TODAY -

Petro-Yuan matrix: Engine for Chinese dominance in 21st century

Dr. Mayengbam Lalit Singh *



It is said that 20th century is century for U.S.A whereas 21st century will be for China. During 18th and 19th centuries, European colonisers such UK, Portugal, Spain, France, Netherland were the key players in the world in every spheres. They framed political, economic and social institutions in their colonies in order to make them global powers.

These institutions helped them to shift property rights of indigenous people to these colonisers. There was high growth of economies in those colonisers which led them to cut throat competition in order to gain supremacy. Such competition yielded in physical wars not only among colonisers but also among colonies across the world. Finally UK became victorious and it emerged as global power with its sets of policies across world.

In economic policies, it framed trade laws wherein its colonies should trade exclusively with UK. These colonies were compelled to supply raw materials to feed industries in UK. The final products were sold at colonies at the price not determined by market but monopoly price. This led to high growth in profit and global manufacturing power. In terms of politics also, it framed laws on democracy and forcibly implemented it suppressing traditional method of governance.

In the beginning of the 20th century, USA and Germany slowly raise their economic growths. UK accommodated the rise of USA, whereas the raise of Germany was challenge to the former. It was the outbreak of Second World War which led to paradigm shifts of countries in their respective position in the global race for dominance.

Owing to severe war between Germany and UK, manufacturing of goods were shifted to USA from UK. This was the beginning of Raise of USA whereas the downfall of UK. After war, there was situation where UK could not control its colonies in Asia and Africa politically. Many countries got independence from rule of UK which fuelled further decline of dominance of UK.

USA chose different strategies which are characteristically political, economic and institutions. During UK’s dominance, it was physical colonism which was followed by economic and institutions. However, for the case of dominance of USA, it was institutions to be followed by economics and politics. Precisely, after Second World War, USA initiated many institutes in the name of restoring peace in the world.

Among the institutes, UNO, IMF, GATT, WDB, Security Council are the main institutions where USA took leading role. Frameworks of these institutions were set so that all the policies should be USA centric. UNO was established in order to restore peace in the world and not break out further world war.

However, working nature of this institute was set in such way that all the frameworks should be set by the USA and it should be ratified by its member countries. IMF was established to ensure currencies to avoid economic chaos such as inflations and deflations across the member countries. However, distribution of quota systems was so lopsided where USA and developed western countries had been holding maximum quota.

Developing countries had not been conferred with increase in it despite the economic development of these countries. These higher quota countries set US Dollar as main currency to smoothen flows of import and export among countries. This made US Dollar a highly demanded currency and USA benefits itself using dollar as engine of growth.

Similarly in GATT also, USA and its allies set all rules of export and import in order to yield in maximum gains irrespective of the voice of developing countries. WDB had been witnessed to deliver development loans to mainly the countries which were found loyal to USA. This causes dissatisfaction grossly over many decades to developing countries.

Among the developing countries China has been witnessed to manoeuvre on its development path since it globalised its economy in 1978. It allowed foreign firms to invest various manufacturing plants. Cheap labour and favourable manufacturing environment leads to establishment of foreign firms. In order to feed various manufacturing plants, China started searching for raw materials across the countries especially in Africa and Latin America.

It installed mining firms in these countries with exchange of consumers’ goods manufactured in it. Such development posed imminent threat to American dominance and the former president, George W. Bush administration considered waging policies against China. However, bombing of Twin Tower by terrorist group, Al-Kaida in 2001 diverted American attention from China to Middle East and Afganistan where USA conducted war against terrorist groups. China deepened its economic relation in Africa and Latin America.

It signed many agreements with wide ranged sectors. Unlike USA, Chinese philosophy in the race dominance is an economic policy which is followed by political policy. As part of economic policy, it built many infrastructural projects in the countries in the above mentioned continents. In order to protect those projects, it employed its troops in these countries. This ensured China for free flow of raw materials from these countries.

In return, China had been allowed to set up vast market for its gigantic manufacturing firms in these countries. China is not happy with the hegemony of American dominance in oil sector since it has been the largest importer of oil from abroad. American dominance became degrading since 2008 when financial chaos took place in its economy which resulted in degradation of dominance Petro-Dollar dominance.

