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A shift in global economic dynamics is quietly underway.As the United States gradually draws back from the Middle East, China is strategically positioning itself in the region, bringing its economic clout and ideology to the forefront.In recent years, Pakistan has increasingly leaned on Chinese loans and investment as a lifeline amid a turbulent economic landscape.To avert default, Pakistan’s government borrowed another $2.3 billion from China in June 2023 to bolster its foreign reserves.As Pakistan grapples with economic challenges, its hope for development lies significantly in courting Chinese investment.The centerpiece of China’s strategic investment in Pakistan is the China-Pakistan Economic Corridor (CPEC), a flagship project of the BRI.CPEC, which comprises a series of Chinese-financed energy and infrastructure projects, represents upwards of $62 billion in aid and investments.

The top goal of CPEC is to connect the landlocked western Chinese city of Kashgar to the Arabian Sea via Gwadar, an alternative route for shipping gas and oil that bypasses potential chokepoints, thereby making China’s maritime trade less vulnerable during potential conflicts.

The proposal for Pakistan to trade crude oil in Chinese currency represents the next logical step in this symbiotic relationship.This move aligns with China’s long-term strategy of internationalizing its currency, the Renminbi (RMB), and its aim to establish the RMB as a global reserve currency.The economic implications of this transition are profound.Amid an economic crisis and balance of payments problem, Pakistan finds itself facing the risk of defaulting on its external debt.Trading in Chinese currency (RMB) for crude oil provides a temporary relief by reducing dependency on US dollars, helping Pakistan diversify its foreign exchange reserves.Another economic benefit lies in Pakistan’s access to discounted Russian crude oil.

As oil constitutes a significant component of Pakistan’s imports, cheaper oil can help reduce the country’s trade deficit.Additionally, trading in RMB may also foster greater trade relationships with other countries involved in China’s Belt and Road Initiative, providing new opportunities for Pakistan’s exports.

While the switch to Chinese currency for oil trade could potentially offer benefits for both countries, it is essential to tread with caution.The Sri Lanka debacle, wherein excessive reliance on Chinese loans led to economic collapse, serves as a stark reminder of the risks inherent in such economic dependencies.Pakistan’s currency shift for oil trade can impact its national security in several ways.The most conspicuous risk lies in the country’s growing economic reliance on China.

Over-dependence on a single nation for trade and currency exchange could increase Pakistan’s vulnerability to China’s economic performance and policy decisions.Also, any potential tension or disagreement between the countries could disrupt Pakistan’s oil supply, endangering its energy security.Secondly, this development may be viewed as Pakistan gravitating towards Russia and China and distancing from Western allies.It might lead to the alienation of the West, affecting Pakistan’s geopolitical support system, further risking its international security status.

On the political front, this shift indicates a realignment of alliances.Traditionally a Western ally, Pakistan appears to be pivoting towards the East, drawing closer to Russia and China.This move may help Pakistan leverage new partnerships for political and economic support amid its challenging domestic scenario.Moreover, it positions Pakistan as a significant player in the evolving geopolitical landscape defined by the increasing prominence of the East.However, the implications are double-edged.This geopolitical shift may lead to strained relations with the US and other Western allies, potentially impacting Pakistan’s diplomatic support on international platforms.

Pakistan’s decision also sends a signal to other nations, especially those grappling with economic crises.This model of seeking alternatives to the US dollar in international trade may find more takers, potentially leading to a broader shift in global trade patterns.

Pakistan’s decision to trade crude oil in Chinese currency, as supported by the Chinese Foreign Ministry, is an intriguing development that poses significant implications for the nation and beyond.While it offers some economic relief for Pakistan and presents new geopolitical configurations, it also brings forth new challenges and vulnerabilities.Only time will tell how Pakistan navigates these complexities and whether this bold move will pay off in the long term.Economy The Future of Money: How the Digital Revolution is Transforming Currencies and Finance -book review “The Future of Money” by John Smith provides a comprehensive and insightful exploration of how the digital revolution is reshaping currencies and finance.

Smith, a renowned expert in the field, delves into the fundamental shifts brought about by emerging technologies and their impact on the way we perceive, use, and understand money.Throughout the book, Smith skillfully navigates the complex landscape of digital currencies, starting with an exploration of crypto currencies such as Bit coin and Ethereum.He demystifies the underlying technology, block chain, and highlights its transformative potential in various sectors of finance.Smith presents a balanced view, acknowledging both the promises and challenges of crypto currencies, making it accessible to readers of varying backgrounds.

