By Jeremy Clift
(Version in Español, عربي)
We live in an increasingly globalized and interconnected world, helping to spread ideas, information, and technology ever more quickly. The globalized economy has created a complex and interlocking network of capital and trade flows that have brought major economic gains, lifting hundreds of millions of people out of poverty around the world.
But, as we have seen from the prolonged global financial crisis, our interconnectedness carries grave risks as well as benefits. With instant communication comes the risk of rapid contagion. There is, thus, a strong public interest in ensuring that global economic integration is supported by a coherent set of coordinated national macroeconomic policies and a harmonized international regulatory regime that addresses the fragilities in our global financial system.
The new issue of Finance & Development magazine looks at different aspects of interconnectedness. Kishore Mahbubani, dean of the National University of Singapore’s Lee Kuan Yew School of Public Policy and author of the forthcoming book The Great Convergence: Asia, the West, and the Logic of One World, argues that what he terms the global village increasingly requires global solutions to big emerging problems such as climate change.
Filed under: Economic Crisis, Civil Society, Debt Relief, Financial Crisis, Global Governance, Globalization, Advanced Economies, Emerging Markets, Low-income countries, Multilateral Cooperation, International Monetary Fund, Africa, growth, Latin America, Economic research, Asia, Europe, Fiscal policy, Public debt, Employment, Economic outlook, Middle East, Inequality, Finance, Politics, Investment | Tagged: China, trade, India, World Bank, Globalization, taxation, financial crisis, Finance & Development magazine, Christine Lagarde, lessons, capital, interconnected, Jeremy Clift, Kishore Mahbubani, Kemal Derviş, Masahiro Kawai, Asian Development Bank Institute, Domenico Lombardi, Oxford Institute for Economic Policy, regional financial arrangements, Justin Yifu Lin, New Structural Economics, Myanmar | 5 Comments »