Interview: Latin America in the New Global Economy Amid Ukraine Conflict

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

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.

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.

Editor’s Note: The following represents the writer’s analysis.

Chances for a proxy war between Washington and Moscow spiked after the United States refused to provide written guarantees that NATO would neither expand into nor deploy forces to Ukraine and other ex-Soviet states that are not members of the U.S.-led alliance.

However, a reading of the situation indicates Ukraine would be devastated by a NATO-Russia war, which Moscow has been preparing for as diplomatic talks go nowhere. Meanwhile, U.S. President Joe Biden’s latest remarks indicate the United States may be inviting Russia to make a move into Ukraine.

Crossing the ‘Red Line’

In early January, Russian and U.S. representatives held talks over Ukraine, but apparently did not find a common ground. Russian demands were clear: No NATO in Ukraine, and no Ukraine in NATO.

U.S. Secretary of State Antony Blinken as well as NATO Secretary-General Jens Stoltenberg said Russia would have no say over who should be allowed to join the bloc. And that was the outcome of the U.S.-Russia negotiations. No compromise has been reached.

Given that it was Russia that initially issued an “ultimatum” to its Western partners, it was not surprising that—after the failure of their recent summits—Russian Deputy Foreign Minister Sergei Ryabkov said on January 13 that “there is no need for a new round of talks in the near future.” However, his boss, Russian Foreign Minister Sergey Lavrov, reportedly agreed to meet with the U.S. Secretary of State Antony Blinken, and the two diplomats are expected to hold another round of talks on January 21. Such Russian hesitance gives Washington the upper hand over the Kremlin, and the United States and its allies can simply continue demonstrating they do not take Russian demands, “ultimatums” and “red lines” too seriously.

🇬🇧 передала #ЗСУ легкі протитанкові засоби
Це зміцнюватиме 🛡 спроможності України, а надані засоби будуть використані виключно з оборонною метою pic.twitter.com/ipGpqPfInG

— Defence of Ukraine (@DefenceU) January 18, 2022

Although Russian officials repeated on several occasions that NATO presence in Ukraine is one of the Kremlin’s “red lines,” NATO member United Kingdom continues to supply weapons to the former Soviet republic. Besides that, reports suggest Canadian special forces have been deployed to Ukraine to deter alleged Russian aggression. Plus, Kiev already has purchased and used U.S.-made Javelin anti-tank missiles, as well as Turkey-produced Bayraktar drones. All that, however, does not mean NATO will go to war with Russia over Ukraine. But such actions clearly demonstrate the West still has significant leverage over the Russian Federation.

Russia Prepares for Conflict

Moscow, for its part, has been flexing its military muscle. Russia and its only European ally, Belarus, announced joint drills will be held in February, aimed against Polish, Lithuanian and Ukrainian military build-up. According to Belarusian President Alexander Lukashenko, Ukraine continues concentrating its radical nationalists from the National Guard next to the Belarusian border, while more than 30,000 military personnel as well as equipment and weapons are concentrated in neighboring Poland and the Baltic states. As the Russian defense ministry announced, the joint exercises will be held at five training grounds, most of them located in the central and eastern parts of Belarus, not in the south close to the Ukrainian border. Still, the United States has inferred Russia and Belarus could use military drills to invade Ukraine, capture the country’s capital, Kiev, and overthrow the government. How likely is such a scenario?

On January 14, Ukraine was hit with a cyber attack that took down the websites of several government departments including the ministries of foreign affairs and education. The authorities have accused both Russia and Belarus of orchestrating the attack. It is worth remembering that in 2008, three weeks before Russia invaded Georgia to protect its proxies in South Ossetia following Georgia’s offensive against the breakaway region, the Caucasus nation started facing cyber attacks alleged deployed by Russia.

Thus, it is entirely possible that what Ukrainian websites experienced is a message that the eastern European country could experience the same fate if it decides to launch a large-scale offensive against Russia-backed self-proclaimed regions that broke away from Ukraine—the Donetsk People’s Republic and the Lugansk People’s Republic in the Donbass region.

However, unless there is a huge provocation against Russian and Belarusian forces, or even against the Donbass republics, Moscow is unlikely to engage in a military campaign against Kiev. Ever since the Donbass conflict erupted in 2014, Russia has been trying to avoid a direct military confrontation against Ukraine at any cost. Back then, the Ukrainian army was on the brink of collapse, and Russia had an opportunity to seize not just Crimea, but all Russian-speaking regions in southeast Ukraine. It remains unclear why the Kremlin would launch an invasion now, when Ukrainian Armed Forces are well equipped and motivated to fight.

Spheres of Influence

It is worth remembering, however, that many in Russia, as well as in southeast Ukraine, hoped in 2014 that the Kremlin would establish a new state dubbed Novorossiya—an entity whose borders would have spanned from the city of Kharkov in the east to the port city of Odessa on the Black Sea. However, in 2015 Alexander Borodai, who served as the first prime minister of the self-proclaimed Donetsk People’s Republic and is now a member of the Russian Parliament, said Novorossiya was a “false start.” Has now the time come for a de facto division of Ukraine?

