East-West conflicts | The Economist

The removal of Turkey’s veto to the incorporation of Finland and Sweden into NATO means reducing the risks of Russia’s attack on the Nordic zone. NATO also decided to distribute 300,000 soldiers among its member countries.

German Chancellor Olaf Schulz, at the last meeting of the Group of Seven said: “Declining economic growth rates, rising inflation, disruptions in supply chains, we are facing numerous challenges.” At that same meeting, President Biden, on behalf of the Group of Seven, announced an important decision, which consists of carrying out a global investment offensive worth 600,000 million dollars for infrastructure works in low- and middle-income countries. . In this way counteract the advance of China.

The political objective of these investments is not so much to overcome underdevelopment, but rather to prevent China from entering these markets, which through investments, technology and trade is influencing these countries.

In the past, there were many probable investment initiatives, which were only good intentions. A notable case is the promise of investments in Central America in order to stop its voluminous migratory flow to the United States. In 2021, 1.7 million attempts to cross the border were recorded. The promises of the governments collide with the congresses or with the interests.

Also in the Group of Seven, the President of the European Commission, Ursula Von Der Leyen, pointed out that Europe will channel 300,000 million euros from this year until 2027 to face the destructive effect of climate change and carry out the productive reconversion of its industry. , decreasing its dependence on Russia for oil and gas supplies. It means a shift in favor of energy security.

In the aftermath of the aforementioned meeting, the United States announced a new sanctions package against Russia that includes a total ban on the import of Russian gold, which is its largest non-energy export. It also launched retaliation against around 100 Russian entities that are critical to the defense industrial base, thus hampering the development of weapons and technology.

The Russian invasion of Ukraine has reinforced the position of the United States as a partner of Europe by supporting the Ukrainian government. They have made economic decisions through sanctions against Russia and provided weapons to Ukraine to defend itself in an unequal war that has already lasted 130 days. To alleviate the Ukrainian pain, the Group of Seven has offered support of 28,000 million euros as humanitarian aid.

The withdrawal of Turkey’s veto to the incorporation of Finland and Sweden into the North Atlantic Treaty Organization (NATO), means reducing the risks of Russia’s attack on the Nordic area. NATO also decided to distribute 300,000 soldiers among its member countries.

Due to the problems created by climate change, Covid-19 and the global economic effects of the war in Ukraine, such as the scarcity and higher prices of raw materials and fertilizers as well as energy, a potential world famine is being warned. . According to the European Union, 20 million tons of wheat are blocked.

The world tragedy is that diplomacy has been lacking as an art and instance to make agreements for stability. What abounds is exaggerating strength and its dangers, which also reveal weaknesses.

smota@eleconomista.com.mx