TLDW

Resource-based economies control the essential raw materials needed for manufacturing and high-tech industries. This gives them leverage over nations that rely on these resources. China's dominance in gallium production is a great example as it's essential for making advanced semiconductors.

Real power resides at the top of supply chains, where raw materials originate. Controlling these resources allows countries to dictate terms and disrupt industries further down the chain.

Sanctions enacted by higher-level supply chain economies often fail because resource-based economies can retaliate by restricting access to essential raw materials. This renders sanctions ineffective and can even harm the sanctioning nation's economy.

BRICS economies, who control many of the essential resources, will continue to develop domestic industries to process and utilize their own resources. Doing so reduces reliance on imports and creates new economic opportunities.

Access to critical raw materials provides a significant advantage in developing and manufacturing key technologies like semiconductors, telecom equipment, and renewable energy systems. This ultimately leads to technological leadership and economic dominance in those sectors as we're seeing happening with China.

Economies higher up the supply chain become vulnerable to disruptions and price fluctuations caused by resource-based economies. This dependence weakens their negotiating power and hinder their economic growth in the long run.

  • cfgaussian@lemmygrad.ml
    ·
    19 hours ago

    BRICS economies, who control many of the essential resources, will continue to develop domestic industries to process and utilize their own resources.

    Except a lot of people in the West, including much of the ruling class, are so racist that they don't believe that the people in the global south can do this. I've talked to plenty of people who will just straight up say it to your face: "without Western ingenuity these people would be living in huts" or something equally racist. And the exceptions they make for Japan and occupied Korea are justified by claiming that they only succeeded because they westernized.

    The only difference between these people and the people in actual positions of power in the West is that the latter don't usually tend to say it out loud, but they all think that way.

    • ☆ Yσɠƚԋσʂ ☆@lemmygrad.ml
      ·
      18 hours ago

      That is absolutely the case, and that's why the west has no chance of winning the brewing economic conflict. If you continue to underestimate your adversary then you have no chance of taking the action necessary to actually counter them effectively.