Media is too big
VIEW IN TELEGRAM
🪙🌍 The economy of the Middle East has experienced two extreme turns in its history.
In the Middle Ages, this part of the world was more developed economically, scientifically and culturally than West. However, in the 17-19th centuries, the Middle East fell significantly behind the Western countries in development.
🎞 You can find out more about the economic development of the region in the 21st century in our videoinfographic.
ℹ️ The infographic has been prepared especially for the Middle East conference “Russia and the Middle East: Strategic Rapprochement and Interweaving of Interests”.
#MIDDLE_EAST2022 #MiddleEast #economy
@valdai_club — The Valdai Discussion Club
In the Middle Ages, this part of the world was more developed economically, scientifically and culturally than West. However, in the 17-19th centuries, the Middle East fell significantly behind the Western countries in development.
🎞 You can find out more about the economic development of the region in the 21st century in our videoinfographic.
ℹ️ The infographic has been prepared especially for the Middle East conference “Russia and the Middle East: Strategic Rapprochement and Interweaving of Interests”.
#MIDDLE_EAST2022 #MiddleEast #economy
@valdai_club — The Valdai Discussion Club
⛔️ The sanctions consolidation of a group of “unfriendly” countries is largely a direct consequence of their high trade, investment and debt interdependence.
The high integration of developed markets among themselves, as well as their dependence on the United States, makes them feel that it is impossible to break the “vicious circle” and that they must be forced to follow a common historical fate and “collective” interests that dominate national ones, which spurs the process of “consolidation from above”.
At the same time, more than half of the G20 and the vast majority of the countries of the Global South are not ready to support the efforts of the US and Europe to isolate Russia.
The United States has released the “genie from the bottle” and now it is not known in which direction global sanctions may begin to develop.
If the United States uses its dominance in the global financial system and the dollar monopoly in the mechanism of secondary sanctions, then China uses its positions in global value chains. And this response, in the medium term, may turn out to be quite symmetrical, given the share of Chinese materials and components in global production, writes Valdai Club expert Ekaterina Arapova.
#EconomicStatecraft #economy #sanctions #complience
@valdai_club
The high integration of developed markets among themselves, as well as their dependence on the United States, makes them feel that it is impossible to break the “vicious circle” and that they must be forced to follow a common historical fate and “collective” interests that dominate national ones, which spurs the process of “consolidation from above”.
At the same time, more than half of the G20 and the vast majority of the countries of the Global South are not ready to support the efforts of the US and Europe to isolate Russia.
The United States has released the “genie from the bottle” and now it is not known in which direction global sanctions may begin to develop.
If the United States uses its dominance in the global financial system and the dollar monopoly in the mechanism of secondary sanctions, then China uses its positions in global value chains. And this response, in the medium term, may turn out to be quite symmetrical, given the share of Chinese materials and components in global production, writes Valdai Club expert Ekaterina Arapova.
#EconomicStatecraft #economy #sanctions #complience
@valdai_club
Valdai Club
How the US Forces Third Countries to Support Sanctions
The United States has released the “genie from the bottle” and now it is not known in which direction global sanctions may begin to develop. If the United States uses its dominance in the global financial system and the dollar monopoly in the mechanism of…
🌾 Amid the current geopolitical and economic shocks, the global economy has entered a period of turbulence and structural transformation.
Since the beginning of 2022, the total cost of energy resources in the world has increased by almost 40%. The growth in the cost of raw agricultural materials reached 20% in May-June. Since then, prices have declined, but how sustainable this decline is remains a big question.
Current geopolitical divisions are causing global markets to stop functioning normally. Markets themselves have become fragmented, supply chains are more risky, and incentives to invest and expand production have weakened, writes Marsel Salikhov, President of the Institute for Energy and Finance Foundation, for the 19th Annual Valdai Club Meeting.
https://valdaiclub.com/a/highlights/food-energy-security-and-global-markets/
#VALDAI2022 #economy
@valdaiclub
Since the beginning of 2022, the total cost of energy resources in the world has increased by almost 40%. The growth in the cost of raw agricultural materials reached 20% in May-June. Since then, prices have declined, but how sustainable this decline is remains a big question.