One of the book’s strengths lies in its ability to connect theoretical concepts with real-world examples.Smith illustrates how digital payments and mobile wallets have revolutionized the way we transact, bringing convenience and efficiency to everyday financial interactions.He discusses the rise of digital platforms and the democratization of financial services through FinTech innovation, showing how these advancements are enhancing financial inclusion and reshaping traditional banking practices.Moreover, Smith delves into the concept of Central Bank Digital Currencies (CBDCs) and their potential implications.He provides an in-depth analysis of the motivations behind central banks exploring CBDCs, the technical challenges involved, and the potential benefits and risks they pose to the global financial system.

This discussion offers readers valuable insights into the evolving role of central banks in the digital era.Another notable aspect of the book is Smith’s exploration of the interplay between data, artificial intelligence, and finance.He examines how AI algorithms are being employed to drive data-driven decision-making, risk assessment, and fraud detection.Smith raises important questions regarding privacy, security, and ethical considerations that accompany the use of AI in finance, provoking thoughtful reflections on the future trajectory of the industry.“The Future of Money” succeeds in presenting a forward-looking perspective while maintaining a grounded approach.

Smith acknowledges the challenges and regulatory hurdles that lie ahead and provides an informed assessment of potential solutions.By doing so, he fosters a well-rounded understanding of the digital revolution’s impact on currencies and finance.However, one minor criticism is that some sections of the book may be overly technical for readers without a background in finance or technology.Nevertheless, Smith’s clear explanations and contextualized examples largely mitigate this issue, ensuring that even novice readers can grasp the core concepts.In conclusion, “The Future of Money: How the Digital Revolution is Transforming Currencies and Finance” is an excellent and timely exploration of the ongoing digital transformation in the financial world.John Smith’s expertise and ability to distill complex topics into digestible insights make this book a valuable resource for anyone interested in understanding the future of money.

It is a thought-provoking and enlightening read that paves the way for informed discussions on the challenges and opportunities that lie ahead in the rapidly evolving landscape of finance.Economy The Impact of International Trade on Domestic Economics: Fostering Growth and Enhancing Prosperity International trade has long been recognized as a driving force behind economic growth and development.The exchange of goods, services, and ideas across borders has the potential to create immense opportunities for nations, enabling them to leverage their comparative advantages and thrive in the global marketplace.While critics may argue that international trade negatively impacts domestic economies, a closer examination reveals that the overall effects are overwhelmingly positive.

In this article, we will explore the myriad ways in which international trade impacts domestic economics, fostering growth and enhancing prosperity.1.Stimulating economic growth: International trade serves as an engine of economic growth by expanding markets and increasing opportunities for businesses.It allows countries to specialize in producing goods and services in which they have a comparative advantage, thereby boosting productivity and efficiency.

As domestic firms face competition from foreign producers, they are compelled to innovate, improve quality, and reduce costs, which ultimately benefits consumers with a wider array of choices and lower prices.2.Job creation and improved living standards: International trade has the potential to generate employment opportunities and improve living standards.By engaging in global trade, countries can tap into larger markets and reach a broader customer base.This increased demand leads to the creation of new jobs in industries that export goods and services.Moreover, the inflow of foreign direct investment (FDI) that often accompanies international trade can further stimulate job creation and technology transfer, thereby raising wages and improving working conditions.

3.Access to resources and enhanced competitiveness: International trade allows countries to access resources and inputs that may not be available domestically or may be available at higher costs.

By importing these resources, nations can improve their production capabilities and competitiveness.For example, a country lacking natural resources can still participate in global supply chains by importing raw materials, thus leveraging its other strengths, such as skilled labor or technological expertise.This access to resources helps enhance the efficiency and competitiveness of domestic industries.

4.Spillover effects and knowledge transfer: Engaging in international trade enables knowledge transfer and the exchange of ideas and technology between countries.When domestic firms interact with foreign partners, they gain exposure to different production techniques, management practices, and technological advancements.This spillover effect fosters innovation and enables the development of new industries, driving economic diversification and long-term growth.It also promotes learning and the adoption of best practices, which can lead to improvements in domestic industries and increased productivity.

