Trade not just globalised but it’s also now weaponised: Jaishankar
(Source: Indian Express; Section: Economy; Page: 15)
| Topic: GS3 – Indian Economy |
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Analysis of News:
Important Points Discussed
- Globalization’s Impact: Globalization has led to job losses and dissatisfaction with quality of life in many societies over the past 25 years.
- Rising Protectionism: Protectionist measures are increasing in India and the West in response to China’s surge in imports, particularly in crucial sectors.
- Weaponization of Trade: Trade has become weaponized, leading countries to take defensive measures and prioritize national security over economic efficiency.
- IMEC and MDB Reforms: Conflicts in Ukraine and West Asia have diverted attention from critical issues like MDB reforms and climate change.
- India’s Stance: India has imposed over 30 anti-dumping measures against China in 2024, citing China’s predatory methods to eliminate competition.
Challenges:
- Job Losses: Globalization has resulted in significant job losses worldwide.
- National Security: Countries prioritize national security over economic efficiency.
- Climate Change: Climate change has dropped in importance due to other global priorities.
Way forward:
- IMEC Development: India is expecting the development of the India-Middle East-Europe Economic Corridor to accelerate faster.
- MDB Reforms: Reforms in Multilateral Development Banks can address global challenges.
- Regional Collaboration: Strengthening partnerships between MDBs and local public banks can mobilize resources for national-level investments.
