The Manila Times on Nostr: Economic self-reliance is a dangerous delusion ========== Governments and companies ...
Economic self-reliance is a dangerous delusion
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Governments and companies around the world prioritize shortening supply chains, rebuilding domestic production capacity, and diversifying suppliers due to vulnerabilities exposed by Covid-19 and the war in Ukraine. However, the goal of economic self-reliance threatens to derail stable restructuring of the global economy. Self-reliance is different from protectionism and aims to build domestic resilience in a less secure world. The fading Pax Americana and the intensifying US-China rivalry have impaired America's ability to keep the global market economy open. Signs of America's diminished commitment to the global liberal order have been multiplying, while China and other emerging economies have been building a parallel international system. The world finds itself in an increasingly unstable equilibrium, with countries building up their own domestic capabilities and regional groupings. Self-reliance strategies lead to systemic chaos as key goods and markets become inaccessible, and attempts to build domestic capabilities in exclusionary ways have never brought national resilience or international peace. Mutual reliance among countries should be the goal to prevent the costly fragmentation of the global economy into separate blocs.
#EconomicSelf-reliance #GlobalEconomy #SupplyChains #DomesticProduction #Us-chinaRivalry #GlobalLiberalOrder
https://www.manilatimes.net/2024/02/05/opinion/columns/economic-self-reliance-is-a-dangerous-delusion/1931110
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Governments and companies around the world prioritize shortening supply chains, rebuilding domestic production capacity, and diversifying suppliers due to vulnerabilities exposed by Covid-19 and the war in Ukraine. However, the goal of economic self-reliance threatens to derail stable restructuring of the global economy. Self-reliance is different from protectionism and aims to build domestic resilience in a less secure world. The fading Pax Americana and the intensifying US-China rivalry have impaired America's ability to keep the global market economy open. Signs of America's diminished commitment to the global liberal order have been multiplying, while China and other emerging economies have been building a parallel international system. The world finds itself in an increasingly unstable equilibrium, with countries building up their own domestic capabilities and regional groupings. Self-reliance strategies lead to systemic chaos as key goods and markets become inaccessible, and attempts to build domestic capabilities in exclusionary ways have never brought national resilience or international peace. Mutual reliance among countries should be the goal to prevent the costly fragmentation of the global economy into separate blocs.
#EconomicSelf-reliance #GlobalEconomy #SupplyChains #DomesticProduction #Us-chinaRivalry #GlobalLiberalOrder
https://www.manilatimes.net/2024/02/05/opinion/columns/economic-self-reliance-is-a-dangerous-delusion/1931110