As Biden stressed on January 19, Russian President Vladimir Putin will move into Ukraine “because he has to do something.”

“It’s one thing if it’s a minor incursion and we end up having to fight about what to do and not do,” Biden told reporters during a White House news conference marking his first year in office.

Could it be that the U.S. President de facto gave the green light to Putin for a “minor incursion” into the eastern European country? Does that mean Washington will turn a blind eye if Russia intervenes in the Donbass to protect the self-proclaimed republics in case of a Ukrainian military offensive? 

Western officials, however, keep threatening Russia that it will pay a “high price” if it decides to invade Ukraine. But what if the Kremlin’s calculation shows the price is acceptable? From a purely military perspective, the longer Russia waits, the higher price it will have to pay. Ukraine will have more sophisticated weapons, which means that Russia’s potential invasion will not go as smoothly as some might hope. Even if Russian troops eventually capture Kiev and other Ukrainian regions, that does not mean all troubles for the Kremlin will be over. The West is expected to impose severe sanctions on the Russian Federation, and Moscow will have to find ways to fund what most Ukrainians would call a “occupation apparatus” if Russia happened to occupy more than just the Donbass region, where the majority ethnically Russian population has welcomed Russian backup. But Moscow would also need to find ways to feed millions of people.

The problem, however, is tensions between Russia and the West over Ukraine have reached such a high level that a proxy war—be it on Ukrainian territory or elsewhere—is unlikely to be prevented. It can be postponed, though. The United States is evidently trying to buy time to supply more weapons to Ukraine, which the West helped manufacture a coup inside of in 2014 by funding neo-Nazis, who now make up a portion of Ukraine’s military. Russia could respond by deploying nuclear missiles in Cuba and Venezuela—countries Washington sees as part of its sphere of influence, or as it calls the Western Hemisphere, its “backyard.” At the same time, the United States does not accept Russia can have its own sphere of influence. That means Moscow—if it aims to be accepted as a serious actor in the international arena—will have to fight for the right to have its own geopolitical orbit.

Finally, Ukraine—as the weakest link in the geopolitical game played by the United States and Russia—is expected to pay the heaviest price, and will be treated like collateral damage in a new cold war.

Nikola Mikovic is a Serbia-based contributor to CGTN, Global Comment, Byline Times, Informed Comment, and World Geostrategic Insights, among other publications. He is a geopolitical analyst for KJ Reports and Enquire.

Editor’s Note: The following is the writer’s analysis.

Afghanistan is teetering on the brink of universal poverty. As much as 97 percent of the population is at risk of sinking below the poverty line unless a comprehensive response to the country’s multiple crises is launched, according to a September 9 report the United Nations Development Program (UNDP) released.

In his video message to the 21st Summit of the Council of Heads of State of the Shanghai Cooperation Organization (SCO) that was held on September 17, Secretary-General of the United Nations António Guterres addressed the group: 

“You come together at a pivotal time. Troubling developments in Afghanistan are causing profound political, economic, security and humanitarian challenges. The situation is rapidly evolving and unpredictable. But it is clear that the Afghan people want extreme poverty to be eradicated, jobs to become available, health and education services to be restored, and their lives and basic rights and freedoms to be protected. They want their country free of insecurity and terror.”

 

Two Factors for Economic Crisis

Guterres’ words carry enormous significance. The UNDP report, which analyzed four potential scenarios of escalating intensity and isolation, indicates that real GDP could contract by as much as 13.2 percent, leading to a nearly 25 percent increase in the poverty rate.

Two factors have caused Afghanistan’s economic freefall. First, even before the escalation of conflicts, a highly dysfunctional neoliberal kleptocracy—with limited writ over a narco state, dependent on foreign aid and rentier economics for its survival—was pillaging the country with the help of the United States and its European accomplices. The result: Cruelty and callousness became the mode of governance. COVID-19 devastated Afghan society: The coronavirus is believed to have infected millions, with the impact helping drive an increase in the poverty level from 38 percent in 2011 to an estimated 47 percent in 2020. At the beginning of 2021, as many as 14 million people could not obtain sufficient food, meaning more than one-third of the population of roughly 38 million was going hungry. Food insecurity is a result of constant droughts. Afghanistan is highly vulnerable to climate change, having witnessed a mean rise in temperature of 1.8° Celsius (or 35° Fahrenheit) since the middle of the 20th century, compared to a global average of 0.82° C (33.4° F). Droughts are likely to become an annual occurrence by 2030. A severe drought caused more internal displacement between 2017 and 2018 than the conflict itself. The country now is suffering from another prolonged dry period.

The second factor that caused Afghanistan’s economic freefall is, since the Taliban takeover, the imperialist bloc led by the United States has forced Afghanistan into economic isolation. The World Bank has halted funding for new projects, the International Monetary Fund (IMF) has suspended payments to Afghanistan and the administration of U.S. President Joe Biden has frozen the assets of Afghanistan’s central bank, which are held in the United States. Thus, Afghanistan has been faced with the absence of liquidity (cash), spiraling prices of food and medicine, currency depreciation, unemployment, and the collapse of services and construction. No money is available for public finance and administrative operations—that means no prospect of salaries for government workers. Eighty percent of Afghanistan’s last approved annual budget of $5.5 billion was funded by external aid.

