Will Europe Wage Peace?

By Jomo Kwame Sundaram

KUALA LUMPUR, Malaysia, May 20 2025 (IPS) - With President Trump’s efforts to end the Ukraine war, Europeans are now mainly responsible for prolonging it. Despite lame protestations of peace, Europe seems committed to fighting ‘to the last Ukrainian’.

Unsustainable peace

As Europe celebrated the end of the Nazi-initiated Second World War earlier in May, it does not seem to know how to sustain peace after war.

Both ‘world wars’ of the 20th century started in Europe as inter-imperialist wars, killing millions. In 1884-5, the Berlin Conference divided Africa among the dominant European powers.

After attending the Versailles palace negotiations following WW1, the young John Maynard Keynes’ The Economic Consequences of the Peace warned the agreement’s terms undermined a sustainable peace, almost anticipating Nazism’s later rise.

Towards the end of World War II (WW2), FDR’s Treasury Secretary, Henry Morgenthau, insisted Germany should not be allowed to re-industrialise after the War.

After starting and losing two world wars, German military aggression seemed unavoidable. For Morgenthau, reindustrialisation would inevitably lead Germany to war again.

For FDR, only postwar recovery for all would ‘win the peace’, not subjugating and destroying the loser.

His WW2 generals, famously Eisenhower, Marshall and MacArthur, imposed ‘pacifist’ constitutions and reforms for postwar growth on Germany and Japan.

Imperial oversight?

Despite his brilliant contemporaneous insights into the unsustainability of the peace secured at Versailles, Keynes ignored its outcome for China.

At Versailles, the Shandong peninsula, previously ruled by the Germans, was not returned to China, but given to Japan instead!

The resulting May 4th (1919) movement culminated in the Chinese revolution. Keynes was as blind to this as to WW2’s three million lives lost to the Bengal famine.

Although invisible in movies, tens of thousands from China were involved in WW1, mainly digging trenches for European troops in a war primarily remembered for trench warfare.

German possessions in southern Africa were not returned to Africans, but instead held ‘in trust’ by European powers, including the white South African regime.

While there have not been more ‘world wars’ since the end of the Cold War, there have been many more wars in the supposedly unipolar/multipolar world.

NATO v the UN

At the UN General Assembly, 141 countries condemned the Russian invasion of Ukraine in 2022. But many also oppose North Atlantic Treaty Organization (NATO) expansion via Ukraine to threaten Russia.

This is reminiscent of broad international support for President John F Kennedy in 1962 when he insisted Soviet missiles be withdrawn from Cuba, just off Florida.

NATO was established for the Cold War and should have been dissolved at its end. Its raison d’être, the rival Warsaw Pact, was gone. Worse, NATO expansion continues while it conducts unlawful wars not sanctioned by the UN Security Council.

German Chancellor Angela Merkel and French President François Hollande have both confessed that the 2014 Minsk deal with the Russians was intended to buy time to arm Ukraine for war later, not to secure peace.

Similarly, British Prime Minister Boris Johnson successfully blocked negotiations between Ukraine and Russia in the last half-year of his tenure. A peace deal would have ended hostilities and saved hundreds of thousands of lives, mainly Ukrainian.

Europe has continued to insist on war despite worsening odds. And when NATO allies blew up the gas pipeline from Russia to Germany, no protests followed.

NATO should have been dissolved at the end of the Cold War, once its raison d’être, the rival Warsaw Pact, was gone.

Despite Europe’s pretensions of leading worldwide efforts against global warming, it quickly reversed earlier commitments, even abandoning its 2021 Glasgow commitment to reject coal less than half a year later.

Unsurprisingly, the Global South remains sceptical of the EU’s carbon border adjustment mechanism (CBAM), perhaps only the latest form of European trade protectionism.

The EU has already worsened world economic conditions by raising interest rates, imposing illegal sanctions, insisting on fiscal austerity and cutting social spending in favour of military expenditure.

European leaders now proudly announce military Keynesian policies, expecting growth from more war spending. Thus, the turn to war has meant less growth and more inequality.

A non-aligned South?

FDR envisaged a peaceful new multilateral order offering progress for all. But such hopes have been squelched by political pressures for informal empire abetted by a resurgent military-industrial complex.

A different world is needed based on much stronger commitments to peace, freedom and non-alignment. It may be time for the West, the Global North and others to learn from the South-East.

In 1955, Indonesia hosted the Afro-Asian summit in Bandung, which boldly spoke for the post-colonial South and made the case for non-alignment as the Cold War began.

Over half a century ago, in 1973, the Association for South East Asian Nations (ASEAN), set up in 1967, committed to creating a zone of peace, freedom and neutrality (ZOPFAN).

Creating the enabling conditions for ongoing cooperation, development, and progress can help sustain the bases for a peaceful and progressive new world order.

Imperialism (Still) Rules

By Jomo Kwame Sundaram

HARARE, Zimbabwe, Feb 11 2025 (IPS) - Many in the West, of the political right and left, now deny imperialism. For Josef Schumpeter, empires were pre-capitalist atavisms that would not survive the spread of capitalism. But even the conservative Economist notes President Trump’s revival of this US legacy.

