As we discuss growing multilateral alliances, and as we report on Russia’s declining economy and rising geopolitical ambitions, we also can continue to note Moscow’s attempts to forge partnerships to ensure its energy dominance whilst staving off more economic attrition. Today, Russian President Dimitry Medvedev met German Chancellor Angela Merkel in Berlin. The meeting has been interpreted by many as an attempt to coordinate Germany’s and Russia’s agendas before going to the G20 summit in London this week. It seems to have worked, as the 2 leaders announced that their goals at the G20 are “very similar”.
Both German and Russian leaders have called for a change to the global economic “architecture,” suggesting more than a series of stimulus packages and currency injections. Medvedev went so far as to reiterate his call for a new global currency system that rejects protectionism and promotes advances in international trade… and inevitably wrests power away from US dollar-dominance. It will be very interesting to see if the leaders at the G20 summit can develop a series of proposals and plans for the global economy, and if the American Dollar is actually at risk of being pushed out by another currency model. (See this article on Venezuelan President Hugo Chavez’s proposal for a petro-currency to challenge the US Dollar.)
Photo Credit: Xinhua.