Current geopolitical divisions are causing global markets to stop functioning normally. Markets themselves have become fragmented, supply chains are more risky, and incentives to invest and expand production have weakened, writes Marsel Salikhov, President of the Institute for Energy and Finance Foundation, for the 19th Annual Valdai Club Meeting.
https://valdaiclub.com/a/highlights/food-energy-security-and-global-markets/
#VALDAI2022 #economy
@valdaiclub
Valdai Club
Food/Energy Security and Global Markets
Current geopolitical divisions are causing global markets to stop functioning normally. Markets themselves have become fragmented, supply chains are more risky, and incentives to invest and expand production have weakened, writes Marsel Salikhov, President…
Media is too big
VIEW IN TELEGRAM
🛒 Despite the interconnectedness of the global economy, in many areas individual countries and even companies wield disproportionate weight. These can be very small countries and even separate territories. The most striking example is the semiconductor and grain markets.
Why these disproportions arise, what crises they can lead to, and most importantly, what are the ways to solve these problems you can find out from our videoinfographic.
📍 The infographic is prepared for the Valdai Club’s 19th Annual Meeting.
#VALDAI2022 #economy
@valdai_club
Why these disproportions arise, what crises they can lead to, and most importantly, what are the ways to solve these problems you can find out from our videoinfographic.
📍 The infographic is prepared for the Valdai Club’s 19th Annual Meeting.
#VALDAI2022 #economy
@valdai_club
🌏 Asia’s growth remained in recovery mode in 2022, although the region will continue to outperform the rest of the world.
In addition to country- and region-specific factors, the IMF forecast reflects four concurrent global crosswinds: rising oil prices, monetary policies, and exchange rate divergence in the major economies, as well as shifting financial conditions and incremental growth.
Increasing conflicts between US and China as well as Russia and the West would have an impact on the recovery process, but these conflicts have also exposed the limitations of military structures and international institutions. In such a scenario, dialogue is the only way out.
Importantly, the assurance of the US security to many of its allies is dwindling, including in Japan, Korea, and Taiwan. One of the signals is Japan’s move to increase its defence budget to 2 percent of its GDP.
Russia’s role in parts of East Asia, Southeast Asia and Oceania needs to be reconfigured, as it has the potential to be a critical stakeholder, writes Pankaj Kumar Jha, Professor and Director of the Centre for Security Studies, OP Jindal Global University.
https://valdaiclub.com/a/highlights/globalisation-in-asia-and-the-lingering-conflicts/
📌 This article was prepared for the Valdai Club’s 13th Asian Conference.
#ASIANVALDAI #Asia #economy
@valdai_club
In addition to country- and region-specific factors, the IMF forecast reflects four concurrent global crosswinds: rising oil prices, monetary policies, and exchange rate divergence in the major economies, as well as shifting financial conditions and incremental growth.
Increasing conflicts between US and China as well as Russia and the West would have an impact on the recovery process, but these conflicts have also exposed the limitations of military structures and international institutions. In such a scenario, dialogue is the only way out.
Importantly, the assurance of the US security to many of its allies is dwindling, including in Japan, Korea, and Taiwan. One of the signals is Japan’s move to increase its defence budget to 2 percent of its GDP.
Russia’s role in parts of East Asia, Southeast Asia and Oceania needs to be reconfigured, as it has the potential to be a critical stakeholder, writes Pankaj Kumar Jha, Professor and Director of the Centre for Security Studies, OP Jindal Global University.
https://valdaiclub.com/a/highlights/globalisation-in-asia-and-the-lingering-conflicts/
📌 This article was prepared for the Valdai Club’s 13th Asian Conference.
#ASIANVALDAI #Asia #economy
@valdai_club
Valdai Club
Globalisation in Asia and the Lingering Conflicts
Russia’s role in parts of East Asia, Southeast Asia and Oceania needs to be reconfigured, as it has the potential to be a critical stakeholder, writes Pankaj Kumar Jha, Professor and Director of the Centre for Security Studies, O P Jindal Global University.…
🌏 As confrontation between the major countries grows, the world economy will undergo serious changes in the coming years.
On the one hand, to some extent, we are talking about growing regionalisation, in fact, a reduction of the transportation leg in foreign trade to reduce risks. Another factor is the desire to diversify partners, also to mitigate the increasing level of political risks. The economic factor will be less decisive amid the new conditions.
