Sunday, January 25, 2015

We must be strong to be respected.

Amitav Acharya, Professor at American University at Washington DC, argues in an article that we do not live in a unipolar or multipolar world but in a multiplex world, much like a cinema complex where different halls show different movies with entirely different stories, set in different locales. Today the world is not controlled by Great Powers but " is also shaped by newer and regional powers, global and regional organizations, corporations, social movements and shape-shifting terrorist networks." Then he says that there is " a shared vulnerability to transnational challenges like climate change, terrorism, pandemics etc." Precisely. Therefore, it is not really a multiplex world, wherein each story is complete and unconnected with others, but more a multidimensional world, rather like the universe, where space-time is continuous but curved by the gravity of objects within it. Prof Acharya opines that India's attitude to trade and non-proliferation is " marked by a an exaggerated sense of its needs and priorities, a refusal to make concessions and a tendency to accept only those agreements that are highly favourable to India " and that we should show a " greater willingness to make concessions and compromises." That is not true. Every nation does the same, especially the US and Europe who gang up against developing countries in the WTO. The US wants India to stop subsidies on agriculture while it pays over $14 billion to its own farmers. The conference on climate change at Copenhagen ended in disaster because the US, which has the highest greenhouse gas emission per head of population, refused any reduction unless countries like India, with very low emission rate, made equal sacrifices. The US grants extensions on drugs, whose patents have expired, based on cosmetic changes by pharmaceutical companies and aggressively defends its position, even if the rest of the world relies on cheap generic medicines from India to treat poor patients. The far left party Syriza won general elections in Greece after 5 years of crushing austerity humiliated the nation. In this period the hypocrisy of the Germans has been breathtaking. Germany sells 58.2% of its exports within the EU because its goods are priced at the same rate everywhere. The Euro being a common currency other countries cannot take advantage of currency devaluation to make German goods more expensive. Even though it objected strenuously Germany has the most to gain from the Quantitative Easing just announced by the ECB. The fall in the value of the Euro will make German exports cheaper to countries outside the EU, Germany is getting paid for borrowing money and the Greeks see their savings losing value. Only the strong are respected, the weak have little hope.

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