How, changing dynamics of globalization from 1990 to 2015 impacted the relative shift of power among the USA, Europe, and Asia in the global order?
Around 1990, the disintegration of the USSR and fall of Berlin wall were the major historic landmark events, which changed the direction of global politics to create a new world order, under the hegemony of single superpower i.e. USA. The cold war which signified the continuous fight between the relevance and prevalence of the two contradicting ideologies, viz. capitalism and communism, was seemed to have an end here, as the people many of the people concluded it as an end of history and capitalism as the only way for survival and growth of the human society, in long term and utopian ideas of communism seemed to had faded away.
The leading position of USA in global politics, made it as the advocate and torchbearer of the capitalism system and globalization was thought to be one way to spread the capitalistic system across the globe. Therefore, USA under the leadership of President Bill Clinton prioritised globalization as one of the most important foreign policy items of his administration. The various forum provided by the global/ regional governance organizations were used to spread these ideas and build consensus among the countries across the globe. Many planned economies, like India formally started the economic reform process under the umbrella of the Liberalization, Privatization and Globalization (for which the ’LPG’ acronym is used popularly).
During this time the European countries reorganised themselves as European community (EU) which was a great breakthrough among the countries which were in constant conflict amongst themselves till the WW-I and WW-II. The countries of eastern Europe which were under the influence of USSR, till 1990, also gradually onboarded into EU and became integral part of it. The free movement of people, capital, good, services, investments and a common currency (Euro) made it a great common place to market, produce, serve and invest and transact. As a common economy EU is comparable to USA. Its key focus being on economic measures has made it successful in achieving its intended objectives. Despite being a supra-national organization, it has provided enough sovereignty to its member countries. However, certain member countries of it being apprehensive about its fruits being taken over by only few countries, make them feel alienated and look elsewhere. The Brexit movement leading to UK leave the EU membership, has been raising some questions about the need of level playing field in the EU community.
Asian Financial Crisis of 1997 in ASEAN countries or Asian Tigers, leading to other nearby countries, with which they were dealing was also a challenging, correcting and learning movement not only for these countries but also for others across the globe. However, these countries then onwards have made come strategic changes in their priorities and adopted a sound financial system guided by the Asian Development Bank and other Multilateral Developmental Financial Institutions, like World Bank and IMF, enabled them to build the right infrastructure development approach for medium- and long-term sustainable growth and development. During this time, engagement with neighbouring countries like India, China and Japan and also with western markets like USA and Europe, fuelled their growth.
During the year 2001 China became a member of WTO, with liberal diplomatic support of USA. It provided China access to global markets. By this time China had built its internal production capabilities, therefore, it was ready to serve huge demand across the globe, which was gradually, strategically and silently achieved by it, over a period of time. By the time, USA and other countries of the world came to know about the economic might of China, China was able build trade relations with large number of countries across the globe, in terms of not only trade of goods and services but also making strategic investments, at key locations across the globe, mainly to get access to the natural resources and raw materials and build infrastructure to secure security and maritime access.
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The terrorist attack on WTC and Pentagon of USA on 09 September 2001 by Al-Qaida personnel.?The led the then President George W Bush to launch ‘War on Terror’ in Afghanistan for revenge as the location of the Al Qaida terrorist group, here only. Under the umbrella of NATO, many countries joined this mission. But they could not find the mastermind ‘Osama Bin Laden’ during the tenure of George W Bush. Bush turned his focus on Iraq on the name of presence of weapons of mass destruction, to remove the then dictator Saddam Hussain. They captured him live and executed by following a orchestrated court martial process. Weapons of mass destruction were not found there and the nation was destroyed and became instable thereafter. It many take many decades to come to normal level. It built unity amongst Islamic terrorist organisations across the globe and manifested as ISIS, which was more dangerous than its previous avatars. We hope that the responsible power provide it required support to stand on its own feet. Similarly, sanctions were imposed later on during Obama administration, on Iran on the suspicion that it is enriching nuclear material for weaponization, which has been denied by Iran at every forum. This imposed isolation still going on Iran.
2008 was the year of global financial crisis, caused by default of subprime mortgage-backed loans for housing properties. Lehman Brothers, a giant financial institution became insolvent and many more such company were going to be in that direction causing mistrust in the financial markets across the globe which blocked flow of money and capital. It interrupted the operations of many businesses and laying off of millions of people across the globe. Learning from this crisis, countries from across the globe came together, forming a new forum called as G-20 (group of 20 major and emerging economies including EU). This has now become a great influential now. Many developmental working groups and ministerial level meetings and deliberations are held on various sectors, which, are concluded by a Head of State/ Government level summit in the country which becomes host and chair of this forum for that particular country.
During 2011, Osama Bin Laden was killed by American forces in a secret operation, in Abbottabad, Pakistan. This helped Obama to win election again. Thereafter Obama focused on building Trans-Pacific Partnership (TPP) agreement with many countries across Atlantic and Pacific oceans. It was in counter to the Belt and Road Initiative (BRI) of China. From here onwards, the trade war between USA and China actually started to manifest. At the same time around 2014-15, Russia’s invasion on Ukraine and accession of Crimea, led to the long running conflict in Ukraine, which is still going on.
We hope that the world will get better in terms of peace, partnership, prosperity, non-violence and happiness across the globe.