Global Economy: A New Era of Competition and Distrust
KUALA LUMPUR: In a rapidly changing world, the global economy has transformed into a battleground where countries are increasingly viewing each other as adversaries or proxies in a contest for influence and dominance. This shift has led to an atmosphere of suspicion and distrust, eroding the foundations of international cooperation.
The New World Order
As the competition between the US and China disrupts economies, technologies, and alliances around the world, smaller countries are often forced to pick sides or risk becoming pawns in a larger geopolitical game. This new world order is marked by the weakening of mechanisms that once drove development in the Global South, and the concept of development aid is now under intense scrutiny from powerful nations.
The Rise of Protectionism
Trade wars, tariffs, and sanctions have become weapons in this broader struggle for dominance, creating an environment of tension and uncertainty. Economic interdependence, once the cornerstone of global prosperity, has become a source of tension, and if this trend continues, interconnectedness could ultimately become a vulnerability, even for countries that have long flourished under globalization.
Malaysia’s Stance
Despite the current uncertainty surrounding protectionism, Malaysia remains committed to its goal of creating sustainable, inclusive, and equitable growth. The country is determined to solidify its position as a vital hub for trade, investment, and technological innovation. This includes its decision to join the BRICS group of major emerging economies, which advances the goal of narrowing the development disparities between the Global South and Global North.
A Clear Understanding
Contrary to some pundits’ claims, this decision is not about taking sides in the Sino-American rivalry. Rather, it reflects a clear understanding of the shifting geopolitical and geoeconomic landscape in which we operate. By engaging with rival power blocs and creating a diverse array of viable economic opportunities, middle powers like Malaysia can pave the way for lasting peace and prosperity for their citizens in the Global South.
Conclusion
In this new era of competition and distrust, it is crucial for countries to be mindful of the growing challenges facing the Global South. Malaysia remains committed to its goal of creating sustainable, inclusive, and equitable growth, and its membership in BRICS is a key step in achieving this goal.
FAQs
Q: What is the current state of the global economy?
A: The global economy has transformed into a battleground where countries are increasingly viewing each other as adversaries or proxies in a contest for influence and dominance.
Q: What is the impact of the competition between the US and China on the global economy?
A: The competition between the US and China is disrupting economies, technologies, and alliances around the world, forcing smaller countries to pick sides or risk becoming pawns in a larger geopolitical game.
Q: What is Malaysia’s stance on the current global economic situation?
A: Malaysia remains committed to its goal of creating sustainable, inclusive, and equitable growth and is determined to solidify its position as a vital hub for trade, investment, and technological innovation, including its decision to join the BRICS group of major emerging economies.