{
  "title": "Geoeconomic Fragmentation and the Future of Multilateralism",
  "publication": "Staff Discussion Notes, January 15, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/staff-discussion-notes/issues/2023/01/11/geo-economic-fragmentation-and-the-future-of-multilateralism-527266",
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  "summary": "After several decades of increasing global economic integration, the world is facing the risk of policy-driven geoeconomic fragmentation (GEF). This note explores the ramifications.",
  "sections": [
    {
      "heading": "Overview and central thesis",
      "content": "- After several decades of increasing global economic integration, the world is facing the risk of policy-driven geoeconomic fragmentation (GEF).\n- The note analyzes ramifications of GEF and identifies the channels through which benefits of globalization were transmitted and along which the costs of GEF are likely to fall.\n- It explores consequences of GEF for the international monetary system and the global financial safety net.\n- It suggests a pragmatic path forward for preserving the benefits of global integration and multilateralism."
    },
    {
      "heading": "Identified transmission channels (where benefits accrue and costs of GEF will fall)",
      "content": "- Trade\n- Migration\n- Capital flows\n- Technology diffusion\n- Provision of global public goods"
    },
    {
      "heading": "Consequences and areas of focus",
      "content": "- International monetary system: implications of fragmentation for monetary relationships and currency shares.\n- Global financial safety net: implications for crisis prevention, liquidity provision, and cross-border financial stability.\n- Trade agenda and trade openness: risks from policy-driven trade barriers and geopolitical blocs.\n- Technology diffusion and capital flows: potential disruptions to technology spread and investment patterns.\n- Multilateralism and rules-based systems: stresses on existing multilateral institutions and cooperative frameworks."
    },
    {
      "heading": "Policy direction and recommendations (pragmatic path forward)",
      "content": "- Preserve benefits of global integration and multilateralism through pragmatic measures (the note suggests a pragmatic path forward; specifics are developed in the full Staff Discussion Note).\n- Protect provision of global public goods and maintain frameworks for international monetary cooperation and the global financial safety net.\n- Address trade barriers and defend trade openness to limit economic costs associated with fragmentation.\n- Consider policy approaches to sustain technology diffusion, migration channels, and capital flow integration while managing geopolitical risks.\n\n---\n\n Content in this bundle\n\n- Staff Discussion Note\n  - Staff Discussion Note (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Staff Discussion Note (PDF){rel=\"external\" type=\"application/pdf\"}\n- sdnea2023001 — Geoeconomic Fragmentation and the Future of Multilateralism\n  - sdnea2023001 — Geoeconomic Fragmentation and the Future of Multilateralism (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - sdnea2023001 — Geoeconomic Fragmentation and the Future of Multilateralism (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/staff-discussion-notes/issues/2023/01/11/geo-economic-fragmentation-and-the-future-of-multilateralism-527266"
    }
  ],
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    "Authors: Shekhar Aiyar, Jiaqian Chen, Christian H Ebeke, Roberto Garcia-Saltos, Tryggvi Gudmundsson, Anna Ilyina, Alvar Kangur, Tansaya Kunaratskul, Sergio L. Rodriguez, Michele Ruta, Tatjana Schulze, Gabriel Soderberg, Juan P Trevino",
    "Published: January 15, 2023",
    "Series: Staff Discussion Notes",
    "DOI: https://doi.org/10.5089/9798400229046.006",
    "After several decades of increasing global economic integration, the world is facing the risk of policy-driven geoeconomic fragmentation (GEF).",
    "The note analyzes ramifications of GEF and identifies the channels through which benefits of globalization were transmitted and along which the costs of GEF are likely to fall.",
    "It explores consequences of GEF for the international monetary system and the global financial safety net.",
    "It suggests a pragmatic path forward for preserving the benefits of global integration and multilateralism.",
    "Trade",
    "Migration",
    "Capital flows",
    "Technology diffusion",
    "Provision of global public goods",
    "International monetary system: implications of fragmentation for monetary relationships and currency shares.",
    "Global financial safety net: implications for crisis prevention, liquidity provision, and cross-border financial stability.",
    "Trade agenda and trade openness: risks from policy-driven trade barriers and geopolitical blocs.",
    "Technology diffusion and capital flows: potential disruptions to technology spread and investment patterns.",
    "Multilateralism and rules-based systems: stresses on existing multilateral institutions and cooperative frameworks.",
    "Preserve benefits of global integration and multilateralism through pragmatic measures (the note suggests a pragmatic path forward; specifics are developed in the full Staff Discussion Note).",
    "Protect provision of global public goods and maintain frameworks for international monetary cooperation and the global financial safety net.",
    "Address trade barriers and defend trade openness to limit economic costs associated with fragmentation.",
    "Consider policy approaches to sustain technology diffusion, migration channels, and capital flow integration while managing geopolitical risks.",
    "**Staff Discussion Note**",
    "**sdnea2023001 — Geoeconomic Fragmentation and the Future of Multilateralism**"
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