: Taking Risk or Taking Responsibility” published by the London-based Panos Institute. In 2004 and again in 2009, he won the Golden Word Prize for a series of analytical articles on Russia's economic cooperation with African countries.

Continue Reading
Comments

Americas

9th Summit of the Americas in Los Angeles: Outcomes in 2022

Published

on

Image source: U.S. Department of State

The 9th Summit of the Americas—delayed for a year by the pandemic—attracted unprecedented scrutiny of Latin American and global media, already at the stage of preparations. It was not only the matter of Washington’s “invitation campaign” and the (predictable) response of Latin American leaders to it. Rather, the White House had been expected to offer new ideas, showcase new approaches, initiate new proposals, which would make it possible to confirm and solidify U.S. leadership in the Western hemisphere, particularly given the growing competition with China in a region of America’s traditional interests. Joe Biden failed to achieve a breakthrough: the final declaration proved to have a far narrower scope than expected, while Latin Americans demonstrated their agency on the global stage once again. The Summit of the Americas never became Joe Biden’s diplomatic triumph, but it would not do to underestimate Washington’s ability to play “a long game”, achieving the goals set in circuitous ways. Recent history knows a number of such instances.

Record no-shows

The Forum’s main sensation was the pointed refusal of the leaders of five states (Mexico, Bolivia, Honduras, Guatemala, El Salvador) to attend the event in person. Some did not attend due to objective circumstances, but everyone who declined the invitation to appear at the summit had their own reasons, with the main being the White House’s high-profile decision not to invite the leaders of Cuba, Nicaragua and Venezuela. Traditionally, the hosts of previous summits selected the invitees, and scandals had been known to happen. In 2018, Peru did not invite Nicolas Maduro, and previously, the US traditionally opposed Cuba’s attendance (the country participated in the summit only twice).

Many observers have deemed Joe Biden’s rigid stance on the three states illogical, particularly given Washington’s simultaneous efforts to normalize relations with Havana and Caracas that have recently manifested in the easing of sanctions. It is important to keep in mind, however, that the ideological component has traditionally been of key importance for the U.S. in its relations with the region. Nor could Joe Biden ignore the harsh stance of most American elites; an invitation extended to these three states would have had horrendous domestic political consequences for the current administration. Tellingly, the White House also refused to invite its Venezuelan “protégé” Juan Guaido—Joe Biden only had a telephone conversation with him.

The refusal of several Latin American leaders to attend the Summit in person should be interpreted with care. Frequently, such a decision looked like a desire to trumpet their stance in Washington’s face, creating an opportunity for publicity, especially since most heads of state that ignored the event still sent large delegations, closely following the course of the Summit closely.

Nonetheless, even many of those presidents or heads of government who chose to travel to Los Angeles openly expressed their disagreement with Washington’s approaches, condemning the non-invitation of the three states. Argentina’s President Alberto Fernandez and Belize’s Prime Minister Johnny Briceño were particularly stark in this regard. They were diplomatic, yet open in personally telling Joe Biden their grievances during the first principal session. The two leaders condemned both the sanctions against Cuba and Venezuela and the exclusion of these states from the list of invitees.

In his response, Joe Biden had to make conciliatory statements on the need to search for common language despite existing differences. Many observers viewed Latin Americans’ demarche as a manifestation of the U.S. weakening regional influence and a symbol of new geopolitical realities in the Western hemisphere. In fact, U.S. partners in Latin America traditionally dish direct criticisms or disagreements to U.S. leaders. Suffice it to remember the famous 4th Summit of the Americas in 2005 in Mar del Plata, where three presidents (Lula da Silva, Hugo Chavez, and Nestor Kirchner) “buried” the Free Trade Area of the Americas (FTAA/ALCA) initiative, right in the presence of George W. Bush. Condemnations of anti-Cuban sanctions and of Cuba’s exclusion from forums have also become a tradition with Latin Americans. But when Washington appears to face consolidated Latin American opposition, this has a knack for switching work in many areas into bilateral format where the U.S. has far more opportunities for pushing through its stances and interests. For instance, when the FTAA/ALCA project failed, the U.S. rather focused on bilateral free trade agreements—over the next decade, Washington did conclude them with most of states of the region.