Degradation of dollar was further deepened by sanctions of USA and EU on Russia over Ukrainian crisis. Now Russia brought up galvanised trade bonds among BRICS rather than its economic ties with the West. During the last decades, China has grossly increases it’s GDP by trillion $14 after USA with trillion $20 in 2018. It has recorded trade surplus worthy of trillion $4 mainly from its exports.

According to World Development Bank, it has improved many developmental indicators such Purchasing Power Parity (PPP), rural economy, infrastructures, transport infrastructures, life expectancy, availability of electricity, drinking water, health care, etc. It has constructed road connectivity as well as rail across Asia (commonly known “Silk Road” as past centuries). Recently, China initiated to set up institutions which bestow it as global main player.

Both China and Russia have set up BRICS bank wherein China has 50 percent of the total share. It is considered as parallel to the working World Development Bank and Asian Development Bank funded by Japan. In order to invest in infrastructural sector, it also set up Asian Infrastructure Investment Bank (AIIB). Many countries including from EU are members of this bank to invest infrastructural projects in Asia, Africa and Latin America.

Owing to repeated recessions in USA and its hegemony, countries across the world lose confidence on valuation of goods based on USA dollar. China after consultation with Russia, Iran, India and oil producing countries of Africa and Latin America, has launched Petro-Yuan to replace the former for smooth determination of values of goods and services.

This yields in dominance of China in economic platform of the world whereas it is appeared as Achille point for USA. Former Iraqi president, Sadam Hussain and Libiyan president, Md. Gadafi lost their lives in the hands of USA when they tried to replace USA dollar with other currency in trading of oil.

Developing countries including India are expected to get benefits from this multi polar world. These countries had been underscored in quota systems under USA led institutions despite high growth and developmental rates. BRICS and AIIB will invest in the areas where former institutions declined to invest. Moreover, Petro-Yuan is expected to remove the WTO imposed policies which favour only developed countries of the West in world trade platform.

From the regional perspective, developmental economists also look forward to infrastructural changes. North East region has been backward many sectors especially in infrastructure. Indian policymakers focus on centrifugal law of development (development should be wave out from central states of India). However, pragmatic development shows still infrastructural developments are lacking in this region which is at periphery.

In this globalised world, developmental frameworks are found centripetal (from periphery to the centre). If China builds infrastructural projects through North East region, it is expected to flourish boom in many sectors in this region.


* Dr. Mayengbam Lalit Singh wrote this article for The Sangai Express
The writer is an Assistant Professor of Economics
This article was posted on 29 June , 2018 .


* Comments posted by users in this discussion thread and other parts of this site are opinions of the individuals posting them (whose user ID is displayed alongside) and not the views of e-pao.net. We strongly recommend that users exercise responsibility, sensitivity and caution over language while writing your opinions which will be seen and read by other users. Please read a complete Guideline on using comments on this website.




