INTERNATIONAL ECONOMIC AFFAIRS
Today, nations are trying to acquire economic development through different means. The definition of power has been modified, economic strength has acquire higher value than other projectors of power. In 20th century the US became super power and in 21st century China is trying to gain momentum against it. In this regard, China-US trade war, OBOR, Brexit and Oil politics etc. are the major changes that are happening in current economic world order.
According to World Economic Situation and Prospects 2018 report, global economy is now growing at the rate of about 3 per cent which requires reoriented policies to address climate change, existent inequality, and removing institutional obstacles to the development. “Current macroeconomic conditions offer the policy-makers greater scope to address some deep rooted issues that continue to hamper progress towards SDGs” the UN Secretary General said.
While the upturn in global growth is a welcome sign of a healthier economy, this may come at an environmental cost. There is need for stronger efforts to delink economic growth and environmental degradation—as also emphasized by the UN Climate Change Conference in Bonn last month said the UN under-secretary on economic affairs.
Despite the improved outlook, the global economy continues to face risks, including changes in trade policy, a sudden deterioration in global financial conditions and rising geopolitical and trade tensions worldwide. Rise of China looks a horrible dream for the US and both nations continue to remain in hostility. Trump has also accused China of stealing jobs. Since Mr. Trump has assumed the office, he has been pursuing ‘America First’ policy, which is in direct conflict to China. In order to punish China, Trump has imposed severe tariffs on the Chinese products which China has condemned and has accused the US of starting ‘trade war’. China has also fought back and has imposed tariffs on the US goods on $50 billion worth of the US goods.
British have voted for Brexit: the major reason behind it was economic losses to British. They termed EU a dysfunctional economic entity and its failure to address economic issues. Brexit happened to avoid economic disaster and British thought that she cannot tackle economic problems while remaining in the EU.
One Belt One Road (OBOR) is an ambitious project of China. The OBOR aims at connecting Asia, Africa, china and the Europe and economic development of the involved nations. The project is also viewed as ‘Economic Diplomacy’ of China.
Pakistan House is doing comprehensive study by closely watching overall geo-economic situation of the world and provides policy recommendations regarding economic stability, economic growth and socio-economic development.
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