UNFAIR WORLD

UNFAIR WORLD

We are at the mercy of the West [meaning North America & EU] both politically and economically. Political power lies with the United Nations where the West is dominant; this is enhanced by the military power of NATO [North Atlantic Treaty Organisation] – military alliance of North America and the EU. Though its main purpose is defence the constitution also states that “an attack against one member is like an attack against all”.

Whilst the United Nations has a political role compared with NATO’s military role it (UN) has not strictly adhered to the constitution and objectives of the UN. The 4 main aims are: maintaining worldwide peace and security; developing relations among nations; fostering cooperation between nations in order to solve economic, social, cultural or humanitarian international problems with ‘peaceful conflict resolution’ as an aim/ method. This has not strictly been adhered to in places like Iraq, Libya & Rwanda [genocide] where the USA/ West has been accused of self-interest instead of peaceful conflict resolution and solving economic, social, cultural or humanitarian problems peacefully.

NATO, a military defence force, has been seen to have been deployed in some areas/ situations as an aggressive intervention [usually with a bias towards the West and its allies]. The might of NATO is unchallenged, especially with the inclusion and backing of the US military. The might of the USA military is unchallengeable in terms of technology and strength in armaments/ personnel, with a thousand bases spread across the globe. The only mild threat, Russia is not of adequate standing. Following that China and its technological and economically advance has helped it grow into a third military power behind the USA and Russia. India follows China and it is hoped both countries will maintain non-imperialist and non-aggressive stances in the world.

Being at the mercy of the UN and NATO one should pray and lobby them to stick to their aims, especially instituting the objectives peacefully.

Economically too the USA and EU are leading the world. The GDP of the major economies in the world in 2017 is: USA 19.5%, EU 18%, China 13%, Japan 4%, India 3% and Brazil 2% - with Russia not measured.

Hence the USA and EU continue to control a large amount of the world economy and gross domestic product [GDP]. Both the USA and EU have advantages in Financial capital, education sector capacity and talent, equipment and infrastructure capital; these coupled with a system/ model of growth by means of better and aggressive marketing, technologically advanced superior products, and an unsatisfied appetite to consume and gather mean they continue to grow.

The superiority and marketing strength of Western corporations is unchallenged [except a few exceptions]; this is backed by capital, education, technology and funding. This combined with a culture of “I come first”, “my family come first” “my community and nation come first” has led to grabbing from “others” and selfish expansion with no regard to poor, disadvantaged international communities. The aforementioned advantages have allowed for continued growth and consumption in the West. This is seen emerging in some developing countries, especially the more developed group of nations within BRICS [Brazil, Russia, India, China and South Africa]. Of these countries, growth has been more pronounced in China because the regime has a concerted and more organised economic effort e.g. bank lending is controlled by the government which choses which businesses should be loaned funds; export processing zones with subsidies/ concessions; and frugal disciplined lifestyles. The main buyer of Chinese goods is the USA which is in debt to China. Total USA debt is about $19.8 trillion; of this about $14.4 trillion is public debt with foreign debt accounting for about $6 trillion [of which China is a major creditor]; this foreign debt is about 30% of total US debt of about $19.8 trillion; the balance of the debt [about 30%] is intergovernmental [pension reserves, etc.].

The policies of consumerism, enhanced by marketing, in the USA followed by the EU are also backed by finance made available by borrowing or issuing notes or bonds, printing money; this is not so harmful in the case of fiat currencies or the US dollar which is also a reserve currency. But some commentators have suggested the bubble could burst, however consumerism prevails with greed and the attitude of ‘make hay while the sun shines’ and bold optimism with the financial markets.

The over-consumption in the developed countries is also a major threat to the environment, i.e. global warming, pollution, nuclear waste, waste and depletion of resources. Instead of accepting themselves as the major causes of pollution, global warming, etc. the developed countries [especially USA recently] often try to impose restrictions on the less developed countries. Does the world have to wait for contentment and satisfied consumers – consumers satisfied with their make and model of appliance, car or iphone – resisting corporate marketing to push new models down ones throat for corporate profit and growth at the expense of borrowed money.

The major banks and financial institutions are mainly located and controlled in New York and London. The US dollar is the reserve currency. It is also the currency that oil and gold are traded in. Being a reserve currency or a fiat currency gives it some other distinct advantages e.g. when it prints more money; there is more of a negative effect on the non-US $ currencies. Some recent moves by a few countries to bypass the US dollar and trade using gold or the Euro as the trading medium were thwarted. China has started using its own currency, the yuan, as a medium of trade in regional trade instead of the US dollar.

International organistaions like the World Bank and the International Monetary Fund (IMF) come under the control of the UN in that the UN is the parent organisation. Their headquarters are in Washington D.C. Control lies with the countries that invest the most (provide most capital) and this is the USA government (by far) and its allies currently. There was a drive to give more weighting to emerging countries but so far the USA and its allies still control the IMF and the World Bank. There are 189 member countries; the objectives are: to foster global monetary cooperation, secure financial stability, facilitate global trade, promote high employment and sustainable economic growth and reduce poverty around the world. The remit or objectives are indeed altruistic however a major role seems to be facilitating trade.

Reports have been printed which say the Rothschild family (Nathan Rothschild in particular) have control over the IMF; the implication in causing economic crashes, destroying governments or causing riots. There have been scandals of developing world assets being sold cheaply to overseas corporations e.g. water system in Buenos Aires sold to Enron for a low price. They have also been accused of “remote-controlling” and making developing countries “slaves” by the ANC in South Africa; perhaps behind Zimbabwe’s crisis. It has also been documented that historically many years ago the Rothschild family via their control of the Banks were responsible in overthrowing a US president, causing war and overthrowing/ influencing reign in Europe.

Some countries are now getting help from the BRICS bank which is outside the scope of the UN; member countries being Brazil, Russia, India, China and South Africa. There are smaller development banks like the ADB (Asian Development Bank) where each participating country has a member representative but recent presidency has been with Japan (the major contributor) – participants are from the Asian countries and North America and EU. The AfDB – African Development Bank was set us to serve Africa. The later have limited funds though.

Such is the power of the West that one hopes for benevolent people with social responsibility to come forward or be elected to hold the reins of global powerful international organisations to promote their true objectives peacefully and in doing so save the less developed world. Social responsibility in corporate reporting is a relatively recent responsibility for Directors and organisations however it usually extends to the more immediate environment, rather than globally. Global Social Responsibility, restraint and benevolence is needed at this time to assist the poorer countries – this should also be reflected in the practices or the aforementioned organisations and organisations like the World Trade Organisation, G20, Climate Accord, etc.

Prof.Naresh Sethi 17 September 2017