Between the US’ Monroe doctrine and China’s nine-dash line

From Dr Boo Cheng Hau

I recently attended my medical school class reunion from the University of the West Indies in Nassau, the capital of the Bahamas. I also visited Trinidad and Tobago and Jamaica.

The Bahamas mainly relies on tourism and finance for its economy. Its per capita gross domestic product (GDP) is as high as US$35,000, making it the richest island country in the West Indies.

The Bahamian minimum wage is seven times higher than Malaysia’s, but with 85% of goods imported from the US, the cost of living is five times higher than Malaysia’s average daily household expenses. The wealth disparity in the Bahamas is also significant, ranking 46th globally.

The Republic of Trinidad and Tobago is a fairly wealthy oil producing country. At its peak in 1978, it produced 230,000 barrels of crude oil per day, but today its crude oil production accounts for only a quarter of that.

Its per capita GDP is US$19,000. Like Malaysia and other oil-producing countries, poor reinvestment of oil revenue, bureaucratic corruption and rising illicit capital outflows have caused an economic recession as oil production declines.

In the 1970s, Jamaica’s economy performed well and its currency was so strong that US$1 was only exchanged for 80 Jamaican cents. Today, US$1 is exchanged for 158 Jamaican dollars.

During the Cold War in the 1970s, when Michael Manley was the Jamaican prime minister, the country had close diplomatic relations with communist countries such as Cuba and the Soviet Union, and this invited intervention by the US.

Multiple violent political conflicts caused investors to flee and withdraw a large sum of investments, leading to a massive socio-economic haemorrhage and Jamaica’s economy never fully recovered since.

Jamaica’s per capita GDP is US$7,487 but its wealth disparity ranks 54th globally, with a 16% poverty rate. Although the minimum wage in Jamaica is about RM1,676, which is slightly higher than Malaysia’s RM1,500, the cost of living there is about two to three times that of Malaysia.

Malaysia must be pragmatic with its foreign policy

Malaysia’s wealth disparity is less severe, ranking 124th globally. With a per capita GDP of US$13,000, the figure rises to US$39,000 when adjusted for purchasing power parity. This is due to Malaysia’s diversified economy, export-driven industries and affordable consumer goods, which boost purchasing power.

Malaysia must be pragmatic in its foreign policy and maintain a delicate balance and neutrality between the great powers to avoid getting caught in the middle.

The Caribbean, Central, and South Americas have long been considered the US’ “backyard”. In 1823, president James Monroe declared them under US influence, warning against European interference. This laid the foundation for US hegemonic interference.

The 1973 assassination of Chile’s president Salvador Allende, replaced by a US-backed military government, shows how the US had used its power to remove unwanted leaders.

In 1983, president Ronald Reagan sent troops to Grenada, a Caribbean island the size of Penang, claiming it was to rescue 600 American students. In reality, it was to overthrow a growing Marxist government.

In 1961, US-backed rebels failed in an attempt to invade Cuba’s Bay of Pigs. This was followed by the 1962 crisis when US satellites found a Soviet missile site in Cuba, leading to the Soviets withdrawing to avoid nuclear conflict.

These incidents show that each superpower should remain within its own sphere of influence to avoid warfare and unpredictable disasters, including potential nuclear standoffs.

In other words, the Ukraine war could have been prevented if the superpowers had stayed in their lanes and avoided costly militarisation of distant regions. This approach would protect smaller nations left vulnerable in the crossfire.

American interests vs mutual interests

If the US continues to implement its costly interventionist foreign policy focusing solely on its own tangible economic interests, it will become increasingly isolated and this will not contribute towards global peace.

Similarly, China should avoid claiming sovereignty over the waters within the nine-dash line in the South China Sea, as it would raise suspicion, harm diplomatic ties with Southeast Asian countries and fuel anti-China sentiment beyond the region.

China can address these challenges by respecting Southeast Asian countries’ sovereignty over South China Sea resources. To build trust, China should share its resources, economic success and technology through educational, cultural, and economic cooperation.

Sino-American cooperation for world peace

Since the end of the Cold War, the US has neglected economic development in the Caribbean and many island nations in the region welcomed Chinese investment to develop their economies.

Jamaica and other island nations in the region, including Trinidad and Tobago, Barbados, Guyana, and the Bahamas, have successively joined the Belt and Road Initiative advocated by China.

This trend is also seen in other developing countries, as Western powers have long neglected them and must now compete with China by fostering closer and fairer trade ties.

Donald Trump’s economic nationalist-oriented trade policy will not solve the US’ socio-economic dilemma. Instead, it will make the country appear more isolated and open doors for BRICS’s more convincing narratives to expand its influence.

The US should avoid creating unnecessary trade wars, which has harmed both the world economy and its own.

The overvaluation of the US dollar makes American products more expensive and less competitive. Allowing the currency to depreciate to a realistic value would boost the competitiveness of US goods, revive industries and reduce unemployment.

Inevitability of globalisation, free trade

Globalisation and free trade are an inevitable trend, and the multilateral world order has become a reality that no single superpower can escape.

Asean is a mature bloc of nations that has accommodated various superpowers, including US, China, Russia and India, and it has maintained itself as a neutral entity.

Its member states’ consistency in maintaining each other’s sovereignty and their mutual interests has forged a formidable bond and a force to be reckoned with at the international arena.

Asean with its 600 million strong population, is a huge enough market for an emerging economic bloc, and its member states’ self-reliance and interdependent trade partnership is a formidable force that no superpower would be able to ignore.

Trump’s administration too must be pragmatic and recognise that Asean countries prefer closer Sino-American cooperation over a prolonged standoff between the two superpowers if the US does not want to isolate itself further on the international stage.

Dr Boo Cheng Hau is a former Skudai assemblyman, an ex-Johor DAP chairman, and a medical graduate from the University of the West Indies in Jamaica.

The views expressed are those of the writer and do not necessarily reflect those of FMT.

Related Posts