And here’s the clincher: “China’s cooperation with the EAEU mitigates Russian concerns about asymmetries, and enables greater EAEU-BRI [Belt and Road Initiative] integration under the stewardship of the SCO. Also, unlike the EU, the EAEU provides great benefit to non-members (non-zero sum) by creating an effective transportation corridor with harmonized tariffs, standards, etc.”
Add to the debate the crucial Astana headline, ignored by Western corporate media: Iran signed a provisional free-trade-zone agreement with the EAEU, lowering or abolishing customs duties, and opening the way for a final deal in 2021. For Iran, that will be a golden ticket to do business way beyond Southwest Asia, integrating it further with Russia and also Kazakhstan, which happens to be a key member of the Belt and Road Initiative (BRI).
The St. Petersburg International Economic Forum (SPIEF) is the annual Russian equivalent of Davos. Predictably, coverage on Western media was appalling – at best rehashing bits and pieces of the joint press conference held by presidents Vladimir Putin and Emmanuel Macron.
Yet the clincher in terms of possible game-changing relations between Russia and Europe came from Finance Minister and first deputy Prime Minister Anton Siluanov: “As we see, restrictions imposed by the American partners are of an extraterritorial nature. The possibility of switching from the US dollar to the euro in settlements depends on Europe’s stance toward Washington’s position.”
In his latest, avowedly “provocative” slim volume, Has the West Lost It?former Singaporean ambassador to the UN and current Professor in the Practice of Public Policy at the National University, Kishore Mahbubani frames the key question: “Viewed against the backdrop of the past 1,800 years, the recent period of Western relative over-performance against other civilizations is a major historical aberration. All such aberrations come to a natural end, and that is happening now.”
It is enlightening to remember that at the Shangri-la Dialogue two years ago, Professor Xiang Lanxin, director of the Centre of One Belt and One Road Studies at the China National Institute for SCO International Exchange and Judicial Cooperation, described BRI as an avenue to a ‘post-Westphalian world.’
That’s where we are now. Western elites cannot but worry when central banks in China, Russia, India and Turkey actively increase their physical gold stash; when Moscow and Beijing discuss launching a gold-backed currency system to replace the US dollar; when the IMF warns that the debt burden of the global economy has reached $237 trillion; when the Bank for International Settlements (BIS) warns that, on top of that there is also an ungraspable $750 trillion in additional debt outstanding in derivatives.
Mahbubani states the obvious: “The era of Western domination is coming to an end.” Western elites, he adds, “should lift their sights from their domestic civil wars and focus on the larger global challenges. Instead, they are, in various ways, accelerating their irrelevance and disintegration.”