Reimagining the role of states in a fractured economy

Baginda Muda Bangsa Antara Selasa, 03 September 2024
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Jakarta (ANTARA) - In 1945, most of the world lived in poverty due to war and colonization. To avert a similar situation during the interwar period, the United States (US) and its allies designed a new international economic system that ensured economic stability and a free flow of capital and goods.

The post-war era marked the rise of the liberal economy as the primary guide to global prosperity. Despite its shortcomings, the liberal economic regime indeed delivered its promise. Over four decades, it accelerated global growth and significantly reduced poverty worldwide.

As we stepped into the 21st century, the global economic landscape started shifting, accompanied by slower growth.

The latest data from the World Bank reveals that out of 107 countries classified as middle-income countries in 2000, only 16 managed to join the high-income club by 2023, while the rest hardly climbed the development ladder.

Economists are worried about the prospects of future economic growth. After the Global Financial Crisis (GFC) of 2007–2008, the world economy has become more fragmented and distrustful. Global capitalism is looking frail and discouraging.

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Jum'at, 07 Februari 2025