China connects nations amid gloomy world economy
By Toumert AI
As we approach the third decade of the 21st century, global
economic order is under pressure.
The trade wars that the conservatives in Washington have
initiated to reshape the economic landscape are creating havoc, and the solid
gains that the world achieved through globalization and regional economic
integration are eroding faster than a rescue plan can be conceived.
Shockwaves of the 2008 financial crisis are still
reverberating 11 years later, with no clear view on a recovery.
Advanced economies have not been able to grow, and most
European economies have been hit hard, particularly Greece, Spain, Portugal and
Italy. Germany, which is considered the powerhouse of the EU, is this year
experiencing a record drop in GDP growth.
That developing nations such as China had to step in to bail
out Greece and Spain is an extraordinary and clear indication of the
difficulties ahead for a sound global economic rebound.
Most world economies have not returned to their
pre-economic-crisis state. Economies in South America, Africa and the Middle
East are all seeing their citizens’ incomes hit hard by inflation.
Another dangerous indicator is the global debt level. The
result is what we see across the Middle East and the northern Africa region -
local governments are unable to keep pace with IMF financial restrictions
While our world economy is not recovering, economic
integration is also falling apart.
We can see a trend of pulling away from a global marketplace
through the low level of investment in developing nations and emerging markets
compared to 2007 statistics.
This negates any progress made by emerging and developing
economies.
At the local level, strengthening the domestic market and
domestic consumer power is the best option as we see international trade taking
hit after hit.
The drive to shift the focus to local economies goes beyond
practical concerns about the unstable nature of our globalized economy. It
comes from deep dissatisfaction with the results of a free trade economy that
marginalized most of the world population in favor of multinationals and select
market places.
There is also the fact that most low-income nations are
starting from weak income positions, affected by debt, conflict and violence.
Most are at a geographical disadvantage, either isolated or landlocked, making
economic integration impossible.
In addition, Washington policies are not helpful in creating
a cohesive global market. Divide and rule is the key strategy pushed by the
administration under US President Donald Trump. Creating standstill trade
conflicts with all major economies and threatening tariffs are techniques
employed by the administration.
So how do we move on from here? What are the options for
major emerging economies like Brazil, Russia, India, China and South Africa?
Looking at these BRICS countries illustrates the importance
of a new perspective.
In an era based on Western-dominated institutions such as
the IMF, the G7 and the OECD group, the BRICS group is independent from last
century’s colonial thinking and is geared to focus on emerging economies as
major powers, bringing Africa, South America, Eurasia and South Asia a unique
platform.
From an economic policy point of view, having two UN veto
members should enable the BRICS nations to carry more weight in the global
economic vision.
China is crucial to the BRICS group as it has the resources
and the will to provide tangible funds, transfer key technologies and open its
market to the other members. By doing so, China is helping to improve the
local, domestic economies of these nations.
There are challenges, of course. India is still struggling
with its nationalism and Russia is trying to wear down US financial sanctions.
However, with China on board, the group's vision holds and it is now time to
take practical actions to stay relevant and counter the global pessimism of
other international institutions.
But then again, China can only do its own part in bringing
nations together. Result will depend on the sovereign decisions of the emerging
nations to re-structure their economic models with Chinese support and stop
thinking of the West as their Mecca.
Are we in the midst of a turbulent economic era? The answer
is yes.
Is global growth impacted by trade wars? Are there any new
alternatives, ways of thinking that might help us move toward a new model of
economic cooperation? The answer to both questions is yes.
China is making a bold move that will shake old dogma about
economic supremacy and the role that emerging markets play in assisting other
low-income economies that are struggling.
These nations should throw their support behind China as the
West has abandoned them, closed its borders and built tangible and intangible
walls.
The author is director
of education with the International Bachelor Program at the International
School under the China Foreign Affairs University.
bizopinion@globaltimes.com.cn
Source:Global Times
(Illustration by Luo Xuan from Global Times
China connects nations amid gloomy world economy
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