Is the era of global integration giving way to fragmentation?
The International Monetary Fund is saying that the world is going into geo-economic fragmentation.
In a note earlier this year, IMF chief Kristalina Georgieva said that at a time when we need greater international cooperation on many fronts, we face the specter of a new Cold War that is wreaking havoc on the world between rival economic blocs. can be divided into “It would be a collective policy mistake that would leave everyone poorer and less secure.”
She uses some powerful words as a warning – calling it a “stunning reversal of fortune”. Ultimately, he argues, economic integration has helped billions of people become wealthier, healthier, and better educated.
Since the end of the Cold War, the size of the global economy has roughly tripled, and approximately 1.5 billion people have been lifted out of extreme poverty. Their concern is that these hard-earned advantages should not be wasted.
In a paper in January this year, IMF staffer Shekhar Iyer and others defined geo-economic fragmentation as a policy-driven reversal of integration, often guided by strategic considerations.
What is driving this trend?
In the paper, the authors explain that fragmentation policies stem from national strategic interests, such as security considerations or increasing self-reliance. Economic rivalries, such as those between the US and China, may be another factor.
An example of a nation pursuing national strategic interests is India buying more and more oil from Russia.
How is fission affecting countries? Is globalization giving way to ‘slow’ rebalancing?
Screenplay & Presentation: K. Bharat Kumar
Videography: Johan Satyadas
Production: Shibu Narayan