LATEST IN E-PAO.NET
  • Historical Evaluation of Puya Meithaba #4
  • MU: Student/police clash -10 Oct #2: Gallery
  • X-Jam -Extreme Sports & Music festival
  • Urban Local Govt in Mizoram :: Book
  • 3 perspectives in context of present Manipur
  • Figures in the Shadows :: Poem
  • To UNC, Zomi Council, Hmar Inpui on ST
  • HC acted in good faith for MU
  • Jarnail Singh @ MU : Gallery
  • Chawailokpa, Chaong, Charaibi :: eMing
  • Heikru Hidongba #3 : Gallery
  • The undeniable subtlety of Atingkok
  • Kuki Black Day: desperation to Nagas #1
  • Let me shower moonlight :: Poem
  • On allegations issued by NPF : NDPP
  • Challenges to the digital dreams
  • Eyes now on K Yugindro
  • Lamyanba Irabot- March Past #3: Gallery
  • Death Anniv - Bhagyachandra #2 : Gallery
  • Meetei Tribe wont grab land of Hill Tribes
  • Making a tangible difference
  • Contradicted journey of IPC Section 377
  • Free open defecation & open pee
  • Act East & Importance of Myanmar & NE
  • Vacancies at Multimind Software
  • Waiting for "Sorry"
  • Out Yugindro in Jarnail Singh
  • Mera Chaorel Houba #1 : Gallery
  • AMAND Pune: Cultural evening : Gallery
  • Management Convergence at Mizoram Univ
  • Observation of World Mental Health Day
  • Cry of a Dying River - 49 :: Poem
  • Buddhism is free from compulsion...
  • 7th AGM / Cultural evening of AMAND, Pune
  • Forsaken farmers - food for thought
  • Second police raid at MU
  • NESO opposes Indo-Nepal Treaty in NE
  • British Council, NEC sign MoU
  • MU: Student/police clash -10 Oct #1: Gallery
  • Death Anniv - Bhagyachandra #1 : Gallery
  • Anglo-Kuki War 1917-1919
  • University :: Poem
  • Remembering class boycott 2009-2010
  • Hair stylist as career option #2
  • Training of Trainers on Gender Justice
  • Manipur University fresh violence by police
  • MU Crisis- admissions and omissions
  • Issues besetting State before LS polls
  • Langban Heitha Leithaba #2 : Gallery
  • Sizo Festival @Saikot : Gallery
  • Opening of Moreh-Tamu Border Gate
  • Forest Cover of Nagaland :: Book Review
  • Ingocha Chingtham: Cycling from Mumbai ..
  • Blood Transfusion service- future in Manipur
  • IT Enabled Employment Generating Course
  • NDPP condemns statement of NPF
  • Beyond the reality
  • Need for MUTA to approach Court
  • Kang Tournament @Kongba #2: Gallery
  • Elangbam Sonamani : Sahityaratna 2017
  • Celebrating the rights of wildlife- Are we
  • The sky's gone wonderful :: Poem
  • Communal Harmony and Integration
  • Opportunity for India in Indo-Pacific Region
  • To be a good man
  • Education : Why no private players here ?
  • Tarpon Sonba : Gallery
  • mtM :: Seireng
  • MN Singh promoted as IG of CBI felicitated
  • Loktak from different perspectives #2
  • The Killing Fields 2013-18 : News Timeline
  • The Journey of Happiness :: Poem
  • A personal discourse of Manipuri people
  • Improper use of loud speakers in Manipur
  • Art Exhibition @Art College #3: Gallery
  • Sudip Kongbrailatpam -recording engineer
  • Dismantled 9th times & safer in 10th times
  • Remembering Irawat: Are we following ..
  • State Level Archery Championship 2018
  • Stop religious encroachment at Kangla
  • Navratri (festival) make up
  • khongjang changsinnaba sem sarey : ST
  • MU crisis: Emerging questions
  • Lining up five days blockade
  • Dhol Chollom @Sangai Fest: Gallery
  • A Road Trip to Myanmar #2
  • Maroi napakpi in Manipuri dishes
  • National Integration Tour Team
  • Cry of a Dying River - 48 :: Poem
  • Ending antimicobial resistance to #endTB
  • Condoles death of Pu Kaikhokam Kipgen
  • Rejoinder to NDPP (5th Oct) : NPF
  • Responsibility required - not restriction
  • After Thuingaleng Muivah who ?
  • Paddy dry up due to deficit rainfall
  • Lamyanba Irabot- March Past #2: Gallery
  • Binalakshmi Nepram : RAW in WAR Award
  • Agribusiness & Carbon Management : Book
  • Is Gandhi (ian) relevant today ?
  • Guidelines for Hostels for Children
  • ATM based frauds : Router compromise
  • 'Rio's announcement as just mockery'
  • Training Program on Mushroom Cultivation
  • 'Chadong' - the victim of development
  • Poles apart : Pandey and Singh
