Date :Wednesday, October 29th, 2014 | Time : 22:43 |ID: 15571 | Print

Resurging Russia

SHAFAQNA (Shia International News Association)

Zulqarnain Sewag
Russia is well harnessing the international diversity. The charismatic and shrewd leadership of the Russian president, Vladimir Putin has subdued Obama in the Middle East crisis. It is very true that in spite of hard struggles by the EU and USA,both could not let down the Basher ul Assad led government in Syria majorly due to Russia and Iran. America has to make a major policy shift in the region and beyond. Europe is under pressure due to Russian monopoly on gas, thus, is getting rid of American control as did president Charles de Gaulle of France in 1966 by leaving NATO against American hegemony on theorganization. In Ukraine the American and European policies are on back foot. Iran’s nuclear issue is amicably solving due to Russia. Russia is enjoying its biggest navel drills with China in the South China Sea and also going to have naval exercises first time in the Arabian Sea with Pakistan. Russia has almost developed good and trusted ties with the Muslim world because of US-West hypocrisy and double standards against the Muslims.
In the real politics, US-West and Russia or the others all have overt and covert, converged and diverged interests in the world. Overall, the P5, the veto-hood countries seek actual power in the world and intend to put it under their control. Divergence comes when each of these countries demands lion’s share in the global governance. USA which became sole superpower after the disintegration of USSR in 1990 is now facing many rivals in the contemporary world. The Russian wolf has slipped from the Arctic Ocean.
Resurgence of Russia can be analyzed on its gaining military might, revitalizing economic strengths, enhancing energy exports and diplomatic sagacity. Russian inclination to Ukraine and other Eastern European countries like Poland, Georgia, Estonia is natural because the countries are attached with deep social, cultural, and historical ties. Why has Britain recently made a hard struggle to not let Scotland independent?Kiev, the capital of Ukraine is said the mother of Russian cites.NATO’s decision to create spearhead force to protect Ukraine is of no avail.
Russia is the second largest dry gas and third largest liquid fuels producer and nuclear power and fourth largest in installedcapacity in the world. Along with weapon industry, energy exports are the major strengths of Russia. Russian weaponry exports are 27 percent of the world exports. Russian currency rubble has witnessed twenty percent decline in its value this yearbut it is not of that when it was devalued around thirty percent in 2008 and seventy percent in August, 1998 during economic crunch. But the fact is that Russian economy has only depreciated when the country has entered into a war: during1980’s it was entangled in Afghanistan, in 1998 was in wranglewith Chechnya, in 2008 it was the fallout of GFC and now it is bearing the costs on Ukraine, Crimean integration, uneven budgetary spending and the sustainability of the rubble.
The Eurasian Economic Union or the Eurasian Union which came into being on May 29, 2014 and will come into effect on January 1, 2015 was signed by Russia, Belarus,Kazakhstan and Armenia both for economic and political ambitions. Along with SCO, the EU will definitely counter the European Union. One EU is coming parallel to another EU.Eurasian Development Bank which is started with $45 billion will soon replace the influence of World Bank in the region. The New Development Bank or the BRICS Development Bank is another alternative to US dominated WB and IMF whereas in the recent survey conducted by European Banking Authority twenty four key banks among the 124 surveyed banks have been failed to meet their financial stability in the Europe. Thus BRICS is an additional Russian financial strength.
The budget deficit of the Russia was 1.3 percent of GDP previous year; on the other hand it stood at 3.3 percent for the European Union. In Russia, the government debt totaled only 13percent of the GDP, whereas during the preceding year it was 87percent in the EU. The country has fifth largest economy with more than $6 trillion and around $500 billion of foreign exchange reserves with a labor force around 80 million. Since WW-II, US-West has imposed sanctions on Russia for six times but they have never worked. Such sanctions may probably cause some economic damages but they on the other hand are uniting Russians against US-West as well.
The Collective Security Treaty Organization which after Warsaw pact was signed by six post soviet states Russia, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan on May 15, 1992 and was later on joined by Belarus, Georgia and Azerbaijan though Uzbekistan has left it in 2012 but it has now become an Intergovernmental Military Organization safeguarding Russia against US and NATO. Russia is making alliances and is realigning the old ones. In EU, the key country, Germany is going to become the staunch ally of Russia. Russia has last week signed a landmark thirty years gas trade agreement with China when on its eve Putin said that China and Russia are natural partners, allies and neighbors. The both countries are in a formidable alliance.
The world is witnessing new threats, challenges and opportunities every day. Successful are the countries that avert the challenges into opportunities. Otherwise, vultures are wandering all around to suck the weak economies by exploiting their challenges. Guaranteed sovereignty based on economic self reliance with democratically competent leadership can reveal this dream. On Russian front, if it wants to get respectable status in the world it has to on one side truly lead the US-West stung countries by overcoming their grieves and challenges, and on the other hand has to maintain its domestic social cohesion, good institutional governance and major share in the global energy landscape keeping in view the paradigm shifts, demands and developments at international stratum as well spending on R&D.Above all, Russia should diversify its economy and get out of the energy exports dependency if it wants to play more effective role in the global arena.


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