Unipolarism in Free Fall

By Hedelberto López Blanch on May 13, 2024

illustration: Adán Iglesias Toledo

Just as parachutists are launched in free fall before opening the fabric that supports them, so is the United States when it observes how some economic-financial powers have been advancing on the planet and are cutting off the unipolarism it imposed after the disappearance of the Soviet Union.

More and more specialists are coming to this conclusion, while Washington, seeing this outcome approaching, is becoming more aggressive and is trying by any means, especially militarily, to preserve its privileges.

In these days, one of the most outstanding declarations, not only for what he says but also for what he represents as a staunch defender of the most rancid capitalist system, is that of the European Union’s High Representative for Foreign Affairs and Security Policy, Josep Borrell, who stated: “The United States has lost its hegemonic status, while China has risen to the category of superpower”.

Borrell stated during a conference at Oxford University in the United Kingdom that “the international system to which we were accustomed after the Cold War no longer exists: I see the growth of China as something “unique in the history of mankind”, with a certain superiority over the EU and the United States in many aspects, and the Asian giant is rising to the category of superpower.”

By way of substantiating his analysis, he indicated that in the last 30 years, China’s share in the world Gross Domestic Product, in terms of purchasing power parity, went from 6% to almost 20%, while the Europeans went from 21% to 14% and the United States from 20% to 15%, which represents a drastic change in the economic panorama.

Finally, the Spanish politician admitted that today the world is much more multipolar, with the emergence of middle powers such as India, Brazil, Saudi Arabia, South Africa and Turkey. Of course, he did not mention Russia because he is a bitter enemy of Moscow.

One of the direct consequences of this scenario is the alarming increase in the public debt of the United States, which reached the historic figure of 34.1 trillion dollars, exceeding its GDP by 24.5% and contributing to the growing rate of poverty in the country.

Pedro Gustavo Cavalcanti Soares, PhD in political science from the Federal University of Pernambuco (UFPE), explained that the persistence of the United States in investing heavily in international conflicts to boost its economy, perpetuates an approach that dates back to the period after World War I, and entails negative consequences which are disconnected from the internal needs of the country.

In the same vein, billionaire Elon Musk predicted “the end of the dollar if Washington doesn’t deal with its national debt. We need to do something about our debt or the dollar will be worthless.”

The International Monetary Fund (IMF) went a bit deeper in its concern over excessive U.S. government spending and warned that it is undermining financial stability around the world.

While all this uncertainty is taking place in the United States, a process of de-dollarization is occurring internationally as several countries are diversifying their monetary reserves.

This measure is aimed at preventing financial catastrophes such as the one that occurred during the economic crisis that began in the United States (and shook the world) in 2008.

De-dollarization is aimed at offering protection against possible crises, allowing a more balanced relationship in the world financial system and reducing the economic and political influence exercised by Washington for more than half a century.

The BRICS+ Group, made up of Brazil, Russia, India, China and South Africa and the new addition of Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia and Iran, have worked hard to use their national currencies in commercial transactions.

In this first quarter of the 21st century, this economic reconfiguration means a financial revolution for other nations to better reconsider their commercial alliances without suffering the strong pressure exerted by the dollar at the international level.

BRICS is currently developing a payment system that uses digital technologies and block chain which is a decentralized and distributed data structure that records transactions securely and transparently through a network of computers.

In 2023 the five BRICS pioneers only conducted 28.7 % of import and export transactions using the greenback and already in 2024 Moscow and Beijing will execute almost all their trade exchange (about $220 billion) in their national currencies.

Undeniably, the BRICS countries are driving a historic transformation in the international financial scenario and the next Summit of the Group to be held in October this year in Kazan, Russia, could mark another turning point in the realization of a more inclusive and equitable multipolar world.

Hedelberto López Blanch is a Cuban journalist who writes for the daily Juventud Rebelde and the weekly magazine Opciones. He is the author of “La Emigración cubana en Estados Unidos”, “Historias Secretas de Médicos Cubanos en África” and “Miami, dinero sucio”, among others.

Source: Cuba en Resumen