Economist Eswar Prasad Discusses Globalization's Role in Geopolitical Turmoil

Globalization, once viewed as a stabilizing force, now plays a role in increasing geopolitical tensions, according to economist Eswar Prasad. In a recent Foreign Affairs article, Prasad examines how interconnected global economies have led to conflicts over trade, technology, and security.

He notes that factors such as supply chain disruptions and economic dependencies exacerbate international rivalries.

-China trade disputes and restrictions on technology exports. These developments, he writes, stem from globalization's uneven benefits, where some nations gain advantages while others face vulnerabilities. The article underscores the need to address these imbalances to mitigate risks.

its contributions to turmoil, Prasad maintains that globalization retains significant value.

He describes it as a framework that has driven economic growth and reduced poverty in many regions over decades. However, recent events like the COVID-19 pandemic and the Russia-Ukraine war have exposed weaknesses in global integration. Prasad points to rising protectionism in major economies as a response to these issues.

Policies such as tariffs and subsidies aim to protect domestic industries but risk fragmenting global markets. Affected parties include multinational corporations, developing nations reliant on exports, and consumers facing higher prices.

ahead, Prasad suggests reforms to sustain globalization's benefits.

These could involve multilateral agreements to regulate trade and technology flows. Stakeholders, including governments and international organizations, may need to collaborate on solutions to prevent further escalation of tensions. The stakes involve global economic stability, with potential disruptions to supply chains affecting billions.

What happens next depends on policy decisions in key countries like the United States, China, and members of the European Union. Prasad's analysis provides context for ongoing debates in international relations.