Asia Society’s Post

Navigating International Economic Security Trends: Why Trade Remains Essential In the wake of escalating geopolitical tensions and shifting economic paradigms, understanding international economic security trends has never been more critical. The Munich Security Report 2024 highlights the emergence of securitized globalization, where states prioritize resilience and security over traditional notions of efficiency. This paradigm shift is underscored by China's economic coercion and Russia's weaponization of Europe's energy dependency, elevating economic security to the top of liberal democracies' agendas. Despite these challenges, it's imperative to recognize the enduring importance of trade in fostering global peace, prosperity, and stability. The international economic architecture established after World War II, as outlined in Foreign Affairs, was built on the premise that economic interdependence is essential for preventing catastrophic conflicts. Institutions like the International Monetary Fund, the World Bank, and the World Trade Organization were created to facilitate cooperation and integration among nations. Today, trade remains a cornerstone of economic prosperity, driving growth, innovation, and development worldwide. By enabling the exchange of goods, services, and ideas across borders, trade promotes specialization, economies of scale, and technological progress. Moreover, economic interdependence forged through trade fosters mutual interests and incentives for peaceful cooperation, reducing the likelihood of conflict between nations. As we navigate the complexities of today's global landscape, it's crucial to recognize the dual imperatives of economic security and the continued facilitation of trade. Rather than retreating into isolationism, we must embrace a vision of globalization that is inclusive, sustainable, and beneficial for all. By reimagining and reforming the international economic system, we can harness the transformative power of trade to build a more equitable and prosperous world. #EconomicSecurity #Globalization #Trade #InternationalRelations #Geopolitics #Peace #Prosperity #Development #msc2024 https://lnkd.in/drEDghkW https://lnkd.in/dRKUBRxC

about BRICS benefits: BRICS: A New Era of Global Economic Cooperation The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, represents a powerful shift in global economic dynamics. This strategic partnership has emerged as a significant force in reshaping international trade and financial systems. Economic Impact At its core, BRICS unites over 40% of the global population, creating an unprecedented market opportunity. The alliance's combined economic strength challenges traditional Western-dominated financial systems, offering member nations greater autonomy in international trade and development. Financial Independence Perhaps most significantly, BRICS is developing alternatives to the US dollar-based trading system. The New Development Bank, established by BRICS, provides crucial funding for infrastructure and sustainable development projects, reducing dependence on Western-controlled institutions like the World Bank and IMF. Trade Advantages Member nations benefit from preferential trade agreements, streamlined customs procedures, and reduced tariffs. This internal cooperation has created a robust marketplace where nations can trade in their local currencies, significantly reducing transaction costs and exchange rate risks. Technological Growth The alliance promotes substantial technology transfer and joint research initiatives. From space exploration to artificial intelligence, BRICS countries share expertise and resources, accelerating technological advancement across member states. Development Opportunities Smaller economies within BRICS gain access to larger markets and investment opportunities. Knowledge sharing in sectors like agriculture, healthcare, and education has led to significant developments in member countries' social infrastructure. Future Prospects The alliance continues to attract interest from other nations, with several countries applying for membership. This expansion could further strengthen BRICS' position in global economics and politics. Conclusion BRICS represents more than just an economic alliance; it's a paradigm shift in global cooperation. By offering alternatives to traditional Western-dominated systems, BRICS provides its members with greater autonomy, development opportunities, and collective strength in the global marketplace. As the alliance grows and evolves, its influence on global economic patterns and international relations will likely continue to expand.

A snippet of my remarks in New York on “Countering Economic Coercion: U.S. Strategy and Business Resilience in the Indo-Pacific,” courtesy of Asia Society: 🎙️ “Nations are no longer relying solely on military might. Economic influence is a weapon." "In 2020, after Australia announced they were opening an investigation into the origins of COVID-19, Beijing hit Australia where it hurt: wine and beef. These were subject to import restrictions by Beijing." "When Lithuania allowed Taiwan to open a representative office, China banned Lithuanian exports. When that didn’t work, China banned EU imports made in Lithuania." When does a country know that it is being coerced by the PRC? “Often they don’t know when Beijing's measures are coming—they come without warning. The measures lack any transparency because there is no appeal process, and the victim country's agricultural products can be held up at ports for weeks because of 'sanitation' processes." On the case of PRC economic coercion used against Lithuania: "In response, the EU filed a WTO case. They were very vocal in supporting Lithuania. We were very pleasantly surprised that the EU took this initative under their wing and they enacted something called an anti-coercion instrument." "Right now, many of these critical minerals are controlled by the PRC — either mined, refined, or otherwise controlled. 95% of worlds graphite is controlled by China. We need these for #EVs. So we've used our competitive advantage, bringing together our allies to work together on finance, investments, recycling critical minerals, and to do so in a way that follows the highest environmental social and governmental principles." "We have excellent commercial and political relationships with #ASEAN countries. But something that is important to keep in mind is that — and Secretary Blinken has been clear on this — we are not asking countries to 'choose'. I always point out that China is one of the top three markets and we have substantial interests in engaging with them. But what we are asking for is a level playing field." SO, HOW ARE WE ADDRESSING THIS? Stay tuned for more soon! ### ℹ️ Learn about the event: https://lnkd.in/eVNRQYpB

