French historian Emmanuel Todd has written a new book titled “Defeat of the West”, where he identifies several surprises he has learned from the Russo- Ukro war which is still raging in Europe. Most prominent of these is the geoeconomics revival of the Russian Federation.
After the heyday of the erstwhile Soviet Union, Russia under Putin is turning the wheel to once again to become a geoeconomics giant. Three of the significant findings are enumerated below: Firstly, economic revival within Russia and without. Secondly, Soviet type of military industrial complex is given a new lease of life. Thirdly, similar to the Roman Army Initials SPQR Russia has unveiled “State and People of Russia” as the battle cry in order to march forward into the Eastern Europe.
Russian economic flexibility was showcased first by the Russians in their inimical style of patient moving forward to meet up the sanctions gauntlet thrown by the America led west in the wake of SMO. Sanctions busting apart Russia did a geoeconomics turnaround that is to scupper the link with the West and enlarge trade & investment with the East. This business strategy helped Russia immensely to garner the much needed liquidity to float safely in domestic expenditure as well as in coping up with the spiralling import cost which due to sanctions imposed by the West had picked up steam in terms of market prices.
Here are few statistics for comparison purposes: The sum of GDP of USA, UK & EU is about US$ 47.51 Trillion working out a ratio of 32.7% of the global share. Russian GDF is a mere US$ 2.24 Trillion accounting for a marginal 3.3% of the global share. Assuming that the US combo is 100% in geoeconomics power play the Russian clout is mere 4.71%. Ostensibly, the US combo should have taken the daylight out of Russia in a single move. But that did not happen. Why? Because the people rallied around the Russian government led by Putin and put their shoulders to the wheel thereby increasing domestic production, curbing superfluous expenditure and making the country to stand against the US combo resolutely.
Russian military industrial complex reversed its earlier setbacks and started to work overtime turning out arms and ammunitions that is more than the quantum expended in the battle field. Moreover, volunteers started to sign up for military service in the throes. Mobilization was a great success due to the willingness of the people to be trained and be sent to the battle fields to protect motherland. After the WWII this is the first time Russian people en masse acknowledged that Ukraine military operation as the Great Patriotic War.
The results are of three fold:
a) Russia gained world’s sympathy & support along with admiration for her guts to take on the US led west. The latter who tried to isolate Russia got themselves isolated similar to the proverbial hunter being hunted
b) The US led west is going for a self-destruct rather than being attacked & defeated by Russia
c) The US led west unwittingly gave Russia the geoeconomics power, which she has so far lacked, on the platter!
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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