5.Consumer benefits and welfare: International trade offers consumers a wide range of goods and services at competitive prices.By opening up to global markets, countries gain access to a broader selection of products, including those that may not be available domestically or are cost-prohibitive to produce locally.Increased competition among producers, both domestic and foreign, forces companies to keep prices in check and continuously improve product quality to attract customers.

As a result, consumers enjoy a higher standard of living with access to affordable and diverse goods and services.Conclusion: Contrary to the arguments of protectionists, international trade has a positive impact on domestic economics.It fuels economic growth, stimulates job creation, enhances competitiveness, promotes innovation and knowledge transfer, and benefits consumers.While it is crucial to address any potential negative effects on specific industries or workers through appropriate policies and support mechanisms, it is clear that the overall benefits of international trade outweigh the drawbacks.By embracing global markets and engaging in mutually beneficial trade relationships, nations can foster growth, enhance prosperity, and create a more interconnected and prosperous world.Economy Reinforcing the Global South’s Existence: How to Dismantle Capitalism and Colonialism through Degrowth? Over the past few decades, the discourse surrounding the environment in global political studies has progressively developed.

The increasingly prominent destructive impact of the climate crisis due to increased industrialization since the 19th century requires states to expand their understanding by incorporating ecological considerations in domestic and foreign policy projections.

However, implementation under the status quo is counterproductive to a ‘sustainable earth’ idea.The capitalistic global market structure has succeeded in producing exploitative and polluting production mechanisms.Hence, the main orientation of today’s economic development is the transition from a traditional society to a high-mass consumption society.In the long run, consciously or not, this has become a serious problem for ecological aspects and structural inequality.So, how should the Global South respond to this global challenge as a vulnerable actor? This paper is intended to achieve two things: first, to reaffirm the interrelatedness of ecological destruction and structural inequality as a result of the global capitalist system; secondly, how to develop an alternative paradigm that is more “green” as a sustainable transition process and a solution to today’s structural inequality.Status Quo and Inequality in Global Development Before entering into the level of analysis, the author would like to limit the subject of structural inequality, which is limited to the inequality relation between the Global North and the Global South.The end of the Cold War and the globalization of production around the 19th century have gradually brought the world’s geopolitical multipolarity towards ‘North’ and ‘South’ bipolarity.

Enthusiasm for this epochal shift in development models can be seen in research by the Organisation for Economic Co-operation and Development (OECD), which sees South-South relations as the basis for a new development paradigm that will result in a ‘more inclusive, effective and horizontal’ global development agenda, especially if it goes hand in hand with North-South relations.While the above data indicate that some countries of the Global South may be experiencing a rising tide , this trend parallels a significant increase in structural inequality, social vulnerability, and widespread ecological destruction in the global sphere.

This escalation of structural inequality is closely related to the strategy of state initiatives to securitize capital accumulation in a competitive world market order.Therefore, instead of contextualizing the relations between developing countries within the geo-economic scope of the Global South, this paper suggests the need to understand the interactions that occur within the scope of contemporary capitalism as a representation of a new phase in the consolidation of global development.The dominance of the capitalistic system in the status quo successfully justifies the paradox that in achieving maximum economic growth incentives, the state can ignore the destructive impacts that increase structural inequality between the Global North and Global South.In climate change mitigation, such hierarchical relations are visible in the Reducing Emissions from Deforestation and Forest Degradation Plus (REDD+) project under the United Nations Framework Convention on Climate Change (UNFCCC).As a relatively more vulnerable party, some Global South countries consider this project problematic due to mechanisms that enable the commodification of nature, marginalization of indigenous peoples, and restrictions on the participation of grassroots actors in decision-making management.

In addition, these rules in REDD+ demonstrate the weakening of the Global South’s bargaining position in global climate negotiations.In the broader landscape, global development under this capitalist system portrays the North-South divide, including the problems of inequality and efforts to redistribute responsibilities.Amid increasingly destructive climate change, the structural inequality between the Global North and Global South today may reflect the critical issue that ecological destruction and structural inequality show a reciprocal relationship, which can only be overcome through changes in the global economic system.