The global changes will affect the countries of Central Asia and Russia, in part, by contributing to the expansion of mutual trade and investment, writes Marsel Salikhov, President of the Institute for Energy and Finance Foundation, for the Third Central Asian Conference of the Valdai Discussion Club.
https://valdaiclub.com/a/highlights/the-role-of-russia-and-central-asia-in-new-word/
#CentralAsianValdai #CentralAsia #economy
@valdai_club
On the one hand, to some extent, we are talking about growing regionalisation, in fact, a reduction of the transportation leg in foreign trade to reduce risks. Another factor is the desire to diversify partners, also to mitigate the increasing level of political risks. The economic factor will be less decisive amid the new conditions.
The global changes will affect the countries of Central Asia and Russia, in part, by contributing to the expansion of mutual trade and investment, writes Marsel Salikhov, President of the Institute for Energy and Finance Foundation, for the Third Central Asian Conference of the Valdai Discussion Club.
https://valdaiclub.com/a/highlights/the-role-of-russia-and-central-asia-in-new-word/
#CentralAsianValdai #CentralAsia #economy
@valdai_club
Valdai Club
The Role of Russia and Central Asia in the New World Economy
The global changes will affect the countries of Central Asia and Russia, in part, by contributing to the expansion of mutual trade and investment, writes Valdai Club expert Marcel Salikhov.
📉 This is undoubtedly the first time in many years that the world economy has been threatened by three crises, each quite distinct in its origins, but whose consequences are intertwined.
A serious economic crisis, or the bursting of multilateralism, can very well lead to a new banking and financial crisis. The latter, in turn, will certainly aggravate the recessionary tendencies, and therefore the debt crisis, and the implosion of multilateralism. Certainly, the worst is not certain.
🏷️ The banking crisis is played out over a few days.
🏷️ The economic and debt crisis occurs over several months.
🏷️ The crisis of multilateralism can take several years.
However, what is new in today’s situation is the possible combination of these relatively short-term crises. This is the main risk, writes Valdai Club expert Jacques Sapir.
https://valdaiclub.com/a/highlights/crises-ahead/
#EconomicStatecraft #economy #crisis
@valdai_club
A serious economic crisis, or the bursting of multilateralism, can very well lead to a new banking and financial crisis. The latter, in turn, will certainly aggravate the recessionary tendencies, and therefore the debt crisis, and the implosion of multilateralism. Certainly, the worst is not certain.
🏷️ The banking crisis is played out over a few days.
🏷️ The economic and debt crisis occurs over several months.
🏷️ The crisis of multilateralism can take several years.
However, what is new in today’s situation is the possible combination of these relatively short-term crises. This is the main risk, writes Valdai Club expert Jacques Sapir.
https://valdaiclub.com/a/highlights/crises-ahead/
#EconomicStatecraft #economy #crisis
@valdai_club
Valdai Club
Crises Ahead!
This is undoubtedly the first time in many years that the world economy has been threatened by three crises, each quite distinct in its origins, but whose consequences are intertwined, writes Valdai Club expert Jacques Sapir.
💰 Economists believed that traditional cyclical policies could assume the role of structural policies.
Liberal Keynesianism has led many economists to focus attention short-term consequences, while underestimating the importance of the causes of the processes.
Suddenly inflation is back, forcing investors to wake up from a dream they thought would last much longer. The increase in debt leads to an increase in financial vulnerability. No state can infinitely increase the circulation of money without respecting the structural limits of money creation.
Inflation creates inequality among citizens who have a different ability to protect their purchasing power; differences between these abilities to protect themselves that distinguish freelancers and retirees, to cite two profoundly different social groups. This can generate extremist opposition and at the very least bring about the resurgence of terrorism that was thought to have been eradicated.
The inflation that has grown in the United States and, to a lesser extent, in Europe generates imbalances in the international financial order, setting the more developed countries against the rest of the world, and fosters inequality between states corresponding to the inequalities that are generated within states between citizens who have a different ability to protect their purchasing power.
Suddenly inflation is back, forcing investors to wake up from a dream they thought would last much longer. In the near future, this awakening risks leading to the bursting of speculative bubbles. Bubbles in real estate, money and finance, produced by speculation on commodities can explode when the ample liquidity runs out drastically, writes Valdai Club expert Dario Velo.
https://valdaiclub.com/a/highlights/the-return-of-inflation/
#Norms_and_Values #economy #inflation
@valdai_club
Liberal Keynesianism has led many economists to focus attention short-term consequences, while underestimating the importance of the causes of the processes.
