Centrul Diplomatic/Diplomatic Center

Centrul de Studii Politice si Diplomatie/ Center for Political Science and Diplomacy

PREDICTIONS FOR 2011

STATE OF THE WORLD FORECAST  REPORT FOR 2011 by PROFESSOR ANTON CARAGEA PhD,MA, FINS

It is in human nature to search for answers regarding the shaping of the future. It is a natural impulse that today science is offering a response by such disciplines as futurology and political science. 2011 it is in many respects just a continuation of 2010 evolution in economy and foreign affairs and is creating the path for 2012 when new and decisive election will be held in United States, Russia and across the world.


Homeless in United States: a common faith for 10 million people.

The economic crisis will worsen.

A regular companion of world economy in the last 3 years was the economic crisis. The crisis that unlashed over United States in 2007 and soon consumed the all world. 2011 will be still a year of the crisis. United States fails to be the engine for recovery in economy is fighting a record public deficit of   over 14 trillion dollars, more than 47 million americans living below poverty line and consumer confidence hitting record low. In politics a time and resource consuming battle between democrats and republicans in Congress and a paralyzed presidency of a crippled Barrack Obama , all this show that United States are far away not only from any recovery chance,  but also for a stagnation that will be more favorable that the present day gloomy economic outlook.

European Union is also confronting severely battled economy .Public record deficits in Ireland, Greece, Spain and Portugal (famous PIGS of European economy) are hindering EU image as an economic powerhouse. France and Great Britain are far from being out of recession and Germany fantastic growth figures are regularly downgraded, making a shame of the famous German punctuality and honesty. Germany has long receded from being the leader and acumen of Europe to be the problem child of Europe economy. With record deficits, rampant inflation, record dropping life standards, Germany is looking set in becoming the next bailout candidate of Europe not the pillar of Europe recovery.

India and China also experienced a halt in their record growth figures and 2011 will see this figures rapidly diminished. China economy ,  is growing now only on internal market demand at the expense of here competitivity  . Growing salaries and improving life conditions in China are surely positive news for Chinese people, but this is reflecting in a 35% increase in Chinese products prices in 2010. These tendencies will continue in 2011 and will reduce Chinese goods appeal in the world market.   China and India are not in the position to drag alone the world economy out of the precipice.   The economic crisis is here to stay in the next five years.

Pressure on China .

The most interesting political game of 2011 will be the cat and mouse game that Washington is playing with Beijing. In 2010 Washington wanted China`s alignment on anti-Iran resolution in the Security Council. It was enough for United States to play the economic card, agitating measures such as nominating China as a currency manipulator and imposing unilateral economic sanctions for China to back down and to support the US sponsored resolution in United Nations Security Council. In late 2010 when United States decided on a show of force on China Sea, at the door step of China, it was enough to describe China as a menace for the Far East region and to support Japan military resurgence for China to back down. It was reportedly that the December military exercises held by South Korea and US in East China Sea have being proven so efficient that China was put on a defensive posture.

In 2011 China will face new decisions: a new anti-Iran resolution that is drafted by US and will be put before Security Council in the spring of 2011, clearing the way for a military action against Iran. If China joins this resolution, his stance in the third world as an alternative power to United States and an agent of multilateralism will fade away definitively. Also United States are decided to support South Korea pressure against  North Korea, pressure that will be efficiently only if China goes on board. In a word China is confronted  in 2011  with the same decision as in 2010: should it be content with the stature of a middle power, as Great Britain or France ,and take care of his regional agenda or maintaining a great power profile embarks himself in a confrontation policy with United States ? Regional politics or big player, this is the alternative that Beijing is had to make.

Iran: new sanctions.

In December 2010 after failed talks, Iran and P+5 decided on a last ditch attempt in January 2011 to lift up the dialogue in Istanbul on Iranian nuclear issue. The rift between the parties is clearer than ever: Iran hold us up to his right on peaceful nuclear development while United States is determined to see Iranian nuclear program dismantled. Under this conditions is not difficult to predict the failure of the talks. United States have  already drafted a resolution, clearly laying out the path for military action against Teheran. Last year Russia and China with Brazil and Turkey intercession, succeeded to amend the draft, excluding the key phrase of -by every dint necessary. This year Russia will not oppose this green light for military action , while China stance is yet unclear. The battle around this new United Nations resolution will be undoubtedly the main diplomatic event of 2011.

Putin and Medvedev: a love-hate relation ?

Russia: fight for power.

