/ world today news/ The head of the IMF, Kristalina Georgieva, warned about the threat of the world splitting into warring economic blocs
THE DOUBLE STRIKE
The global economy could break up into warring blocs, and the risk of such a breakup is growing. This was said by the managing director of the International Monetary Fund, Kristalina Georgieva, at the forum in Brussels.
„This scenario will prove harmful for everyone, including the population of Europe.” warned Georgieva. She added that the current situation is “dangerous moment in history”. At the same time, the threat of the collapse of the world economy is growing simultaneously with the slowdown of the world economy, which is doubly unpleasant.
What does Ms. Georgieva have in mind and where will Russia go if there is a split? A conversation with Maxim Chirkov, associate professor from the Department of Political Economy of the Faculty of Economics of the Moscow State University “M.V. Lomonosov”.
„BACCHANALIA CONTINUES FOR DECADES’
– The statements of the head of the IMF are quite believable – said Chirkov. Indeed, the splitting of the world into warring economic blocs is already underway, and at quite a serious pace. But there’s still an important reason why she’s talking about it. Obviously, the countries that represent an alternative point of view – for example, the BRICS countries (Brazil, Russia, India, China, South Africa – ed.) – can create an economic bloc more powerful than the Western one. That’s what really worries her.
– And what will happen to Russia in this case?
– The division along these economic blocs will contribute to the greater well-being of the least rich countries. Because as a result of this split, the most affected will be the Western countries, and the whole world will stop sponsoring their prosperity. This was a reality until 2022, when various countries bought up Western debt securities.
This bacchanalia went on for decades, and precisely because of this there was a stratification in terms of income, in terms of GDP, between many countries. Now this stratification, in my opinion, has every chance of being reduced. And in fact, we see that poverty in Russia is decreasing at a record pace.
KAMAZ FLIES AGAINST THE WALL
– Where will the borders of the new economic and political blocs pass?
– You can quote the President of the Russian Federation that the borders of Russia do not end anywhere. And the borders of the future economic blocks will not end anywhere either. Along their perimeter, they will cover several countries, but in reality they will not end there, because we see a queue of countries ready to join these blocs. In particular, if we talk about the BRICS group, then many countries are ready to join it. And these blocks will surely compete.
– We constantly hear these words – “split”, “blocs”… Does this mean that there will be no economic relations between these warring blocs?
– I think that in the coming years – especially after the conflict around Ukraine begins to find a solution – the cooperation between these blocs will significantly strengthen. And in this case, Russia’s foreign economic activity will become much more active. And this will happen precisely because these blocs will be comparable in strength, and the practice of economic sanctions will remain in the past, because its absolute futility will become obvious to everyone.
For example, they (the Western countries – note ed.) are now threatening China with sanctions. But imposing sanctions on the world’s first country in terms of GDP and purchasing power parity is the same as driving a well-loaded KamAZ into a concrete wall. From my point of view, only people detached from reality can offer this.
Translation: ES
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