{ "title": "A Deeper Look at Forces Fragmenting Our World—and How to Respond", "publication": "IMF Blog, June 2, 2022", "sourceUrl": "https://www.imf.org/en/blogs/articles/2022/06/02/a-more-fragmented-world", "canonical": "https://www.imf.org/en/blogs/articles/2022/06/02/a-more-fragmented-world", "overlayPath": "/en/blogs/articles/2022/06/02/a-more-fragmented-world/index.md", "summary": "Author: Gita Bhatt", "sections": [ { "heading": "Overview", "content": "- Author: Gita Bhatt\n- Date: June 2, 2022\n- Framing: The rare confluence of geopolitical, economic, and technological forces may reverberate for generations.\n- Context: Trends discussed amid a slowing global recovery, rising inflation, deglobalization, and shrinking policymaking space." }, { "heading": "Immediate risks and shocks", "content": "- The war in Ukraine is identified as the most immediate risk.\n- Consequences cited:\n - Geopolitical realignment.\n - Supply disruptions.\n - Food and energy insecurity.\n - More volatile financial markets.\n- Potential societal effects:\n - Shocks could shake social and political stability in some countries.\n - Shocks could weaken the ability of the world as a whole to confront climate change." }, { "heading": "Geopolitical fragmentation and its characteristics", "content": "- Pierre-Olivier Gourinchas describes a sudden geopolitical shift revealing hidden underlying fault lines.\n- He warns of a world fragmenting into “distinct economic blocs with different ideologies, political systems, technology standards, cross-border payment and trade systems, and reserve currencies.”" }, { "heading": "Economic, technological, and policy debates presented in the issue", "content": "- Sanctions and economic warfare:\n - Nicholas Mulder argues that sanctions against Russia have unprecedented consequences and should prompt a rethink of their use as a weapon of economic warfare.\n- Refugee economics:\n - Giovanni Peri discusses the economic impact of refugees fleeing Ukraine.\n- Food crisis:\n - The “Picture This” series depicts the food crisis that threatens millions with hunger.\n- Energy and climate:\n - Some contributors see soaring war-induced energy prices as a chance to spur the transition to green energy.\n- International currency:\n - Eswar Prasad argues that despite predictions to the contrary, the dollar will become more entrenched as the global go-to currency." }, { "heading": "Calls for collective action and multilateralism", "content": "- Tharman Shanmugaratnam (Singapore) argues that a more fragmented world makes greater investment in global public goods even more urgent.\n - He calls for unprecedented public-private collaboration and a stronger, more effective multilateralism.\n - Priority: to “accommodate a multipolar world without becoming more polarized.”\n- Historical perspective:\n - Patricia Clavin notes that turbulent times can energize actors and ideas that lead to new and better modes of cooperation.\n- Overall message: While risks are high, there is hope if collective, cooperative responses are pursued." }, { "heading": "Other topics featured in the same issue", "content": "- Raj Chetty and Nathanial Hendren discuss how to increase the upward economic mobility of low-income youth.\n- Barry Eichengreen and others write on the erosion of trust among the young.\n- Noam Angrist addresses learning lost during the pandemic.\n- Eric Hanushek and Ludger Woessmann discuss why the basic skills gap means meeting the SDGs is still a faraway goal.\n- Profile: Harvard’s Melissa Dell." }, { "heading": "Reader engagement", "content": "- Invitation to provide feedback via a 3-question survey on IMFBlog.\n\nIMF Blog — Gita Bhatt, June 2, 2022.