By Dr Bhalchandra Kango
Capital – through multinational companies and their staunch supporters Britain, the US and other Western countries – tried to impose their hegemony through so-called free global trade, advocated through the World Trade Organization and described rightly as LPG (Liberation, Privatization and Globalization).
This process was initiated during the presidency of Republican Ronald Reagan. It is interesting to note that this policy continued during the regime of Democratic presidents like Bill Clinton and Barack Obama. The reason is clear, as both wanted to continue with US dominance.
However, subsequent developments like the rise of China, Russia and other Asian countries like India, Japan and South Korea led to rethinking in the US. Fardeen Zakaria has rightly described the process as “the rise of the rest.” This challenged the dominant position of US. Hence, under Republican president Donald Trump, the trend of policy reversal is clear as he talks of imposing unilateral tariff or taxes on imports from other countries.
When Trump became president for the first time in 2016, he targeted Russia and China and helped create tensions between Europe and Russia through NATO. Europe was dependent on cheap Russian oil and gas, but this conflict forced Europe to abandon the Russian oil and gas and turn to US for the same. Thus, the US is now the biggest supplier of oil and gas to Europe. The conflict also led to the Ukraine-Russia war.
This new situation brought Russia, China and Iran together. Similarly, Russian attempts to use BRICS countries to challenge the dollar currency is also seen as a challenge by the US; hence Trump is threatening BRICS countries and even those that are interested in joining the BRICS.
German and French interests prevailed in the 20th century through the development of the common European market, the single currency of the Euro, and bringing together the European countries through the formation of the European Parliament. This development is perceived as a challenge to US hegemony and hence it is Trump’s strategy to compel them to divert their funds by increasing their defence spending through NATO.
By advocating a ceasefire between Russian and Ukraine, Trump is trying to create a wedge between China and Russia. For a long time, Russians have considered themselves Europeans and thought a weak Europe could be dominated by them, but pulling Russia away from China seems to be the new strategy of Trump in his second term. The military industrial complex and its interest are looked after by Trump, using US military power on one hand and US economic power or market strength and technological dominance on the other.
Meanwhile China is also preparing by developing AI technology (through DeepSeek) and through the Belt and Road Initiative. It is deliberately avoiding an arms race with the US, as this led to grave consequences for the USSR.
Return of the Nation State
After the Second World War most of the countries in the “Third World” became independent and colonialism was ended. During that period the US dominated the world and defeated existing socialism led by the USSR – it is no wonder that Trump in his second term is trying to repeat the same experience. But the world has changed, so the tactics of “democratic socialism” and projecting the West as the defender of democracy is no longer going to work. Thus, compromising democracy and democratic values is becoming common in the process of “Return of the State.”
The emergence of nationalism all over the world in 20th century, when people were fighting their colonial masters, resulted in anti-imperialist and independent countries. This strengthened the non-alignment movement. People’s interests were primary in this process; however, in the 21st century it is mostly the fascist or rightist, conservative forces that are leading the return of the nation state. Hence, people’s interests are pushed back, leading to increasing unemployment, a widening gap between classes, and inflation.
Because of the rivalry between European countries during 1930-40, the world faced the Second World War and five million civilians lost their lives. The return of the nation state and competition may again lead to a war, or multiple wars, and a death blow to democracy and its values unless people unite to defeat fascist forces.