The language of initiatives

Washington’s main drive at the Summit can be defined as an intent to limit the presence of external actors in the traditional area of U.S. interests. China was not in any way involved in the Summit, U.S. officials did not mention Beijing in any of their speeches—yet, it was invisibly present throughout the event. During his main speech at the Forum’s opening on June 6, Joe Biden articulated new suggestions concerning cooperation, stressing that the Western hemisphere has enough resources of its own to handle its principal problems. The U.S. is trying to contain China’s expansion into the LCA, but it has failed to snatch the initiative from China so far. The Americas Partnership for Economic Prosperity, a new Washington-proposed initiative, can be seen as an attempt to offer an alternative to Chinese proposals for Latin America that include the “New Silk Road” project. Proposing strategic initiatives is a traditional form of communication of the United States with Latin America (whether at the time of John F. Kennedy or George H. Bush). The U.S. lost initiative in the region during Donald Trump’s presidency, with Joe Biden now striving to respond to the principal challenges of development: post-pandemic recovery, migration and security, digitization, rebounding investment, the “green” agenda. Many elements in the new initiative are not yet entirely clear. The White House has noticeably been preparing these proposals “in haste,” without elaborating every item in a careful fashion. It is also obvious that the U.S. intends to retain its leadership in such areas as digitization (as a snub against the Electronic Silk Road), military assistance and cooperation, logistics, green technologies.

However, many experts exhibit understandable skepticism when it comes to Joe Biden’s proposals. What is striking is the openly small financing Washington proposes, particularly if compared to the aid the U.S. is currently extending to Ukraine. Emphasis on the environmental agenda and respect for democratic norms can be seen as an instrument of future restrictions against those who do not comply with these requirements, at least in the eyes of Washington. Such demands are already a standard feature of trade agreements spearheaded by the U.S. (for instance, USMCA).

Each Summit of the Americas traditionally ends with a thematically expansive final declaration to cover all the problems in social, economic and political development. The current Forum’s organizers were expected to produce something of the sort. However, the attendees only adopted the Los Angeles Declaration on Migration and Protection at the end of the Summit, a document that boils down to Washington’s desire to “share responsibility” for resolving the migration crisis with all the nations of Latin America, both countries of origin and transit states. Certainly, the issue of Latin American migrants is a burning problem for the U.S., Mexico and states of Central America. The situation may be further complicated by the expected food crisis, which is spurred, in the White House’s opinion, by Russia’s special military operation in Ukraine. The declaration includes a large set of measures on ensuring security for migrant flows, on combating the root causes of their exodus, and on bolstering regional coordination and cooperation in this area. The document was signed by 20 states (some abstained), including all the Central American states whose leaders were not present at the Summit.

Recognizing the importance of interactions in the matter of migration, Latin Americans must have been expecting something greater than just a call for “shared responsibility” from the U.S. Initially, the organizers had ambitious plans on a far larger range of issues rather than mere migration. Preliminary discussions focused on environmental issues and environmental protection; however, since Brazil refused to sign such a declaration (under the pretext of Brazil’s relevant legislation being stringent enough already), the document was not submitted for final signing. Washington did preliminary bilateral work with key manufacturers calling upon them to ramp up oil production and exports of agricultural products to counteract the energy and food crisis. In his main speech, Joe Biden said that these crises were mostly caused by the situation in Ukraine and Russia’s actions in particular. Washington possibly planned for the final document to tie condemnation of Russia’s actions with plans for collectively counteracting the mounting crises (if the U.S. had succeeded in getting Latin Americans to support such decisions).

Many observers interpret problems with attendance as well as the openly limited final decisions and documents as Joe Biden’s unequivocal diplomatic defeat and proof of Washington’s weakening stance in Latin America. However, the Summit of the Americas is only the “tip of the iceberg” of the multitude of America’s extremely complicated and multilayered relations with the region. The U.S. remains Latin America’s principal trade and economic partner and a crucial source of technologies and investment. Indeed, there was a certain dip in trading in the 2000s. Recently, however, Washington succeeded at largely regaining its standing despite China’s active expansion into the region. The U.S. is the integral security factor in Latin America, the main recipient of migrants, and it would not do to underestimate the U.S. influence on most regional governments in spite of their growing agency.

Having drawn its conclusions from the Summit’s failures, the White House will continue to “push its agenda through” in bilateral formats as it keeps all of its influence resources. At the final press conference, a journalist asked Antony Blinken on the issue, and the Secretary of State’s response encapsulates this approach. Commenting on the refusal of some to sign the Los Angeles migration declaration, he was confident that all countries will accede to it sooner or later, pursuant to targeted work with each state. Washington has “strategic patience” in spades.

