Academics and business leaders weigh in on strategies to navigate economic upheavals and evolving geopolitical power structures.
Dubai-UAE: October 2024 – Economists and business leaders engaged in a critical dialogue today at the Annual Meeting of the Global Future Councils 2024 (AMGFC24) in a panel titled, “Collaboration in A More Contested World”. The discussion centered on the complex forces redefining international relations, economic landscapes, and societal structures in an increasingly contested world.
Florence Gaub, Director, Research Division, NATO Defense College touched on major forces reshaping the global landscape: “We’ve witnessed a conflation of fundamental changes across society, environment, and economics, leading to a transformation in structure, driven by AI and demographic shifts. While the conversation is future-oriented, we must ask ourselves: what future do we want to achieve?”
She added: “There are significant tensions and shocks we need to address, especially as many nations are re-evaluating their perspectives on potential solutions. For too long, we believed the world was moving toward greater unity, despite the looming potential for fragmentation. This surprising shift is evident in how our experiences have evolved to perceive trade and employment as losses due to globalization.”
Danny Quah, Dean and Li Ka Shing Professor in Economics, Lee Kuan Yew School of Public Policy, National University of Singapore, highlighted the urgency in tackling fundamental issues arising from economic tensions: “The world today is contested by bread-and-butter issues that extend beyond traditional war zones. Even in places without conflict, there are deep tensions – notably around economic and environmental shocks. Historically, despite ideological differences, the belief was that economics would hold the world together, but that idea is now being undermined. This disconnect between policy and daily life is critical, and we have yet to effectively address it.”
Qian Liu, Founder and Chief Executive Officer, Wusawa Advisory, Inc, addressed the growing influence of China and its implications for global power structures: “The rise of China represents a clear disruption, and as China positions itself on the global stage, it has implications for established powers. If China continues to grow, it will soon become the largest economy. This is crucial because it alters the dynamics of power.”
She also pointed out: “We must consider the implications of a robust bilateral economic relationship, where major multinational companies can operate and drive positive outcomes. With the rise of protectionist external policies, we need to explore what this means for efficiencies versus global trade opportunities.”
Sarah Thorn, Vice President, Global Government Affairs, International Sourcing, Walmart outlined the challenges and opportunities businesses face in an increasingly volatile geopolitical environment: “We need be more agile and think about resilience. We spend a lot of time making sure we have the products our customers need, so it’s less about cost and more about efficiency. The benefit of deglobalization is that it provides opportunities for different countries.
“However, businesses thrive on certainty, norms, and predictability, which is often the challenge in these uncertain times. We’re not just operating as a business; we’re doing this in partnership with others, including our supply chain partners. While governments may choose to move in their own directions, we need to continue advocating for what’s right. I still believe in a global system, one that provides more opportunities, and companies like ours benefit from this kind of global trust and space.”
AMGFC24, hosted by the UAE Government in partnership with the World Economic Forum (WEF) takes place in Dubai this week. The meetings will help the agenda for the 2025 WEF Annual Meeting in Davos in January.
