Norms and Values
De-Dollarisation and Creative Destruction
Valdai Club Conference Hall, Tsvetnoy boulevard 16/1, Moscow, Russia
List of speakers

On April 5, the Valdai Club hosted an expert discussion, titled “The New Economic Order: Is it Really Possible to End the Dollar Monopoly?” The programme director of the club, Oleg Barabanov, acted as a moderator.

Dmitry Birichevsky, Director of the Department of Economic Cooperation of the Russian Foreign Ministry, stressed that the changing economic order and de-dollarisation were major issues. He emphasised the pragmatic approach of Russia and its desire to develop relations with all countries that follow this process, first and foremost with the so-called ‘world majority’. According to Birichevsky, the West has walked away from the goodwill established through years of cooperation, losing Russia’s trust, and it will be extremely difficult, if not impossible, to regain it. He outlined the current problems of world finance related to the neo-colonial nature of Western monetary policy and the global financial system, and noted that the world, in this regard, needs a more equitable system, the institutions of which won’t exclusively act in the interests of the West.

Radhika Desai, Professor at the Department of Political Studies and Director of the Geopolitical Economy Research Group at the University of Manitoba, Winnipeg, Canada, said that the world is now at a dangerous crossroads. Western countries, led by the United States, seek to win a proxy war against Russia, in which their direct role would be limited to sanctions. As a result, sanctions return like a boomerang and hit the economy of their initiators, leading to a global economic downturn and the collapse of established economic alliances. This situation is dangerous, but at the same time it creates an opportunity for the realisation of the long-standing demands of the world majority to change the world economic order. The world is rapidly changing ang becoming more multipolar, which weakens imperialism and opens up new opportunities for non-Western countries.

Alexander Losev, member of the Presidium of the Council for Foreign and Defence Policy (SVOP), believes that de-dollarisation is inevitable. Although the dollar is still the main currency used in international settlements, US sanctions have prompted other nations to pursue a process of getting rid of dollar dependence and switching to settlements in national currencies. The imbalances in the American economy have become toxic to the world. Now the model of financial super-capitalism, based on a model of endless consumption through unlimited lending, is ending, he stressed. Against this background, a process of "creative destruction" was launched - the demolition of the current financial system and the building of a new one (in the future).

Natalia Zaiser, Chair of the Board of the African Business Initiative Union, outlined the course of the de-dollarisation process in Russian-African relations. According to her, moving away from dollar settlements in this area will take a lot of time. In addition, in relations between Russia and Africa, it is necessary to build a new financial model, which will be very difficult. This process has already been launched and will continue to gain momentum, but the parties need to speed up decision-making and the development of financial instruments. It makes sense to use both the tools tested within the country, and the experience of other major powers, in particular using platforms such as BRICS, she believes.

Dimitri Laskaris, lawyer and Green Party of Canada activist, analysed the relationship between Canada and the United States. Noting that the US is Canada's closest ally and major trading partner, accounting for two-thirds of Canada's foreign trade, this dependence continues to grow. At the same time, the days of the US dollar as a world currency are coming to an end, which will lead to serious negative consequences for the US economy. “Unfortunately, the Canadian boat is tied to the American Titanic,” Laskaris admitted. “Canada needs to integrate into the new multipolar world.”