The Logic of Degrowth: “Green” Solutions and Structural Decolonialization The unequal reality in today’s global structure reflects the urgency to transform the paradigm towards a more just and sustainable direction.Jason Hickel (2020), in his book Less is More: How Degrowth Will Save the World, tries to shift the dominant paradigm in today’s global market status quo, namely from economic growth to slow economic growth (degrowth).This paradigm is based on two main premises: First, the logic of GDP (Gross Domestic Product) as an indicator of economic growth is problematic.When GDP increases, there is an increase in commodity production through excessive extraction of natural resources – transportation fuels, electricity, and other physical materials – which contributes to excessive greenhouse gas emissions to the atmosphere.

Second, the reality is that the Global North is the most significant driver of ecological damage, accounting for 92% of emissions 30196-0).Still, the destructive consequences of these activities are disproportionately felt by the Global South, which is only responsible for 8% of atmospheric greenhouse gas emissions.In other words, the economic growth of the Global North is heavily dependent on patterns of colonization-resource grabbing and labor exploitation in the South.In terms of emissions and resource use, the global ecological crisis runs along the lines of colonialism.

Furthermore, Degrowth believes these two premises are born and sustained under a capitalistic production system.The main problem of ecological and structural inequality lies not in individual behavior but in the underlying global system of capitalism.The orientation towards economic growth will only add more burdens to the government because the pursuit of economic growth by only focusing on increasing – without efficiency efforts – consumption will cause climate change mitigation and adaptation that has been carried out so far to become mere wishful thinking.

Some steps that can be initiated to achieve Degrowth ideals include (i) a fairer redistribution of income and capital; (ii) a transition from extractive to reproductive work; and (iii) implementing cooperative ownership structures in strategic-political and economic institutions.

Degrowth is, therefore, essentially an alternative solution in the spirit of decolonization, which requires the Global North to reduce production to a sustainable level (read: within reasonable limits), reduce excessive energy use to enable an accelerated transition to renewable energy, and reduce the obsession with development through decreased economic activity.The spirit of decolonization is essential for affirming the existence of the Global South because “catching up” is impossible in a system based on dispossession and polarized accumulation.Affirming the Idea of Degrowth in the Context of the Global South Degrowth may not be a “silver bullet” to overcome the structural problems of the world and the Global South in particular.However, the spirit of the Global South in reducing hierarchical inequality in markets, structural poverty, and climate injustice should be the subject of study on how Degrowth can be involved in policy formulation and (post) development discourse.At the macro level , strengthening the Global South is manifested through South-South Cooperation (SSC) as a process of development cooperation between Global South countries based on the principles of equality, solidarity, and mutual benefit.

SSC aims to emphasize the bargaining power of the Global South in various diplomatic negotiations in international forums so that the Global South has sovereign power and is no longer dependent on the Global North in the development and decision-making process.In the scope of the global economy, SSC is interpreted as a form of mutualistic relationship to promote intra-regional trade of Global South countries and cooperation to stabilize commodity prices.These aspirations are pursued through various global and regional institutions, such as the United Nations Conference on Trade and Development (UNCTAD) held every four years since 1964.

Not only that, but the social movements in the Global South also advocate the idea of decolonization at the grassroots level, such as the Red Deal indigenous community in the United States and the Via Campesina food security movement in France (Raworth et al., 2022), which seek to break the capitalistic political-economic structure as an entrenched status quo system.These social movements are born from the same proposition: the realization that the growth of the Global North is colonizing and depriving them of resources, so structural liberation is vital to be initiated.Degrowth is a call to liberate the Global South from imperial plunder that is clearly articulated in the People’s Agreement of Cochamba-a demand from Global South activists to the Global North after the failure of the Conference on Parties (COP) 15 to align economic productivity with the principles of justice and sustainability.Reflective Conclusion Problems in economic and environmental studies are becoming increasingly complex as the capitalistic global market system is often counterproductive to a ‘sustainable earth’ goal.

The hierarchical relationship born from the historical traces between the Global North and the Global South creates a disproportionality of responsibility and destructive impacts both entities feel.With the spirit of decolonization, Degrowth comes as a “green” alternative to address ecological issues while uprooting the problematic roots of the capitalist system as the source of the Global North’s and Global South’s structural inequality today.International forums, such as the 2023 United Nations Climate Change Conference (COP 28), should be the right momentum to urge commitments and concrete actions based on the degrowth paradigm from inter-domestic Global North actors across sectors to create a sustainable and equitable future for the earth.

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