President Putin has hit back at the Western elite’s financial dominance over the world by vowing to destroy the US-led global financial and trade hegemony.
Speaking on the eve of the BRICS Summit in China, Putin said that now is the time for a truly ‘free economy’ to rise up and obliterate the unfair global financial and economic architecture.
Russia-insider.com reports: Putin’s strategy aims first at consolidating the political unity of the new emerging world powers and with that to attack the existing institutions of the failing West, in particular their currency hegemonies and their financial power structures, the IMF and the World Bank.
(Russia aims at promoting global) “financial regulation reforms” and at overcoming “the excessive domination of the limited number of reserve currencies” (that is, the currency monopolies of Western countries) coupled with working “towards a more balanced distribution of quotas and voting shares within the IMF and the World Bank.”
Putin wants to break the Western hegemonic dominance of world trade by building a genuine global free trade system as opposed to the present sham-liberal system marked by a de-facto US protectionism of its own narrow interests. He continues:
Russia advocates “the foundations of an open, equal and mutually beneficial multilateral trade system and the strengthening of the role of the WTO.”
It is especially noteworthy and welcome that Putin has in his analysis arrived to identifying the monopolistic dominance of world trade by the Western transnational corporations as a major structural problem. Putin wants to unleash the collective power of the antimonopoly agencies of the BRICS countries against those predatory corporations:
“The goal is to create a package of cooperation measures to work against the restrictive business practices of large multinational corporations and trans-border violations of competition rules,”
We said so
I am personally very pleased to note that Putin has so lucidly identified the present hegemonic barriers in world finances and trade and that he has so succinctly defined the strategy to combat the existing unfair system.
In a recent report by our firm on how Russia has coped with the sanctions and the dramatic plunge of the oil price, we wrote in the same line, but rather less diplomatically than the way Putin formulated it, to quote:
“We want to stress that there are sanctions of two types, officially enacted sanctions and unofficial sanctions. The latter have not been officially announced by any Western government but are deliberately pursued under the agenda of economic containment, itself part of the grand geopolitical strategy of Russia containment.
By these measures Russian investors and exporters are actively by way of unannounced (i.e. illegal) rules hindered from entering Western markets and other global markets were those powers hold sway, and conversely Western (and other) investors are being discouraged (coerced) from certain investments into Russia.
The economic containment takes many other forms, too, for example, it affects Russia’s participation in global financial operations and the rubles role among global currencies.
We assess that the unofficial sanctions are even more cumbersome and harmful than the official one.”
“As a matter of fact, there are some very real and concrete constraints, which have prevented, and will continue to prevent Russia from increasing its exports of manufactured goods as long as these real constraints are not identified.
The reasons are both of historical nature and related to the present realities of global trade, the already high level of saturation and entrenched positions of globally dominating, mostly Western based, transnational corporations, and the whole world trade order based on institutionalized hegemony of the Western countries, as well as, their seemingly unlimited access to virtually interest-free financing.
Russia can begin to tackle these problems only through similar geopolitical maneuvers (fortunately, initial progress has been made in this regards) and a very well thought out strategic marketing plan on the level of both the national economy and corporations.”
Here is a link to the full report titled What Does Not Kill You Will Make You Stronger – The Russian Economy 2014 – 2016, the Years of Sanctions Warfare.