There are many ways the West is using to exert control of the world apart from the US$ hegemony.
Setting
debt traps is one, which the IMF and World Bank were created to
undertake the task. Today, we can see many countries like Argentina,
Bangladesh and Sri Lanka being ensnared into the debt traps set by the
IMF and World Bank. Argentina is behaving like an obedient dog towards
the USA, even professing to support the US$ hegemony by dollarizing its
economy.
Keeping countries perennially poor is another way that
the USA and the West exert control over poor countries. Without
development and infrastructure, poor countries cannot never hope to
progress and extricate themselves from poverty and needs help, which the
West via the IMF or World Bank would never give them for development.
Why let them progress and grow rich which will make them more difficult
to control? When China came into the picture to offer help to those poor
countries, it set off alarm bells in the West and the demonization of
China setting debt traps became a mainstream mantra.
The fear is
that what China did with itself, going from poverty stricken to become
the second biggest economy, is going to be allowed to play out and
transplanted into other countries, which will give communism a moral
victory over democracy.
Anonymous
BRICS countries are reported to be burning their bridges in dealing with the IMF and World Bank and there is talk that the Western biased leaning UN will figure in less instrumental ways for BRICS countries going forward.
ReplyDeleteIn other words, BRICS is into setting up its own financing system for development among BRICS countries, just as China did in setting up the Asian Infrastructure Investment Bank or AIIB for Asian countries to source for development funds.
As it is, China is already doing massive lending for infrastructure developments around the world with its BRI projects. There is no longer any need for poor countries to be beholden to the IMF and World Bank for aid. The BRI is making the IMF and World Bank more or less impotent, with China now funding all the developments in Africa, Central Asia, South-East Asia and even South America. The IMF and World Bank can look forward to funding the India/Middle East/Europe Corridor and the Partnership for Global Infrastructure and Investment (PGII), LOL.
The BRI was a masterstroke by Xi Jinping, allowing China to recycle its trade surpluses, which would otherwise be diverted towards investing in risky US$ assets like Treasuries and real estate in the USA and EU, which could be seized in times of conflict like the assets of Russia. And such conflict is imminent and just testify to the wisdom of China thinking far ahead.
Countries like Argentina, Bangladesh and Sri Lanka that took loans from the IMF and World Bank years ago, are now not able to extricate themselves and are now stuck by being beholden to the dictates of these two entities.
Now, isn't that obvious as to why the USA and the West are so unhappy and keep repeating the debt trap myth against China over the BRI funding for countries around the world, especially in Africa. Does that surprise us? It certainly does not surprise me. This is their modus operandi. When they fail to compete, they want to demonize or destroy.