February 2025

How Europe is Reframing WWII

 

  • Jean-Pierre Page

WESTERN EUROPEAN VIEWS on the Second World War and the painful past have evolved significantly. Today its interpretation is at the heart of national and international political contentions. The Conservative Revolution of the 1980s saw a depoliticisation of history, reversing the post-war trend to understand history from the perspective of the dominated, notably under the impetus of social and political struggles and the decolonisation movement. Today, history has become the domain of the media, cultural industry and public authorities, and the analysis propagated is not restricted to a shared concern for independent and non-partisan historical research, but instrumentalised to legitimise neoliberalism and US hegemony as the sole horizon of history, the only alternative.

However, the world is changing, and changing fast. It is not Francis Fukuyama’s end of history. The international balance of power has altered dramatically, and the contradictions have become more acute. The end of the Second World War and the defeat of fascism ushered in a new period of history. Anti-fascism gave way to anti-Communism. The Cold War that followed, the fall of the Berlin Wall, and the disappearance of the Soviet Union were decisive events that had political, economic, and military consequences, particularly for Europe. The abolition of existing borders and Western aggrandisement with NATO expansion raised crucial issues related to collective security, state sovereignty and high-risk conflicts.

 

 

 

The global context is marked by a US-led unipolar world order facing a systemic crisis, including one posing an existential threat to European institutionsAs we see from the war in Ukraine, sovereignty is the main obstacle to the preservation of the established orderThe West and the political and economic model that it represents is in decline, highlighted by the revival of Russia, the undeniable rise of China on the world stage, and the emergence of anti-hegemonic alliances. Western bids to counter this decline at whatever cost, preserve US hegemony, and give legitimacy to its actions are at the origin of the political and ideological efforts to impose a different understanding and interpretation of history, resulting in its manipulation and the propagation of fables and untruths  . 

This re-writing of history has to do with Washington’s agenda to impose on the rest of the world a new system of ‘global governance,’ a nebulous ‘rules-based order,’ founded on US supremacy and unilateralism. Rooted in the ideology of American Exceptionalism and Manifest Destiny, it denigrates alternative cultures as inferior and unworthy, dividing the world into superior and inferior, civilized and uncivilized, liberal and illiberal, good and bad. It has now been conceptualised in terms of ‘democracy versus autocracy’ and wielded as a weapon in Washington’s bloc politics and bloc confrontation, subverting the UN Charter-based multilateral system founded on respect for the sovereign equality of States and the right of peoples to self-determination. 

 

And it is toward this end that all the world’s media, so-called experts, complacent academics, NGOs, and think-tanks that the United States can rely upon are being mobilized. In unison, they rattle off the same argument: “Russia is at our doorstep implementing a Machiavellian plan to dominate Europe, the earth, and also the stars!” Why not the entire universe, one may ask  ? For the cause, China is thrown in, identified with Russia, and the emphasis is made how complementary their strategies are. Under threat of being accused of complicity with Vladimir Putin, any challenge to this new doxa is prohibited  ! 

Recently a US media outlet proclaimed that it had been US troops that liberated Auschwitz, before retracting and apologizing for the error. In one of its first surveys, France’s oldest polling institute, IFOP, posed the following question at the end of the Second World War, repeating it 70 years later: “Which nation do you think contributed most to the defeat of Germany in 1945? Great Britain, the United States, or the USSR?” At the end of the War, over 60% of French responded it was Russia. Only 20% said it was the United States, and 12% the United Kingdom. Seventy years later, in a reversal of opinion, 58% believed it was the United States that had played the main role in Germany’s defeat.

It is to serve this hegemonic project that, in 1986, the gigantic Caen Memorial Museum in France was created with substantial US funding, as part of the International Network of Museums for Peace. It was dedicated to the history of the 20th century and to peace and given a special role to rewrite history. It contains gross historical errors. In 2002, several exhibition halls were added, devoted to the Cold War, the fall of the Berlin Wall, and the Holocaust, highlighting only the role of the United States in the Normandy Landing as late as 6 June 1944.No mention is made of the head of the Soviet Union Joseph Stalin as having officially first raised the question of opening a second front three years earlier, on 18 July 1941.

In the same spirit, in September 2019, the European Parliament voted a resolution stigmatising Nazism and Communism alike, claiming that the second world war had been triggered by the German-Soviet Pact: “… 80 years ago on 23 August 1939, the communist Soviet Union and Nazi Germany signed a Treaty of Non-Aggression, known as the Molotov-Ribbentrop Pact … which paved the way for the outbreak of the Second World War”. 

By reducing the origins of the Second World War to the “German-Soviet Pact,” the resolution places both Nazi Germany and the USSR on equal footing, considering both responsible, despite no serious historian, with a few rare exceptions, ever having questioned the aggressors as Nazi Germany, fascist Italy and imperial Japan. By supporting the text, the European parliamentarians disavow the conclusions of the Nuremberg Tribunal, equating those who built the Auschwitz extermination camp with the Red Army that liberated the survivors.

 Was it not the Nobel laureate for literature, Thomas Mann, who once wrote: “To place Russian communism on the same moral level with Nazi fascism, because both are totalitarian, is, at best, superficial, in the worse case it is fascism.”