Suddenly inflation is back, forcing investors to wake up from a dream they thought would last much longer. The increase in debt leads to an increase in financial vulnerability. No state can infinitely increase the circulation of money without respecting the structural limits of money creation.
Inflation creates inequality among citizens who have a different ability to protect their purchasing power; differences between these abilities to protect themselves that distinguish freelancers and retirees, to cite two profoundly different social groups. This can generate extremist opposition and at the very least bring about the resurgence of terrorism that was thought to have been eradicated.
The inflation that has grown in the United States and, to a lesser extent, in Europe generates imbalances in the international financial order, setting the more developed countries against the rest of the world, and fosters inequality between states corresponding to the inequalities that are generated within states between citizens who have a different ability to protect their purchasing power.
Suddenly inflation is back, forcing investors to wake up from a dream they thought would last much longer. In the near future, this awakening risks leading to the bursting of speculative bubbles. Bubbles in real estate, money and finance, produced by speculation on commodities can explode when the ample liquidity runs out drastically, writes Valdai Club expert Dario Velo.
https://valdaiclub.com/a/highlights/the-return-of-inflation/
#Norms_and_Values #economy #inflation
@valdai_club
Valdai Club
The Return of Inflation
Suddenly inflation is back, forcing investors to wake up from a dream they thought would last much longer. In the near future, this awakening risks leading to the bursting of speculative bubbles. Bubbles in real estate, money and finance, produced by speculation…
💸 The blocking of the reserves of the Bank of Russia by Western countries, coupled with large-scale financial sanctions against Russian banks and companies, have raised the question of whether the advantages of dollarization can be offset.
The non-economic risks of US dollar transactions and dollar-denominated assets have become apparent to everyone, especially to central banks.
The share of the American currency in international reserves has been steadily declining over the past decades, but this has been happening quite slowly. If in the early 2000s about 70% of the reserves of the world’s central banks were in US dollars, since 2020 it has been below 60%. There was no drastic reduction in US dollar reserves in 2022. Its share in reserves fell by 0.44 percentage points, while its share in interbank transfers even increased.
The main reason for such rigidity in the seemingly understandable increased political risks is the lack of serious alternatives that can absorb significant amounts of savings from central banks.
The de-dollarization of the global financial system will continue. This will be facilitated primarily by the development of technology in the financial sector. The development of automated trading platforms helps to reduce the cost of exchanging one currency for another. Central banks will seek to conduct direct clearing with each other, not directly using the currencies of developed countries.
In the future, the digital currencies of central banks can also be used for international transactions, reducing costs for economic agents. However, this is a rather slow process, writes Marsel Salikhov.
https://valdaiclub.com/a/highlights/de-dollarization-myth-or-reality/
#Valdai_WorldEconomy #dedollarization #dollar #economy #currencies
🗣 🗣 🗣
The non-economic risks of US dollar transactions and dollar-denominated assets have become apparent to everyone, especially to central banks.
The share of the American currency in international reserves has been steadily declining over the past decades, but this has been happening quite slowly. If in the early 2000s about 70% of the reserves of the world’s central banks were in US dollars, since 2020 it has been below 60%. There was no drastic reduction in US dollar reserves in 2022. Its share in reserves fell by 0.44 percentage points, while its share in interbank transfers even increased.
The main reason for such rigidity in the seemingly understandable increased political risks is the lack of serious alternatives that can absorb significant amounts of savings from central banks.
The de-dollarization of the global financial system will continue. This will be facilitated primarily by the development of technology in the financial sector. The development of automated trading platforms helps to reduce the cost of exchanging one currency for another. Central banks will seek to conduct direct clearing with each other, not directly using the currencies of developed countries.
In the future, the digital currencies of central banks can also be used for international transactions, reducing costs for economic agents. However, this is a rather slow process, writes Marsel Salikhov.
https://valdaiclub.com/a/highlights/de-dollarization-myth-or-reality/
#Valdai_WorldEconomy #dedollarization #dollar #economy #currencies
Please open Telegram to view this post
VIEW IN TELEGRAM
Valdai Club
De-Dollarization: Myth or Reality?
