The global economy has faced intense and difficult challenges in recent years. A virus froze it, inflicting the worst recession ever suffered in peacetime. The war in Ukraine has opened a new era, and when the first Russian missile took flight, energy and commodity prices began to rocket. Thus galloping inflation was unleashed.
Because of the invisible enemy, Covid-19, and the highly visible Russian military, value chains have frayed and challenged productive globalization. At the same time, and as a reaction, an acceleration in clean renewable energy production has been triggered. As a result of all these factors, there are those today who wonder whether globalization, at least as we have known it and discussed it in recent years, has not come to an end.
What is beyond doubt is that it is changing in terms of its modes and intensity. A few years ago, in 2017, Donald Trump declared a trade war on China. Now Joe Biden is not only staying on that course, but has passed legislation based on climate nationalism to work the transition to a decarbonized economy.
The European Union (EU), which has not been slow to express concern over this green-painted protectionism, is in turn being accused of hindering imports from other countries. It is the traditional champions of free trade who are now putting obstacles in the way of trade, including trade among themselves. Fears of a possible new trade war hover. That would be an additional source of economic damage, the last thing we need.
The United States is gradually changing its economic model, abandoning an ultraliberal mindset to embrace policies that, while aiming to impose new regulations on international trade, use public investment to address domestic problems such as deindustrialization and income inequality, starting a process that will bring repercussions and tensions. This article aims to assess the new international context and reflect on its significance. This article is reserved for paid subscribers. Please subscribe to continue reading this article
Subscribe
The most respected digital Catholic journal from Rome. A must-read on all the present issues alive in the Church. Discover top Church scholars interpreting the history, politics, culture, science and art in the light of the Christian faith.
© Union of Catholic Asian News 2023 | All Rights Reserved.
Except for any fair dealing permitted under the Hong Kong Copyright Ordinance, no part of this publication may be reproduced by any means without prior permission.
