Heads of states and governments of the Shanghai Cooperation Organization at a 2019 summit in Bishkek, Kyrgyzstan / credit: Kremlin.ru
In an emergency United Nations Security Council meeting held on August 16, following the Taliban’s seizure of Kabul, Nebenzia Vassily Alekseevich—the Russian representative—said the main players and wider international community must pool their efforts to help Afghanistan achieve national reconciliation. He pointed to the important role played by his own country, and by China and Pakistan, as well as the potential contribution of Iran.
Alekseevich’s stress on regional cooperation is important. It echoes past attempts to solve the Afghan problem in a peaceful manner. From 1996 to 2000, Central Asia had witnessed the fomentation of Islamic radicalism in Uzbekistan, Tajikistan and Kyrgyzstan, with the Taliban taking full control of Afghanistan. The free flow of weapons and drug trafficking worsened this murky state of affairs. Russia remained concerned about the formation of inter-jihadist linkages between the Islamic Movement of Uzbekistan (IMU) and Hizb-ut-Tahrir (HT), which aimed to topple the regime of Islam Karimov in Uzbekistan. China experienced internal turmoil in the Xinjiang region—bordering Afghanistan—which witnessed ethnic extremism and anti-government violence; Islamic separatists were using arms smuggled from abroad.
Closer Eurasian Ties
A map of the member states (dark green) observer states (light green) and dialogue partners (yellow) of the Shanghai Cooperation Organization, as of July 10, 2015. It includes what was at the time two new permanent members, Pakistan and India / credit: Wikipedia/MBilal106
In the turbulent context Asia faced in the late 1990s, regional states formed the Shanghai Cooperation Organization (SCO). SCO is the largest grouping in the world in terms of geographical coverage and population, with its territory spanning three-fifths of the Eurasian landmass and nearly half of the human population, encompassing China, Russia, Pakistan, India, Iran, Kazakhstan, Kyrgyzstan, Uzbekistan and Tajikistan. Afghanistan, Belarus, and Mongolia subsequently participated as observer states.
In July 2001, the SCO stated that the “cradle of terrorism, separatism and extremism is the instability in Afghanistan.” Member nations agreed to work together to contain the Taliban and the various political Islamists in the area. The process would be protracted, but potentially effective. None of the countries wished the consolidation and expansion of the Taliban; their national interests hung in the balance. Further, they commanded sway over a country whose only benefactor was a Pakistan deeply wedded to China.
The U.S. Invasion’s Impact
The 9/11 attacks and the subsequent U.S. invasion of Afghanistan shifted the needle of the regional compass toward the United States; China, Russia, and the SCO were pushed aside. All of the Central Asian states—except Turkmenistan—signed military cooperation and base access agreements with the United States; the Central Asian states saw the security and economic benefits of the sudden U.S. engagement with the region as a bonanza.
While both Moscow and Beijing endorsed the U.S.-led invasion in Afghanistan, an important precondition for the support was the understanding that U.S. and NATO bases in Central Asia would be short-term. With the prolonged stay, the countries developed an increasingly mutual irritation toward Washington. To neutralize Western influence, they attempted to revive the SCO process.
At the SCO foreign ministers’ meeting in Beijing on January 7, 2002, the Russian and Chinese foreign ministers put forward proposals to improve the organization’s anti-terrorism and security capabilities, maintaining the group should assume responsibility for regional security. These plans fell on deaf ears as Central Asian states were busy welcoming the U.S. empire.
In 2005, however, the SCO called for the United States to withdraw from bases in Central Asia. The statement read:
“Considering that the active phase of the military anti-terrorist operation in Afghanistan has finished, member states… consider it essential that the relevant participants in the anti-terrorist coalition set deadlines for the temporary use [of military bases in the region].”
This was the first indication that the military directives of Western powers would not unilaterally dictate the regional Afghan strategy. Afghanistan soon signed a protocol establishing the SCO-Afghanistan contact group. In 2012, Afghanistan became an observer in the SCO. Three years later, Kabul endorsed the Regional Anti-Terrorist Structure (RAT) of the SCO, later applying for full membership in the group. These arrangements have continued to this day, providing an alternative to belligerent tactics. On July 14, 2021, the Contact Group met in Tajikistan’s capital of Dushanbe where, inter alia, it was demanded that Taliban pledge a clean break with terrorist outfits.
What’s at Stake for China and Russia?
Regional agendas for Afghanistan will likely be sustained because the SCO heavyweights—China and Russia—continue to have a stake in the happenings of Kabul. Moscow is worried about a) the emboldenment effect that Taliban’s battlefield victory would have for its historically explosive Muslim regions; and b) the possible relocation of U.S. troops to the countries neighboring Afghanistan, which would weaken the Russia-led Collective Security Treaty Organization (CSTO) in Central Asia.