9/37 We reaffirm our thorough support to ASEAN centrality and unity, as well as to initiatives aimed at fostering regional cooperation in line with the ASEAN Outlook on the Indo-Pacific. We underscore our commitment to further strengthen our partnership with the Pacific Island countries, by supporting their needs and efforts in the implementation of the Pacific Islands Forum’s 2050 Strategy for the Blue Pacific Continent. We look forward to the 4th International Conference on Small Island Developing States under the theme “Charting the course towards resilient prosperity” (St. John’s, Antigua and Barbuda 27th-30th May 2024). We will broaden our support to civil society, private sector, and academia’s plans for the promotion of a free and open Indo-Pacific. 8. China We recognize the importance of constructive and stable relations with China. We reaffirm the need to engage candidly with and express our concerns directly to China. China is a key interlocutor in addressing global challenges, and we stand ready to cooperate with China on areas of common interest. We reaffirm our interest in a balanced and reciprocal collaboration with China aimed at promoting global economic growth, with a view to enabling sustainable and fair economic relations and strengthening the international trading system. Our policy approaches are not designed to harm China, nor do we seek to thwart China’s economic progress and development. However, we are concerned that China’s non-market policies and practices are leading to harmful overcapacity that undermines our workers, industries, and economic resilience. A growing China that plays by international rules would be of global interest. We are not decoupling or turning inwards. We reiterate the importance of ensuring a level playing field and a transparent, predictable, and fair business environment. Respect for the rules-based multilateral trading system based on market principles needs to be the hallmark of our relations, to protect our workers and companies from unfair and non-market policies and practices, including forced technology transfer or illegitimate data disclosure, which distort the global economy and undermine fair competition. We will protect our workers and business communities from unfair practices, including those that lead to overcapacity, create supply chain vulnerabilities and increase exposure to economic coercion, as we recognize that economic resilience requires de-risking and diversification where necessary.

*International Economic Relations: Understanding Global Interdependence* International economic relations refer to the interactions and exchanges between nations, encompassing trade, investment, finance, and economic cooperation. These relationships have become increasingly crucial in today's interconnected world, shaping global economic stability, growth, and development. *Key Aspects:* 1. *International Trade*: Exchange of goods and services across borders, influencing economic growth, employment, and consumer choices. 2. *Foreign Investment*: Cross-border investments, facilitating technology transfer, capital flows, and economic development. 3. *Global Financial Systems*: International monetary institutions (IMF, World Bank) and financial markets (FOREX, stock exchanges) enable global transactions and stability. 4. *Economic Integration*: Regional blocs (EU, ASEAN, NAFTA) and international organizations (WTO, OECD) promote cooperation and policy coordination. *Benefits:* 1. *Economic Growth*: Increased trade and investment stimulate economic expansion. 2. *Specialization*: Countries leverage comparative advantages, enhancing efficiency. 3. *Innovation*: Global competition drives technological advancements. 4. *Poverty Reduction*: Economic integration lifts millions out of poverty. *Challenges:* 1. *Trade Imbalances*: Disparities in export-import ratios strain economic relationships. 2. *Protectionism*: Tariffs and non-tariff barriers hinder global trade. 3. *Currency Fluctuations*: Exchange rate volatility affects international transactions. 4. *Global Economic Shocks*: Financial crises, pandemics, and climate change impact global stability. *Future Directions:* 1. *Sustainable Development*: Aligning international economic relations with UN's SDGs. 2. *Digital Economy*: Embracing e-commerce, fintech, and digital trade. 3. *Multilateral Cooperation*: Strengthening international institutions and agreements. 4. *Inclusive Globalization*: Ensuring benefits reach all segments of society. *Conclusion:* International economic relations are vital for national prosperity and global stability. Understanding these complex interactions is crucial for policymakers, businesses, and individuals to navigate the interconnected world. By fostering cooperation, addressing challenges, and embracing innovation, we can create a more equitable and prosperous global economy. *Sources:* - International Monetary Fund (IMF) - World Trade Organization (WTO) - United Nations Conference on Trade and Development (UNCTAD) - Organisation for Economic Co-operation and Development (OECD)

