Saturday, March 14, 2015
Western influence to eastern influence: The change of economic power
Once upon a time the French dollar (Franc) was the global currency. Today the Republic of the United States dollar is seen as the global currency. For the past decade or so the areas where financial transactions take place have desired a new global currency. Due to this there has been a global discussion as to a new system. In a peace and conflict realm this discussion is very important. The importance hinges upon the fact that money/economics is seen as a driving force of power, control and influence. Since 1945 the dominant global organizations have been World Bank and International Monetary Fund. Those two organizations spawned the Asian Development Bank. What has been a major force in the discussion of a new system deals with emerging economies. India has a billion consumers, the continent of Africa is also on the verge of a billion consumers. China has been growing, also South America has been edging towards a larger consumer ratio. All of these areas are in deep need of peace development as well. The work that has been done to bring peace is far too slow. To help bring peace faster the need for a different financial funding system is being sought. In 2001 Brazil, Russia, India and China were seen as a new economic force, which brought the acronym BRIC into the world. This new economic group has been calling for a new system of global finance. Today that call has spawned the Asian Infrastructure Investment Bank, and a possible new world currency. The first western country to jump on board is the United Kingdom. Behind all of this global money rests the lender being paid interest, gaining influence, expanding control and having power. The Asian Infrastructure Investment Bank is rebuilding the “silk road”. This road will be both a step back in time as well as a new twist of reality for the world. Today the global development banks are western based. The new systems are eastern based. This change can have a major impact on a great many global organizations. These changes may also bring a certain period of unease, unknown and chaos. As mentioned, the discussions have been taking place for many years. Furthermore, power is always changing. Also, for those that have been aware, the western based countries have been challenged to make changes and are too slow in making changes. In simple terms, the world has had enough of the current power structure. The United Kingdom understands the need to join now and be at the table when the foundations are being set. The talk of having another global development bank has been taking place for sometime. Now the talk is almost over and action is required. The action is the redevelopment of the old silk road. This should be a very interesting change we are about to experience.