Countries in blue have signed onto China’s Belt and Road Initiative / Wikipedia/Owennson
Beijing is anxious that religious militancy in Afghanistan will fuel a domestic Islamist insurgency by invigorating the East Turkestan Islamic Movement (ETIM)—an ethnic Uighur extremist group responsible for past terror attacks in China and which seeks to transform Xinjiang region into an independent Islamic state. This could negatively affect China’s One Belt, One Road Initiative, also known as the Belt and Road Initiative (BRI)—a project to build a network of overland road and rail routes, oil and gas pipelines, and other infrastructure projects from West China through Central Asia to Europe.
As the Taliban retakes control of Afghanistan, China and Russia won’t make timid pleas to Washington to place forces on the ground in the country. The militarist path has been deemed a flawed move by both sides. In the coming days, the Sino-Russian bloc will likely prioritize political solutions, thereby promoting a more proactive position for the SCO and emphasizing the importance of regional frameworks.
Yanis Iqbal is an independent researcher and freelance writer based in Aligarh, India, and can be contacted at [email protected].
This week, Toward Freedom’s Board of Directors bids farewell to guest editor Charlotte Dennett, welcomes Toward Freedom’s new editor, Julie Varughese, and extends a heartfelt thanks to Sam Mayfield who stepped down as President of Toward Freedom’s Board of Directors in December, 2020.
Charlotte Dennett stepped in as Toward Freedom’s guest editor last October. Her decades-long experience as a scholar, author and activist allowed Charlotte to seamlessly step into the position serving Toward Freedom’s mission, “to publish international reporting and incisive analysis that exposes government and corporate abuses of power, while supporting movements for universal peace, justice, freedom, the environment, and human rights.”
Charlotte contributed not only her editorial and writing skills, but also her great depth of geopolitical knowledge, as well as her enthusiasm for working with other writers. She went above and beyond the call of duty to mentor new writers, guiding them through the editing process, which resulted in the publication of many articles about places and issues not covered by any other English-language media. You can read Charlotte’s reflections about her time as guest editor here. Thank you, Charlotte!
Earlier this month, Julie Varughese came on board as Toward Freedom’s new editor. Julie comes to us having worked as a newspaper reporter, video producer and communications professional in a variety of settings. She has been working with the Black Alliance for Peace since its inception, supporting their impressive growth over the past four years. Julie’s strong writing, editing, video, graphics and social media skills will be a boon to Toward Freedom as we expand and grow to serve a more diverse audience and cover different parts of the world. This past week, Julie edited and published stories on Colombia, Haiti, Afghanistan, Palestine, and drones in Iraq, Afghanistan and Yemen. Please drop her a line at [email protected] with any comments or suggestions. Welcome, Julie!
Sam Mayfield led the organization during a period of transition in our operations, finances, and governance, with a clear vision and commitment to high-quality reporting and analysis of global events and grassroots movements from an anti-imperialist perspective. Her principled leadership, strong work ethic, and experience as a reporter and filmmaker were invaluable as we navigated multiple challenges over the past several years. Thank you, Sam!
Check out towardfreedom.org for all the latest, and expect to see increased presence of Toward Freedom stories on Facebook, Twitter and Instagram in the coming weeks.
Thanks to you Toward Freedom readers for your continued support!
On behalf of the Toward Freedom Board of Directors,
On left, speakers at the Ukraine Recovery Conference held July 4-5 in Lugano, Switzerland. On right, Ukrainian President Volodomyr Zelensky / credit: Multipolarista
Editor’s Note: This article originally appeared in Multipolarista.
While the United States and Europe flood Ukraine with tens of billions of dollars of weapons, using it as an anti-Russian proxy and pouring fuel on the fire of a brutal war that is devastating the country, they are also making plans to essentially plunder its post-war economy.
Representatives of Western governments and corporations met in Switzerland this July to plan a series of harsh neoliberal policies to impose on post-war Ukraine, calling to cut labor laws, “open markets,” drop tariffs, deregulate industries, and “sell state-owned enterprises to private investors.”
Ukraine has been destabilized by violence since 2014, when a U.S.-sponsored coup d’etat overthrew its democratically elected government, setting off a civil war. That conflict dragged on until February 24, 2022, when Russia invaded the country, escalating into a new, even deadlier phase of the war.
