The hidden engines of global power – Dr. Abdullah bin Musa Al Tayer

Dr. Abdullah bin Musa Al Tayer

Suddenly the prices of the best-selling Japanese cars doubled; The Hilux and Cressida, made in Japan, were affordable for many village residents. I did not know at the time the reason for this sudden increase, but I was affected by it while buying the car that would accompany me to study at university in Riyadh. One of the Arab professors used to ask married couples: Is there anything in your house that is not made in Japan, except for your wife? Ingenious and cheap Japanese craftsmanship lasted unrivaled homes. What led to the decline of her star?

It is the Plaza Agreement in 1985 AD, where the Reagan administration brought together Japan, West Germany, France, and the United Kingdom and forced them to raise the price of their currencies against the dollar. In a clear sense imposed by the logic of power; America faced a ballooning trade deficit and domestic industrial distress with a currency restructuring that deliberately devalued the dollar, enhancing the competitiveness of its exports at the expense of trading partners. America imposed an increase in the value of the Japanese yen and the German mark, thus devaluing the dollar.

The American action was not a purely economic initiative, but rather had a geopolitical nature, as it controlled global monetary relations to ensure its economic interests in an era that witnessed an increase in Japanese and European export capabilities. Since that agreement, Japan’s golden age has ended. How many Japanese products today are there in anyone’s home compared to Chinese?

Expectations for the year 2026 indicate that China tops the list of countries contributing to global GDP, followed by India in second place, while the United States falls to third place, and Asia and the Pacific accounts for 50% of global output. The Kingdom’s ninth place, surpassing Germany, confirms its influence in the Middle East alongside Türkiye, while no Western European country except Germany is absent from the top ten list. They are not just cold numerical statistics, but extremely important political tools; Economic influence automatically translates into geopolitical dominance.

For decades, Caracas has been allied with the Eastern Bloc, exploiting its largest oil reserves in the world to finance the West’s enemies and competitors, especially its neighbor America. However, as of January 3, 2026 AD, it is no longer like that; I entered the American House of Obedience. Washington will force the new Caracas to sever its ties with Beijing and Moscow, privatize its oil sector, and partner exclusively with American companies that are poised to enhance their involvement in the Venezuelan oil sector. It is a clear strategy to reduce the access of America’s geopolitical rivals to vital energy resources.

Iran is not far away. Since 1979, it has been playing in the team opposite the United States of America. The American leadership announces its military readiness and engagement in diplomatic negotiations with Iran, and we do not know which comes first, bullets or dialogue. Including Iran in the American camp with the third oil reserve in the world means not only controlling energy flows and prices to enhance local prosperity, but also influencing the strategic positions of competitors such as China, India, Brazil, and the European Union, who depend heavily on importing oil.

Despite America’s unique decision making and global hegemony, economic superiority enhances the political influence of middle and rising powers, and the Asian and Pacific countries’ contribution of about 50% of global domestic product worries America and contributes to the rise of powers capable of sharing decisions and multipolarity. American economic protectionism, the weapon of customs tariffs, and the Venezuelan and Iranian factors, if the latter is achieved, will be America’s way to calm the speed of China and India, similar to what it did to Japan and Western European countries 40 years ago. As much as America tries to repeat the experience of the Plaza Agreement, the competing countries are gaining experience that makes them invulnerable to American arbitrariness. However, the interaction between economics and politics is not purely exploitative or a zero-sum game. International institutions, multilateral trade agreements, and global cooperative efforts in the areas of climate, technology and health show that economic integration can lay the foundations for mutually beneficial cooperation. The fact that the distant observer overlooks is that multilateral global governance frameworks only succeed to the extent that countries believe that cooperation in them serves their strategic interests. The challenge for global governance in the coming decades is to manage the clash of economics and politics, recognizing that economic policy must serve not only the national interest, but also collective global stability. Excessive selfishness, protectionism, and hegemony will not contribute to economic prosperity, but rather will generate economic and therefore political problems, taking into account the interconnectedness and interconnectedness of the interests of the countries of the world.

Decisions made behind closed doors, such as currency intervention, foreign policy realignment, oil sector reforms, and the military effort, are no less important than those deliberated in public forums. Economics is not a neutral field; It is a key player in politics and competition, and states will continue to use it to guide political strategies.