From our partner RIAC

Continue Reading

Americas

The Canal System and the Development of the Early American Economy

Published

on

By

The prosperity and development of the United States that it enjoys today did not come out of thin air. This is especially true in its early days of economic development which has a lot to do with the construction of the transportation system. In the beginning, it was the development of water transportation, then the railway, next followed by the highways. The construction of these major transportation systems supported the early development, prosperity, and rise of the U.S., laying the foundation for it to become a major world power.

The early water transport in the U.S. is rather interesting, and it mainly aimed to connect more places in the country by excavating and expanding the canal system. According to incomplete statistics, the total length of canals in the U.S. is 18,000 km. This 18,000 km long canal was of great significance to the early economic development of the country. This well-connected water transportation system has greatly enriched the exchange of commodities, promoted trade, and enabled the convenient transportation of raw materials, salt, whisky, energy coal, and many other products within the country. The domestic market of the U.S. had also expanded, and its national economy transformed from weak to strong.

The longest and the most well-known canal in the U.S. is the Erie Canal. The Erie Canal is named after the lake and starts from the Niagara River which originates from Lake Erie. It spans upstate New York and joins the Hudson River in Albany, the capital city of New York State, with a total length of 574 km. It is not only the longest canal in the U.S. but also the sixth-longest in the world. Back in the early 19th century, before the automobile existed, there was an urgent need for a transportation route from the Atlantic coast to the Appalachian region. A canal was proposed to run from Buffalo on the east shore of Lake Erie through the canyons of the Mohawk Valley to Albany on the upper Hudson River.

In 1817, the New York State Legislature approved the construction of the Erie Canal. After much arduous work, the canal was finally opened on October 25, 1825. Its total length is 584 km (363 miles), The channel was cut 12 m (40 feet) wide and 1.2 m (4 feet) deep. In order to solve the problem of water level drop, a total of 83 locks have been built in the canal, each lock is 27 m by 4.5 m, allowing the navigation of flat-bottomed barges with a maximum displacement of 75 tons (68 tonnes).

The Erie Canal was the first express transportation to provide the east coast and west interior of the U.S. much faster than the animal-pulled carts most commonly used at the time. Not only did it speed up transportation, but it also cut transportation costs along the coast and inland by 95%. Fast canal traffic made western New York more accessible, resulting in rapid population growth in the Midwest. The canal had as much impact on the development of the upper Midwest as it did on the development of New York City. Many pioneers flocked west through the canal, into Michigan, Ohio, and Illinois, Indiana, from where they shipped agricultural products through the canal to be marketed in New York, and the return journey was loaded with industrial goods and supplies to the west. Manufacturing industries emerged on both sides of the canal, supplying a steady stream of products to New York City. From Buffalo to New York, land freight once reached $100 per ton, and it was only $10 by the canal. In nine years, tolls had paid back the cost of the construction of the canal. By the time the toll was abolished in 1882, the revenue from the canal had been used to pay for the construction of several canal spurs, and there was substantial tax payment as well.

The canal has been expanded several times. After its reconstruction in 1909, it has become 544 km long, 45 m wide, and 3.6 m deep. By the 20th century, New York had developed a network of canals connecting Lakes Champlain, Ontario, and Finger, and the Erie Canal remained the central route, capable of navigating barges with a capacity of 2,200 tons. The establishment of the Erie Canal connected the water transport of the Great Lakes with New York Harbor and became the main waterway of the navigable canal system in New York State. The freight from Lake Erie to New York only required the cost of one-tenth of the former, making the city, much smaller than Philadelphia and Boston at that time, rapidly developed into the largest port and city in the country. The construction of the Erie Canal played a major role in promoting the economic development of the eastern United States and New York. The population of New York in 1820 was 123,700, and the population of Philadelphia was 112,000. By 1860, the numbers rose to 1.08 million and 566,000 respectively. Consequently, New York thrived as a port city. In 1800, only about 9% of all foreign goods in the United States entered the United States through New York Harbor, yet by 1860, that percentage jumped to 62%. The strengthening of New York’s status too indirectly led to the gradual establishment of Wall Street’s status. In this regard, the Erie Canal contributed greatly to such progress.

In addition to changing urban patterns and the rise of industry, the Erie Canal had a far-reaching impact on the U.S. economy, gradually transforming it into a consumer-led economy that determined the subsequent U.S. economic landscape. Culturally, the opening of the Erie Canal also boosted the Protestant revival movement known as the Second Awakening. Western New York was one of the main areas of this movement, and a crucial reason for this was the opening of the Erie Canal. In the small towns emerging on both sides of the canal, various sects began to proselyte in places where their churches had yet to be common, and some emerging religious groups took root there and rapidly developed, including the Church of Jesus Christ of Latter-day Saints, commonly known as the Mormons.

