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Communist Party of India (Marxist-Leninist)
Wednesday, 06 June 2018 07:07

Modi falls in to the Trap of US Post-truth “Debt-diplomacy” Campaign - P J James

The Trump administration has welcomed Modi’s attack on “impossible burdens of debt”, a reference having deep political undertones with regard to the billions of dollars in loans that China under its Belt and Road Initiative (BRI) is planning to pump in to the neocolonially dependent countries of the entire geographical region spanning Africa, Asia and the Pacific. Modi’s remark came while delivering his speech at the latest Shangri-La Dialogue organized by the International Institute for Strategic Studies (IISS).

Modi’s veiled attack on China comes in the background of latter’s neocolonial attempt to manipulate the huge loan payments for commercially non-viable infrastructure projects under the BRI for its imperialist geopolitical objectives. This remark of the Indian prime minister is fully in consonance with the US fear of undermining its control in the region mainly due to the economic weakness of American MNCs to counter the Chinese advancement, even as an intense Sino-US trade-war is mounting.

While it is a fact that China is effectively utilizing its competitive economic power vis-à-vis the US to diplomatically defeat the latter, world people should not be oblivious of the heinous “dollar diplomacy” pursued by US imperialism during both the colonial and postwar neocolonial era. Modi who is now eloquent on attacking China’s “debt diplomacy” should, as India’s prime minister, be aware of the fact that India has been the worst victim of America’s clandestine “dollar diplomacy” throughout.

Coupled with capital export, innumerable complex and multidimensional “aid” and “peace” programs form part of US “dollar diplomacy”. An interesting example had been the notorious “food for peace” programs that were in vogue till the seventies, the neocolonial penetration of which is seldom discussed. The dependent country receiving this US loan was required to keep the receipts from the selling of food in the domestic market in the form of a “counterpart fund” owned and directed by US government. For instance, in India such accumulated funds owned by the US with regard to the notorious PL 480 imports rose to about one-third of the Indian currency in circulation during the Fourth Plan period such that the Yankees could have operated a parallel currency system in India. And the US finally decided to use these “retained fund” for its neocolonial educational and cultural propaganda in India. More gruesome were the cases with the other Afro-Asian-Latin American countries according to their specific dependence on US imperialism. And in coordinating and carrying out its dollar diplomacy at a global level, the US has under its command the Bretton Woods institutions, the USAID, the Inter-American Development Bank, Asian Development Bank, African Development Bank, Rockefeller-Ford-Carnegie philanthropies and a whole set of global funding and NGO networks.

Today when China out-smashes or even challenges the US superpower status in many respects, the latter is compelled to launch a counter-campaign on China’s “debt diplomacy” warning countries of falling in to latter’s debt trap. In that process America is effectively camouflaging the sinister and pernicious form of dollar diplomacy being practiced by it.

It is a pity that India’s prime minister also echoes this post-truth campaign by the Yankees.

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