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Chapter 4
Analysis and Recommendations
Geo-Strategic Realities
The geopolitical game of the Cold replace U.S. dollar as a primary currency
War was won by the West by employing for world trade. This created a vacuum
a successful geo-economic strategy. of leadership for international economic
Economic success of capitalist system integration, environmental improvement,
Implications to ASEAN
stabilized, energized, and unified Western and efforts to address the climate change.
political alliances. While military dominance The vacuum has been largely occupied
was an absolute necessity yet the game by an economically strong, politically
changer was economic ascendance. Since vibrant and militarily aspiring China. It has
the end of Cold War and the emergence embarked on the ambitious Belt and
of Unipolar world, the western economic Road Initiative plan. The plan conceives
structure that was based on the Bretton banks to fund infrastructure; make
Evolving Geo-Strategic Matrix in South China Sea:
Woods institutions and aid systems were common standards (in railroads, customs
28 neglected to a greater degree and allowed clearance procedures, IT standards etc);
to weaken due to political irrelevance. an effort make Chinese Renminbi (RMB)
The result was its inability to bail out allies into a global currency; a currency swap
like Thailand during the Asian Crisis of system to aid countries in economic
1997-98. Such indifferences created crisis; and institutions to liberalize trade
economic power vacuum and allowed and investment. China has assumed the
rising power like China to gain a considerable leadership role in green energy, and it
level of authority in this domain. The US also spends considerably on environmental
ceded a great part of its global leadership alleviation and convenes its allies to make
role by its actions of attacking allies, NATO, development plans and then provides
the WTO, the World Health Organization, funding for the projects and infrastructure.
and the International Criminal Court during The United States, on the other hand,
the Trump administration. The reckless and has resorted to military force projection
unnecessary use of economic sanctions through its offshore naval and aerial
has backfired and there are efforts to presence and to fight global terrorism
