The much-desired multipolar world is here, but this does not herald the return of anarchy, writes Meghnad Desai. With a plethora of interested parties, there will be winners and losers. But we should get on with making the best of circumstances which are neither as new nor as troublesome as many imagine.
The 2008 financial crisis and ensuing recession exposed fault lines in the economic structure, writes Meghnad Desai. To maximise welfare, those who benefit from free trade are expected to compensate those who lose out. Of course, no one is actually compensated; the losers simply adjust to their losing positions.
Amid tension around trade and migration and a resurgence in nationalism, governments around the world, including the US and China, still profess shared objectives of creating jobs and growth, according to Jonathan Fried, personal representative of Canadian Prime Minister Justin Trudeau to the G20.
The end of the cold war and the World Trade Organisation's genesis made commentators call the 1990s 'the end of history', with the US as the sole superpower. It was never as simple as that. Many in the liberal order wished for a multipolar world. And this is what they have now got, writes Meghnad Desai.
China's current account surplus, measuring its excess savings vis-a-vis the rest of the world, is dwindling fast. This is causing the Chinese government to rethink its foreign investment strategies. Beijing may have to choose between slowing down ODI and scaling back the Belt and Road, says Joergen Oerstroem Moeller.
Massive financial resources controlled by pension funds are held back from infrastructure investment in developing countries because of fears of political risk, writes David Marsh. But improvements could be on the way if the precepts of an 'eminent persons group' assembled by the G20 are properly implemented.
The optimism of early 2018 that the previous year's double-digit emerging market stock, bond and currency upswings would persist was overtaken by the end of the second quarter. However, policy-makers should not revert to five-year old explanations for renewed emerging market squalls, writes Gary Kleiman.
OMFIF is strengthening its US operations by appointing Mark Sobel, a veteran US Treasury official at the forefront of financial diplomacy for two decades, as US chairman. He will work with OMFIF in dealings with private and public sector organisations and provide OMFIF members with insight and analysis.