How Western-Dominated Systems Favor the West
| Mechanism | How It Works | Who Benefits? | Impact on Global South | Examples |
|---|---|---|---|---|
| 1. Dollar as Reserve Currency | – Global trade (esp. oil) priced in USD – Countries forced to hold USD reserves |
USA (seigniorage, debt financing power) | Must earn USD via exports, vulnerable to Fed policy | Petrodollar system forces oil trade in USD |
| 2. SWIFT Financial Control | – US/EU control SWIFT messaging system – Can exclude nations from global banking |
US/EU banks (sanctions enforcement power) | Cut off from trade if defying West | Iran, Russia removed from SWIFT |
| 3. IMF/WB Loan Conditions | – Loans require austerity, privatization, deregulation | Western corporations (access to markets/assets) | Public services cut, local industries destroyed | Greece (2010), Zambia (2020s) |
| 4. Intellectual Property (IP) Laws | – TRIPS/WTO enforces strict Western IP rules | Big Pharma/Tech (high patent profits) | Blocks generic medicine, tech transfer | COVID vaccine apartheid (2020-22) |
| 5. Investor-State Dispute (ISDS) | – Corporations can sue nations for “lost profits” | Multinationals (vs. public interest laws) | Countries pay billions to foreign investors | Ecuador vs Chevron, Pakistan vs mining firms |
| 6. EU/US Trade “Standards” | – Non-tariff barriers (safety, environmental rules) | Western exporters (blocks competitors) | Poor nations can’t meet costly requirements | African farmers barred from EU markets |
| 7. CFA Franc Colonial Currency | – 14 African nations use Euro-pegged CFA franc – Reserves held in France |
France/EU (control over African economies) | Limits monetary sovereignty, forces imports | West Africa’s forced food imports |
| 8. Tax Haven Networks | – Western banks facilitate offshore tax evasion | Western elites/MNCs (hide wealth) | Global South loses $1T/year in illicit flows | Panama Papers, Paradise Papers |
Key Outcomes
✔ Economic Extraction – Resources flow West via financial/legal structures
✔ Policy Control – IMF/WB dictates override national laws
✔ Weaponized Trade – Sanctions and standards punish dissenters
✔ Permanent Dependency – Prevents industrialization in Global South
Resistance Strategies
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De-dollarization (BRICS local currency trade)
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Alternative systems (CIPS, BRICS Pay, Afreximbank)
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Rejecting ISDS/WTO terms (India, South Africa pushing back)
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South-South trade alliances (China’s BRI, AfCFTA)