The United States and European Union have sought to erase the history of foreign-sponsored civil war in Ukraine from 2014 to early 2022, acting as though the conflict began on February 24. But Washington had sent large sums of weapons to Ukraine and provided extensive military training and support over several years before Russia invaded.
Meanwhile, starting in 2017, representatives of Western governments and corporations quietly held annual conferences in which they discussed ways to profit from the civil war they were fueling in Ukraine.
In these meetings, Western political and business leaders outlined a series of aggressive right-wing reforms they hoped to impose on Ukraine, including widespread privatization of state-owned industries and deregulation of the economy.
On July 4 and July 5, top officials from the United States, European Union, Britain, Japan, and South Korea met in Switzerland for a so-called “Ukraine Recovery Conference.” There, they planned Ukraine’s post-war reconstruction and performatively announced aid commitments—while salivating over a bonanza of potential contracts.
New NATO candidates Finland and Sweden committed to assure reconstruction in Lugansk, roughly 48 hours after Russia and separatist forces announced the region had fallen fully under their control.
But the Ukraine Recovery Conference was not new. It had been renamed to save the expense of a new acronym. In the previous five years, the group and its annual meetings were instead referred to as the “Ukraine Reform Conference” (URC).
The URC’s agenda was explicitly focused on imposing political changes on the country—namely, “strengthening the market economy“, “decentralization, privatization, reform of state-owned enterprises, land reform, state administration reform,” and “Euro-Atlantic integration.”
Before 2022, this gathering had nothing to do with aid – and a lot to do with economics.
Documents from the 2018 Ukraine Reform Conference emphasized the importance of privatizing most of Ukraine’s remaining public sector, stating that the “ultimate goal of the reform is to sell state-owned enterprises to private investors”, along with calls for more “privatization, deregulation, energy reform, tax and customs reform.”
Lamenting that the “government is Ukraine’s largest asset holder,” the report stated, “Reform in privatization and SOEs has been long awaited, as this sector of the Ukrainian economy has remained largely unchanged since 1991.”
The Ukraine Reform Conference listed as one of its “achievements” the adoption of a law in January 2018 titled “On Privatization of State and Municipal Property,” which it noted “simplifies the procedure of privatization.”
While the URC enthusiastically pushed for these neoliberal reforms, it acknowledged that they were very unpopular among actual Ukrainians. A poll found that just 12.4 percent supported privatization of state-owned enterprises (SOE), whereas 49.9 percent opposed it. (An additional 12 percent were indifferent, whereas 25.7 percent had no answer.)
Economic liberalization in Ukraine since Russia’s February invasion has been even more grim.
In March 2022, the Ukrainian parliament adopted emergency legislation allowing employers to suspend collective agreements. Then in May, it passed a permanent reform package effectively exempting the vast majority of Ukrainian workers (those at businesses with fewer than 200 employees) from Ukrainian labor law.
While the most immediate beneficiaries of these changes will be Ukrainian employers, Western governments have been lobbying to liberalize Ukraine’s labor laws for years.
Documents leaked in 2021 showed that the British government coached Ukrainian officials on how to convince a recalcitrant public to give up workers’ rights and implement anti-union policies. Training materials lamented that popular opinion towards the proposed reforms was overwhelmingly negative, but provided messaging strategies to mislead Ukrainians into supporting them.
West Calls for Aggressive Neoliberal Reforms at ‘Ukraine Recovery Conference’
The July 2022 Ukraine Recovery Conference, which was held by Lugano, Switzerland and jointly hosted by the Swiss and Ukrainian governments, featured representatives from the following states and institutions:
Albania
Australia
Austria
Belgium
Canada
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Iceland
Israel
Italy
Japan
Latvia
Lithuania
Liechtenstein
Luxembourg
Malta
Netherlands
North Macedonia
Norway
Poland
Portugal
Republic of Korea (popularly known as South Korea)
Romania
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Türkiye (formerly known as Turkey)
Ukraine
United Kingdom
United States of America
Council of Europe
European Bank for Reconstruction and Development
European Commission
European Investment Bank
Organisation for Economic Cooperation and Development (OECD)
Among the prominent officials who attended were European Commission President Ursula Von der Leyen, Swiss President Ignazio Cassis, and UK Foreign Minister Liz Truss.
Ukraine’s Western-backed leader Volodymyr Zelensky also addressed the conference via video.
Physically present at the Switzerland meeting were Ukrainian Prime Minister Denys Shmyhal and Zelensky’s top political ally Ruslan Stefanchuk, the chairman of Ukraine’s parliament, the Verkhovna Rada.
Stefanchuk is the second-in-line for the presidency after Zelensky. He is also a member of Ukraine’s all-powerful National Security and Defense Council, which truly governs the country.