The de-dollarization of the global financial system will continue. This will be facilitated primarily by the development of technology in the financial sector. In the future, the digital currencies of central banks can also be used for international transactions…
🇷🇺🇨🇳 The development of economic relations between Russia and China is becoming increasingly important for both countries.
Since the end of 2022, China has been Russia’s leading trading partner. Trade between Russia and China rose to $190.27 billion in 2022, a 29.3% rise.
In 2021, the trade turnover between Russia and China amounted to $146.887 billion, which is 35.8% more than in 2020.
An important factor that will contribute to the increase in trade between Russia and China is the improvement of the system of mutual settlements in national currencies.
In this regard, the further large-scale rejection of the dollar and the euro in favour of national currencies in mutual settlements, the simplification of banking and commodity settlements between countries, and the development of the digital rouble and digital yuan will contribute to a further systematic increase in trade flows, writes Anastasia Stepanova.
https://valdaiclub.com/a/highlights/trade-between-russia-and-china-factors-and-limits/
#EconomicStatecraft #China #economy #trade
🗣 🗣 🗣
Since the end of 2022, China has been Russia’s leading trading partner. Trade between Russia and China rose to $190.27 billion in 2022, a 29.3% rise.
In 2021, the trade turnover between Russia and China amounted to $146.887 billion, which is 35.8% more than in 2020.
An important factor that will contribute to the increase in trade between Russia and China is the improvement of the system of mutual settlements in national currencies.
In this regard, the further large-scale rejection of the dollar and the euro in favour of national currencies in mutual settlements, the simplification of banking and commodity settlements between countries, and the development of the digital rouble and digital yuan will contribute to a further systematic increase in trade flows, writes Anastasia Stepanova.
https://valdaiclub.com/a/highlights/trade-between-russia-and-china-factors-and-limits/
#EconomicStatecraft #China #economy #trade
Please open Telegram to view this post
VIEW IN TELEGRAM
Valdai Club
Trade Between Russia and China: Factors and Limits to Growth
For a long time there has been a process of reorientation of Russia’s trade flows from the West to the East. The Asian market is huge; it has great growth potential and the population has high purchasing power. Trade cooperation with the BRICS countries…
Media is too big
VIEW IN TELEGRAM
🛒🌐 Will countries be able to ensure their independence in imports?
Especially for the Valdai Club session at the EEF-2023, titled “Open Far East in the World Economy: Achievements and Plans for the Future,” we created a videoinfographic on import substitution and import independence.
#Valdai_EEF #imports #economy
🗣 🗣 🗣
Especially for the Valdai Club session at the EEF-2023, titled “Open Far East in the World Economy: Achievements and Plans for the Future,” we created a videoinfographic on import substitution and import independence.
#Valdai_EEF #imports #economy
Please open Telegram to view this post
VIEW IN TELEGRAM
📊 Especially for the 20th Annual Meeting of the Valdai Discussion Club, we created an infographic on GDP of major economies and government debt. Follow this link to find the full infographic.
#VALDAI2023 #valdai_infogaphics #GDP #GovernmentDebt #economy
🗣 🗣 🗣
#VALDAI2023 #valdai_infogaphics #GDP #GovernmentDebt #economy
Please open Telegram to view this post
VIEW IN TELEGRAM
🇮🇱 It can be expected that the Israeli economy, in the event of a protracted confrontation with Hamas, will face difficulties that were generally characteristic earlier, during the period of the Al-Aqsa intifada.
By the end of the second quarter of 2023, protest activity and the delayed consequences of the pandemic had revealed a number of problems that could be layered on top of the typical difficulties for the Israeli economy during the escalation periods in the Middle East conflict.
However, there are also what could be called “anchors of stability”, that enable the state to cope with current challenges, albeit not without losses, writes Elizaveta Yakimova.
https://valdaiclub.com/a/highlights/the-economics-of-conflict-the-impact-of-the-war/
#EconomicStatecraft #Israel #economy
🗣 🗣 🗣
By the end of the second quarter of 2023, protest activity and the delayed consequences of the pandemic had revealed a number of problems that could be layered on top of the typical difficulties for the Israeli economy during the escalation periods in the Middle East conflict.