 

Regional Shifts

UN High Commissioner for Refugees, Filippo Grandi—after concluding his three-day visit to Afghanistan on September 15—commented: “The humanitarian situation in Afghanistan remains desperate… if public services and the economy collapse, we will see even greater suffering, instability, and displacement both within and outside the country… The international community must therefore engage with Afghanistan—and quickly—in order to prevent a much bigger humanitarian crisis that will have not only regional, but global implications.” 

The SCO countries have heeded Grandi’s advice. Instead of implementing measures that punish the Taliban in ways that exclude Afghanistan and adversely impact the country’s citizens, the organization is trying to actively promote a smooth transition in Kabul. In the latest SCO gathering in Dushanbe, Tajikistan, Central Asian countries—which had previously accepted their roles as mere doormats for U.S. ambitions in Afghanistan—voiced concerns about the bellicose attitude of Western countries toward Kabul. 

“Considering the humanitarian situation, we propose looking into the possibility of lifting the freeze on Afghanistan’s accounts in foreign banks,” Uzbek President Shavkat Mirziyoev remarked. 

Tajik President Emomali Rahmon, too, reiterated these viewpoints, adding “the entire burden of negative impacts” following the withdrawal of the United States from Afghanistan “will be placed on Afghanistan’s neighboring countries.”

Central Asian countries’ implied criticism of U.S. foreign policy is important. From the 2000s onward, the U.S. stance toward Central Asia was an extension of its war in Afghanistan. The region became a base for the North Atlantic Treaty Organization (NATO) and a conduit for International Security Assistance Force (ISAF) supply routes. Economic agendas were relegated to the back burner. A half-hearted attempt was made to create a regional energy market in Central Asia, Afghanistan and South Asia. With the Northern Distribution Network (NDN) as a starting point, the New Silk Road (NSR) was supposed to facilitate trade and transport corridors, ease customs and border procedures, and promote economic links.

However, these grandiose ideas were all for naught. Apart from profiteering from the ISAF bonanza and fleecing Afghanistan and its donors, Central Asian countries gained nothing substantial from U.S. initiatives. These benefits also came to an end with the decrease in the tempo of the Afghan war—beginning from the NATO drawdown in 2014 and ending with the U.S. exit in 2021. Failed regional cooperation, widespread corruption and disproportionate enrichment of elite insiders serve as relics of Western involvement in Central Asia.

 

China’s Role with Afghanistan

Growing disillusionment with the U.S. strategy on Afghanistan has pushed China—an SCO heavyweight—to the forefront of global diplomacy. For China, Afghanistan is not a passive unit in a geopolitical struggle against its rivals; it is a bridge between Eurasia and South Asia, and between East Asia and West Asia. It lies between two of the main Belt and Road corridors—the China-Pakistan Economic Corridor to the south and the China-Central Asia-Western Asia Economic Corridor to the north. Thus, Sino-Afghan ties are built on tangible geo-economic connections, not on opportunistic geo-political aims.

On September 8, Chinese State Councilor and Foreign Minister Wang Yi announced $31 million in aid for Afghanistan, saying the funds were a “necessary step” to restore order and “end anarchy.” A week later, Chinese Foreign Ministry spokesman Zhao Lijian told reporters in Beijing the United States had no legitimate reasons to freeze Afghanistan’s assets. Asked about the Taliban’s demand that the United States should unfreeze Afghanistan’s assets, Zhao said: “I think that the [Taliban’] spokesperson is right.” He went on to say, “These assets belong to the Afghan people. They [United States] should respond to the legitimate requests of the Afghan people and stop the wrong practice of sanctions and stop making obstacles for Afghanistan’s peace and reconstruction.”

In his speech to the SCO Summit, Chinese President Xi Jinping provided the regional context to his country’s evolving Afghan plan: 

“We SCO member states need to step up coordination, make full use of platforms such as the SCO-Afghanistan Contact Group and facilitate a smooth transition in Afghanistan. We need to encourage Afghanistan to put in place a broad-based and inclusive political framework, adopt prudent and moderate domestic and foreign policies, resolutely fight all forms of terrorism, live in amity with its neighbors and truly embark on a path of peace, stability and development.”

In a meeting convened on September 16, to discuss the situation in Afghanistan, Chinese Foreign Minister Wang Yi proposed the following to his contemporaries in Russia, Iran and Pakistan: 1) the United States should be urged to provide economic and humanitarian assistance to Afghanistan; 2) the Taliban regime should be encouraged to make a clean break with terrorist forces; 3) concerted efforts should be made to moderate Afghanistan’s domestic and foreign policies and promote the basic rights of ethnic minorities, women and children; 4) pathways should be opened for the regional economic integration and development of Afghanistan; and 5) the spillovers of security risks should be systematically prevented. These five suggestions are sensible and should be supported by the international community to ensure stability in Afghanistan.

Yanis Iqbal is an independent researcher and freelance writer based in Aligarh, India, and can be contacted at [email protected].