The European Parliament has thus conferred legitimacy on a vision of history that has to do with pure propaganda, one that is silent on the policy of appeasement and the complicity of the ruling classes of most Western countries with Hitler’s Germany. Hence, its failure to mention the Munich Agreement, the Anschluss, or the period of collaboration between, for instance, Nazi Germany and Pétain’s France and the latter’s zealous roundups of Jews. The Vel d’Hiv roundup in Paris on16 and 17 July 1942 was the ordeal of 13,000 men, women, old people and children deported to the gas chambers of the extermination camps, including Auschwitz. They were among the 75,000 Jews in France who suffered the same fate. 

A tragic history that demands decency and humility has today given rise to a dishonest amalgam between the Holocaust, anti-Semitism, the events of October 7, Gaza and the Palestinian struggle. It is as if, in a distorted logic, Palestinians are at the root of a resurgence of anti-Semitism associated with the Nazis and Auschwitz. Establishing such a link with a struggle of a people for self-determination and decolonization is intolerable and unacceptable. It must not be forgotten that the establishment of the Jewish state on Palestinian land is the result of a link made by Western powers between Palestine and the problem of Jewish refugees in Europe, victims not of Arab, but of European anti-Semitism, with its ultimate expression in Nazi extermination camps. 

The hypocritical rhetoric accompanying the exercise of re-writing history ironically disqualifies the very liberal order that its authors seek to preserve. “Make America great again,” “rebirth of the Germanic spirit,” or “civilizing mission of colonization,” which some Western politicians claim as their right, only serve as diversion from their own culpability for plunder, slavery, devastation, predation, and genocide.

The European Parliament’s resolution actively participates in the erasure of all traces of history. It legitimises the renaming of streets, the nostalgic neo-Nazi demonstrations, and the destruction of historical monuments celebrating the Red Army’s contribution to the victory over fascism, as in the Baltic states or in Ukraine. And all the while, it disregards the heroic patriotic and partisan struggles in all of Europe. 

On 17 January 2024, the European Parliament engaged in yet another exercise on the past, adopting a new resolution that no longer contents itself with a call to rewrite history, but a call to erase all traces and create “a new shared culture of remembrance”. Member States are, for instance, called upon to update their existing curricula and teaching methods so that European history takes precedence over national history in order, we are told, to challenge the stereotypes and “sacred cows” of national histories.

It is hardly surprising that critical thinking is being replaced by slogans and emotional narratives, simplifying facts and impoverishing public debate. Society is being restricted in its ability to analyse its own past, its complexities and contradictions with all their nuances. The rise of revisionist narratives and “alternative truths” bears witness to the devaluation of rigorous historical analysis, eroding the legitimacy of academic, scientific and educational institutions, weakening them and compromising their essential role as guardians of history. 

This simplification and instrumentalisation of history has devastating effects as once unifying symbols become subjects of discord. We are warned of the dangers ahead and alerted to our responsibility toward the younger and future generations to lead this struggle for History with a capital ‘H’.

 

[ This article was originally published by the Valdai Discussion Club under the title ‘How Europe Is Rewriting WWII History.’ COGGS is republishing it with an edited title. The author, Jean-Pierre Page, is a French writer and trade union activist.]

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The Falcon and Bear Braving a Storm: UAE and Russia in the Dawn of Multipolarity

 

  • Ayanangsha Maitra

Russia, THE TSAR of diamond mining, and the UAE, where the raw brilliance is honed into luxury, share a warm economic relationship and the pair contribute immensely in the grand design of the  geoeconomics. Ukrainian President Volodymyr Zelenskyy’s state visit to Qasr Al Shati in Abu Dhabi, following the Munich Security Conference signifies the Emirate’s growing role as a mediator in global diplomacy.  It also shows the trust Abu Dhabi commands from both Moscow and Kyiv in advancing peacemaking efforts.

Moscow’s policy to diversify trade from the West to Asia has benefited the United Arab Emirates (UAE). Trade between Russia and the United Arab Emirates tripled over the last three years, remarked President Vladimir Putin when he hosted UAE ruler Sheikh Mohammed Bin Zayed Al Nahyan in Moscow in October 2024, followed by a meeting at the Novo-Ogaryovo state residence. The bilateral trade between the two burgeoning economies crossed $11.4 billion in 2023, redefining the relations between the two nations.

The UAE has joined the BRICS as a full member in January 2024. Against the backdrop of seismic geo-politics as well as geo-economics shift, several factors have altered the trajectories of Moscow and Abu Dhabi, shaping their destiny. Since the war in Ukraine began in February 2022, the UAE has experienced greater economic success as Moscow has diversified its trade strategy from the West to Asia. In the UAE, Russia exports transport items and IT in addition to the energy. On the other hand, the UAE exports products such as shisha tobacco, broadcasting equipment and selected aviation parts to Russia. The UAE is not only the largest trading partner of Russia but receives about 90 percent of Moscow’s total investment in the gulf region. The UAE supplies butter, machinery, nuclear reactors, boilers, and vehicles.

 

 [UAE ruler Sheikh Mohamed bin Zayed Al Nahyan and Russia's  President Vladimir Putin. Illustration: COGGS]
[UAE ruler Sheikh Mohamed bin Zayed Al Nahyan and Russia’s  President Vladimir Putin. Illustration: COGGS]
With Russia’s diamond sector largely controlled by state-supported Alrosa, the sanctions imposed by the Western nations have made it harder to access traditional markets. The UAE has stepped in as a key intermediary, leveraging its tax-friendly policies and advanced

infrastructure to facilitate trade. The Ministry of Finance of the UAE, has concluded the negotiations for Double Taxation Avoidance Agreement on income and capital with Russia. The UAE and the Eurasian Economic Union (EAEU) have concluded final round of negotiations to form a comprehensive economic partnership agreement to enhance bilateral trade in goods between the UAE and the five members of the EAEU bloc, comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Russian President Vladimir Putin paid a one-day lightning tour to Abu Dhabi in December 2023 during COP28 climate talks. 

