The country could exert leadership in seeking to preserve globalization’s benefits while addressing its downsides.
Globalization has been a powerful force for economic growth. Research from the McKinsey Global Institute (MGI) finds that the movement of goods, services, finance, data, and people across borders adds to GDP and fuels productivity growth—and China has been one of the world’s major beneficiaries.
The nation’s period of double-digit GDP growth in the mid-2000s was fueled by even faster growth in the flow of goods in and out of China.
As exports surged from just $257 billion in 2000 to $2.4 trillion in 2016, China became the world’s top exporter.
But while globalization accelerates growth, it also amplifies inequality and disruption.
Across 25 advanced economies, some two-thirds of households experienced stagnating or declining income from 2005 to 2014—all while watching the wealthiest few in their countries realize tremendous gains.
This growing inequality has spawned a political backlash, with calls for protectionism and immigration restrictions gaining traction in many countries.
This path could have damaging consequences in a world still struggling to jump-start growth.Policy makers are now being challenged to preserve the benefits of globalization while addressing its negative externalities.
Although inequality is a largely a question of domestic policy, there is also work to be done at the international level.
The world needs to bring new urgency and innovation to the task of helping workers adjust to fast-moving labor-market shifts, whether caused by foreign competition or automation technologies.
This MGI discussion paper outlines opportunities for China to exert global leadership in these areas, such as directing its considerable research capacity to shared scientific challenges and marshaling an effort to bring the entire world online. The nation also can continue to put its capital and expertise into global infrastructure projects, building on the momentum of the One Belt, One Road initiative. More broadly, China can bridge the perspectives of developing and advanced economies within multilateral institutions.
The erosion of support for globalization poses real risks for China, whose economic prospects are deeply intertwined with its integration into world markets.
China has articulated its desire to champion a more sustainable and inclusive version of globalization, and now the world will be watching its follow-up actions. With some advanced economies turning inward, the future of globalization may depend on whether China throws its considerable weight behind a new approach.
Large Shopping Malls in Bangkok Will Be Closed until July 25th
Shopping malls under the Mall Group, including all branches of The Mall, the Emporium, Emquartier and Paragon Department Store, are also closed for 14 days, from today, except for supermarkets, food courts, pharmacy shops, eateries (take-out and delivery only), banks, mobile phone shops and vaccination sites.
Downside risks loom for Thai economy due to Prolonged COVID-19 Outbreak
The most important issue for the Thai economy at present would be the procurement and distribution of appropriate vaccines adequately and timely.
The Bank of Thailand (BoT) has revealed that Thailand’s economy faces significant downside risks, because a prolonged COVID-19 outbreak could cause the economy to underperform the baseline projection, squeezing business liquidity and slowing employment.(more…)
Subscribe via Email
Thai baht becoming the region’s worst-hit currency in COVID pandemic
According to data from its tourism ministry as well as the World Bank, Thailand had only a little over 34,000...
Asia’s slow rate of vaccination is a thorn in the region’s economic recovery
Southeast Asia has been hit badly. Daily infections for Indonesia, Thailand, Vietnam are at their worst, on a seven-day moving...
TAT expects 850 billion baht ($25.7 bln) in tourism revenue after successful reopening
The Tourism Authority of Thailand (TAT) has set this year’s revenue target at 850 billion baht, 300 billion of which...
Download 1xBet mobile and play all over the world
Placing profitable bets or playing in a casino is now possible comfortably even without being tied to a computer. It...
3 ways Asia can recover from the COVID-19 pandemic faster
Countries in the East Asia and Pacific region will benefit from cooperation in three major areas: vaccine deployment, reviving sectors...