Other than the evangelization along the Erie Canal, many new trends of thought also made their appearance there, such as the early feminist movement, the abolition movement, and utopianism, which all found their initial supporters in the emerging towns in that region. Hence, the construction of the Erie Canal played a driving role in the changes of the American cultural pattern.

From the day the Erie Canal was built, the vast area between the Appalachian Mountains and the Mississippi River, especially the Midwest around the Great Lakes, was no longer the frontier of the United States, but was connected to the east coast and became the heartland of the country. The economic and social changes it brought about had put the U.S. on the first step toward becoming a great power. The central and western regions could industrialize swiftly, forming the Great Lakes industrial areas, mining areas, and urban belt. All of these were inseparable from the Erie Canal, therefore it is not unreasonable for many to consider the opening of the Erie Canal as the official beginning of the first industrial revolution in the U.S.

There are numerous canals within the U.S. According to incomplete statistics, the country has built a total of 18,000 km of canals. The entire country has also become an organic whole because of these canals, which not only effectively enhanced the ability to resist droughts and floods, but also greatly developed the American economy and market.

Final analysis conclusion:

The construction of the canal system played an important role in the early transportation improvement, trade flow, market expansion, cultural dissemination, and urban development of the United States. This, in turn, has greatly promoted the development of the American economy and played an important role for it to become a major power.

Continue Reading

Americas

Aligning values into an interest-based Canadian Indo-Pacific Strategy

Published

on

Russia’s invasion of Ukraine is an explicit challenge to the post-WW 2 order. This order has brought peace and stability and created the conditions for economic growth in the global north and Global South. It has also brought relative peace and economic integration in the Europe and in the Indo-Pacific.

Today, this order is now being challenged by Russia today but also by China. The consequences could mean that a might-is-right approach and Machiavellian approach to foreign policy will become the new normal for countries like Canada, a self-described middle power.

A Machiavellian order is an order in which larger countries can bully, cajole and pressure, mid and small size countries to do what they are demanded is an explicit challenge to Canadian interests, as well as the interests of like-minded countries such as Japan, Australia, South Korea, European countries and countries in the Global South.

The Trudeau Government has clearly and explicitly criticized the Russian government’s invasion of Ukraine by Russia. Ottawa has coordinated with other middle powers and as we speak through the G-7 Summit in Germany on how to handle Russia’s invasion of the Ukraine.

Unity will be important, especially as energy security becomes more and more critical of an issue for Central and Eastern European countries. The growing food crisis that has manifested as a result of the Russian invasion is also an area that the G-7 will need to coordinate to provide relief to many countries in the Global South.

This message will be further discussed at the NATO summit in Spain. Here, Japan, South Korea, Australia New Zealand will join the NATO members to demonstrate their shared commitment to a rules-based order to pushing back against aggression to change the current order and to find ways to work together to support the Ukraine and resist Russian aggression. Here, Canada has an important role in terms of energy security and food security.

With ample access to energy and food resources, there is a possibility for Canada and other partners such as the U.S. to divert some of its significant grain and energy resources to the Europe to help alleviate some of the stress associated with the invasion of Ukraine.

Coordinated military support as well will be important to ensure that the Ukrainians can resist and eventually take back territory that was taken by force by Russia.

There is an interesting paradox in Canada’s approach. While explicitly criticizing Russia’s might-is-right approach to foreign relations in Eastern Europe and particularly with Ukraine, Canada continues to waver in using the same language in the Indo-Pacific.

The Indo-Pacific region is also facing a might-is-right approach to reshaping the Indo-Pacific order. The use of lawfare, gray-zone operations, military force and belligerent threats all are aimed at reshaping the Indo-Pacific order in such a way that creates a Chinese centric regional order in which China’s neighbors as well as stakeholders that engage in the region will think about China’s interests before their own interests and their interest with Washington.

Canada needs to continue to invest in the Indo-Pacific. A good place to start will be to explicitly state Canada’s concerns about that Machiavellian approach to foreign policy in the region and the efforts by China to reshape the region such that states lose aspects of their autonomy. This will require an Indo-Pacific strategy to be built on a clear objective of how Canada sees the Indo-Pacific Region evolving forward and how Canada would like to contribute to that broader vision of the Indo-Pacific.