The state visit of UAE ruler Mohammed bin Zayed Al Nahyan to Russia in October 2024 warmed up the Moscow-Abu Dhabi relations, which encompass diverse sectors, including energy, trade, space exploration, and humanitarian cooperation. Additionally, Foreign Minister Sergey Lavrov’s participation in the 7th Russia-Gulf Cooperation Council (GCC) Ministerial Meeting for Strategic Dialogue in September 2024, along with his visits to Qatar and the United Arab Emirates and engagement with the League of Arab States (LAS), played a significant role in strengthening ties with the Arab states.  The Russia-Arab bonhomie was rekindled in the meeting of the Russia-Islamic World Strategic Vision Group at Kazan Forum 2024 in May.

 

[BRICS KAZAN FORUM 2024 Celebrating Modest Fashion Day, representing Russian and Gulf Models. Courtesy: RIA Media Bank]

 

 

The UAE: A Magnet for Russian Expats

The UAE has emerged as a dream destination for Russians for plethora of factors. The cities like Dubai and Abu Dhabi offer  a seamless blend of accessibility, convenience, and an elevated lifestyle at a reasonable cost. With direct flights ferrying between multiple cities, streamlined visa policies, and the ease of securing a Dubai residence permit (Dubai ID) and banking facilities, relocation is convenient. However, securing visas for the US and Europe remains a formidable challenge, placing the UAE as an appealing alternative. Dubai, in particular, promises a sophisticated standard of living, featuring upscale residences, prestigious schools, a dynamic culinary scene, and an exclusive social environment for affluent Russian-speaking expatriates. The presence of a well-established Russian-speaking community—estimated at 100,000 as of 2019, comprising 40,000 Russian nationals and 60,000 individuals from former Soviet states—creates a sense of familiarity and belonging. Additionally, the influx of Russian tourists continues to grow, with flights connecting various Russian regions to key UAE destinations such as Sharjah, Ras Al Khaimah, Fujairah, Dubai, and Abu Dhabi.

Economic Relations

Economic ties are one of the key determinants of UAE–Russia relations. The two nations have come forward mostly over the decades from the relations of ecommerce. The UAE is playing a role in facilitating parallel imports into Russia, with a significant increase in exports of electronics, spare parts, and microchips from the Emirates to Russia. However, despite this increase in trade, the UAE is under constant pressure from the West to limit its cooperation with Russia. The financial institutions of the Emirate are exercising caution in their dealings with Russian entities because they are closely followed by US regulators. The UAE was included in the “grey list” of the Financial Action Task Force, prompting increased oversight of cash flows, making it more difficult to transfer assets from Russia or bypass sanctions.

From the late 1990s onward, Moscow has progressively solidified its partnership with the Arab nation, resulting in a marked surge in Russian exports to the Emirates. Concurrently, a mushrooming Russian diaspora has emerged in the urban habitats like Dubai and Abu Dhabi. The Russian community, comprising business professionals, skilled laborers, and entrepreneurs is cajoled by the appealing economic nature and abundant investment opportunities these cities offer.

 

The UAE and the USSR (Union of Soviet Socialist Republics) established diplomatic ties shortly after the UAE’s formation in December 1971. A USSR delegation visited the UAE in January 1972, acceding to establish diplomatic missions at the ambassador level. Despite the early agreement, the actual establishment of embassies was delayed until November 1985, when Moscow and Abu Dhabi officially announced bilateral relations. The USSR opened its diplomatic mission in March 1986, with the UAE Embassy opening in Moscow in April 1987. The missions provided a significant boost to bilateral ties, particularly in the economic sphere.

Economic Cooperation and Trade

  • Early Financial Agreements: In April 1988, Moscow received a loan of $50 million from the UAE, marking early economic cooperation. In December 1989, the Russian Foreign Bank visited Abu Dhabi to explore additional borrowing opportunities and the participation of UAE financial institutions in issuing Soviet financial credit instruments.
  • Air and Sea Transport: An Air Transport Agreement was signed in 1987. Notably, Aeroflot had an office in Abu Dhabi since 1979. Later in 1988, several Soviet sea carriers inked deals with the UAE company Sharaf Shipping.
  • Trade and Industrial Cooperation: An Agreement on Trade, Economic, and Industrial Cooperation was signed in Moscow in January 1990, further strengthening economic ties.

Trade Relationship

Deliveries of electronic items and spare parts for them from the Emirates to Russia have grown significantly to become the country’s biggest category of exports to Russia, while deliveries of microchips soared 15 times. In the 2022, the UAE sold Russia 158 civilian drones. The bilateral trade between Russia and UAE crossed $11.4 billion (1 trillion rubles)  in 2023.  In 2022, Russia exported $8.07 billion to the UAE, while the UAE exported $2.47 billion to Russia, indicating a significant trade surplus in favour of Russia. Russia’s main exports to the UAE in 2022 were gold ($5.36 billion), diamonds ($1.64 billion), and refined petroleum ($214 million). The UAE’s main exports to Russia in 2022 included broadcasting equipment ($1.4 billion), computers ($244 million), and microphones and headphones ($71.8 million).