In Russia the power struggle between the make shift President, Dimitry Medvedev and his benefactor, omnipotent prime-minister Vladimir Putin, is taking epic  and opera type proportions. Until now the battle between President  and Prime Minister was held on the streets of Moscow ,where Kremlin backed supporters tacking  to the streets against the Prime Minister administration. This battle in the street was won by Medvedev, that obtain on grounds of police brutality against manifestant`s, the removal of Putin rock-stone allied, Yuri Rajkov, mayor of Moscow. With the battle for Moscow won, Medvedev started two more fronts: a public offensive against the corruption and inefficiency of Putin government and on the world stage a battle for a new Russia image. Inflaming the rage of Putin, Dimitry Medvedev launches his new vision on Lisbon Treaty backstage. A Russia led by Medvedev ,without the omnipresent Putin , will support US efforts in controlling Iran and China , will assure a steady supply of raw materials to US and Europe economy and will request only a regional influence. Medvedev went as far as asserting that Russia relations with Georgia could be massively improved.    As naturally US and Europe force pledge support for the democratic vision of President Medvedev in contrast with authoritarian past of Russia, a diplomatic phrase describing Vladimir Putin policies. Vladimir Putin opera style response: in Sankt Petersburg a giant show on Christmas with him as a super star, congratulated as the greatest man that ever lived by Alain Delon, Sharon Stone, Kurt Russell and Gerard Depardieu. The star of the show-Putin even made a public performance and sings on the piano. 40 millions Russian have watch the show live on television. Score 1-1 for Putin.  The battle for Russia will be another interesting event of 2011.

Israel: a new aggression?

For Tel Aviv 2011 is starting under negative auspices: a frozen relation with White House after the illegal settlements build on Palestinian soil continued controversy and Barrack Obama support for an independent Palestinian state. The Israel international isolation after Mavi Marmara attack in international waters and Turkeys movement to isolate the hebrew state and illegal Gaza blockade made even European Union to start swaying away from Israel position.  After all this failures Benyamin Netanyahu extreme right government has only one solution to galvanize public opinion on his side: a new conflict either by unleashing a new attack on Gaza or on Lebanon. In 2010 Israel violated daily Lebanon air space, sponsored spy infiltration rings in the Cedar country and created a strong pressure to further weaken the country. But anew attack on Lebanon risk to alienate even further the western supporters of Israel and the lessons of 2006 defeat of Israeli military at the hands of Hezbollah is not easy forgotten. In Gaza ,also Hamas has survived blockade and daily attack by Israel in 2010 and even grow in popularity and capitalized on the international humanitarian effort for the people of Gaza in 2010. Gaza is a more labile target; with light weaponry could not stand efficiently against Israel war machine. But a small military victory will compensate the political storm that such an attack will unleash? Benyamin Netanyahu seems to think that this wage worth tacking it.

Savage german police brutality images.

Europe: fight for democratic system.

Europe is having a lot of problems to sort off in 2011. The economic crisis that is engulfing the continent is already described. Another ugly head that is appearing on the continent is sectarian divisions. Nobody forgets the Switzerland vote in banning minarets, the France ban on Muslim scarf, the closing of hundreds of mosques in Europe in the last year and the vicious attack on Tony Blair sister in law that converted to Islam and was nearly to be killed by British extremists. These anti-minority events will repeat and inflammatory statements like Angela Merkel opinion that multiculturalism have failed will support this kind of attacks. Europe is having in this moment more than 40% of population living below poverty line of 500 euro’s per month , increase unemployment’s ,  social and cultural amenities incapable in supporting European population needs, a medical system in grip and a deficit of democracy. As states are finding difficult to cope with this problems an easy escape is the time old remedy of anti-immigration rhetoric.

After being championship of democracy in the last 50 years, European democratic system is starting to show his wrinkles.  Great Britain police resulted to argentine style suppression of mass student demonstration in December 2010 against tuition fees rise. In France against anti-pension reform demonstrators were halted by armed forces and in Germany government resorted to pointing out in a 30`s style the immigration and failed multiculturalism as the culprits behind economy collapsed. The fight for maintaining a viable and democratic system in Europe is a difficult one that 2011 will just be a step.

