While the Crisis Proceeds: A World Redistribution of Economic Power?

FEUNL Working Paper Series No. 558

27 Pages Posted: 13 Oct 2011

See all articles by Renato G. Flores

Renato G. Flores

Getulio Vargas Foundation (FGV) - Brazilian Institute of Economics

Date Written: September 9, 2011

Abstract

The crisis has drawn attention to the fact that not only emerging powers but other regions of the world as well may be offering different development models and may constitute into alternative, in some dimensions more positive agents, in the conduct of the present stage of globalisation. Notwithstanding, the traditional western powers have not lost a large amount of control of the world economy. And the crisis proceeds, reallocating world power as in a Hobbesian anarchy. It is difficult to foresee smooth developments in the near future. On the contrary, multilateralism seems to be losing ground to unilateral action or bilateral arrangements. More or less disguised currency wars may lead to serious disequilibria, and turf wars may become more frequent, with motives ranging from securing captive markets to control of specific commodities and energy goods, or targeted regulatory frameworks. As economic policy becomes even more involved with defence and security affairs, the feedbacks from each side to the other seem likely to keep dissent and animosity high, rather than contributing to peaceful and constructive approaches. A more trouble-prone world may be easily expected.

Suggested Citation

Flores, Renato G., While the Crisis Proceeds: A World Redistribution of Economic Power? (September 9, 2011). FEUNL Working Paper Series No. 558, Available at SSRN: https://ssrn.com/abstract=1942858 or http://dx.doi.org/10.2139/ssrn.1942858

Renato G. Flores (Contact Author)

Getulio Vargas Foundation (FGV) - Brazilian Institute of Economics ( email )

Centro de Polticas Sociais - CPS
Rio de Janeiro 22253-900
Brazil

HOME PAGE: http://epge.fgv.br/portal/pessoas/docente/2023.html

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