Despite the difficulties faced by Russia in the 1990s after the dissolution of the USSR, the warm relations between the two nations were maintained and gradually developed, with rapid growth occurring in the first decade of the 21st century. Since the start of the war in Ukraine in February 2022, Dubai has become an increasingly important hub for trade with Russia. This has been aided by Western sanctions on Russian energy products which have led to an exodus of oil and commodity traders from London and Geneva to Dubai.

The UAE-Russia relationship has evolved from its early diplomatic foundations to a significant partnership characterised by robust trade and economic cooperation. The increasing volume of trade, coupled with continuous high-level diplomatic engagement, highlights the importance of this relationship for both nations. The establishment of Dubai as a key trading hub post-2022 further demonstrates the adaptability and growing significance of this bilateral relationship in the current scenario.

[ Rosoboronexport, state-owned defence firm of Russia maintained a business-as-usual composure. Courtesy: Sputnik]
The conflict in Ukraine was a shock to the market. The UAE, as part of OPEC+, has been struggling to bring more investment into oil and gas production. This is a shared challenge within the OPEC+ framework, which includes Russia, and suggests that the countries have a joint mechanism for oil production. The UAE has previously warned of the need for more investment in oil and gas, which was ignored when the world’s attention was focused on renewable energy and environmental issues.

In 2023, Russia exported 902,000 tonnes of agricultural products to the UAE, marking a 2.8-fold increase from the previous year. According to Agroexport, Russia has steadily expanded its wheat shipments to the UAE, with exports surpassing 900,000 tonnes in the 2019/20 agricultural year—accounting for 50% of the UAE’s total wheat imports. Andrei Terekhin, Russia’s trade representative in the UAE, highlighted the Emirate’s market as a promising destination for a diverse range of agricultural products.

 

Several prestigious Russian universities have established a presence in the UAE. Russian companies have showed enormous interest in the UAE across sectors and about 4000 Russian companies are functional in the UAE. Russian enterprises like Rosneft, Metalloinvest, Volga-Dnieper, Kurganmashzavod, Amtel, Stroitransgaz, Metallurgical Pipe Company, Interkomholding, Alrosa, KAMAZ, Lukoil, VTB Capital,  and several  others not just created their footmarks but also earned name as a respected corporation. UAE’s logistics major DP World, signed a strategic cooperation deal with Rosatom State Corporation, to establish an international logistics joint venture (JV) to develop container shipping through the Arctic and operate in the Russian and international markets. The Russia-UAE Working Group for Regional and Investment Cooperation conducts their meeting time to time. The enterprises from the two nations formed Russia-Emirates Business Council in September 2005.

Conclusion:

The Emirate’s prestige, prosperity and tax-friendly policies make it an attractive gateway for businesses looking to engage with Russia, particularly as trade routes and partnerships shift in the current geopolitical landscape. The UAE’s business-friendly approach allows Russian companies, making it a significant bridge for trade and commerce.

The UAE’s warming ties with Russia and intuitive move to be a member of BRICS  a clear move towards supporting multipolarity – while simultaneously maintaining a business diversification strategy. The Emirates’ role in facilitating parallel imports into Russia highlights its function in circumventing Western sanctions and enabling continued trade relations. This is further supported by the increase in exports of electronics, spare parts, and microchips from the UAE to Russia. The UAE provides an excellent opportunity for several other countries to access the Russian market. By establishing itself as a major trading hub, the UAE facilitates the flow of goods and services between various other nations in addition to Russia. The presence of a growing Russian community in the UAE creates a conducive environment for business, further promoting trade and investment. In essence, the UAE’s actions show a dual commitment to both strategic diversification and enabling multipolarity.

[ Ayanangsha Maitra, PhD is a writer and producer at COGGS. He can be contacted via @Ayanangsha  on X or via email : ayan@thegeoeconomics.com . ]

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BRICS: Not Dead, But Thriving

Mohammed Saqib

IN HIS RECENT comments, President Donald Trump of the United States of America declared that the BRICS bloc—currently comprising Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, South Africa, and the United Arab Emirates—was created with a “bad purpose” and that it is, in effect, already “dead.” Even more dramatically, he – before assuming his second term threatened a 100% tariff on any sort of  trading activity involving the BRICS nations if they attempted to  de-dollarize commerce.

 

[ Courtesy: TASS News Agency]

President Trump’s remarks on BRICS may appeal to nationalist sentiments. Despite his claims that BRICS is irrelevant or “dead,” the bloc is a formidable global economic force.  The interest of countries to join the bloc makes it more practical and a powerful entity to claim the multipolarity. Representing over 3.24 billion people—more than 40% of the world’s population—BRICS nations wield demographic influence on an unprecedented scale. Economically, the bloc contributes approximately $26.03 trillion to global GDP, accounting for 26% of the world’s total GDP. Their impact on international trade is equally significant, with BRICS countries are responsible for 20% of global exports and 18% of global imports. Beyond these metrics, the New Development Bank (NDB), established by the bloc in 2014, has approved over $33 billion in infrastructure and sustainable development projects. Far from being defunct, the economic weight of BRICS continues to shape the trajectory of regional as well as global development.

