Global Leaders Disagree on the Future of the World Order
The world is undergoing significant changes, but whether this signals a complete rupture in the global order is a topic of debate among finance leaders. Recently, Prime Minister Mark Carney sparked a discussion at the World Economic Forum in Davos, Switzerland, by suggesting that the rules-based global order is over and that great powers are abandoning international agreements.
A New World Order?
Carney quoted the ancient Greek historian Thucydides, saying that the world is entering a period where "the strong can do what they can and the weak must suffer what they must." However, not everyone agrees with Carney’s assessment. European Central Bank President Christine Lagarde expressed a different view, stating that she is "not exactly on the same page" as Carney and that instead of talking about rupture, we should be discussing alternatives and identifying weaknesses.
A Call for Resilience
World Trade Organization chief Ngozi Okonjo-Iweala noted that uncertainty is unlikely to remain as high as it was when U.S. President Donald Trump threatened to take over Greenland from NATO ally Denmark. However, she also emphasized that the old order is not going to return and that countries must invest in their own resilience. Okonjo-Iweala advised countries to strengthen themselves and their regions, and to build resilience in the face of uncertainty.
Embracing Change
Kristalina Georgieva, the International Monetary Fund’s director, argued that change is natural and has been happening for years. She emphasized that it’s time to embrace this change because shocks will continue to occur. Georgieva referenced the Wizard of Oz, saying "we are not in Kansas anymore," meaning that the comforts of familiar surroundings are gone for good.
A Time for Reflection
Lagarde, who had previously walked out of a Davos dinner during a speech critical of Europe, was in a more forgiving mood later on. She stated that the criticism of Europe had been a wake-up call, prompting Europeans to realize the need to be more focused and work on alternative plans. Lagarde expressed gratitude to those who had criticized Europe, saying that it had given them a "complete realization of the fact that we have to be more focused."
Conclusion
In conclusion, while there is disagreement among global leaders about the future of the world order, one thing is clear: the world is undergoing significant changes. Whether this signals a complete rupture or a natural evolution, one thing is certain – countries must be resilient and adapt to the changing landscape. By investing in their own strength and regional cooperation, countries can build a more stable and secure future. As the global landscape continues to shift, one thing is certain – the old order is gone, and a new era of international relations has begun.