Japan, Australia, the United States, Germany, Denmark, and the E.U. have laid out their own Indo-Pacific strategies. They focus on maritime security, a rules-based order, transparency, development and importantly, good governance. We see little rhetoric concerning progressive issues as well as little mention of the core values such as democracy, human rights and freedom of press. This is intentional. These countries and associations understand the heterogeneity within the region.

The-Indo Pacific region is home to soft authoritarian regimes, socialist regimes, democracies and monarchies. Unfortunately, each has very different views about democracy, human rights and progressive issues.  

Where they are aligned is in their interests. Their interests are focused on trade, economic integration development, the digital economy, resolving territorial issues through dialogue and consensus-based decision making and not excluding any country region or political entity from the region’s political economy.

Simply, associations and regions like ASEAN, South Asia and the E.U.  see inclusivity as a key criterion to the Indo-Pacific peaceful evolution This means any Indo-Pacific strategy that emerges out of these countries does not exclude China or strive to eject non-democratic states.

Rather, their Indo-Pacific strategies focus on inculcating peace and stability in the Indo-Pacific region through development, trade, infrastructure and connectivity, institution building, good governance and deterrence.

In the Canadian case, the broader vision for the Indo-Pacific should echo but not necessarily replicate the Indo-Pacific Visions of the country’s mentioned above. Canada’s priority should be peace, stability, open access, a transparent, rules-based order that ensures Canada can have free access to economies and societies throughout the region.

At the same time, Canada’s interests in the Indo-Pacific should include shaping the region such that traditional security issues such as territory issues in the South China Sea, East China Sea, the Taiwan Straits and the Himalayan plateau do not devolve into kinetic conflict that fundamentally disrupts the region’s development and stability.

Traditional security issues are not the only issue that can affect Canada’s interests in the region. Non-traditional security issues such as climate change, terrorism, transnational diseases, extremism are all potential concerns for Canada as it could create instability in the region, disrupt their economies, destabilize supply chains as well as create problems for trading partners.

As Canada celebrates another Canada Day, it should reflect upon what are the key elements of an Indo-Pacific strategy.

Here a six-fold approach may be a useful approach to creating an Indo-Pacific strategy that helps achieve Canada’s national interests in the Indo-Pacific region. A first pillar of an Indo Pacific strategy should be one of Inclusive Development.

Here, Canada can help build stability, improve governance and contribute to broad inclusive development in the region. Through support for NGOs, investment in infrastructure and connectivity, coordinating with regional stakeholders and ensuring that inclusive development results in sustainable and replicable development in the region. Importantly, inclusive development in the region should de-emphasize the progressive character of inclusivity found in the domestic context of Canada as it is less prioritized in the region. This does not mean that a progressive approach is absent but it is sensitive to the local cultures and societies.  

A second pillar should focus on Canada’s comparative advantages, Energy and critical mineral security. Based on improvements in environmental technology and technologies that are used to exploit both energy resources and critical minerals, Canada should make this the second pillar of their Indo-Pacific strategy as an open, reliable source of energy and critical minerals.

Canada could carve a position within the Indo-Pacific region in which it is the key provider of energy and critical minerals to industries that use both products. We’ve seen in the wake of the invasion of Ukraine, that energy security has become timely and we expect that energy security and critical minerals to be subject to weaponization in the future in the build-up to or in a conflict.

Consequently, Canada can contribute energy and critical mineral significantly by making this a key pillar in their strategy.

A third pillar should focus on coordinating and investing in Middle Power Diplomacy. In short, Canada needs to coordinate with other middle powers such as Japan, South Korea, Australia, New Zealand European powers to ensure that the US China Strategic competition does not shape them. Rather, coordination shapes the dynamics of the US China Strategic competition in such a way that it decreases and or attenuates the negative effects on countries we’ve already seen Canada engage in middle power diplomacy with some success.

The 2020 Agreement, in which Canada marshaled middle powers and other countries to join a Declaration Against Arbitrary Detention in State-to-State Relations following the arrest of Michael Kovrig and Michael Spavor in China is a good example. We also saw Canada bring together middle powers and the United States to discuss denuclearization of the Korean Peninsula in January 2018.

 More coordination of middle powers in the areas of good governance, transparency, energy cooperation and financial cooperation would be a unique but also important contribution by Canada in the Indo-Pacific.

Here, one could easily imagine Canada working with the Partners in the Blue Pacific (PBP) to provide energy security, health infrastructure, good governance to the Pacific Island nations.