Misunderstanding BRICS’ Purpose and Potential

The perception that BRICS was established for a “bad purpose” fails to recognise the bloc’s core objective: providing a collaborative platform for emerging economies to enhance their voice at the global level. It seeks to address and rectify longstanding economic disparities. Initiatives like the New Development Bank (NDB) signify its dedication to promoting sustainable development and addressing infrastructure needs—goals that starkly contrast with any notion of a “bad purpose.” Moreover, rather than being dismissed, BRICS continues to flourish, attracting interest from numerous nations eager to join a framework that fosters multipolarity. The claim that “most people don’t want it” is unfounded and overlooks the increasing demand for a more diversified global financial landscape. Over 30 countries, including Turkey, a NATO member, have applied to join BRICS or its economic bloc.

Threat of a 100% Tariff

Perhaps the most alarming element of Trump’s comments is the threat of imposing a 100% tariff on any BRICS nation’s trading activities if it dared entertain policies aimed at de-dollarizing global commerce. It may sound like rhetoric, but such a move would have far-reaching consequences if implemented. The BRICS nations hold significant value in the age of multipolarity. China, a leading member of the bloc, is a manufacturing titan and the US’s largest trading partner, accounting for approximately $600 billion in bilateral trade in 2024, with critical imports like electronics as well as machinery underpinning American supply chains. Similarly, India is one of the fastest-growing  economies. Consider the examples of other members. India’s burgeoning trade relationship with the US is driven by key sectors such as technology, pharmaceuticals, and services. Brazil, the US’s second-largest trading partner in Latin America, supplies essential commodities like soybeans and crude oil. While trade with Russia has decreased due to sanctions, its energy export capacity remains significant. South Africa offers vital minerals and metals necessary for US manufacturing and technology. A blanket tariff would complicate economic ties and affect bilateral relations.  As a result, American businesses and consumers may have to pay higher costs. Such tariff measures may invite potential retaliatory actions that could ripple across global supply chains and further exacerbate global economic instability.

 President of Russia Vladimir Putin during an expanded meeting of BRICS leaders during the 16th BRICS summit in Kazan. [Photo: Sergey Bobylev ]
De-Dollarization: A Growing Trend

The emphasis on “playing games with the dollar” reflects a fundamental misunderstanding of why certain BRICS members are advocating for de-dollarized trade. These measures are not primarily aimed at undermining the US dollar; rather, they focus on reducing external vulnerabilities to sanctions and market volatility. Diversifying currency use is a pragmatic strategy in an unpredictable global economy, not an antagonistic action deserving of punitive tariffs. The global financial architecture is witnessing a slow shift as BRICS nations pursue the use of other means for international transactions along with the dollar. This movement manifests in three key developments: the increasing adoption of local currency settlements, exemplified by India and Russia’s rupee-ruble oil trade arrangements; the advancement of central bank digital currencies, with China’s digital yuan reaching 260 million users in its pilot phase; and discussions at the 2023 BRICS Summit regarding the creation of a shared currency for inter-BRICS trade. These efforts represent an economic diversification strategy aimed at reducing dollar dependency. At the same time it creates greater financial autonomy among BRICS nations rather than a direct challenge to the dollar’s international role. The trend reflects a broader evolution in global finance, where emerging economies seek to build resilient payment systems that can withstand geopolitical pressures while maintaining stable trade relationships.

Need for a Constructive Engagement

Ultimately, in true Trumpism style, the hyperbolic rhetoric surrounding the state of BRICS appears designed more for political theatrics than for a genuine analysis of global economic strategies. Instead of dismissively threatening an entire coalition of nations, a more productive approach would involve engaging in dialogue and developing mutually beneficial economic frameworks.

The BRICS bloc is an evolving testament to the shifting dynamics of global power. While the United States remains a dominant economic player, its influence is increasingly challenged by a world where trade, technology, and geopolitical alliances are as fluid as they are interconnected. Threats of tariffs and isolation may create temporary pressure, but they are unlikely to dismantle a bloc that is built on shared interests and growing interdependence. Rather than instilling fear through tariffs and empty threats, a future-oriented strategy would recognise the benefits of inclusive dialogue — one that respects multiple voices in the international arena.

The reality is that BRICS is not dead. In fact it’s an evolving bloc that reflects the aspirations of the Global South to have a greater voice in global affairs.

[ Mohammed Saqib is an economist and Convenor of COGGS. ] 

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DeepSeek: A Legacy of Confucian China

Atul Aneja

THE STUNNING SUCCESS of the Chinese AI chatbot DeepSeek has left the US-led tech universe shell-shocked, fearful, and demoralised. That is not surprising. The arrogant rulers of the cyber-universe headquartered in such places as the Silicon Valley have long believed in the myth that they have the divine right to lead the  global tech industry. To find young upstarts from lowly Hangzhou shattering the myth that they have been born to command cyber-space in perpetuity, is, indeed, hard to swallow.

But had the tech-titans in the West been humbler and avoided living in a self-created bubble, they would perhaps have by-passed their terrifying deer-in-the-headlights situation. So how did China achieve its Sputnik moment that has delivered such a shattering psychological blow to the  high-browed collective west?

There are at least three underlying drivers that explain why the tireless neo-Confucian techies from China, made such a big splash on the hi-tech canvass by training an advanced AI chatbot at a miserly cost $5.58 million. This has  hugely embarrassed the ruling tech priestly class that has pumped far larger sums to produce, from a user’s perspective, only similar products.

