## A Deeper Look at Forces Fragmenting Our World—and How to Respond

_IMF Blog, June 2, 2022_

## Source details

**Canonical URL:** [A Deeper Look at Forces Fragmenting Our World—and How to Respond](https://www.imf.org/en/blogs/articles/2022/06/02/a-more-fragmented-world)

## Other formats

- [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)

## Bibliographic details
- Authors: Gita Bhatt
- Published: June 2, 2022

---

### Overview
- 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.

### Immediate risks and shocks
- The war in Ukraine is identified as the most immediate risk.
- Consequences cited:
  - Geopolitical realignment.
  - Supply disruptions.
  - Food and energy insecurity.
  - More volatile financial markets.
- Potential societal effects:
  - Shocks could shake social and political stability in some countries.
  - Shocks could weaken the ability of the world as a whole to confront climate change.

### Geopolitical fragmentation and its characteristics
- 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.”

### Economic, technological, and policy debates presented in the issue
- Sanctions and economic warfare:
  - Nicholas Mulder argues that sanctions against Russia have unprecedented consequences and should prompt a rethink of their use as a weapon of economic warfare.
- Refugee economics:
  - Giovanni Peri discusses the economic impact of refugees fleeing Ukraine.
- Food crisis:
  - The “Picture This” series depicts the food crisis that threatens millions with hunger.
- Energy and climate:
  - Some contributors see soaring war-induced energy prices as a chance to spur the transition to green energy.
- International currency:
  - Eswar Prasad argues that despite predictions to the contrary, the dollar will become more entrenched as the global go-to currency.

### Calls for collective action and multilateralism
- Tharman Shanmugaratnam (Singapore) argues that a more fragmented world makes greater investment in global public goods even more urgent.
  - He calls for unprecedented public-private collaboration and a stronger, more effective multilateralism.
  - Priority: to “accommodate a multipolar world without becoming more polarized.”
- Historical perspective:
  - Patricia Clavin notes that turbulent times can energize actors and ideas that lead to new and better modes of cooperation.
- Overall message: While risks are high, there is hope if collective, cooperative responses are pursued.

### Other topics featured in the same issue
- 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.

### Reader engagement
- Invitation to provide feedback via a 3-question survey on IMFBlog.

*IMF Blog — Gita Bhatt, June 2, 2022.*

---


## References

- [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)

_Source: https://www.imf.org/en/blogs/articles/2022/06/02/a-more-fragmented-world_