The global economy is at a crossroads

The world is going through turbulent and extremely complex economic conditions, from the Russian-Ukrainian war, in which the United States is trying to exhaust the accumulated Russian reserves (which were close to 600 billion dollars) in a futile war, and frightening tensions in the South China Sea, where the United States is trying to blockade China, the developing economic giant. Quickly exceeding the expectations of decision makers in America through the Quad Alliance (America - Australia - Japan - India) while preventing the export of advanced electronic chips.

Since October 7, 2023, the Zionist-American war has been on the Gaza Strip and on Palestine with the aim of liquidating the Palestinian cause, eliminating the resistance through genocide and attempts to displace the Palestinians, and reviving the deal of the century through the loyal allies of Israel and the United States in the Arab region. All these devastating, accelerating events have come and the world has not yet recovered from the Corona pandemic with its devastating economic effects.

Decision makers in the United States are in the stage of denying the decline of the era of unipolarity, which lasted more than 20 years since the fall of the Soviet Union in the early 1990s and until the beginning of the second decade of this century. The world has now become multipolar par excellence. We have the European Union despite its weakness resulting from Its political dependence is entirely on the United States, but it constitutes a great economic weight. We have the BRICS group led by China, along with Russia, India, the giant of South America, Brazil, and the leader of Africa, the state of South Africa. This bloc is trying to achieve independence and achieve sustainable development in several models that differ from the classic capitalist model in which power is allied. And force, and is based on exploiting the resources of other countries and emptying democracy of its content.

“Almost the entire world is suffering greatly and under pressure economically since the Covid-19 crisis and then the crisis of disruption in supply chains, which was reflected very negatively in the increase in inflation rates and then the Russian-Ukrainian war, which exacerbated and deepened the crisis with a very large increase in energy prices.” Oil and Gas “Electricity,” grain and food prices, and the cost of shipping and insurance.

Given the mechanisms of political and economic decision-making in the United States, which is trying hard to cling to hegemony by fueling conflicts, controlling transcontinental companies, supporting dictatorships steeped in bloodshed and racism, financing and supporting military coups (Iran-Chile-Argentina-Turkey-Egypt-Brazil) and many models in The last century and the beginning of the present century. We find that the election of legislators in Congress in the House of Representatives and the Senate is based primarily on very huge support and funding amounting to hundreds of millions of dollars and exceeding a billion since the elections of Hillary Clinton, Donald Trump, Joe Biden and Donald Trump. These generous campaigns are from companies that have many interests, whether internal at the state level (the House of Representatives) or external to the Presidency and the Senate. This generous spending is considered a type of investment in politicians who are not above suspicion (Senator Bob Menendez, Chairman of the Senate Foreign Relations Committee, is a blatant example).

Almost the entire world is suffering greatly and under pressure economically since the Covid-19 crisis, and then the crisis of disruption in supply chains, which was reflected very negatively in the increase in inflation rates and then the Russian-Ukrainian war, which exacerbated and deepened the crisis with a very large increase in energy prices (oil, gas and electricity). “And the prices of grains and food, and the cost of shipping and insurance, and the barbaric Israeli war on the Gaza Strip and its developments that were reflected in navigation in the Red Sea. These negative developments made most countries of the world suffer economically. According to the World Bank in its latest issue of the International Debt Report in December 2023, developing countries spent a record level of approximately $444 billion to service their external public debts guaranteed by the government in 2022, in the midst of the largest jump witnessed in global interest rates over four decades. The report added that the high costs of this debt led to the transfer of “already scarce” resources away from vital needs such as health, education, basic services, environment and nutrition. High interest rates have exacerbated debt-related risks in all developing countries. In the past three years, 18 developing countries have defaulted on their sovereign debts, a larger number than recorded in the past 20 years, which portends economic disasters that threaten international peace and security.

“The frightening economic situation has led to a significant increase in poverty rates, because interest payments consume a large and increasing proportion of low-income countries’ exports, making any sustainable development plans in these countries a matter of imagination.”

These economic disasters began since the global financial crisis of 2008, the main reason for which was the greed of American financial institutions and the weakness of financial supervision and legislation during the period of President George W. Bush, and the main reason for which was great pressure from these giant financial institutions that finance election campaigns for members of Congress in both chambers, as well as campaigns. Presidential, and when the disaster occurred in 2008, President Obama supported the collapsed companies and printed trillions of dollars, and after him President Trump, who printed trillions more to confront the effects of the closures resulting from the Covid-19 crisis, which led to massive inflation and was exported to all the countries of the world in crisis, and the Federal Reserve By raising interest rates to control this inflation, which made most capital prefer to invest in the United States, which led to a strange situation in the world, as the United States caused inflation with lame, unproductive policies and printed dollars to cover historically unprecedented deficits (the American public debt amounts to More than 33 trillion dollars (and increasing daily by more than 3 billion dollars) and exceeding 125% of the US national product.

This frightening economic situation has led to a significant increase in poverty rates, because interest payments consume a large and increasing proportion of the exports of low-income countries, making any sustainable development plans in these countries an illusion. On the contrary, the American economy is going against the grain thanks to the flow of most capital to the United States in search of higher interest rates, which contributes to solving the problem of unemployment and the well-being of the American citizen at the expense of the well-being of most countries in the world. This is an unfair situation that should be changed.

“The solutions at the people-level lie in encouraging local products and supporting national companies instead of multinational and transcontinental companies, which are trying to stereotype Arab and developing societies into a consumer lifestyle that enhances dependency and eliminates any development hopes.”

Horizons of solutions

The solutions for developing countries, including Arab countries and countries seeking liberation and making sustainable development plans, lie in investing in human capital, reducing dependence on transcontinental companies, and trying to reduce the scientific and technological gap by transferring expertise and knowledge and not importing final products from capitalist countries. Brazil’s experience in producing... Civilian aircraft, and Turkey’s production of drones, have given the two countries an influential role in supporting exports and reducing imports, and creating more and more job opportunities.

When we compare in the oil and gas industry between the Turkish Sakarya field (the reserve is 17 trillion cubic feet), and the Egyptian Zohr field, which is considered one of the largest gas fields in the world (the reserve is 30 trillion cubic feet). We find that Turkey's share of gas from the Sakarya field is greater than Egypt's share because after deducting the share of the foreign partner and the expenses associated with exploration, Egypt's share diminishes, because the company that carried out the exploration and production is a Turkish company, in addition to providing many national job opportunities and achieving savings in foreign currencies.

The solutions at the people-level lie in encouraging local products and supporting national companies instead of multinational and transcontinental companies, which are trying to stereotype Arab and developing societies into a consumer lifestyle that enhances dependency and eliminates any development hopes.

Cooperation between decision-makers in Arab and developing countries aspiring to economic independence and an attempt to bridge the economic gap between our countries “which were deliberately impoverished by colonialism, perpetuating dependency, and undermining the rule of law” and Western countries, requires cooperation between decision-makers and peoples, encouraging small industries and exports, supporting local products, and combating corruption at all levels. Levels.

The coalition of many Western countries and companies against right, justice, equality and freedom in the Gaza Strip makes us wake up and start relying on ourselves and not being led by the destructive Western capitalism that is devoted to dependency.

In the past, they said that the journey of a thousand miles begins with a single step. Is there an answer?