First, clear-eyed leaders of the People’s Republic of China (PRC) have diligently painted the big picture, detailing the time-lines for China’s rise, in which developers of AI have a pivotal, clearly defined role. The rise of AI, the key to cutting-edge Industry 4.0 that was already in focus—received a big boost in 2017 during 19th congress of the Communist Party of China (CPC). At the end of the congress, which is routinely held every five years, Chinese President Xi Jinping, delivered a seminal  speech. In  his marathon address, which lasted more than three hours,  Xi  laid out China’s grand strategy. From the ornate Great Hall of the People, the Chinese leader declared the country’s two centenary goals.

He unambiguously announced that his country’s first goal would be to eradicate absolute poverty by 2021—the year that marked the centenary of the formation in Shanghai of the CPC. That goal has already been achieved with the doubling in one decade of the Chinese GDP from its 2010 base. The second goal was even more consequential. Xi made it plain that in 2049—the year marking 100 years of the formation of the PRC—China would become a world leader, acing all spheres of  human endeavour. With that the people of the country would realise their “Chinese dream.”

In  order to achieve these jaw-dropping goals, the Chinese had already packed the required feedstock, including AI. During their 14th five-year plan that would end this year, Chinese planners had identified the critical role of  digital economy, focusing on core industries such as  big data, blockchain and AI to propel China’s digital advance.

Regarding AI, the plan focused on developing advanced algorithms, visible in the DeepSeek model,  and their application in industrial manufacturing, fintech and healthcare. It also lasered on integrating AI with quantum computing. This was done with the intent of beefing computational power that was required to solve complex problems quickly. Chinese planners saw a major AI role for establishing smart cities, digital villages, improving public services and living standards of the people.  

Second, the Chinese began their long march to establish a hi-tech culture and eco-system  that was original, innovative, and geared to guarantee success.  Here it is important to grasp the Chinese drill for developing digital technologies, including AI.

In an in insightful article that appeared in the South China Morning Post,  economist Kok How Lee points to three key drivers of China’s ever- growing success.

He points out that  China has leveraged its vast domestic market to achieve economies of scale, leading to inexpensive production of goods,  without compromising quality. Riding on a 1.4 billion population, China has a vast consumer base allowing businesses to scale up production—a situation that other markets will find hard to replicate.

Citing the smartphone industry, Lee spotlights Chinese brands such as Huawei Technologies, Xiaomi, Oppo and Vivo. These companies focused on meeting the needs of the massive domestic market before expanding globally. “This ability to scale up domestically first provides a critical edge over international counterparts who operate in smaller markets,” Lee observes.

The article further nails China’s “user-centric” approach as a key driver for on-your-feet innovation. It points out that Chinese companies are very sensitive to user feedback, and channel it rapidly into improved products. Copious data on consumer behaviour and preferences drawn from China’s vast market, gives Chinese companies the fire power to innovate and improve products.  

Finally fierce domestic competition in advanced areas, including AI has been driving breakneck innovation across China, taking the world by storm.  For instance, unlike Europe,  cut-throat competition for market share among electric car brands-BYD, Nio, Li Auto and Xpeng –is driving down costs and improving product quality.  

“This relentless drive to outdo competitors has fostered a culture of innovation that permeates China’s tech ecosystem,” says Lee.

Third, the post-Covid situation, marked by sharper geopolitical hostility from the West, coupled with the domestic economic slowdown, significantly driven by sluggishness in traditional economy drivers including real estate and infrastructure, has forced China to seek new motors for economic success, including AI. Recently, China’s leaders exhorted industry heads to focus on the country’s tech sector in the search for new drivers of economic growth. President Xi, in a meeting, himself called for “high-level technological self-reliance and improvement” and “sound development momentum” in 2025—the years when the 14th five-year plan runs its course.

Xi authorised the business chamber All-China Federation of Industry and Commerce, to steer the private sector towards greater entrepreneurship and boosting their confidence. In order to power digital innovation, China has chosen Hangzhou, the ground-zero from where DeepSeek took wings, as a key destination of AI advancement. 

Why Hangzhou?

There are several reasons for nailing Hangzhou as an AI hub. First and foremost, Hangzhou has abundant talent pool. The city can leverage several research institutions, including Zhejiang University, which has taken a head-start in AI research since 1978. The city has over 7,000 people working in the AI industry—a talent pool that naturally draws AI investors. Hangzhou has become a digital favourite also because of its tradition of local government support, exemplified by the establishment of the 5G Innovation Park there. Today, it hosts the China Artificial Intelligence Town– a dedicated area within Hangzhou Future Sci-Tech City, focusing  on big data, cloud computing, IoT, and chip design. In fact, Hangzhou has designated four districts – Yuhang, Xiaoshan, Binjiang, and Xihu – as pilot areas for AI development, leveraging their resources and expertise.

Besides, the presence of Ali Baba, the e-commerce giant, has vastly added to Hangzhou’s glamour and allure, majorly reinforcing the city’s AI ecosystem.   Alibaba’s initiatives include  ET Brain, which has several applications in various fields such as  healthcare and fintech.

