Time to change the international infrastructure
Dear Editor,
It’s a time when both globally and locally there are many socio-economic challenges, but there are also many opportunities for progress.
The present global order was constructed after the Second World War. It was made by the victors with the Brentwood Agreement for the global monetary system, which made the United States dominant in global finance as the US dollar became the world reserve currency backed by gold.
The United Nations was established on October 24, 1945 to promote cooperation between countries and to prevent wars. The five countries with veto power at the UN Security Council are the United States, Russia, China, France, and the United Kingdom. The United Nations was established almost 75 years ago and the geopolitical reality then was far different from today’s reality. The US was, by far, the most powerful country in the world. It was the powerful country that experienced the least damage from the Second World War.
All the international infrastructure, such as what is now the World Bank and the International Monetary Fund (IMF), gives the US tremendous power in these international organisations. For example, the US has veto power in the IMF; therefore, a nation cannot get a loan from the IMF without the US’s ‘approval’. The US’s refusal to do something could make an organ of the UN dysfunctional.
The existence of the G-20 proves that managing world affairs requires more countries to be empowered. If a more relevant international infrastructure is not established — one that reflects today’s geopolitical realities — these international institutions will become irrelevant.
The US-China phase one trade agreement does not use the World Trade Organisation (WTO) for enforcement, thus making the organisation irrelevant to about 40 per cent of world trade.
I am calling for a new economic system. Capitalism, socialism, and communism will not be able to deliver a good quality of life to the world’s populace in the future.
Last week, in Davos, Switzerland, Prince Charles said: “Only a revolution in the way the global economy and financial markets work can save the planet from the climate crisis and secure future prosperity.” I am arguing the present global international system and economic systems have become outdated.
Brian E Plummer
brianplummer3000@gmail.com
