Valdai Paper #60: Uncertain World Economy: Time to Manage the Global Governance

25.01.2017

The world economy enters a new phase of prolonged recession without any breakthrough in sight. Not only globalization can lead the world economic growth but also globalization itself can no longer expand its fronts any further. Nevertheless, international community seems no longer capable of creating new global initiatives. DDA is dead and TPP and TTIP are fading away. There are many reasons to worry about protectionism in the face of the structural changes and appearance of nationalistic politics in both the USA and Europe.

From economics point of view, however, the nationalistic approach may be only a rational attempt to avoid economic and political costs associated with the internationally cooperative approach. The real worry is that the nationalistic approach would increase trade disputes among trading partners. It would accelerate the recent increasing trend of discriminatory measures by major trading countries.

So, it’s time to recognize what the international community has achieved in this regard, the WTO. The current WTO is more competent as the supervisor of code of conduct for trade policy than as a marketplace of international trade. We have witnessed the value of the WTO as a stabilizer of international trade during the global financial crisis in 2007-2008. It is time that the international community has to be content with the current role of the WTO in defending the world economy from protectionism. 

Author: Hongyul Han, Professor of Economics, Hanyang University, Korea.

Download Valdai Paper #60 in English (PDF)

Download Valdai Paiper #60 in Russian (PDF)

Related articles

Condition of the Russian Consumer: Recovery on the Horizon?
24.04.2017
Participants in the Valdai Club economic seminar held in Moscow on Monday believe that although inflation rate in Russia is record low, the prospects for a recovery in Russia’s household consumption

Category:
Club Events
Global Recovery: Not Much Ground for Optimism
21.04.2017
The question many observers will ask, is whether the current state of the world economy really merits even cautious optimism let alone buoyancy. Not only have the structural problems of the world

Category:
Expert Opinions
China and Russia: Facing Challenges of Global Shifts. Opening Ceremony and…
04.04.2017
April 4 marked the beginning of a two-day conference titled “China and Russia: Facing Challenges of Global Shifts,” held in Moscow by the Valdai Discussion Club in cooperation with the Center for

Category:
Club Events