Unsurprisingly, attracted by its strong AI  infrastructure and digital culture,  Hangzhou, besides DeepSeek, is home to companies like Rongyi.Big, Intellifusion, CloudWalk Technology, and Terminus Technologies. These firms are undertaking cutting edge research to benefit AI applications for e-commerce, video analytics, smart city solutions, and IoT integration. Other digital icons in Hangzhou include robotic dog maker Unitree and Game Science, which has become famous after developing Black Myth: Wukong, an AAA video game.

It is important to understand the Chinese success can be significantly attributed to its strong rootedness to its traditional Confucian work ethic. This includes respect and advocacy for hard work and diligence based on the belief that persistent effort and continuous improvement yield desirable results. Respect for authority and  hierarchy is another strong attribute of the Confucian culture. Distilled at the workplace, it means showing respect to seniors and supervisors.

The Confucian ethic also places a premium on group harmony and cooperation. Teamwork and collaboration to achieve collective goals is of higher value than individual triumphs. Besides life-long learning and self-improvement is encouraged, which means relentless pursuit of knowledge, skill development and professional growth in the workplace.

 

[Atul Aneja is an advisor to COGGS. The article is republished from katehon.com. The views expressed in this article are solely his own.]

 

 

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NEOM: Redefining Urban Living, the Saudi Way

NEOM: Redefining Urban Living, the Saudi Way

AS THE GULF undergoes lightening-fast transformation, Saudi Arabia stands out as a leading example of change. NEOM, located in Tabuk Province of Saudi, is more than just a real estate venture—it is a visionary megacity project that represents a futuristic economic development initiative aimed at diversifying the Kingdom’s economy. Ideated as the flagship project of Saudi Vision 2030, NEOM is set to play a significant role in the country’s transition from a hydrocarbon-based economic model. Launched in 2017 by Crown Prince Mohammad bin Salman, this planned arcology spans 26,500 km² at the northern tip of the Red Sea, strategically located east of Egypt and south of Jordan. The name “NEOM” is a portmanteau of the Greek prefix “neo” (new) and the Arabic word Mostaqbal, meaning future.

Key Features and Development Aspects

NEOM’s economic foundation rests on fifteen targeted sectors, including healthcare, financial services, biotech, and advanced manufacturing. The NEOM Green Hydrogen project exemplifies this focus, representing the world’s largest initiative of its kind. The project actively attracts private sector investment, spanning industries from real estate to high-tech manufacturing, with the NEOM Investment Fund also focusing on frontier technologies. As of late January 2025, over $50 billion has been invested in essential infrastructure development, as Rayan Fayez, Deputy CEO of NEOM, mentioned at the World Economic Forum.

The projects’s strategic location, at the gateway to the Suez Canal (facilitating 13% of global trade), combined with abundant solar as well as wind resources, makes it ideally suited to achieve its goal of 100% renewable energy. A competitive regulatory framework is being developed to draw both capital and talent. Currently, over 5,000 people from more than 100 countries are contributing to the initiative. Vertical construction is expected to start soon, with the initial phase covering about 20 million square meters of gross floor area (GFA), reserving 95% of the land as a nature reserve.

Six Distinct Regions of NEOM

NEOM is spread across six regions: two focused on urban development and four centered on tourism and environmental conservation.

  • Trojena: This mountain resort, rising to 2,900 meters, will host the 2029 Asian Winter Games. It will feature an ecotourism development, including a lake and a village.
  • Magna: Stretching 100 km along the Gulf of Aqaba, Magna will feature twelve interconnected developments offering residential and tourism experiences, including a mountain-integrated hotel resort.
  • The Islands: A collection of 41 islands, developed as a tourism destination, with a focus on ecological preservation, particularly coral reef protection in collaboration with UNESCO.
  • Nature Reserve: Encompassing 95% of NEOM’s land, the reserve will focus on rewilding and introducing new species to foster an immersive natural environment.
  • Oxagon: This industrial port city, located at the mouth of the Suez Canal, will specialize in green and clean technologies.
  • The Line: The capital city of NEOM, designed for zero-car mobility and powered by renewable energy. It will feature high-density living in a unique grid framework, with primary decks every 100 meters for traffic and infrastructure. 

NEOM functions as a living laboratory, where cutting-edge technologies in mobility, healthcare, and food production are tested and implemented. Advanced construction methods, such as automated rebar caging, are used to optimize efficiency and minimize waste. In addition to its physical infrastructure, NEOM seeks to lead with best-in-class digital services and operating systems, aiming to redefine urban livability, business practices, and conservation efforts. It strives for 100% renewable energy and the preservation of 95% of its land as a nature reserve.

Overcoming Challenges and Looking Ahead

Communicating the scale and complexity of NEOM presents challenges, sometimes sparking skepticism and misinterpretations. The project’s goal is to create a new model of urban development that harmoniously integrates with nature, prioritizing environmental preservation more than traditional cities. Attracting residents will require creating appealing employment opportunities and a desirable lifestyle for both individuals and capital. Multimodal mobility solutions, including rail networks, are under consideration for inter-regional connectivity, with heavy rail for passengers and freight along The Line, as well as autonomous freight systems.

NEOM is pushing the envelope on HealthTech, exploring digital human twins and AI-driven diagnostics, aiming to be at the forefront of healthcare innovation. Though the project is envisioned as a long-term, multi-generational undertaking, significant milestones will be reached in the near future. Its ultimate ambition is to serve as a global model for sustainable urban development and redefine humanity’s interaction with the natural world, all while advancing technology and healthcare.