However, there are also what could be called “anchors of stability”, that enable the state to cope with current challenges, albeit not without losses, writes Elizaveta Yakimova.
https://valdaiclub.com/a/highlights/the-economics-of-conflict-the-impact-of-the-war/
#EconomicStatecraft #Israel #economy
Please open Telegram to view this post
VIEW IN TELEGRAM
Valdai Club
The Economics of Conflict: The Impact of the War Against Hamas on the Israeli Economic System
By the end of the second quarter of 2023, protest activity and the delayed consequences of the pandemic had revealed a number of problems that could be layered on top of the typical difficulties for the Israeli economy during the escalation periods in the…
🇫🇮 Despite all its previous achievements and innovative potential, the Finnish economy is currently beset by a number of serious structural problems, including:
🔹 a decline in production and a slowdown in economic growth,
🔹 significant consumer and industrial inflation,
🔹 high unemployment, a shortage of skilled labour,
🔹 a chronic budget deficit with a rising public debt,
🔹 a negative trade balance, and a decline in foreign trade, especially with Russia, which had been one of Finland’s most important trade and economic partners for decades.
Globalisation, which once had a significant beneficial impact on the Finnish economy, is now in a transitional stage, and Finland’s position is no exception, as there is growing evidence that the country has begun to lag behind in terms of investment attractiveness, education, competencies and labour resources, Azam Muradov writes.
https://valdaiclub.com/a/highlights/finland-in-pursuit-of-a-welfare-society/
#Multipolarity_and_Connectivity #Finland #economy
🗣 🗣 🗣
🔹 a decline in production and a slowdown in economic growth,
🔹 significant consumer and industrial inflation,
🔹 high unemployment, a shortage of skilled labour,
🔹 a chronic budget deficit with a rising public debt,
🔹 a negative trade balance, and a decline in foreign trade, especially with Russia, which had been one of Finland’s most important trade and economic partners for decades.
Globalisation, which once had a significant beneficial impact on the Finnish economy, is now in a transitional stage, and Finland’s position is no exception, as there is growing evidence that the country has begun to lag behind in terms of investment attractiveness, education, competencies and labour resources, Azam Muradov writes.
https://valdaiclub.com/a/highlights/finland-in-pursuit-of-a-welfare-society/
#Multipolarity_and_Connectivity #Finland #economy
Please open Telegram to view this post
VIEW IN TELEGRAM
Valdai Club
Finland: In Pursuit of a Welfare Society
Globalisation, which once had a significant beneficial impact on the Finnish economy, is now in a transitional stage, and Finland’s position is no exception, as there is growing evidence that the country has begun to lag behind in terms of investment attractiveness…
❓In what form are new settlement mechanisms possible within the BRICS framework?
❓What problems may arise during the implementation of various financial projects?
❓How universal can such mechanisms be?
❓What factors will determine the competitiveness of new mechanisms?
❓What can be done within the framework of the Russian presidency of BRICS to develop the initiative on new financial mechanisms?
Participants in the discussion will try to answer these and other questions.
Links to the live broadcast of the discussion will be posted on all online platforms of the Valdai Club: on the website, X (formerly Twitter), VKontakte, Telegram and Dzen.
#Multipolarity_and_Connectivity #BRICS #economy #finance
Please open Telegram to view this post
VIEW IN TELEGRAM
https://vk.com/video-214192832_456239181
#Multipolarity_and_Connectivity #BRICS #economy #finance
Please open Telegram to view this post
VIEW IN TELEGRAM
VK Видео
LIVE: An Expert Discussion Dedicated to the Financial Settlements of the BRICS Countries
On March 18 at 2:00 p.m. Moscow time, the Valdai Club will host an expert discussion dedicated to the financial settlements of the BRICS countries. More: https://valdaiclub.com/multimedia/video/an-expert-discussion-dedicated-to-the-financial-settlements…
🪙 Alternatives to the Dollar: Financial Settlement Mechanisms for a Multipolar World
On March 18, 2024, the Valdai Club hosted an expert discussion dedicated to financial settlements within the BRICS.
💬 Moderator Ivan Timofeev recalled that, according to the final declaration of the 2023 BRICS summit, the relevant departments of the member countries had to work out possible mechanisms for financial settlements. The talk was about creating a system that was not hostile to the West, but functional and protected from politicisation by third countries. The results achieved to date, in the form of ideas and projects, are planned to be presented at the summit in Kazan.
