Editor's Letter: Trade in Turmoil
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Bibliographic details
- Authors: GITA BHATT
- Published: June 1, 2023
Overview
- Headline quote: “Globalization is a fact of life. But I believe we have underestimated its fragility,” said Kofi Annan to the World Economic Forum almost a quarter century ago.
- Byline: GITA BHATT, F&D editor-in-chief.
- Reading metadata as presented: Less than a minute(0 words) Read
- Central message: Despite geopolitical tensions, meaningful cooperation on trade remains possible.
Drivers of disruption in the international trading system
- Geopolitical conflict, explicitly including Russia’s war on Ukraine.
- Geopolitical fragmentation and rival blocs aimed at isolating from competitors.
- Policy shifts toward reshoring and securing strategic supplies (examples cited: computer chips, rare earths).
- Technology and policy priorities reshaping trade, including climate change and equality considerations.
Perspectives and arguments presented
- Pinelopi Goldberg (Yale): Protectionism would make the world less resilient and more conflict-prone.
- Doug Irwin (Dartmouth): History shows industrial policies and subsidies could leave countries worse off.
- Michele Ruta (IMF): Growing global tensions may push regional trade alliances toward less integration and more discrimination.
- Ngaire Woods (Oxford): Some smaller economies may find it advantageous to remain nonaligned as the world fragments into rival trading blocs.
- Kristalina Georgieva (IMF) and Ngozi Okonjo-Iweala (WTO): Appeal to countries to keep faith in trade as a transformative force that has lifted many millions out of poverty and call for a strengthening of multilateral institutions.
- Other contributors: Advocate for a new political consensus to resolve competing demands on the global trading system, accounting for structural changes in the global economy.
Policy implications and recommendations
- Reinforce the multilateral trading system to safeguard benefits and prevent losses.
- Avoid protectionism and excessive industrial subsidies that risk reducing resilience and increasing conflict.
- Seek a new political consensus that balances strategic security concerns with openness and cooperation.
- Strengthen multilateral institutions to manage trade tensions and support inclusive outcomes.
Notable quotations
- Kofi Annan: “Globalization is a fact of life. But I believe we have underestimated its fragility.”
- Georgieva and Okonjo-Iweala: “we cannot afford to stand still.”
Closing remarks
- The issue focuses on forces disrupting the established international trade order and offers analysis on how trade can be reshaped constructively.
- Editor’s sign-off: “I hope you also find that it reveals something new to you and provides food for thought. Thank you as ever, for reading us.”
Editor’s Letter: Trade in Turmoil — F&D Magazine.
Content in this bundle
- Trade in Turmoil
- Trade, Disrupted