Expanding its investments across technology, international sports, and infrastructure, including Riyadh’s new metro system, the Kingdom’s Public Investment Fund (PIF) has committed over $500 billion to the development of NEOM. Denis Hickey, Chief Development Officer of NEOM, has outlined a century-long timeline for the project’s development, emphasizing the need to prepare for the projected 9 million residents. Although recent reports suggest a possible recalibration of the scope, especially for The Line’s initial phase, progress continues across other elements of NEOM, including the operational port at Oxagon and the ongoing construction of the Trojena and Magna resorts.

NEOM is being constructed to redefine the relationship between humanity, technology, and the natural world – not just to elevate Saudi’s stature at the global level. As the state-of-the-art project evolves, NEOM holds the potential to be a global exemplar for sustainable urban development, blending advanced technologies with ecological stewardship. While the project’s immense scale and ambition present challenges, its ongoing progress is a testament to Saudi Arabia’s commitment to transforming its economy and establishing a model for the cities of the future. With its focus on renewable energy, groundbreaking healthcare innovations, and a harmonious balance between development and preservation, NEOM could shape the way we envision urban living in the 21st century. Once functional, NEOM will not only transform Saudi Arabia but set a new standard for the world to follow in the quest for sustainable, high-tech cities that prioritize both the environment and human well-being. [COGGS] 

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Davos 2025: 10 Points on Europe’s Quest for Economic Revival

The high-octane discussions at the World Economic Forum on January 20-24, 2025 in the Davos, Switzerland have tabled significant challenges facing the European economy, alongside potential pathways for recovery and growth. Here are ten key points that encapsulate the current threats to European economy and proposed solutions.

  1. Stagnant Growth Rates: Europe’s economy is projected to grow at about half the pace of the US from 2019 to 2024. Only 25% of economists surveyed believe Europe will experience “moderate or stronger” growth this year, compared to over half for China and three-quarters for the Middle East and North Africa[1].
  2. Strategic Miscalculations: Jamil Anderlini, editor at Politico, emphasized that Europe made three significant bets that have backfired: dependence on Russia for energy, reliance on China for open markets, and looking to America for security. This has left Europe vulnerable as it navigates a complex geopolitical landscape[1].

 

  1. Energy Crisis: The continent is grappling with a persistent energy crisis as it seeks alternatives to Russian energy supplies while simultaneously facing long-term dependence on imports from China. This dual challenge complicates Europe’s energy security and economic stability[1][3].

 

  1. Fragmented Financial System: Contrary to popular belief, Europe’s financial system is not as integrated as it should be. Larry Fink, Chairman and CEO of BlackRock, described Europe as “a beautiful myth,” emphasizing the need for a more cohesive financial framework to create economic resilience[1][2].
  2. Capital Markets Union: A proposed solution is the establishment of an EU capital markets union. This drive aims to better allocate funds to young, innovative companies, thereby retaining domestic entrepreneurs and attracting foreign talent[2][4].

 

  1. Leadership Acknowledgment: Christine Lagarde, President of the European Central Bank, noted that decision-makers are aware of the necessary steps forward. The creation of a capital markets union is crucial for enhancing investment opportunities across Europe[1][2].

 

  1. Cultural Confidence Gap: IMF Managing Director Kristalina Georgieva pointed out that Europe suffers from a “culture of modesty,” in contrast to the US’s “culture of confidence.” There is a pressing need to build greater confidence in European markets and industries to stimulate growth[1][2].

 

  1. Leveraging Cultural Heritage: Europe can capitalize on its historical strengths, including its values and cultural heritage, as exemplified by figures like Beethoven and Kant. This cultural capital can serve as a foundation for promoting liberal democracies and attracting global talent[1][3].

 

  1. Emerging Economic Opportunities: As the US potentially shifts its focus away from selected growth sectors, particularly clean energy production, Europe stands ready to seize these opportunities. Lagarde indicated that if the US does not pursue this growth, Europe would welcome it with open arms[1][4].

 

  1. Strategic Recommendations from Davos: Leaders assembled at Davos proposed several strategies for Europe to regain its competitive edge, including enhancing green energy initiatives, improving investment environments, and creating strategic interdependence among nations[1][4].

At the WEF 2025, Davos has underscored a critical juncture for Europe’s economy. While challenges abound—from sluggish growth rates and energy crises to fragmented financial systems—the potential solutions highlighted by leaders provide a roadmap for recovery and renewed competitiveness in an increasingly complex scenario. By harnessing her cultural strengths and building greater confidence in the well-defined markets, Europe can navigate these turbulent times toward a more sustainable economic future.

 

Citations:

[1] https://www.cnbc.com/2024/12/18/europe-economy-good-times-coming-analysts-say.html

[2] https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/securing-europes-competitiveness-addressing-its-technology-gap

[3] https://english.news.cn/20250107/e4d502763eb04ee6a2823dc0bdd16389/c.html

[4] https://www.mckinsey.com/mgi/our-research/accelerating-europe-competitiveness-for-a-new-era

[5] https://economy-finance.ec.europa.eu/publications/2025-euro-area-report_en

[6] https://www.weforum.org/stories/2015/01/10-global-challenges-10-expert-views-from-davos/

[7] https://www.europarl.europa.eu/RegData/etudes/IDAN/2025/767186/EPRS_IDA(2025)767186_EN.pdf

[8] https://www.weforum.org/stories/2025/01/5-key-takeaways-davos-2025/

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