\n\n---\n\n\n References\n\n- Pierre-Olivier Gourinchas\n- issue of F&D\n- Nicholas Mulder\n- Giovanni Peri\n- Picture This\n- Eswar Prasad\n- Tharman Shanmugaratnam\n- Patricia Clavin\n- Raj Chetty and Nathanial Hendren\n- Barry Eichengreen\n- Noam Angrist\n- Eric Hanushek and Ludger Woessmann\n- Harvard’s Melissa Dell\n\nSource: https://www.imf.org/en/blogs/articles/2022/06/02/a-more-fragmented-world" } ], "bullets": [ "[Markdown version](/en/blogs/articles/2022/06/02/a-more-fragmented-world/index.md)", "[Structured JSON version](/en/blogs/articles/2022/06/02/a-more-fragmented-world/index.json)", "[Bundle manifest](/en/blogs/articles/2022/06/02/a-more-fragmented-world/bundle-manifest.json)", "Authors: Gita Bhatt", "Published: June 2, 2022", "Author: Gita Bhatt", "Date: June 2, 2022", "Framing: The rare confluence of geopolitical, economic, and technological forces may reverberate for generations.", "Context: Trends discussed amid a slowing global recovery, rising inflation, deglobalization, and shrinking policymaking space.", "The war in Ukraine is identified as the most immediate risk.", "Consequences cited:", "Potential societal effects:", "Pierre-Olivier Gourinchas describes a sudden geopolitical shift revealing hidden underlying fault lines.", "He warns of a world fragmenting into “distinct economic blocs with different ideologies, political systems, technology standards, cross-border payment and trade systems, and reserve currencies.”", "Sanctions and economic warfare:", "Refugee economics:", "Food crisis:", "Energy and climate:", "International currency:", "Tharman Shanmugaratnam (Singapore) argues that a more fragmented world makes greater investment in global public goods even more urgent.", "Historical perspective:", "Overall message: While risks are high, there is hope if collective, cooperative responses are pursued.", "Raj Chetty and Nathanial Hendren discuss how to increase the upward economic mobility of low-income youth.", "Barry Eichengreen and others write on the erosion of trust among the young.", "Noam Angrist addresses learning lost during the pandemic.", "Eric Hanushek and Ludger Woessmann discuss why the basic skills gap means meeting the SDGs is still a faraway goal.", "Profile: Harvard’s Melissa Dell.", "Invitation to provide feedback via a 3-question survey on IMFBlog.", "[Pierre-Olivier Gourinchas](https://www.imf.org/en/Publications/fandd/issues/2022/06/Shifting-geopolitical-tectonic-plates-straight-talk)", "[issue of F&D](https://www.imf.org/en/Publications/fandd)", "[Nicholas Mulder](https://www.imf.org/en/Publications/fandd/issues/2022/06/the-sanctions-weapon-mulder)", "[Giovanni Peri](https://www.imf.org/en/Publications/fandd/issues/2022/06/investing-in-refugees-cafe-economics)", "[Picture This](https://www.imf.org/en/Publications/fandd/issues/2022/06/war-fuels-food-crisis-picture)", "[Eswar Prasad](https://www.imf.org/en/Publications/fandd/issues/2022/06/enduring-preeminence-eswar-prasad)", "[Tharman Shanmugaratnam](https://www.imf.org/en/Publications/fandd/issues/2022/06/confronting-a-perfect-long-storm-tharman-shanmugaratnam)", "[Patricia Clavin](https://www.imf.org/en/Publications/fandd/issues/2022/06/turbulence-and-the-lessons-of-history-patricia-clavin)", "[Raj Chetty and Nathanial Hendren](https://www.imf.org/en/Publications/fandd/issues/2022/06/ensuring-the-american-dream-chetty-hendren)", "[Barry Eichengreen](https://www.imf.org/en/Publications/fandd/issues/2022/06/covid-19-and-trust-among-the-young-aksoy-eichengreen-saka)", "[Noam Angrist](https://www.imf.org/en/Publications/fandd/issues/2022/06/what-the-pandemic-taught-educators-angrist)", "[Eric Hanushek and Ludger Woessmann](https://www.imf.org/en/Publications/fandd/issues/2022/06/basic-skills-gap-hanushek-woessmann)", "[Harvard’s Melissa Dell](https://www.imf.org/en/Publications/fandd/issues/2022/06/going-the-distance-people-in-economics)" ], "alternates": { "markdown": "/en/blogs/articles/2022/06/02/a-more-fragmented-world/index.md", "json": "/en/blogs/articles/2022/06/02/a-more-fragmented-world/index.json", "bundleManifest": "/en/blogs/articles/2022/06/02/a-more-fragmented-world/bundle-manifest.json" }, "generatedAtUtc": "2026-08-27T02:34:50.103Z" }