Russian-Chinese New World Order. Part 3. Cooperation


May 12, 2015

Mikhail Delyagin

Translated by Kristina Rus

The familiar world has crumbled. Russia and China must create a new one. This report talks about the need to unite the potential of both countries.

The article is based on the report at the scientific-practical conference “China and Russia in a changing world” in Beijing, on May 4, 2015.

Part 1: Basic trends of global development: the end of the market

Part 2: The world in a global depression: two poles, three currencies

Part 3. Cooperation between Russia and China: goals and challenges

The key to our partnership is that our capabilities complement one another. We need to develop a joint global vision of the problems of human development and methods of their resolution.

The world is plunging into the new dark ages, and our strategic goal is to defend our nations from the three interrelated  underlying processes of modernity:

1) The end of the qualitative technological progress (commercialization of technical principles, launched during the “cold war” goes on bringing fantastic results, though to an increasingly narrow circle of people, but the discovery of these principles has stopped);

2) Regression of culture of everyday life: degradation of education, health care, logical thinking, rational goal-setting and behavior, segregation of society and shaping of new castes with the loss of both solidarity and competition;

3) Dehumanization of society.

A key objective is a harmonious blend of industrial and technological power of China with the ability of Russian culture to combine humanism with technical progress and to find unusual solutions. Our countries can enter into a symbiosis of solidarity and competition, difficult to perceive from the standpoint of formal Western logic, but organic due to its dialectics for (at least) the Russian culture.

The main trend of modern political development of mankind is the national-liberation struggle of the nations against global business and the global management class, expressing its interests. The latter possesses tremendous power, is free of any responsibility to those who are affected by their actions, and are aggressively hostile to all forms of separation, including on a state level.

The global business, manifesting the expiration of the market economy is forcing the nations into an unbearable level of competition. It destroys whole countries and regions, depriving the nations of the future, and in the developed countries plunges the bulk of the population into poverty (the real average wage in the U.S. in 2013 corresponded to the level of 1958, and in the UK a great part of the middle class is inevitably descending into poverty to the “bread level”, which became a recognized sociological term).

People everywhere are rising up, which is manifested in the rejection by Latin America of a political partnership with the US (their isolation has forced Obama to acknowledge Cuba) and the growing influence of patriots (no matter right or left) in the European Union. On the agenda is the formation of a new, “Patriotic International” opposed to the global managerial class, as contradictions between individual countries and peoples are insignificant against the background of their common conflict with the global business that denies their very existence.

China has joined the global managerial class as a key participant of globalization with its business (including government) and other representatives. However, due to the proximity of the Chinese elite to the people, they did not betray national interests and remained a part of the people, without becoming (in contrast to the elites of many other countries) a part of the global class, managing their countries in its best interests.

Removing patent protection from 3D printing and its spread appears to be a sign that the Chinese elite was not accepted by the global managerial class and was sentenced to liquidation (at least as global player).

The political leadership of Russia headed by Vladimir Putin is in a similar situation due to similar reasons.

The US has managed to undermine the reintegration of post-Soviet space by Russia with the coup in Ukraine and a formation of a Nazi state.

Ukrainian catastrophe created a new reality in which the Russian integration project not only doesn’t oppose the Chinese and does not compete with it, but also perfectly complements it.

This is the objective reason for not only a necessity, but also the possibility of combining our efforts in a global competition. The basis of such unification – patriotism, understood as loyalty to our people, as opposed to liberalism as a loyalty to global business.

In terms of socio-economic policy the expression of this system of values is the Beijing consensus (as opposed to Washington consensus) focused on the state providing the development of their country in the interests of the people and not in the interests of global business. The BRICS union developed on the basis of these individual aspirations. Its basic features are:

1) Management in the public interest, sacrificing the private for the sake of the whole, tactical interests – for strategic (interpreted by Western tradition as “authoritarianism”);

2) Gradual transformation, providing psychological and cultural adaptation of society;

3) Flexible innovations and experiments with constant feedback, allowing to quickly adjust them;

4) Scientific support for the management of society;

5) The development of the market in the public interest under the control and, if necessary, with direct participation of the state in the interests of society (in Western tradition – “state capitalism in contrast to the socialist centralized planning and a liberal market economy”);

6) The State assumes the functions essential for the society which the society is unable to perform on its own. Along with the development of society some of these functions are transferred to the society;

7) The maximum possible consideration of the views and interests of the society at every moment (“democracy of traditional society”, focused not on the institutions as a value in itself, which begin to pursue their own interests, but to meet public needs);

8) Maximum possible development of human potential at every moment.

The transformation of the Beijing consensus into a new norm of public policy for new countries opens up new prospects of the Sino-Russian bilateral cooperation.

The most important areas are:

1) The resumption of the overland trade route from China project – the economic belt of the Great Silk Road – with the creation in Crimea of a distribution base for Greece, the Balkans, Eastern and Central Europe. The maritime silk road in itself can be cut off by the U.S., but the presence of its land alternative will make such attempts meaningless and, therefore, unlikely; moreover, the economic belt of the Great Silk Road will enable the increase of its capacity and, consequently, increase the access of China to the ideal for it markets of the impoverished Europe.

2) The creation of a common non-Western financial infrastructure at all levels (from the system of inter-bank payments – SWIFT analog – to own systems of internationally recognized rating agencies).

3) The conversion of RMB into an international reserve currency based on the introduction of its gold standard. This will increase demand for the yuan and strengthen it, efficiently extending and deepening the weight of China, with a trade off of the loss of competitiveness. Accordingly, to solve this problem, China’s dependence on exports needs to be reduced. The conversion of the RMB into an international reserve currency will destroy the hegemony of the US and seems to be the only way to avoid a WWIII, fomented by the US to write-off the knowingly irrecoverable debt.

4) Creation of the infrastructure for regular consultations at the level of experts, scholars, corporate and public governance, ensuring the development and maintenance of mutual understanding, a common agenda and creating the institutional basis for close cooperation.

5) Cultural exchange, weakening the barrier between civilizations and improving the quality of everyday cooperation.

We, China and Russia, must stop the purposeful and varied efforts of global business to rescue the US and preserve their hegemony at the expense of destroying the rest of the world.

This can be done only in one way: by creating a new, just reality, creating a new world to replace the old one being destroyed before our eyes.

Part 4. Our Friends and Enemies

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