COVID 19 and recent changes in the Global Order

The corona crisis has only accentuated the recent changes in the global order. This article analyses 7 trends that have been emerging in the global order recently.

1.    The rise of Asia

Till the 18^th century, Asia accounted for half the world’s GDP. The European naval expansion and colonialism followed by Industrial Revolution contributed to the rise of the Western world. Now the balance is being restored whose first trend which became clear in the aftermath of the global financial crisis of 2008. The financial crisis of 2008 tested the resilience of Asian countries. Even today, Asian economies have demonstrated greater agility in fighting the corona pandemic compared to western countries. The economic forecasts of International Monetary Fund (IMF) has indicated that out of the G-20 countries, Only India and China is expected to show a positive growth in 2020. It is true for other Asian nations as well which displayed a greater responsiveness against Corona and expected to recover faster than the United States or European countries.

2. Decline of the United States

It is the most shocking trend in the global order when we see the retreat of the United States after a century of being in the forefront of shaping the global order. From the World Wars to the end of cold war and even till now the U.S. played a decisive role in shaping the world, directing global responses to threats posed by terrorism or proliferation or environmental degradation. But recent events such as Afghanistan Peace Agreement, Withdrawing from INF treaty, Sanctions on Iran, Trade war with China, etc. followed by America First policy of the president Trump indicated some serious changes in the dominance of the US in the world order. Countries losing trust in the US’s leadership eventually shifted the America First policy to America Alone.

3. Weakening unity of the European Union

For sometimes now the EU is experiencing an internal debacle. This is due to some recent political events such as EU’s expansion of membership to include East European nations, advent of the financial crisis among the Eurozone counties and most importantly the Brexit. Political differences between old Europe and new Europe making it increasingly difficult to reach a consensus. There is difference in perception among European countries with respect to relations with Russia and China. The North-South divide within the Eurozone has become clearer, when the EU showed no solidarity when Italy was battling the Corona alone. Italy was denied medical support by its neighbours. The underlying theme of the European experiment of shared sovereignty has suffered a blow.

 You can read the latest article on changing world order here

4. The rise of China

China’s rising economic role has become visible in 2001 when it joined the World Trade Organization. Under the leadership of Xi Jinping, China’s more assertive attitude has taken a definite shape. China is now ready to assume global responsibilities, which is evident from the Belt and Road Initiative involving trillions of dollars of investment in infrastructure building. In present times, the relationship between the US and China has moved from cooperation to competition with trade and technology wars. The BRI can also be seen as a kind of pre-emptive move against any attempts of containment by the US.

 

5. Failure of multinational organizations

The COVID-19 has only exposed the incapability of multilateral institutions such as WTO, WHO, UNSC, G-7, G-20. The World Health Organization (WHO) has been on the receiving end due to its failure to tackle the corona crisis and its role in supporting China. The United Nations Security Council (UNSC) and other international institutions paralyzed when the world faces the worst humanitarian crisis since World Wars. The US-China trade war has shown that WTO is irrelevant in managing global trade. Such agencies has lost their autonomy and solely dependent upon the financial contribution from big economies. You can also read the article related to D10: What’sthere in a Name?

6. The melting oil prices

In recent years, there has been a change in the global energy markets due to the growing interest of nations in the renewables and green technologies and emergence of the US as a major energy producer. The global lockdown on account of Corona Pandemic has exacerbated internal tensions in Oil rich West Asian countries due to falling oil prices.

7. Instability in West Asia

The political regime was already fragile in the western part of Asia, where long-standing rivalries between the countries often resulted in local conflicts. The COVID19 has just only exposed the political instability in West Asia.

Conclusion

The pandemic has speed up the shifting of a global order which had been changing before the Corona crisis. For more you can refer to Changing nature ofSuper Powers during Pandemic (COVID 19).

 

 

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