Excerpt
2023, Book Chapter: (Chapter 2) "The paper explores the potential economic implications of geoeconomic fragmentation, a multidimensional, policy-driven reversal of global economic integration mainly driven by strategic considerations. As the authors clarify, geoeconomic fragmentation does “not include fragmentation arising from autonomous shifts in preferences or technology”. Furthermore, the term excludes fragmentation “caused by prudential policies that are undertaken in an internationally coordinated manner, for example, those directed at improving domestic financial stability”. The topic of choice is highly relevant, as the authors convincingly show, particularly for small open economies that have benefited from liberalisation and rely upon the world economy for growth and development. As countries have grown and developed, the post-WWII order that gave birth to the central multilateral institutions has changed. As the authors document, poorer nations are likely to lose from the current policy environment and thus plead, once again, for restraint and cooperation."