How Russia-Ukraine and Israel-Palestine Wars Have Transformed the World We Live in

War is on the mind of every country across the globe today.

The twin wars in the world—Russia-Ukraine and Israel-Palestine have transformed the world we live in, and have even defined alignments of nations.

War is so much in the mind that geopolitical re-alignments are being done keeping ‘war’ in the mind. Geo-trades are aligned today keeping war in mind. Trade—whom to trade with and whom not to trade with—is defined by security considerations, keeping in mind a possible war. As a whole, geo-trade and geo-politics today go together, making it a wholesome geo-trade-politics.

During the last four years when Russia-Ukraine began their war, the world has emerged in a way that when looked back, appears to have been directly impacted by the war. Cease-fire came to Palestine after two years of Israelite action against Hamas and other groups, leaving the Middle-East shaken up.

How War is in the Minds of Nations

Russia-Ukraine war, itself being a big incident, in January last year welcomed in its midst one of the most important events of the world—Donald Trump as the President of the United States. He promised he would end the war and establish peace soon after he assumed office. That did not happen. But he did make repeated efforts, and he continues to do so. The war has shaken up Europe as it is the longest war in Europe after the Second World War.

Moreover, President Trump’s stand that Europe should pay for its security, changed the way Europe looked up at itself. It became afraid of war, and war is in its thought for all geo-trade-politics steps and alignments it adopts today, probably for the first time so much, after the WW II.

NATO members of Europe have literally now started to believe that they have to be on their own as far as security is concerned, keeping the U.S. out of the bracket.

The U.S. tariff by President Trump is in fact more a security step that a trade step. A trade partner should not be allowed to become fatter beyond a point, for it can then prove fatal to security, even if the trade partner is not a physical neighbour. Before President Trump, other presidents of the U.S. too realized that China’s continuous trade surplus was inimical to the U.S. if it was allowed beyond a point without diversifying trading nations. But Trump acted—without of course going into the details on the effectiveness and wisdom of his action.

Rare earth is not rare, and certainly not the privilege of China. But China produces and refines the highest today, and thus it decides the rule. And the rules of the game decided by China in its rare earth trade, is keeping in mind the ‘war’.

So much is ‘war’ in the minds of nations that even United States had once been maintaining that it wanted Greenland for security reasons.

Is gold price rise linked to ‘war’ fear?

Analysts suggest that gold price rise is a phenomenon directly linked with U.S.-China trade and trade war. China, a manufacturing-centric economy has earned a huge amount of U.S. Dollar due to its years of trade surplus.

But after some nations announced that they are seizing the Russian reserves in their banks, and that they are not giving away what is the legitimate money of Russia lying in their banks, China thinks it wise to purchase gold out of U.S. Dollar. Result is for all to see.

Thus, it is war again, which has made price rise of gold a global phenomenon today. Not just China, many countries are buying gold in large quantity. Countries no longer trust the other country entirely with regard to currency. Gold price, naturally, rises.

BRICS nations try to put in place an alternative international payment system, a process what they call creating a multi-polar world. But the many BRICS nations are in geo-trade-political alignment with the U.S. and the West, and hence not an easy task in that. The reason for this effort and de-effort again, is ‘war’ in the mind.

The Russia-Ukraine war has diverted internation attention and resources from sustainable development and from climate change. Nations are keeping war and national security in mind when it comes to exploitation of resources, though green trade is a clause that is creeping in popular trade agreements, including in the EU-India free trade agreement.

Other Impacts of Russia-Ukraine War

For Europe, the war is a sign post. The war spurred a significant rift between Russia and the West, encouraging Russia to deepen ties with Asia, particularly China and India. The war has also increased EU’s defense budget, and EU is now aggressively pushing itself in trade so that it could increase its economic strength.

Globally, thought of war has increased defense spending. So, defense industry is going to go sky-rocketing in the coming years.

The war also caused the US pressurise nations not to buy Russian energy, in which nations of Asia and Europe directly came under impact. One war caused the threat of other wars!

Thus, the Russia-Ukraine war and fear of wars, increased the cost of living world-wide as cheap Russian energy was replaced by costly energy purchases.