💬 The world understands that the unipolar financial system centred around the US dollar does not function properly, Paulo Nogueira Batista Jr., Vice President of the New Development Bank (NDB) (2015-2017), and Executive Director at the IMF (2007-2015), noted during the discussion. The dollar's position is undermined by a number of factors. These include both problems in the American economy and Washington's use of the dollar as a weapon, particularly against Russia and Iran. At the same time, geopolitical changes play a significant role. The world is moving towards multipolarity, and this requires a multipolar financial system. The question is whether BRICS can offer it. He considers possible steps in this direction to be the creation of a common currency basket under the code name R5, the development of a payment and settlement system to replace SWIFT, and the development of settlements in national currencies.
💬 John Gong, Vice-President for Research and Strategy at the Israeli branch of the University of International Business and Economics, and an expert at the China Forum, outlined the main avenues for finding an alternative to the dollar. First, we are talking about creating a common currency at the level of the New Development Bank. For now, it is difficult to say anything concrete about the prospects of this project, since a number of practical problems have not yet been resolved. Second, in Hong Kong, together with the UAE, an experiment was conducted to create a so-called currency bridge to carry out transactions bypassing the dollar. On this path, according to John Gong, some success has already been achieved. Third, one of the currencies of the member countries, most likely the yuan, may be promoted to the role of an alternative to the dollar, at least within the BRICS framework. The idea of a currency bridge seems to be the most viable option, but the analyst emphasised that there is no need to limit oneself to only one of the areas and it makes sense to develop everything at the same time.
💬 Arvind Gupta, Head and Co-Founder of the Digital India Foundation, noted that the BRICS group is not yet ripe for the introduction of a single currency. Therefore, it may make sense to focus on developing interaction between national payment systems. He called trust an extremely significant factor in this aspect, adding that it will be easier to achieve if development is based on the use of public rather than private digital infrastructure. It is also important that this infrastructure is not controlled by any one country, he argued.
💬 Ibrahim Karsany, Economic Consultant, Dubai Public Policy Research Centre, considers the idea of multipolarity to be internally contradictory and prefers to talk about diversity and diversification to avoid any form of domination. He believes there is support for the system of Western domination in international organisations created after the Second World War, that is, in the system of the Bretton Woods institutions. Accordingly, BRICS needs to develop an alternative to these institutions, and not only in the field of financial settlements.
https://valdaiclub.com/events/posts/articles/alternatives-to-the-dollar-financial-settlement-mechanisms-for-a-multipolar-world/
#Multipolarity_and_Connectivity #BRICS #economy #finance
🗣 🗣 🗣
On March 18, 2024, the Valdai Club hosted an expert discussion dedicated to financial settlements within the BRICS.
💬 Moderator Ivan Timofeev recalled that, according to the final declaration of the 2023 BRICS summit, the relevant departments of the member countries had to work out possible mechanisms for financial settlements. The talk was about creating a system that was not hostile to the West, but functional and protected from politicisation by third countries. The results achieved to date, in the form of ideas and projects, are planned to be presented at the summit in Kazan.
💬 The world understands that the unipolar financial system centred around the US dollar does not function properly, Paulo Nogueira Batista Jr., Vice President of the New Development Bank (NDB) (2015-2017), and Executive Director at the IMF (2007-2015), noted during the discussion. The dollar's position is undermined by a number of factors. These include both problems in the American economy and Washington's use of the dollar as a weapon, particularly against Russia and Iran. At the same time, geopolitical changes play a significant role. The world is moving towards multipolarity, and this requires a multipolar financial system. The question is whether BRICS can offer it. He considers possible steps in this direction to be the creation of a common currency basket under the code name R5, the development of a payment and settlement system to replace SWIFT, and the development of settlements in national currencies.
💬 John Gong, Vice-President for Research and Strategy at the Israeli branch of the University of International Business and Economics, and an expert at the China Forum, outlined the main avenues for finding an alternative to the dollar. First, we are talking about creating a common currency at the level of the New Development Bank. For now, it is difficult to say anything concrete about the prospects of this project, since a number of practical problems have not yet been resolved. Second, in Hong Kong, together with the UAE, an experiment was conducted to create a so-called currency bridge to carry out transactions bypassing the dollar. On this path, according to John Gong, some success has already been achieved. Third, one of the currencies of the member countries, most likely the yuan, may be promoted to the role of an alternative to the dollar, at least within the BRICS framework. The idea of a currency bridge seems to be the most viable option, but the analyst emphasised that there is no need to limit oneself to only one of the areas and it makes sense to develop everything at the same time.
