Sanctions: A Catalyst for Global Divisions

The chaos in the global economy stems from the geopolitical consequences of sanctions imposed on Russia, highlighting a significant shift in international relations. Countries are increasingly aware that failing to align with certain policies may lead to exclusion from essential financial networks like SWIFT. This strategy, originally catalyzed by Christine Lagarde at the IMF, has prompted a backlash against perceived coercion in economic matters. The resistance encountered by the sanctions against Russia in 2014 illustrated the limitations of using financial systems as tools of geopolitical strategy. However, with the subsequent restructuring of leadership at SWIFT and the formation of alternative financial systems, such as BRICS and initiatives by China and Iran, a distinct divide in the world economy is emerging, reflecting a reconfiguration of global power dynamics.