By: The Guardian
May 28, 2021
The proper functioning of any interconnected economic system depends on trust. And a global system that has been designed by advanced economies requires a significant level of buy-in from the developing world. Both become even more important as more developing economies, led by China, gain systemic importance.
With the world trying to recover from the massive economic shock brought by Covid-19, the mishandling of the global vaccine rollout has weakened trust in the international system that emerged after the second world war. Combined with memories of the 2008 global financial crisis, which originated in the advanced economies, today’s failures are reinforcing suspicions among some countries that the international order may no longer be fit for purpose. The west, in particular, must take these concerns seriously. With no other multilateral system to replace the current one, the only alternative is a scenario of global fragmentation and rising economic, social and political tensions.