We could also see Canada contribute to the Indo-Pacific Economic Framework by marshalling middle powers to support this standard setting agreement that will shape how we think about trade. The standards that we use to negotiate new technologies ,the internet, cyber as well as AI.

A fourth pillar should be supporting Economic security, infrastructure and connectivity. Here Canada needs to find ways to consolidate its own economic security so that is more resilient against economic shocls, outside Canada, as well as inside Canada.

The COVID 19 pandemic is a good example of an external shock to the Canadian economy. We had challenges in terms of acquiring personal protective equipment and other goods as China shut down their country to manage the initial Covid-19 outbreak.

The current COVID-19 policies in Shanghai and Beijing further consolidates the logic that Canada needs to build resilience into its economy, to invest and protect its own economic security.

Internally, the floods in the fall of 2021 in British Colombia also disrupted Canadian exports abroad.

Economic security, resilience and infrastructure and connectivity can help ensure that Canada’s economy remains online and integrated into the global economy and resilient against external and internal shocks. This will require bolstering infrastructure and connectivity at home so that we have world class infrastructure that is resilient against internal shocks.

Also, Canada has a role in contributing to infrastructure and connect to the within the Indo-Pacific region. While we have limited capacities, we have capabilities that can piggyback onto existing infrastructure connectivity programs that are associated with the Quadrilateral Security Dialogue. The Japan-India-Australia resilient supply chain initiative and bilateral and other multilateral infrastructure and connectivity initiatives that have come online over the past three or four years. All of this will be important for Canada’s Indo-Pacific strategy in ensuring that Canada’s economic security is based on a resilient economy that is bolstered by infrastructure connectivity at home and abroad.

A fifth pillar for Canada will continue to be focused on security and in particular, Maritime Security in the Indo-Pacific region. With sea lines of communication in the Indo-Pacific responsible for about $5.5 trillion in trade every year and energy resources being transported through the key arteries located in the Indian Ocean, Malacca Straits South China Sea, Taiwan Straits as well as East China Sea, Canada has an interest in ensuring that the sea lines of communication remain open, governed by international law and free from coercion.

Cooperation in sea lines of communication will need to take place within existing frameworks or new frameworks. Quad plus arrangements have already taken place in January 2021 Canada participated in the Sea Dragon 21 exercises to provide an opportunity for Canada to monitor and observe Quad exercises.

We also see Canada engage in sanctions monitoring in the East China Sea in an effort to prevent sanctions invasions by North Korea. These activities continue to need to be expanded by working with like-minded countries within the region focused on maritime domain awareness search and rescue, humanitarian relief and disaster assistance and dealing with non-traditional security challenges such as illegal fishing, piracy and others.

While this is not an easy task, this pillar of a Canadian Indo-Pacific strategy is important to contributing to the region’s peace and stability as well it is important for protecting Canadian imports and exports to the region. In 2021, more than $21 billion of Canadian goods went through the region this sum continues to increase as Indo-Pacific nations look to Canada to secure energy as well as agricultural products. Ensuring that sea lines of communication remain open, stable and peaceful will continue to be a critical part of any Canadian Indo-Pacific strategy.

Lastly, a sixth pillar of a Canadian Indo-Pacific Strategy should focus on Climate Change.

The Indo-Pacific region is hosts the three most populated countries, Indonesia, India and China. It is also home to ASEAN. Collectively, the population of the Indo-Pacific region is at least 3.5 billion and the current development patterns suggest that they will have severe water and food security issues as their environment degrades do to climate change and global warming.

More extreme weather systems, the salination of the Mekong and Bangladeshi delta’s as sea levels rise will change the ecology of these critical production areas that that will create social instability, economic stress and likely political instability associated with economic refugees moving to find safer, more predictable geographic locations to leave and work.

We will also see tropical diseases and insects push north and southward disrupting agricultural and social systems.

Canada has a clear interest in investing in climate change mitigation, promoting environmentally friendly governance and business systems and technology transfer that lessen the negative impact of climate change. The scale of the problem will require Canada to pursue this sixth pillar through regional and global coordination.

With a pragmatic and realistic approach that is based on understanding the heterogeneity of the Indo-Pacific region, a Canadian Indo-Pacific Strategy should include but not be exclusive to: Inclusive development, Trade and Economic Residence, Climate Change, Maritime Security, Energy and Critical Mineral Security, and Middle Power Diplomacy.

Continue Reading

Publications

Latest

Trending