💬 Arvind Gupta, Head and Co-Founder of the Digital India Foundation, noted that the BRICS group is not yet ripe for the introduction of a single currency. Therefore, it may make sense to focus on developing interaction between national payment systems. He called trust an extremely significant factor in this aspect, adding that it will be easier to achieve if development is based on the use of public rather than private digital infrastructure. It is also important that this infrastructure is not controlled by any one country, he argued.
💬 Ibrahim Karsany, Economic Consultant, Dubai Public Policy Research Centre, considers the idea of multipolarity to be internally contradictory and prefers to talk about diversity and diversification to avoid any form of domination. He believes there is support for the system of Western domination in international organisations created after the Second World War, that is, in the system of the Bretton Woods institutions. Accordingly, BRICS needs to develop an alternative to these institutions, and not only in the field of financial settlements.
https://valdaiclub.com/events/posts/articles/alternatives-to-the-dollar-financial-settlement-mechanisms-for-a-multipolar-world/
#Multipolarity_and_Connectivity #BRICS #economy #finance
Please open Telegram to view this post
VIEW IN TELEGRAM
Valdai Club
Alternatives to the Dollar: Financial Settlement Mechanisms for a Multipolar World
On March 18, 2024, the Valdai Club hosted and expert discussion dedicated to financial settlements within the BRICS. Moderator Ivan Timofeev recalled that, according to the final declaration of the 2023 BRICS summit, the relevant departments of the member…
🌏 Speaking at the Russian Foreign Ministry on June 14, 2024, Russian President Vladimir Putin revealed the key principles of the security architecture of Eurasia. The idea itself was voiced in the president’s message to the Federal Assembly on February 29. It is highly likely that it will become one of the supporting structures of the new Russian vision of security on the continent.
The principles revealed by the president indicate that Eurasian security will be understood comprehensively. It implies not only military-political issues, but also other areas.
First of all, we are talking about economics. Economic security issues were explicitly identified as a separate dimension and include a wide range of issues - from poverty and inequality to climate and the environment.
However, the further reference of the president’s speech to the policy of sanctions and the reliability of deposits in the debt obligations of Western states suggests that the key aspect of the economic dimension of Eurasian security architecture may be precisely the question of using the economy as a weapon; to protect against its use for political purposes.
The Eurasian economic security system can become a flexible and decentralised set of mechanisms that reduce “dependence on interdependence,” giving rise to a new reality of international economic relations, writes Ivan Timofeev, Programme Director of the Valdai Discussion Club.
https://valdaiclub.com/a/highlights/eurasia-s-security-system-the-economic-aspect/
#Multipolarity_and_Connectivity #Eurasia #security #economy
🗣 🗣 🗣
The principles revealed by the president indicate that Eurasian security will be understood comprehensively. It implies not only military-political issues, but also other areas.
First of all, we are talking about economics. Economic security issues were explicitly identified as a separate dimension and include a wide range of issues - from poverty and inequality to climate and the environment.
However, the further reference of the president’s speech to the policy of sanctions and the reliability of deposits in the debt obligations of Western states suggests that the key aspect of the economic dimension of Eurasian security architecture may be precisely the question of using the economy as a weapon; to protect against its use for political purposes.
The Eurasian economic security system can become a flexible and decentralised set of mechanisms that reduce “dependence on interdependence,” giving rise to a new reality of international economic relations, writes Ivan Timofeev, Programme Director of the Valdai Discussion Club.
https://valdaiclub.com/a/highlights/eurasia-s-security-system-the-economic-aspect/
#Multipolarity_and_Connectivity #Eurasia #security #economy
Please open Telegram to view this post
VIEW IN TELEGRAM
Valdai Club
Eurasia’s Security System: The Economic Aspect
The Eurasian economic security system can become a flexible and decentralised set of mechanisms that reduce “dependence on interdependence,” giving rise to a new reality of international economic relations, Ivan Timofeev writes.