From left to right: Ukrainian Prime Minister Denys Shmyhal, Swiss President Ignazio Cassis, European Commission President Ursula Von der Leyen, and Verkhovna Rada chairman Ruslan Stefanchuk at the Ukraine Recovery Conference in Switzerland on July 4, 2022
Even the United Nations gave its imprimatur to the conference: UN Secretary-General António Guterres delivered a video statement as well.
At the two-day meeting, the attendees agreed that Ukraine should eventually be given membership in the European Union. The country had already been granted EU candidate status just two weeks before, at a June summit in Brussels.
At the conclusion of the meeting, all governments and institutions present endorsed a joint statement called the Lugano Declaration. This declaration was supplemented by a “National Recovery Plan,” which was in turn prepared by a “National Recovery Council” established by the Ukrainian government.
This plan advocated for an array of neoliberal reforms, including “privatization of non critical enterprises” and “finalization of corporatization of SOEs” (state-owned enterprises) – identifying as an example the selling off of Ukraine’s state-owned nuclear energy company EnergoAtom.
In order to “attract private capital into banking system,” the proposal likewise called for the “privatization of SOBs” (state-owned banks).
Seeking to increase “private investment and boost nationwide entrepreneurship,” the National Recovery Plan urged significant “deregulation” and proposed the creation of “‘catalyst projects’ to unlock private investment into priority sectors.”
In an explicit call for slashing labor protections, the document attacked the remaining pro-worker laws in Ukraine, some of which are a holdover of the Soviet era.
The National Recovery Plan complained of “outdated labor legislation leading to complicated hiring and firing process, regulation of overtime, etc.” As an example of this supposed “outdated labor legislation,” the Western-backed plan lamented that workers in Ukraine with one year of experience are granted a nine-week “notice period for redundancy dismissal,” compared to just four weeks in Poland and South Korea.
Neoliberal economic reforms proposed in Ukraine’s National Recovery Plan
In the same vein, the National Recovery Plan urged Ukraine to cut taxes on corporations and wealthy capitalists.
The blueprint complained that 40 percent of Ukraine’s GDP comes from tax revenue, calling this a “rather high tax burden” compared to its model example of South Korea. It thus called to “transform tax service,” and “review potential for decreasing the share of tax revenue in GDP.”
In short, the Ukraine Recovery Conference’s economic proposal was little more than a repackaged Washington Consensus: a typical right-wing program that involves implementing mass privatizations, deregulating industries, gutting labor protections, cutting taxes on the rich, and putting the burden on Ukrainian workers.
In the 1990s, following the overthrow of the Soviet Union, the United States imposed what it called capitalist “shock therapy” on Russia and other former constituent republics.
A 2001 UNICEF study found that these harsh neoliberal reforms in Russia caused 3.2 million excess deaths, and pushed 18 million children into poverty, bringing about rampant malnutrition and public health crises.
Washington and Brussels appear committed to return to this very same neoliberal shock therapy in their plans for post-war Ukraine.
More Calls for Neoliberal Shock Therapy in Post-war Ukraine
To accompany its July 2022 meeting in Switzerland, the Ukraine Recovery Conference published a “strategic briefing” compiled by a right-wing Ukrainian organization called the Center of Economic Recovery.
The Center of Economic Recovery describes itself as a “platform that unites experts, think tanks, business, the public and government officials for the development of the country’s economy.” On its website, it lists many Ukrainian corporations as its partners and funders, making it clear that it acts as lobby on their behalf, like a chamber of commerce.
The report that this corporate lobby wrote for the Ukraine Recovery Conference was even more explicit than the National Recovery Plan in its advocacy of aggressive neoliberal economic reforms.
Using right-wing libertarian language of “economic freedom,” the document urged to “reduce government size” and “open markets.”
Its proposal read as neoliberal boilerplate: “decrease the regulatory burden on businesses” by “reducing the size of the government (tax administration, privatization; digitalization of public services), improving regulatory efficiency (deregulation), and opening markets (liberalization of capital markets; investment freedom).”
In the name of “EU integration and access to markets,” it likewise proposed “removal of tariffs and non-tariff non-technical barriers for all Ukrainian goods,” while simultaneously calling to “facilitate FDI [foreign direct investment] attraction to bring the largest international companies to Ukraine,” with “special investment incentives” for foreign corporations.
It was essentially a call for Ukraine to surrender its economic sovereignty to Western capital.
Both the National Recovery Plan and the strategic briefing also heavily emphasized the need for robust anti-corruption efforts in Ukraine.