  • Manipuri Diaspora in Myanmar #2
  • Why has Egg become Danger for Manipur?
  • Speech by Atif Anik on Irabot Day 2018
  • Wounded tree :: Poem
  • Hair stylist as career option
  • Synopsis of Sizo Festival 2018
  • Traffic regulation still a Flop show
  • In the evening of his life : Th Muivah
  • Langban Heitha Leithaba : Gallery
  • World Bamboo Day #2: Gallery
  • Where have all the lights gone ?
  • Mahatma and non-violence
  • Detention of students/professors of MU
  • Gandhi Jayenti at Itanagar
  • IBSD cleans Imphal City
  • MU: Abide by wisdom of Sr citizens
  • Naga Peace Process :: News Timeline
  • Power of humility
  • Ghost of Pandey : Four teachers suspended
  • Lamyanba Irabot- March Past #1: Gallery
  • October Calendar for Year 2018 :: Tools
  • Looking at Loktak from perspectives #1
  • Morning - a Haiku :: Poem
  • R&V Art House curates 'Land of Polo'
  • Show for football fans at NEUFC Fan Park
  • Indigenous People: Stand against Fascist
  • Clarification on Tamei Residential School
  • Organic Farming Tour to Sikkim
  • System error- or is this real democracy
  • Autonomy for Naga- Stakeholders on board
  • Th. Muivah hospitalized
  • Lamyanba Irabot- Floral Tribute #1: Gallery
  • Choidev Chongba @Kang Fest : Gallery
  • A Road Trip to Myanmar #1
  • The day after Sahnit-Ni
  • Cry of a Dying River - 47 :: Poem
  • Observation of World Alzheimer's Day
  • Benefits of almond oil for the hair
  • NEUFC Fan to host musical performances
  • ..but Irabot may still shed tears in heaven
  • Heikru Hidongba #2 : Gallery
  • Lamyanba Hijam Irabot :: Read all about
  • Tingmila Doungel : Manipuri Boxer
  • Tarpon: Annual offerings to dead by living
  • Manipur: Past & Present (Vol.2) :: Book
  • Genesis of Naga-Kuki clash in early nineties
  • 9th Children's Cultural Meet 2018
  • Parakram Diwas : 2nd Anniversary
  • International Visitors Leadership Program
  • He calls state Govt as unrecognized..
  • Tough stand of Govt noted
  • Historical Evaluation of Puya Meithaba #3
  • MU: General Srtike [27 Sep] #2 :: Gallery
  • Tribute to Oja Nandiram with 'In Memoriam'
  • The resurgence of Hijam Irabot
  • Love for post of MU vice-chancellor
  • Condemns arrests of MU student/teachers
  • Spot Enquiry by MCPCR Team
  • Seriousness with sincerity matters
  • 48 hours bandh on, then what ?
  • MU: General Srtike [27 Sep] #1 :: Gallery
  • Hijam Irabot - Our 'Icon of Revolution'
  • Food preparation among Zeliangrong
  • Is it the final countdown to #endTB?
  • Let's give time a chance :: Poem
  • If Buddhism Is Not A Religion Or Philosophy
  • Using false identity to mislead
  • In response to CM's appeal
  • CM's call against bandh
  • MU: Hunger Strike[25 Sep] :: Gallery
  • Irabot's letter to Assembly :: 18 Oct 1948
  • SC Case on Killings Must be Complied
  • How we lost internal autonomy: Mountbatten
  • The flute player :: Poem
  • Biodiversity for Everyone's Life : Video
  • DU protest against attack on MU Community
  • Unfolding dirtiest of the dirty game
  • Net down since September 21
  • MU: Students protest[25 Sep] :: Gallery
  • Art Exhibition by R & V Art House
  • My name is Kom, Mary Kom - II
  • Electrology as career option
  • When Autumn Came :: Poem
  • Against 48 hrs bandh: Thadou Students
  • Leadership / Media seminar at Dimapur
  • Demise of a dream
  • Traffic menace: Ring road, flyover promise
  • Ringui Village, Ukhrul :: Gallery: Gallery
  • Front Page Photo 2018 #4: Gallery
  • Autonomy on a leash
  • Manipur: Past & Present (Vol.1) :: Book
  • World Bamboo Day #1: Gallery
  • 45th AMWJU Foundation day : Gallery
  • Lai Lik Lei & their debut "Esei"
  • Tuilha Kol waterfall #2: Gallery
  • Eyek Tamba :: Learn Manipuri script
  • Rally against Mob Lynching #2: Gallery
  • Krishna Janma @Mahabali #2 : Gallery
  • Felicitation of Sportsperson: Gallery
  • Martyrdom of Haipou Jadonang #3: Gallery
  • Kuki Black Day @CCpur : Gallery
  • Sit-In: Naga Peace Talk #2 : Gallery
  • Inner Line Permit (ILP) Demand :: Timeline
  • Jangou Rah : eRang Classic
  • Manglandasu Nang - OST :: e-pao Radio
  • Old Manipuri Movie #1 :: eRang Classic
  • SPONSORED ADS