Just one example of the lengths to which foreigners will go to stay on good terms with Nazarbayev is the current negotiation between a consortium of Western energy giants, including ENI and Exxon, and Kazakhstan’s state-run oil company over the development of the Caspian’s massive Kashagan oil field. At present, the consortium is coughing up at least $4 billion as well as a large hand-over of shares to compensate for delayed exploration and production  and Kazakhstan isn’t satisfied yet. The lesson from Kazakhstan, and its equally strategic but far less predictable neighbor Uzbekistan, is how fickle the second world can be, its alignments changing on a whim and causing headaches and ripple effects in all directions. To be distracted elsewhere or to lack sufficient personnel on the ground can make the difference between winning and losing a major round of the new great game.

Image Credit... Photo Illustration by Kevin Van Aelst

The Big Three dynamic is not just some distant contest by which America ensures its ability to dictate affairs on the other side of the globe. Globalization has brought the geopolitical marketplace straight to America’s backyard, rapidly eroding the two-centuries-old Monroe Doctrine in the process. In truth, America called the shots in Latin America only when its southern neighbors lacked any vision of their own. Now they have at least two non-American challengers: China and Chávez. It was Simón Bolívar who fought ferociously for South America’s independence from Spanish rule, and today it is the newly renamed Bolivarian Republic of Venezuela that has inspired an entire continent to bootstrap its way into the global balance of power on its own terms. Hugo Chávez, the country’s clownish colonel, may last for decades to come or may die by the gun, but either way, he has called America’s bluff and won, changing the rules of North-South relations in the Western hemisphere. He has emboldened and bankrolled leftist leaders across the continent, helped Argentina and others pay back and boot out the I.M.F. and sponsored a continentwide bartering scheme of oil, cattle, wheat and civil servants, reminding even those who despise him that they can stand up to the great Northern power. Chávez stands not only on the ladder of high oil prices. He relies on tacit support from Europe and hardheaded intrusion from China, the former still the country’s largest investor and the latter feverishly repairing Venezuela’s dilapidated oil rigs while building its own refineries.

But Chávez’s challenge to the United States is, in inspiration, ideological, whereas the second-world shift is really structural. Even with Chávez still in power, it is Brazil that is reappearing as South America’s natural leader. Alongside India and South Africa, Brazil has led the charge in global trade negotiations, sticking it to the U.S. on its steel tariffs and to Europe on its agricultural subsidies. Geographically, Brazil is nearly as close to Europe as to America and is as keen to build cars and airplanes for Europe as it is to export soy to the U.S. Furthermore, Brazil, although a loyal American ally in the cold war, wasted little time before declaring a “strategic alliance” with China. Their economies are remarkably complementary, with Brazil shipping iron ore, timber, zinc, beef, milk and soybeans to China and China investing in Brazil’s hydroelectric dams, steel mills and shoe factories. Both China and Brazil’s ambitions may soon alter the very geography of their relations, with Brazil leading an effort to construct a Trans-Oceanic Highway from the Amazon through Peru to the Pacific Coast, facilitating access for Chinese shipping tankers. Latin America has mostly been a geopolitical afterthought over the centuries, but in the 21st century, all resources will be competed for, and none are too far away.

The Middle East  spanning from Morocco to Iran  lies between the hubs of influence of the Big Three and has the largest number of second-world swing states. No doubt the thaw with Libya, brokered by America and Britain after Muammar el-Qaddafi declared he would abandon his country’s nuclear pursuits in 2003, was partly motivated by growing demand for energy from a close Mediterranean neighbor. But Qaddafi is not selling out. He and his advisers have astutely parceled out production sharing agreements to a balanced assortment of American, European, Chinese and other Asian oil giants. Mindful of the history of Western oil companies’ exploitation of Arabia, he  like Chávez in Venezuela and Nazarbayev in Kazakhstan  has also cleverly ratcheted up the pressure on foreigners to share more revenue with the regime by tweaking contracts, rounding numbers liberally and threatening expropriation. What I find in virtually every Arab country is not such nationalism, however, but rather a new Arabism aimed at spreading oil wealth within the Arab world rather than depositing it in the United States as in past oil booms. And as Egypt, Syria and other Arab states receive greater investment from the Persian Gulf and start spending more on their own, they, too, become increasingly important second-world players who can thwart the U.S.

Saudi Arabia, for quite some years to come still the planet’s leading oil producer, is a second-world prize on par with Russia and equally up for grabs. For the past several decades, America’s share of the foreign direct investment into the kingdom decisively shaped the country’s foreign policy, but today the monarchy is far wiser, luring Europe and Asia to bring their investment shares toward a third each. Saudi Arabia has engaged Europe in an evolving Persian Gulf free-trade area, while it has invested close to $1 billion in Chinese oil refineries. Make no mistake: America was never all powerful only because of its military dominance; strategic leverage must have an economic basis. A major common denominator among key second-world countries is the need for each of the Big Three to put its money where its mouth is.

For all its historical antagonism with Saudi Arabia, Iran is playing the same swing-state game. Its diplomacy has not only managed to create discord among the U.S. and E.U. on sanctions; it has also courted China, nurturing a relationship that goes back to the Silk Road. Today Iran represents the final square in China’s hopscotch maneuvering to reach the Persian Gulf overland without relying on the narrow Straits of Malacca. Already China has signed a multibillion-dollar contract for natural gas from Iran’s immense North Pars field, another one for construction of oil terminals on the Caspian Sea and yet another to extend the Tehran metro  and it has boosted shipment of ballistic-missile technology and air-defense radars to Iran. Several years of negotiation culminated in December with Sinopec sealing a deal to develop the Yadavaran oil field, with more investments from China (and others) sure to follow. The longer International Atomic Energy Agency negotiations drag on, the more likely it becomes that Iran will indeed be able to stay afloat without Western investment because of backing from China and from its second-world friends  without giving any ground to the West.