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Time To Look After Our Own Interests

EDITOR, The Tribune

The Caribbean relationship with the US is complex but enduring as a result of the 1821 Monroe Doctrine that designates the region under US sphere of influence. During the cold war between the Soviet Union and the US, the Caribbean was both beneficiaries and victims of US power. The Caribbean basin initiative helped the Caribbean to develop while US intervention in Guyana, Grenada and Jamaica precipitated major social upheavals. Most countries have adjusted to US dominance of global affairs.

Today the world has changed. The US is not the only hegemony. China has risen to be a global leader with the second largest economy in nominal terms but the largest in terms of purchasing power, according to the International Monetary Fund.

In 2013 China launched its Belt and Road Initiative. So far, China has invested US one trillion investment in hard and soft infrastructure and has signed memorandum of understanding with 138 countries. A recent White House document states, “the CCP has chosen to exploit a free and open system and rule-based order and attempt to reshape the international system in its favour”. There is a global competition between China and US for global dominance. The Covid 19 pandemic has enhanced this fight for power. This pandemic shows the world’s dependence on China for manufactured products and the wakening of US power. The US’s inability to manage the Novel Coronavirus Pandemic and its mismanagement of the George Floyd police killing has pulverised US majestic status.

I view the US Constitution as the greatest political document but if they could dutifully implement it. The foundation of US power is the US dollar being the world reserve currency. The US debt being 26.3 trillion which is 132% of its GDP. 51 cents of every dollar the US spends is borrowed. According to Peter Shift, US economist and Stephen Roach, a Yale University economist, the US dollar’s exorbitant privilege as the world’s reserve currency is coming to an end. The fact that Iran has made many shipments of fuel and food to Venezuela and the US tried to prevent this but was impotent demonstrates the US is no longer the master of the Universe. It is best to have China and US equally matched to preserve global flexibility, but China’s global power is starting to eclipse the US. The US pulling out of WHO, the Paris Agreement on Climate, the Trans Pacific Partnership and other international initiative weakens US global leadership.

Conversely, China is on the rise with her made in China 2025 and China Standards 2035, China will spend US$14 trillion on digital infrastructure in order to dominate in technologies and industries of the future. Huawei owns most of the patent on 5G technology therefore any use of 5G technology benefits Huawei and that is why the US reversed its policy on Huawei.

The Bahamas trades with both China and the US. In my view it does not matter which country dominates the world because power corrupts. Global politics is similar to local politics; leaders do what benefits them and candy coat their intentions. The Bahamas must secure its own interest because global hegemony reward is small but their extraction is large.

BRIAN E PLUMMER

Nassau,

June 24, 2020.

Comments

Porcupine 2 weeks ago

Brian, I believe your take on this is correct. However, while the thrust of your letter is economic, my greatest concern is the loss of democracy for humanity. To preserve what we have, it is incumbent upon our leaders to rise to the occasion of educating themselves to the true threats out there. This would be a new breed of leaders for The Bahamas, as there is little to suggest that this concern has been front and centre for most of our history. Thanks for your perspective.

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JokeyJack 1 week, 6 days ago

Those who think "it does not matter" whether China or the U.S. is supreme is very likely not old enough to understand what threat faced the world in World War 2. They have never stood in a food line in Russia to get a loaf of bread. They have never spent one hour in a Chinese prison. They have never watched a family member die in Venezuela because the pharmacy ran out of medication. They believe in unicorns and the Easter Bunny, just like China wants them to until they are painted into a corner and cannot escape. Then they will get properly introduced to the Chinese Communist Party and their view that freedom "does not matter."

Mr. Plummer I have read your writings for years, and respect you as a social activist - but please do not let China pull the wool over your eyes. There is no greater threat to freedom on this planet right now than China. Every penny that finds its way through trade (you, for example buying a couple of egg rolls or a pepper steak) will be converted and leveraged into a terrible weapon against your very existence. Those egg rolls are infinitely more expensive than they appear.

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SandyE 1 week, 6 days ago

China is the Bahamas loan shark. From the other side of the world they come. The feeling of China's flirting should not mistaken for friendship. Its part of their game with the US with the Bahamas being a pawn. If the Bahamas were to renege or default on a loan or contract with china, they'd soon enough find out.

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