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January 11, 2011 Posted by | African affairs, Al Quds, Bertrand Russell Tribunal, Blackseanews Agency, Coreea, Diplomacy, Eastern Europe, Ecology, Economy, Environment, European Council on International Relations, Fidel Castro, Foreign policy, G20 Summit, History, Ierusalim - Al Quds, Information on Korea, Informations, Institute of International Relations and Economic Cooperation, Institutul de Relatii Internationale si Cooperare Economica, International Relation, Islam, Kazahstan, Korea, Latin America, Leaders, Macedonia, Mass media, News, North Atlantic Treaty Organization, Nursultan Nazarbayev, Open Letter, Orient, Oriental Art, OSCE-Organisation for Security and Cooperation in Europe, Palestine, Politics, Real Eastate, Religion, Romanian economy, Romanian Revolution, Russian Affairs, Socialism, Syria, Tourism, Travel, Turism, Turkmenistan, United Arab Emirates, United Nations Global Compact, United States, Universities, War Crimes, World Cup | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

EIGHT PREDICTIONS FOR 2010 by Dr. Anton Caragea

EIGHT PREDICTIONS FOR  2010

It is in human nature deeply rooted the desire to see what is the future reserving for us. In the ancient times Sybille’s priestess in a cave near Rome interpreted the sacred Sibylline Book to see what the New Year will bring for Rome. Today the desire to know the future remain as strong as ever but the technique has certainly improved. Today geopolitics is here to help us guide our way in the next year. So what will bring to us 2010?  

The end of economic crisis?

Certainly something that everybody will like to see in 2010 is an end to the powerful economic crisis that is ripping havoc in international economy. Unfortunately 2010 is a decisive year in economy but with a double potential: to show the end of recession or to provoke another catastrophic fall. The economic dates are far away from a promising future. The US economy still has to face with the consequence of a real estate market that is suffocated by offers but also in lingering demand because of the strict policy applied by banks. Also financial sector proved his vulnerability to external pressure when the so called Dubai World bobble burst in November 2009 the New York Stock Exchange suffered a fall of 8 %. This vulnerability to foreign market will still be a major factor in influencing US economy recovery. Crushing stock markets in Asia or Middle East will sure happen in 2010 as the international banking system is slaw in offering collaterals and credit to pharaoh type projects that where starting before crisis and needs financing to be completed. These big projects are a sward with two directions, if they are not completed investor confidence will fall and as a result we will see depreciating values of stacks and bankruptcy if they are completed they will find a market already saturated and they will collapse.

A ghost is troubling the continent: Unemployment.

We all remember K. Marx beginning of Capital: a ghost is wondering the continent: the communism. Well now another ghost is showing here ugly face from New York to London: unemployment. The latest data from United States are crippling any hope of recovery, with 85.000 jobs lost only in December the economy of US is in severe shape and with more than 600.000 people relinquishing any hope for finding a new job the prospects seamed deem. In Europe the situation is even grey, German Federal Government admitted in November that the figures showing the German economy out of recession are exaggerated, Greece, Latvia, Lithuania and Estonia face national bankruptcy and Spain, Italy, Ireland are fallowing closely and with national bankruptcy looming over Romania, Hungary and Bulgaria economy is still clear that Europe economy is continuing his downfall rapidly.

China and India: how long the miracle can last?

This year the only good news from world economy come from India and China that relied on a huge internal market (more than 1 billon each) to continue to grow in a down fall year. But this maneuver could not be sustained for 2010 economist predicts. Two are the main reasons: the grow of internal market demand could only be sustained by increase in wages that will affect both China and India competitiveness on external market. The second reason is that the internal market is not producing hard currency (dollars or Euros) that both India and China need for their developing economy but they only acquired more of their one currency with no value on international market. China and India continuous grow could only be sustained by cutting their economy from international market and this will be another catastrophe for international economy. In conclusion 2010 will be decisive in shaping the way for a recovery or for another crisis.

Democrats lose control.

In United States 2010 is an electoral year in which the democrats and republican will fight for control of Legislative. In this fight democrats enter on the lame duck position, in economy the financial support offered generously by B. Obama did not produced neither the necessary recovery neither the economic climate improvement, on international policy US troops are still embattled in Iraq, in Afghanistan a long war of guerrilla will claim his life toll in 2010 and Obama just make the monumental mistake in involving US military in a new conflict in Yemen. With none of his campaign pledges honored and a dire economic situation B. Obama is having little to show for, a situation that republican will get the best of it.

Israel – a new military adventure.

