Counting the Cost - Al Jazeera

Overview

• Host: Adrian Finnegan
• Focus: Global economy, US-China relations, globalization, and geopolitical tensions
• Key Question: Is the economic order changing?

The Current Economic Climate

• The US has dominated the global economy for decades.
• Geopolitical tensions and backlash against globalization are fracturing the world.
• The trade war between the US and China is intensifying, potentially collapsing the old system.

Alternatives to the Current Order

• Developing nations form alliances like BRICS to counter Western dominance.
• BRICS’ aim is to create a more balanced and inclusive global economic governance system.

Challenges to the Rules-Based Order

• Evident disintegration of the existing rules-based world order.
• Countries are becoming more inward-looking and imposing trade restrictions.
• The World Trade Organization is in limbo.

Perspectives from Leaders

• Criticism from poorer countries against rich countries for oppression and inequity.
• Advocacy for reforming global economic governance to reflect current realities.
• Questioning why all trade is tied to the US dollar.

Panel Discussion

Danny Khoa (National University of Singapore)

• The old world order is being questioned rather than collapsed.
• Criticism is now coming from both advanced and developing economies.
• Future groups might focus more on economic performance and trade rather than historical power dynamics.

Irina Murusan (Institute for Global Dialogue)

• Economic center is shifting; BRICS aims to leverage partnerships for global change.
• Criticism of multilateralism being under attack.

Philippe Legrand (Former Special Advisor to WTO)

• Four pillars of the old order are crumbling:
  1. Western economic dominance
  2. US geopolitical hegemony
  3. Belief in open markets
  4. US support for international rules
• Shift from economic prosperity to national security as a priority.

Trade and Investment Flows

• New patterns centered on US and China.
• US imposes tariffs; China redirects economy towards developing world.
• EU is a focal point in deciding long-term trade relations.

BRICS Bloc

• Founded by Brazil, Russia, India, China (South Africa joined later).
• Seeks to counter US-led financial institutions.
• Represents a significant share of global GDP and population.

The Future of Global Economic Order

• Questions about the dominance of the US dollar.
• BRICS nations may not want to abandon the old order entirely.
• There’s a desire for reform yet recognition of the old order’s value.

Potential Outcomes

• Possibility of a new Cold War with geopolitical conflicts.
• Economic war between US/West and China is a possibility.
• Future likely involves more club-based economic collaborations.

Conclusion

• The world is at a pivotal point with shifting economic powers and alliances.
• Importance of maintaining principles from the old world order while adapting to new realities.
• Debate over how best to achieve a fairer global economic system.