Could a fragmented global economy help EU economy unite? Global economic fragmentation, worsened by the pandemic, the war in Ukraine, and geopolitical tensions, has strained international trade and financial systems. Europe faces challenges in navigating this fragmentation, but its key asset is the Single Market. #EU #Economy #GeoPolitics #Competition

For several decades, policymakers in #Washington have paid minimal attention to Latin America. The #US must increase economic engagement in #LatinAmerica to offer the region competitive alternatives for its development. Underinvestment in the region by the U.S. has created an opportunity for the People’s Republic of #China, which has stepped in with offers of significant commercial and financial #investment for Latin American countries, though not necessarily without strings attached. #Trade between China and Latin America has increased from $12 billion to $315 billion between 2000 and 2020. The World Economic Forum estimates that trade value could more than double to $700 billion by 2035. https://lnkd.in/dzAxkAad

US commitment towards economic integration with the #IndoPacific is met with skepticism even from its closest allies. The negative impacts of Washington’s abrupt #policychanges have been felt across the region, Deborah Elms tells U.S.-China Economic and Security Review Commission: https://buff.ly/4e2XmDI Our testimony is part of a #USCC hearing on "Key Economic Strategies for Leveling the U.S.-China Playing Field: Trade, Investment, and Technology". You can watch a full recording of the session here. Deborah Elms starts speaking at the 05:43 mark: https://buff.ly/3X1tG44 ICYMI: Many countries in the Indo-Pacific remain disappointed with Washington’s declining interest in #tradeagreements. In its bid to intensify engagement with this dynamic region, the US must go well beyond the current #IPEF negotiations, Wendy Cutler and Clete Willems: https://buff.ly/3yFoqJf Also: The strategic conversation between the US and Southeast Asia is in danger of being stuck in a rut. Despite their mismatch in perceptions about China, both parties must find a way forward to cooperate. The question is 'how', writes Lee Sue-Ann from ISEAS - Yusof Ishak Institute (ISEAS): https://buff.ly/3UZTIC5

Minister Szijjártó Speaking on OECD’s Global Economic Role. Minister Péter Szijjártó (L) and OECD Secretary-General Mathias Corman (R) In order to prevent a long-term downturn, Minister of Foreign Affairs and Trade, Péter Szijjártó emphasized the crucial role of the Organisation for Economic Cooperation and Development (OECD) in restoring sanity and rationality to global economic discourse. Speaking in Budapest on Tuesday during a press conference alongside OECD Secretary-General Mathias Cormann, Péter Szijjártó highlighted the current precarious era, marked by frequent upheavals in the world economy over the past four years. He stressed the urgency of returning to sensible economic thinking, stating, We want to avoid a long-term global economic downturn. To do that, we see a need for sanity and normal thinking to return to the global economy.” The Minister criticized sanction policies that lead to increased energy prices and inflation, emphasizing the need for pragmatic approaches over ideological monopolies, particularly in green transition and energy cooperation. Mr. Szijjártó remarked, “initiatives to isolate the Eastern and Western economies certainly do not fit into this common sense, this normal thinking.” Emphasizing cooperation based on mutual respect between East and West, he underscored the importance of fair competition in global trade and the pursuit of responsible growth strategies that balance environmental protection and competitiveness. He noted that: It must be recognized that a peaceful environment is the best creator of opportunities for economic development.” The Minister highlighted the vital role of international organizations, particularly the OECD, in promoting and embracing rational economic thinking and also commended the Secretary-General’s efforts to enhance the OECD’s effectiveness as an international organization, ensuring continued global connectivity and cooperation in the years ahead. In conclusion, Minister Szijjártó expressed Hungary’s support for the OECD’s efforts, advocating for its expansion and increased budget to further its role as a beacon of reason and normality in the international economy. Related articleOECD Report: Hungary Boasts Highest Real Income GrowthThe report attributes the increase to easing inflationary pressures.Continue reading Via MTI; Featured Image: MTI / Balogh Zoltán The post Minister Szijjártó Speaking on OECD’s Global Economic Role appeared first on Hungary Today. https://lnkd.in/g8bNr4DA

[SINGAPORE] Singapore's economy faces both challenges and opportunities as it navigates the potential impacts of Trump's 'global economic reordering'. #SingaporeEconomy #TrumpPolicy #GlobalTrade #EconomicResilience https://lnkd.in/gvZfNzpb