In Middle East the clouds of a new war are rapidly getting strength. In Israel an embattled Prime Minister Benyamin Netanyahu is seeing his cabinet position weaker and weaker by days go done. Israel Foreign Minister, Avigdor Lieberman has found himself excluded for Mediterranean Union projects talks as a result of Turkey veto and Arab country refusal to talk with him for his extremist views (the most inflammatory remark being the possibility of an attack on Aswan Dam in Egypt to disrupt Egypt economy). Inside Israel the dispute surrounding construction in occupied West Bank and East Jerusalem is further weakening his cabinet. In this case as Ehud Olmert has done in 2008 attacking Gaza or Menahem Begin invading Lebanon in 1982 is clear that the cabinet will try to avoid collapse by launching a new attach in the region. The best target is Gaza already weakened by the 2008 war and by 3 years of total blockade. An operation in Gaza could dismantle Hamas and provide a strategic victory with little human life cost so probably this will be the next target. But also there are voice that suggest that an attack on Lebanon infrastructure will be more beneficial for Israel that economically bothered by Lebanon tourism and investment opportunity competition in the region. But is probably that Israel will restrain his goal at more achievable level and a strike on Gaza seems the most likely scenario for 2010.                 

Pakistan: between civilian rule and military intervention.

Pakistan situation is dire: economy fall by 20% percent, unemployment is huge (more then 18%) and banking system is showing sign of collapse. With the army engaged in frontier battles at border with Afghanistan and with a continuous line of interior attacks the last things Pakistan needs is a political crisis. But exactly this is what 2010 will bring.  The embattled president Ali Zardari was forced to relinquish nuclear arms control to his prime minister and also to face a corruption charges that could lead to his downfall. The only civilian personality that could take his place is former Prime Minister Nawaz Sharif. But we must not forget that Mr. Sharif was deposed in a bloodless coup d’état in 1996 by the military and replaced with General Perwez Musharaf. Bringing him back to power will just mean that the history will be re-write. In any case if there will not be a political solution to Pakistan economic and political crisis the military will step in and this time with the accord of Washington that is eager to see stability at the front door of Pakistan at any cost in order to defeat the insurgency in Afghanistan. A general that will promise Washington tranquility at the southern border of Afghanistan will be acclaimed just as Perwez Musharaf was in 2001 after September attacks.

Latin America.

2010 also witness another tension fleering up: in Honduras a coup d’état mounted by military in convergence with right wing politicians toppled the legitimate president: Manuel Zelaya, crush any civilian resistance and despite international condemnation consolidated there regime in illegal elections. This became now a study case in United States and the region where many want to see left wing politicians as Evo Morales, Hugo Chavez and Rafael Correa overthrown. The Honduras success receipt will be surely repeated in another Latin America country this year. The question is where?

In Bolivia where a so called independent state in the center of the country has elected a parliament and a government and tries to overthrown Evo Morales in a civilian and military coup ? Or in Venezuela where Hugo Chavez is now under Columbian army pressure, irregular militia that crossed the border from Columbia to attack Venezuelan objectives on daily bases and where United States just opened up military bases?

Finally Rafael Correa of Ecuador is also on the black list; Ecuadorian military trained and grown by United States is also shooing sign that could change lines. Where will be CIA next revolution in Latin America?   Newsweek citing informed sources from CIA announced that Venezuela is the prime candidate for a „freedom” operation in Caribbean.  

China`s decision.

2010 will also be a decisive year for China that will be presented in the Security Council with sanctions proposal for Iran and Sudan. Both countries are strong allies of China, suppliers with gas and oil for increasing Chinese demands and both countries have a tension relationship with United States. China will have to decide; to give a go ahead to future sanctions could spell clearing the road for war. Everybody remembers in Security Council the 2002 resolution against Iraq that threatened the Baghdad regime with serious consequences if they don’t comply. United States decided that serious consequences could mean war and launch the attack on Iraq. A similar resolution today imposed on Teheran will be just a final step to war. China seemed to be aware of this and will have to choose between open opposition to United States agenda or temporary acceptance of US demands. The present strategy of China of temporization could no longer work in 2010.

This are just of the few decision that international policy and market decision makers will be confronted in this decisive year between peace and war, crisis or recovery , coup d’état or liberty. The answer will be decided in the next 12 month. We will live with the consequence.

Professor Anton Caragea PhD, MA, FINS

January 12, 2010 Posted by | Diplomacy, Eastern Europe, Ecology, Economy, Environment, Foreign policy, History, Informations, International Relation, Latin America, Leaders, Mass media, News, Open Letter, Politics, Religion, Russia, United States | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment