For years, the phrase “new world order” has been used casually to describe a fluid paradigm shift in the world economy. It repeatedly has an underlying connotation of negativity, as something that attempts to disrupt the status quo. However, that’s not what is actually taking place. Pascal Coppens, an expert on China and a serial entrepreneur, recently discussed changes taking place in the global economy. FinTech and commerce expert Jason Simon explores his stance.
This shift has been accompanied by a number of changes in the global economy, including a move away from traditional manufacturing industries towards service industries, and an increasing focus on international trade and investment.
The rise of the new world order has had a profound impact on the global economy. Traditional Western economies have been struggling to adapt to the new reality, while newer economic powers are enjoying rapid growth. The changing nature of the global economy has led to changes in business practices, with companies increasingly looking to expand their operations into new markets. The global economy is changing rapidly, and it is important for businesses to stay ahead of the curve in order to remain competitive.
As Coppens explains, the new world order is not something new; it’s something we’ve been talking about for a long time. But specifically, when we think about this year, early in this year, 2022, on February 4, Xi Jinping, Vladimir Putin and Kim Il-Sung reached an agreement where they were talking about a new world order.
What they were really talking about was to change the existing world order. And the story was specifically after Putin invaded Ukraine, that it was all going to be about these autocracies like Russia and China trying to create their own view of how the world should actually be kept in order.
Adds Simon, “The idea of a new world order has been proposed by many countries over the past 50 years. The majority of the countries in the world have voted in favor of this proposal, but the countries that have voted against it are primarily in the ‘Global North.’ At the same time, the countries in the ‘Global South’ have been asking for a new world order for many years, but that it has not yet been achieved.”
The Global South wants a multipolar world, as opposed to the current unipolar world dominated by the US. These countries feel that they have been denied a voice in the past, and so some have begun to form their own partnerships (like the BRICS, or Brazil, Russia, India, China and South Africa) in order to assert their influence.
Part of that centers on the launch of the Belt and Road Initiative (BRI), formerly the Belt and Road Initiative, from 2013, and how it has changed the landscape for emerging countries. There is debate over whether or not the BRI is a good thing, but Simon agrees with Coppens’ stance that it has potential to help countries get out of their problems.
“The Global South is becoming more connected,” adds Simon. “However, the US still has a lot of control over the existing world order. This is evidenced by the fact that the US dollar is the dominant currency in the world, used by most countries, businesses and individuals. In addition, the US is the largest military power in the world, with bases in nearly every country. Furthermore, US universities are some of the best in the world, attracting top talent from all over.”
There are four events that are happening that are going to disrupt the existing world order. These events are related to trade, security, finance and technology. The current world order is led by the West, but if we don’t accept the transformation that is happening, we will lose out.
The US needs to have a stable currency in order to keep its economy going. The goal of recent US presidents has been to bring jobs back to the country and to prevent other countries from dictating the new world order. This has some merit, as the world is currently in a period of deglobalization, which began after the 2008 financial crisis.
However, the global economy is constantly changing and evolving – there isn’t a single “world order” followed by another. There has been a gradual shift in power from traditional Western powers to newer economic powers such as China and India, and this shift will expand and contract as it has done for centuries.