Economic liberalism challenged

Major liberal economic thinkers of the 19th century noted capitalism was undermining economic liberalism. John Stuart Mill and others acknowledged the difficulties of keeping capitalism competitive. In 2014, billionaire Peter Thiel declared competition is for losers.

A century and a half ago, Dadabhai Naoroji, from India, became a Liberal Party Member of the UK Parliament. In his drainage theory, colonialism and imperial power enabled surplus extraction.

As the Anglo-Boer war drew to a close in 1902, another English liberal, John Hobson, published his study of economic imperialism, drawing heavily on the South African experience.

Later, Vladimir Ilyich Lenin cited Hobson, his comrade Nikolai Bukharin and Rudolf Hilferding’s Finance Capital for his famous 1916 imperialism booklet urging comrades not to take sides in the European inter-imperialist First World War (WW1).

Three pre-capitalist empires – Russian, Austro-Hungarian and Ottoman – ended at the start of the 20th century. Their collapse spawned new Western nationalisms, which contributed to both world wars.

Germany lost its empire at Versailles after WW1, while Italian forays into Africa were successfully rebuffed. Western powers did little to check Japanese militaristic expansion from the late 19th century until the outbreak of World War Two (WW2) in Europe.

Imperialism and capitalism

Economists Utsa and Prabhat Patnaik argue that the primary accumulation of economic surplus – not involving the exploitation of free wage labour – was necessary for capitalism’s emergence.

Drawing on economic history, they clarify that primary accumulation has been crucial for capitalism’s ascendance.

Thus, imperialism was a condition for capitalism’s emergence and rapid early development. Ensuring continued imperial dominance has sustained capitalist accumulation since.

The 1910s and 1920s debates between the Second and Third Internationals of Social Democrats and allied movements in Europe and beyond involved contrasting positions on WW1 and imperialism.

For most of humanity in emerging nations, now termed developing countries, imperialism and capital accumulation did not ‘generalise’ the exploitation of free wage labour, spreading capitalist relations of production, as in ‘developed’ Western economies.

Due to capitalism’s uneven development worldwide, the Third International maintained the struggle against imperialism was foremost for the Global South or Third World of ‘emerging nations’, not the class struggle against capitalism, as in developed capitalist economies.

After decades of uneven international economic integration, including globalisation, the struggle against imperialism continues to be foremost a century later. Imperialism has reshaped colonial and now national economies but has also united the Global South, even if only in opposition to it.

Blinkers at Versailles

After observing the peace negotiations after WWI, John Maynard Keynes presciently criticised the terms of the Treaty of Versailles, warning of likely consequences. In The Economic Consequences of the Peace, he warned that its treatment of the defeated Germany would have dangerous consequences.

But Keynes failed to consider some of the Treaty’s other consequences. Newly Republican China had contributed the most troops to the Allied forces in WW1, as India did in WW2.

Germany was forced to surrender the Shantung peninsula, which it had dominated since before WW1. But instead of China’s significant contributions to the war effort being appreciated at Versailles with the peninsula’s return, Shantung was given to imperial Japan!

Unsurprisingly, the Versailles Treaty’s terms triggered the May Fourth movement against imperialism in China, culminating in the communist-led revolution that eventually took over most of China in October 1949.

Even today, popular culture, especially Western narratives, largely ignores the role and effects of war on these ‘coloured peoples’. By contrast, understating the Soviet contributions to and sacrifices in WW2 was probably primarily politically motivated.

Another counter-revolution

Franklin Delano Roosevelt was elected US president in 1932. He announced the New Deal in early 1933, years before Keynes published his General Theory in 1936.

Many policies have been introduced and implemented well before they were theorised. Unsurprisingly, it is often joked that economic theory rationalises actual economic conditions and policies already implemented.

Keynesian economic thinking inspired much economic policymaking before, during, and after WW2. Both Allied and Axis powers adopted various state-led policies. Keynesian economics remained influential worldwide until the 1960s and arguably to this day.

The counter-revolution against Keynesian economics from the late 1970s saw a parallel opposition movement against development economics, which had legitimised more pragmatic and unconventional policy thinking. From the 1980s, neoliberal economics spread with a vengeance and much encouragement from Washington, DC.

This Washington Consensus – the shared ‘neoliberal’ views of the US capital’s economic establishment, including its Treasury, the World Bank, and the International Monetary Fund – has since been replaced by brazenly ethno-nationalist ‘geoeconomic’ and ‘geopolitical’ responses to unipolar globalisation.

Related IPS Articles:

• Imperialism, Globalisation and Its Discontents*

• Africa Struggles with Neo-Colonialism

• Africa Taken for ‘Neo-Colonial’ Ride

• Ignorance-Inspired Brexit Imperial Nostalgia

• Globalization, Inequality, Convergence, Divergence

Available here online: Imperialism (Still) Rules