Who will lead the world economy?  |  Economy



The Great Recession, Trump’s unilateralism and now Putin’s war have left the hinges of the world economy in tatters. As the invasion progresses, the damage deepens. Many speak of “deglobalization”. In other words, a cocktail of savage protectionism, relocation of relocated companies, regional autarchies, market fragmentation, breakdown of value and supply chains, collapse or decrepitude of multilateral organizations, such as the WTO, the WHO or the G -twenty.

A variant of this new villagerism would be the semi-globalization, or the coexistence of two watertight blocs, that of the Western democracies and that of the Chinese-based autocracies, quite globalized within each one, but impervious to the rest, and with a large number of countries dancing their bewilderment on the margins.

This is a possible alternative to the accelerated asymmetric globalization since the 1980s, “focused on the freedom of trade flows, capital, people and digital services rather than the provision of truly global public goods such as health, climate change or the right to migrate”, as underlined by the president of the Economic and Social Committee, Antón Costas, at the congress on Economic governance, regulation and administration of justice which concluded this Friday and whose conclusions are located on the CNMC website.

Another option, much more desirable but difficult, is to reformat globalization, which has managed to multiply wealth (and reduce extreme poverty) but has triggered inequalities. It is not an impossible fantasy, since “globalization is unstoppable and inevitable”, stated Josep M. Colomer, professor at Georgetown, since in the end “national sovereignty de facto does not exist”.

Even in these low hours, non-inbred regionalism prospers: the refractory India joins trade agreements and is invited to the G-7, a free trade association is proposed for 54 African countries, the United Kingdom struggles to enter Asian forums. And the European Union deepens its integration with unprecedented dimensions (public health, foreign and defense policies, common debt) at the same time that it expands its ability to attract its neighbors. 36 global organizations survive and their institutional fabric still shows some strength. In some areas, with enormous vigor. This is the case of sport, emphasizes the professor and lawyer Tomás-Ramón Fernández: with its world rules, its mechanisms of rules and sanctions, its events and its control bodies.

So the way out of the labyrinth towards a globalization with orderly political governance can be found. That promotes new social, environmental or health regulations, designed from a more democratic imprint. And promoted and articulated both from the bottom up and from the elites and power.

He knows in depth all the sides of the coin.

subscribe

The problem is who can lead that reformatting process. The politically volatile USA? The geopolitically troubled EU? For Anu Bradford, a professor at Columbia and a Finn of origin, there is no doubt: “Obviously, the EU, but not only”. Bradford is the author of a luminous book, The Brussels effectt (Oxford, 2020), whose thesis is that “the EU dominates the world”, to the point of establishing itself as the “hegemonic” normative power in many areas, capable of effectively challenging the military (or budgetary) superpowers.

Thanks to a combination of factors. Among those that stand out is a good-sized internal market, an effective regulatory capacity, the political will that the regulations set the most demanding standards possible, and its “non-divisibility”, motivated by the incentive that a catalog of hard rules, but universally valid, because they tend to be imposed through all the new treaties.

Exclusive content for subscribers

read without limits

Also Read:

The labor crisis in the airline sector leads to a chaotic summer at airports | companies | The USA...
The current stock market crisis has already destroyed more value of the S&P 500 than the one of 2008...
The community of neighbors will be able to leave the defaulters without a pool and demand more inter...
Biden plans to suspend the federal gas tax to combat inflation | Economy | The USA Print
How is the tax on electricity companies in other European countries | companies | The USA Print
Spain: The Government only spent 2,400 million of European funds last year | Economy | The USA Pri...
Norway rubs its hands with the energy crisis: "There are times when it's not fun to make money, and ...
A week of gas cap: neither fiasco nor panacea | Economy | The USA Print
The richest 1% concentrates 17% of the national income | Economy | The USA Print
The unions demand that the CEOE return to the salary negotiation table: "If there is no agreement, t...
Kellogg splits into three companies to accelerate growth | Economy | The USA Print
The funds give Abengoa until Friday to save itself from bankruptcy | Economy | The USA Print
The CNMV will redouble surveillance on cryptocurrency advertising at sporting events | Economy | T...
Israel Arroyo leaves the post of Secretary of State for Social Security and Pensions | Economy | T...
Elon Musk says there are three issues to be resolved to close the purchase of Twitter | Economy | ...
Airef criticizes the Government for the lack of information on the execution of European funds | Ec...
El Corte Inglés repurchases half of the shares held by the Qatari investor Al Thani for 387 million ...
Montero cools off Yolanda Díaz's proposal and advances that the surcharge on electricity companies w...