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Asia is charting its own course beyond US and China

With global power shifting from the West to the East, the region is now less dependent on old spheres of influence

June 25, 2024 / 14:37 IST
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Asian economy
The difference now is that it is accompanied by a shift in global power from the West to the East.

From India to Indonesia, Asian nations are becoming less reliant on the West. There is a new self-confidence emerging, as they offset their security interests with the US and their economic needs with China or Russia. This is the theme of author and former UK diplomat Samir Puri’s new book, Westlessness: The Great Global Rebalancing, and it is a phenomenon those outside the region need to better understand.

Malaysia’s Prime Minister Anwar Ibrahim’s decision last week to declare his interest in Kuala Lumpur joining BRICS — the economic bloc co-founded in 2009 by Brazil, Russia, India and China and later South Africa — is a good example of that. It expanded in January to include other “Global South” nations Iran, Ethiopia, Egypt, and the United Arab Emirates. BRICS now represents 42% of the world’s population and 36% of global GDP.

Anwar pointed to the fact that BRICS has doubled in size this year, partly by offering access to financing, but also because these nations feel they can operate without having to kowtow to Washington or the West. Vietnam, Indonesia and Thailand are also considering joining. There are risks of course, given its potential irrelevance, and what seems like a misguided pursuit of a de-dollarization strategy.

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However, the bloc provides an alternative to Western-led institutions like the World Bank and the International Monetary Fund — an entity that is remembered less for its economic forecasts, and more for the painful austerity measures it imposed in the wake of the Asian Financial Crisis of the late 1990s. While central banks in places like Indonesia and South Korea were no doubt responsible for much of their own problems, the sky-high interest rates the IMF insisted on squeezed the life out of their economies and decimated the middle class.

Growing up in Indonesia in the 1990s, I witnessed the fallout firsthand. One of my starkest memories is the infamous photo in 1998 of then IMF Managing Director Michel Camdessus, standing with arms folded, towering above Indonesian President Suharto as he signed an unpopular bailout agreement. It is the picture of a colonial master lording over his protectorate, a symbol of Western imperialism and heavy-handedness.
Suharto’s 32-year dictatorship ended when he stepped down against a backdrop of street protests triggered by the economic chaos four months later.