The Shifting Global Economic Order: Challenges and Opportunities for India and the Global South
UPSC Relevance
Prelims: International Relations (The Global South, BRICS, International Financial Institutions - IFIs); Indian Economy (Globalization, Neoliberalism, State vs. Market debate).
Mains:
General Studies Paper 2 (International Relations): Effect of policies and politics of developed and developing countries on India’s interests; Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests; Important International institutions, agencies and fora.
General Studies Paper 3 (Economy): Indian Economy and issues relating to planning, mobilization of resources, growth, development; Effects of liberalization on the economy.
Essay: A very likely topic on India's place in the new world order, Globalization vs. Nationalism, etc.
Key Highlights from the News
The global economic order, based on free trade and global cooperation, is undergoing a major transformation. This is due to the conflict between the US and China, and protectionism.
In this new situation, the article argues that India and Global South countries have an opportunity to shape a new, more just world order.
Main reasons behind global change:
Unholy alliance (state-capital Gordian knot) between populist-autocrats and large corporations.
Countries like the US prioritizing their own interests.
"Digital colonialism" created by Big Tech.
Developed countries cutting developmental aid to developing countries.
Strategies India should adopt in this situation:
Externally (External Strategy): Demand reforms in institutions like the International Monetary Fund and the World Bank; form new economic alliances through BRICS and South-South cooperation; pursue a non-alignment foreign policy.
Internally (Internal Recalibration): The government to play a commanding role in critical sectors like energy, infrastructure, health, and education; strategically repurpose PSUs; strengthen anti-monopoly laws.
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