Will the new ‘Cold War’ herald a New World Order

Today, the world is facing a new ‘Cold War’. The original cold war from 1945 to 1990s between both the United States (plus its allies in the NATO bloc) and the Soviet Union was an ideological conflict -the fear of communism in the United States (US)- as well as the emergence of nuclear weapons which led to the arms race.  

During the Second World War, the Soviet Union (predecessor to the Russian Federation) under the leadership of Joseph Stalin, allied with Britain, France, and the United States against Nazi Germany, Italy and Japan -all colonial powers.   

At that time, the alliance was based around destroying the fascist colonial regimes in the Europe and the Japanese challenge to US/European colonization of Asia and the Pacific.  

In the aftermath of Germany and Japan’s defeat, the alliance broke down amidst, squabbling over ideologies and differences in worldview between the former allies.   

The Cold war was in fact, essentially a struggle to control the resources of the world, between two powerful groups of countries: One based authoritarian collectivism/socialism and the other based primarily on so-called democracy and individualism. 

 
According to ‘History Crunch’ the United States fearing Soviet expansionism into regions in Europe and around the world, developed a policy in which the US worked to contain the spread of communism. However the Cold War finally came to an end with the collapse of the Soviet Union with the US remaining the word’s sole super power.  
Today’s new Cold War is based on several similarities but, has major differences as well.  

Firstly Japan -the only country in the world to have been subjected to a nuclear attack, has linked up with the perpetrator nation in its confrontation with Russia and the rising economic and military powerhouse -China.   

The reasons for today’s confrontation between the two groups, is once again based on the same US fear of the spread of socialist ideology. It is also running scared of the rise of China to the status as a world economic and military power. The US is also alarmed over Russia’s ownership over vast supplies of oil and gas on which America’s European allies are dependent.  

Again both China and Russia have begun challenging the position of the US dollar in international financial system. Both countries are calling for a move away from the US$ as a benchmark currency . They have embarked on trading in their own currencies and those of countries trading with them.  

Adding to the US and Europe’s dilemma, has been India’s strict adherence to a policy of non alignment with the political ideologies of the two adversarial groups. India has followed a policy of Indian interests first.  

Through its policy of avoiding taking sides, India because of its size and economic importance, has been able to resist threatened US sanctions and other pressures for continuing to trade with Russia and Iran. Three days ago ‘The Economic Times’ reported India will now be possibly receiving the resource at lower than market rates.   

India has resisted the EU-US imposed unilateral cap on Russian oil and gas prices. Today it is reaping the reward for its non aligned policies.   

Again, like Russia, China and a few other nations, India too has begun a process of trading with Russia using its own currency to rouble payments in place of the US$.  

Just a week ago this column spoke of the need for the re-emergence of a group of nations based on the policies of the Non Aligned Movement of the past. India’s upholding of the policies of non alignment in the current impasse could be the harbinger for smaller and weaker nations to protect their own rights by coming together around the policies of non alignment.  

For our own country, now desperately seeking an IMF bailout, breaking US/EU sanctions re direct purchases of oil and gas from Russia and or Iran may be a distant dream. But perhaps we too could gain from India’s purchase of cheap oil and gas from Russia, as India does provide us with part of our requirements of this precious resource.  

For weaker nation states like Lanka, caught up in the horns of economic turmoil, we need to take an example from India. Let us not place our future with one bloc or the other. We need to come together with India, Iran and other like-minded states protect OUR OWN INTERESTS.