Neither document acknowledged that fact that Kiev’s Western-backed leader Volodmyr Zelensky, who spoke at the Ukraine Recovery Conference, is known to have large amounts of wealth hidden in a network of offshare accounts.
Even More Calls for Liberalization, Privatizations, Deregulation, Tax Cuts
In addition to the National Recovery Plan and the strategic briefing, the July 2022 Ukraine Recovery Conference presented a report prepared by the company Economist Impact, a corporate consulting firm that is part of The Economist Group.
This third document, titled “Ukraine Reform Tracker,” was funded by the Swiss government with the stated “aim of stimulating and supporting discussion on this matter at the 2022 Ukraine Recovery Conference.”
The Ukraine Reform Tracker analyzed the neoliberal policies already imposed in Ukraine since the U.S.-backed 2014 coup, and urged for even more aggressive neoliberal reforms to be implemented when the war ends.
Of the three reports presented at the conference, this was perhaps the most full-throated call for Ukraine to adopt neoliberal shock therapy after the war – a tactic often referred to as disaster capitalism.
Quoting the Economist Intelligence Unit (EIU), the document insisted that Ukraine has “issues in deregulation and competition that still need to be addressed, such as ongoing state intervention” – depicting state intervention in the economy as something inherently bad.
In this vein, the Ukraine Reform Tracker pushed to “increase foreign direct investments” by international corporations, not invest resources in social programs for the Ukrainian people.
The report emphasized the importance of developing the financial sector and called for “removing excessive regulations” and tariffs.
“Deregulation and tax simplification has been further deepened,” it wrote approvingly, adding, “Steps towards deregulation and the simplification of the tax system are examples of measures which not only withstood the blow of the war but have been accelerated by it.”
The Ukraine Reform Tracker praised the central bank for “successfully liberalising the currency, floating the exchange rate.” While it noted some of these policies were reversed due to the Russian invasion, the report urged “the swiftest possible elimination of currency controls,” in order to “reinstate competitiveness within the financial sector.”
The report however complained that these neoliberal reforms are not being implemented quickly enough, writing, “Privatisation— which already progressed slowly before the war—stalled, with a draft law aiming to simplify the process rejected” by the Verkhovna Rada, Ukraine’s parliament.
It called for further “liberalising agriculture” to “attract foreign investment and encourage domestic entrepreneurship,” as well as “procedural simplifications,” to “make it easier for small and medium enterprises” to “expand by purchasing and investing in state-owned assets,” thereby “making it easier for foreign investors to enter the market post-conflict.”
“Further pursuing the privatisation of large and loss-making state-owned enterprises” will “allow more Ukrainian entrepreneurs to enter the market and thrive there in the post-war context,” the report urged.
The Economist Impact study stressed the importance of Ukraine cutting its trade with Russia and instead integrating its economy with Europe.
“Ukraine’s trade reforms centre on efforts to diversify its trade operations and enhance its integration into the EU market,” it wrote.
The Western government-sponsored report boasted of significantly reducing Kiev’s economic ties to its eastern neighbor, noting: “Russia was Ukraine’s main trading partner in 2014, capturing 18.2 percent of its exports and providing 22 percent of its imports. Since then, however, Russia’s share of Ukraine’s exports and imports has decreased consistently, reaching 4.9 percent and 8.4 percent in 2021, respectively.”
“Ukraine made particular progress in diversifying its trade portfolio within the EU, raising its trade volumes with member states by 46.2 percent from 2015 to 2019,” it added.
The report added that it is “essential” that Ukraine carry out other reforms, such as modifying its railways by “aligning the rail gauges with EU standards.”
The Ukraine Recovery Conference in Lugano, Switzerland on July 5, 2022
The Ukraine Reform Tracker presented the war as an opportunity to impose even more disaster capitalist policies.
“The post-war moment may present an opportunity to complete the difficult land reform by extending the right to purchase agricultural land to legal entities, including foreign ones,” the report stated.
“Opening the path for international capital to flow into Ukrainian agriculture will likely boost productivity across the sector, increasing its competitiveness in the EU market,” it added.
The document proposed new ways for exploiting Ukrainian labor in specific industries, “especially pharmaceutical and electrical production, plastic and rubber manufacturing, furniture, textiles, and food and agricultural products.”
“Once the war is over, the government will also need to consider substantially lowering the share of stateowned banks, with the privatisation of Privatbank, the country’s largest lender, and Oshchadbank, a large processor of pensions and social payments,” it insisted.
The Ukraine Reform Tracker concluded optimistically, stating that that “post-war moment will be an opportunity for Ukraine,” and “there is likely to be significant pressure to continue and speed up the implementation of the reform agenda. Continued business reforms could allow Ukraine to further deregulate [and] privatise lossmaking SOEs.”
While Pushing Disaster Capitalism, the Ukraine Recovery Conference Exploits ‘Social Justice’ Rhetoric
While these three documents published by the 2022 Ukraine Reform Conference (URC) were vociferous calls for the imposition of right-wing economic policies, they were accompanied by superficial appeals to social justice rhetoric.
The URC released a set of seven “Lugano Principles” that it identified as the keys to a just, equitable post-war reconstruction:
partnership
reform focus
transparency, accountability, and rule of law
democratic participation
multi-stakeholder engagement
gender equality and inclusion
(environmental) sustainability
These principles demonstrate the ways that hawks in Washington and Brussels have increasingly weaponized ideas about “intersectionality” to advance their belligerent foreign policy.
In his report “Woke Imperium: The Coming Confluence Between Social Justice and Neoconservatism,” former U.S. State Department officer Christopher Mott discussed the growing use of left-liberal social-justice talking points to legitimize and enforce Western imperialism.
Mott observed that the “liberal Atlanticist tendency to push moralism and social engineering globally has immense potential to create backlash.”
Western-backed liberals in post-socialist Europe have spent three decades creating a false dichotomy between either a liberalizing cultural project that can only be realized under U.S.-led trans-Atlantic hegemony and neoliberal economic reforms, or a purely fictional socialist past whose political legacy is somehow reflected in right-wing anti-communist nationalist parties attempting to roll back advances that women had achieved under socialism.
Despite its patent absurdity, this narrative has won adherents among younger liberal intellectuals, especially in Central and Eastern Europe, who have little or no memory of the socialist period, and who face increasingly desperate career prospects outside of the Western-backed ideological apparatus.
On the other hand, right-wing nationalists like Hungary’s Viktor Orban posture as the only defenders of their countries’ cultural sovereignty against hostile outsiders, while also refusing to break from neoliberal capitalist orthodoxy.
In turn, organic local activists struggling for legitimate social justice causes find themselves portrayed as agents furthering the agendas of foreign powers.
At best, during peacetime, this undermines their work and hinders progress for their causes. In a country like Ukraine, where Western governments have supportedfar-right, neo-fascist groups and eight years dragging out a civil war, this is life-threatening.
In Ukraine, What’s Even Left to Loot?
On May 9, 2022, the U.S. Congress passed the Ukraine Democracy Defense Lend-Lease Act, greatly expanding Washington’s authority to provide military aid to Ukraine.
Lend-lease provisions originated during World War II and were used by the U.S. government to provide military aid to countries fighting Nazi Germany, including Britain and the Soviet Union, without formally entering the war.
Under this framework, the United States provides military equipment as a loan; if the equipment is not or cannot be returned, recipient governments are on the hook to pay back the full cost.
The Joe Biden administration explained its use of lend-lease by the need to quickly move the bill through Congress before other funding ran out.
While many North Americans protested what they saw as a pointless giveaway of tens of billions of taxpayer dollars to a foreign country, lend-lease provisions are loans, not grants.
Britain, one of the United States’ closest allies, only finished paying back its 60-year-old lend-lease debt in 2006. Russia settled its former Soviet obligations the same year.
Given this historical precedent, Ukraine will likely be saddled with debts it can’t readily pay back—debts extended to corrupt Western-backed elites under wartime duress. This means U.S. financial institutions will have further collateral to impose neoliberal structural adjustment policies on Ukraine, subordinating its economy for years to come.
Washington and its allies have a long history of instrumentalizing debt to force countries to accept unpopular pro-Western policy changes, and difficulties of repayment often compel countries to accept even more debt, leading to debt trap cycles that are extremely difficult to escape.
It was in fact the International Monetary Fund, and specifically the refusal of Ukraine’s democratically elected President Viktor Yanukovych to accept IMF demands that he cut wages, slash social spending, and end gas subsidies in order to integrate with the EU, which led him to turn instead to Russia for an alternative economic agreement, thus setting the stage for the Western-backed “Euromaidan protests” and eventually the 2014 coup.
Meanwhile, in the current war, Moscow and Russian-backed separatist fighters are occupying and may annex what were historically the most industrialized regions of Ukraine, located in the east.
At the same time, much of what remained of the country’s pre-war industrial base has been physically destroyed by the war. And these same regions hold much of Ukraine’s energy resources, notably coal.
Millions of Ukrainians have already emigrated and are unlikely to return, especially if they are able to access work visas in the EU. Young and educated people with technical skills are the least likely to stay.
The situation is even bleaker when one considers that, well before Russia’s February invasion, Ukraine was already the poorest country in Europe.
While Soviet Ukraine had thrived as a center of the USSR’s heavy industry, and a source for much of Soviet political leadership, post-Soviet Ukraine has been a playground for rival elites supported by the West or by Russia.
Post-Soviet Ukraine has been devastated by persistent economic crises and rampant and systematic corruption. It has consistently had smaller incomes and a lower standard of living even compared to neighboring post-socialist countries, including Russia.
Ukraine has not been able to restore the size of the economy it had in 1990, when it was still part of the Soviet Union. And looking beyond raw GDP data, the quality of life for many Ukrainian workers and their access to social services has significantly declined.
With limited financial means to provide for basic state functions, much less to repay foreign debts, a post-war Ukraine could be forced to accept humiliating and dangerous concessions in other spheres—serving, say, as an Israel-style trying ground for weapons testing, or hosting Kosovo-style black sites for U.S. covert operations, or providing Western businesses a Chile-style no-regulation environment for tax evasion and criminal activities—all while gutting what little remains of its domestic welfare state and labor protections.
Yet instead of advocating for a diplomatic solution to the war, which could help the Ukrainian government and people concentrate their resources on economic recovery, Western governments have adamantly opposed proposed peace talks, insisting, in the words of EU foreign policy chief Josep Borrell, “This war will be won on the battlefield.”
Washington and Brussels are sacrificing Ukraine for their geopolitical interests. And their Ukraine Recovery Conference shows they expect to keep benefiting economically even after the war ends.
1. This war will be won on the battlefield. Additional €500 million from the #EPF are underway. Weapon deliveries will be tailored to Ukrainian needs. pic.twitter.com/Jgr61t9FfW
— Josep Borrell Fontelles (@JosepBorrellF) April 9, 2022
The United Nations General Assembly in September 2022 / credit: United Nations
Editor’s Note: The following represents the writers’ analysis.
We have spent the past week reading and listening to speeches by world leaders at the UN General Assembly in New York. Most of them condemned Russia’s invasion of Ukraine as a violation of the UN Charter and a serious setback for the peaceful world order that is the UN’s founding and defining principle.
But what has not been reported in the United States is that leaders from 66 countries, mainly from the Global South, also used their General Assembly speeches to call urgently for diplomacy to end the war in Ukraine through peaceful negotiations, as the UN Charter requires. We have compiled excerpts from the speeches of all 66 countries to show the breadth and depth of their appeals, and we highlight a few of them here.
African leaders echoed one of the first speakers, Macky Sall, the president of Senegal, who also spoke in his capacity as the current chairman of the African Union when he said, “We call for de-escalation and a cessation of hostilities in Ukraine, as well as for a negotiated solution, to avoid the catastrophic risk of a potentially global conflict.”
While NATO and EU countries have rejected peace negotiations, and U.S. and U.K. leaders have actively undermined them, five European countries—Hungary, Malta, Portugal, San Marino and the Vatican—joined the calls for peace at the General Assembly.
The peace caucus also includes many of the small countries that have the most to lose from the failure of the UN system revealed by recent wars in Ukraine and West Asia, and who have the most to gain by strengthening the UN and enforcing the UN Charter to protect the weak and restrain the powerful.
Philip Pierre, the Prime Minister of Saint Lucia, a small island state in the Caribbean, told the General Assembly,
“Articles 2 and 33 of the UN Charter are unambiguous in binding Member States to refrain from the threat or use of force against the territorial integrity or political independence of any state and to negotiate and settle all international disputes by peaceful means.…We therefore call upon all parties involved to immediately end the conflict in Ukraine, by undertaking immediate negotiations to permanently settle all disputes in accordance with the principles of the United Nations.”
Global South leaders lamented the breakdown of the UN system, not just in the war in Ukraine but throughout decades of war and economic coercion by the United States and its allies. President Jose Ramos-Horta of Timor-Leste directly challenged the West’s double standards, telling Western countries,
“They should pause for a moment to reflect on the glaring contrast in their response to the wars elsewhere where women and children have died by the thousands from wars and starvation. The response to our beloved Secretary-General’s cries for help in these situations have not met with equal compassion. As countries in the Global South, we see double standards. Our public opinion does not see the Ukraine war the same way it is seen in the North.”
Many leaders called urgently for an end to the war in Ukraine before it escalates into a nuclear war that would kill billions of people and end human civilization as we know it. The Vatican Secretary of State, Cardinal Pietro Parolin, warned,
“… The war in Ukraine not only undermines the nuclear non-proliferation regime, but also presents us with the danger of nuclear devastation, either through escalation or accident … To avoid a nuclear disaster, it is vital that there be serious engagement to find a peaceful outcome to the conflict.”
