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Stealth and the Element of Surprise- The Underlying Reasons for Emerging Trade Blocks

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San Tzu
Sun Tzu

“It is according to the shapes that I lay the plans for victory, but the multitude does not comprehend this.  Although everyone can see the outward aspects, none understands the way in which I have created victory”.

The Battle.

By the conclusion of World War II, the United Kingdom as a global superpower was in decline, and two nations filled the void with very different political ideologies, the United States and the Soviet Union. The tension between the two nations had escalated throughout the war and, with the collapse of Nazi Germany, relations quickly became polarized. Pre-war governments were re-established, or the Western powers created new democratic governments. In contrast, in the areas occupied by Soviet troops, including the territories of former allies such as Poland, communist satellite states were created.

Within a few years following World War II, Europe became divided along ideological lines, and the iron curtain went up. The cold war had begun, and two blocks emerged: NATO and the Warsaw Pact. In the decades that followed, two trading blocks grounded in sharply contrasted ideologies emerged.

At times, the underlying reasons for emerging trade blocks seemed obtuse, and at other times the reasons appear very transparent as to the long-term national interest to be served.

Comments.

The United States and the Soviet Union, by fostering trading blocs following World War 11 (economic ‘silks’), established their global superpower status as sovereign states, and in return, accepted their respective leaderships of the espoused political ideology. The national interests of both were well served.  For example, the USA dollar was adopted as the global currency with all the advantages attached to such status.

Watch China’s current initiatives – The Belt and Road – “a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in nearly 70 countries and international organizations”.

The second Chinese initiative – The String of Pearls – is a geopolitical theory on potential Chinese government intentions in the Indian Ocean region (IOR). It refers to “the network of Chinese military and commercial facilities and relationships along its sea lines of communication, which extend from the Chinese mainland to Port Sudan in the Horn of Africa.”

On its face– economic… but with the money/loans comes increasing control and the spread of Chines culture and ideology along both routes. Push back has started.

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