Quote:
Originally Posted by SnS_12 Countries need to choose their sides wisely as it looks like 2022 will be remembered in history when the East started rising and West started sinking. |
As much as I appreciate the sentiment of the East finally taking over from the west after 3 centuries of dominance, I am not sure if 2022 is the year for that and you will see why for the following reasons:
1) Russia isn't technically 'East' per se and while I've cautiously followed your (rather selective) arguments from your earlier posts that Russia is somehow at the top of the game here, I'm sorry but they just aren't.
2) Since 2014, the Russian economy has been constantly shrinking and is now smaller than the economy of Texas and Canada while being only slightly larger than the economy of Spain.
3) On top of this, Russia is facing the double whammy of a demographic collapse due to an ageing population while at the same time facing a rapid unprecedented brain drain (while they actually need positive immigration to keep up their population) which has actually increased since the war started.
4) Their manufacturing sector which was growing rapidly in the 2000s has collapsed in the 2010s with a heavy focus on commodities like gas and crude oil which while they can hold as a bargaining chip now won't be of much help when countries finally diversify. This is a very unhealthy economy. Have doubts? Ask Saudi Arabia.
5) Russia probably won't collapse and will doodle along skirting sanctions with import substitution, a bit like what Iran is doing but this isn't ideal! You are cut off from the global economy in what is a very globalized world.
6) As I had argued in an earlier post, while the west did make a fatal error in weaponing neutral financial systems like the SWIFT, an alternate Russian/Chinese run system isn't the solution. The Chinese were ready to use the river water flowing into India as a bargaining chip, you think they won't weaponise a financial system built by them? As much as we criticise the west, the urge to weaponise such systems will be much higher in authoritarian countries like China and Russia without independent central banks.
To conclude, what I see now is the final blow for Russia in its hope to be a superpower again reminiscent to the Soviet Union. At best, Putin's regime can survive by suppressing critics akin to what Iran is doing but that's about it.
Offcourse, since you said 'East' which Russian technically isn't part of (unless you meant the European Eastern Orthodoxy vs Western Catholicism/Protestantism split), let's explore the other options:
1) China - It's strange how till 2 months ago, we thought Xi would be the one to blow the world up but Putin somehow took his spot. Nevertheless, Xi is probably just as dangerous for the global system and with a slowing economy and a demographic challenge, China will almost certainly turn more hostile to the world, especially its neighbors but not as rapidly as Russia since Xi's power isn't as absolute as Putin with the CCP having some reins on him. Despite the speed at which China grew, their GDP per capita is still just around $12,000 as compared to $60,000 for the US which is still a long way to go. On top of that, we have China's debt bubble! Just China's high speed railway operator holds a debt of $900 billion and then there are the real estate bubbles. If any of these burst, it would be very hard for China to recover given that the Chinese people support the oppressive CCP system only because they are promised endless growth! You take that away and people are gonna ask questions whether you like it or not.
2) India - No matter what we try, our GDP growth rate hasn't gone above 9% in the past 6-7 years and I doubt if it ever will again. Neo-liberal reforms are welcome but we aren't seeing the kind of 10-12% rapid growth that took China to their current stage which in itself is still just 1/6th that of the US in terms of GDP per capita. India's current GDP per capita is less than Bangladesh, Nigeria, Kenya, Bolivia to name a few. How can India then become a superpower when it is still superpoor? Currently, most predictions indicate that India will touch $6 trillion by 2030 which is about double today's size and less than half that of China's CURRENT economy. At this rate, when are we catching up with China, let alone the west? Keep in mind that our demographic dividend will only last till the 2040s after which rapid economic growth will be very difficult.
3) ASEAN - the only country that is showing consistent growth is Vietnam but they face many of the same challenges as China and their system mirrors China but less rigid. So, if China goes into turmoil, I doubt if Vietnam can carry forward with the current system as well.
4) Japan/South Korea - These country are pretty much followers of the western bloc.
Don't get me wrong mate, I would love for the East to rise again but reality isn't based on hopes. The downfall of the west has been prophesized since the Vietnam war, after 9/11 and then after the Afghan exit last year but you have to keep in mind that the US fought wars in the Middle East at the other end of the globe (for them) where they lost less troops over 2 decades than Russia lost in 3 weeks while invading a neighboring country with flat tank friendly terrain (even taking Russia's own fatality tally which was around 500, 10 days back). Humans are biased and its easy to have a selective bias where you cherry-pick instances where the west is apparently 'losing' and those are great examples that you gave in your earlier posts but all they show is that the west are facing some issues as they did during previous crises as well, including the Iraqi invasion of Kuwait and the Yom Kippur war to name a few but none of these issues show that they are in decline. The only loser here apart from Ukraine is Russia itself.