Others described the economic impacts already depriving their people of food and basic necessities, and called on all sides, including Ukraine’s Western backers, to return to the negotiating table before the war’s impacts escalate into multiple humanitarian disasters across the Global South. Prime Minister Sheikh Hasina of Bangladesh told the Assembly,
“We want the end of the Russia-Ukraine war. Due to sanctions and counter-sanctions … the entire mankind, including women and children, is punished. Its impact does not remain confined to one country, rather it puts the lives and livelihoods of the people of all nations in greater risk, and infringes their human rights. People are deprived of food, shelter, healthcare and education. Children suffer the most in particular. Their future sinks into darkness.
My urge to the conscience of the world—stop the arms race, stop the war and sanctions. Ensure food, education, healthcare and security of the children. Establish peace.”
Turkey, Mexico and Thailand each offered their own approaches to restarting peace negotiations, while Sheikh Al-Thani, the Amir of Qatar, succinctly explained that delaying negotiations will only bring more death and suffering:
“We are fully aware of the complexities of the conflict between Russia and Ukraine, and the international and global dimension to this crisis. However, we still call for an immediate ceasefire and a peaceful settlement, because this is ultimately what will happen regardless of how long this conflict will go on for. Perpetuating the crisis will not change this result. It will only increase the number of casualties, and it will increase the disastrous repercussions on Europe, Russia and the global economy.”
Responding to Western pressure on the Global South to actively support Ukraine’s war effort, India’s Foreign Minister, Subrahmanyam Jaishankar, claimed the moral high ground and championed diplomacy,
“As the Ukraine conflict continues to rage, we are often asked whose side we are on. And our answer, each time, is straight and honest. India is on the side of peace and will remain firmly there. We are on the side that respects the UN Charter and its founding principles. We are on the side that calls for dialogue and diplomacy as the only way out. We are on the side of those struggling to make ends meet, even as they stare at escalating costs of food, fuel and fertilizers.
It is therefore in our collective interest to work constructively, both within the United Nations and outside, in finding an early resolution to this conflict.”
One of the most passionate and eloquent speeches was delivered by Congolese Foreign Minister Jean-Claude Gakosso, who summarized the thoughts of many, and appealed directly to Russia and Ukraine—in Russian!
“Because of the considerable risk of a nuclear disaster for the entire planet, not only those involved in this conflict but also those foreign powers who could influence events by calming them down, should all temper their zeal. They must stop fanning the flames and they must turn their backs on this type of vanity of the powerful which has so far closed the door to dialogue.
Under the auspices of the United Nations, we must all commit without delay to peace negotiations – just, sincere and equitable negotiations. After Waterloo, we know that since the Vienna Congress, all wars finish around the table of negotiation.
The world urgently needs these negotiations to prevent the current confrontations—which are already so devastating—to prevent them from going even further and pushing humanity into what could be an irredeemable cataclysm, a widespread nuclear war beyond the control of the great powers themselves—the war, about which Einstein, the great atomic theorist, said that it would be the last battle that humans would fight on Earth.
Nelson Mandela, a man of eternal forgiveness, said that peace is a long road, but it has no alternative, it has no price. In reality, the Russians and Ukrainians have no other choice but to take this path, the path of peace.
Moreover, we too should go with them, because we must throughout the world be legions working together in solidarity, and we must be able to impose the unconditional option of peace on the war lobbies.
(Next three paragraphs in Russian)
Now I wish to be direct, and directly address my dear Russian and Ukrainian friends.
Too much blood has been spilled – the sacred blood of your sweet children. It’s time to stop this mass destruction. It’s time to stop this war. The entire world is watching you. It’s time to fight for life, the same way that you courageously and selflessly fought together against the Nazis during World War Two, in particular in Leningrad, Stalingrad, Kursk and Berlin.
Think about the youth of your two countries. Think about the fate of your future generations. The time has come to fight for peace, to fight for them. Please give peace a real chance, today, before it is too late for us all. I humbly ask this of you.”
At the end of the debate on September 26, Csaba Korosi, the president of the General Assembly, acknowledged in his closing statement that ending the war in Ukraine was one of the main messages “reverberating through the Hall” at this year’s General Assembly.
You can read here Korosi’s closing statement and all the calls for peace he was referring to.
And if you want to join the “legions working together in solidarity… to impose the unconditional option of peace on the war lobbies,” as Jean-Claude Gakosso said, you can learn more at peaceinukraine.org.
