The Resurgence of Power in Global Economics
In the recently published book "The Economy of Global Disorder," Nobel laureate economist Jean Tirole and French economic research director Karine VD Straeten explore a significant transformation in the nature of the international system. They argue that globalization, which for decades has expanded trade and interdependence among nations, no longer guarantees cooperation and convergence. Instead, it has revealed dependencies, sources of influence, and the risks of subjugation. While economic relationships have never been entirely divorced from power struggles, the current shift suggests that the economy is no longer merely a field where nations compete for markets and wealth; it has become a weapon in their strategic conflicts. Increasingly, trade, energy, technology, and global supply chains are utilized to exert pressure and coerce, impose interests, and limit the maneuverability of adversaries. Consequently, geopolitical considerations are not only influencing economic decisions but are also reshaping the rules and priorities in a world where trust in international cooperation is waning, and security and influence take precedence over economic interests.
The Evolution of Diplomatic Strategies
This transformation has given rise to a phenomenon that can be termed "transactional diplomacy," powerfully embodied by former U.S. President Donald Trump. According to the authors, American diplomacy during his tenure shifted towards a "transactional logic," where international relations are managed as a series of negotiations, and success is measured by the direct gains achieved by each party rather than the ability to build sustainable alliances or establish common frameworks. Within this framework, immediate interests overshadow long-term commitments, and negotiating power—particularly the capacity of the stronger party to impose its terms—becomes crucial in determining negotiation outcomes. This shift is not only emblematic of Trump's personal style but also reflects a broader tendency to subject international relations to calculations of immediate profit and loss, undermining mutual trust and the stability of multilateral institutions.
The second notable phenomenon is the changing rules of globalization itself. Previously, companies relied on producing goods in various countries to seek lower costs and higher profits. While this model improved production efficiency and reduced prices, it also made many nations dependent on foreign sources for essential materials, often relying on a limited number of countries and suppliers. Recent wars and tensions in international relations have underscored that reliance on external sources—despite cost benefits—can turn into a risk when circumstances change. A country dependent on others for energy or raw materials may find itself unable to continue production if supply chains are disrupted due to conflict or political disputes. Moreover, countries controlling essential resources can leverage them to pressure others or extract concessions. Thus, economic dependency has evolved from being merely a commercial issue to a significant vulnerability that can be exploited in international conflicts.
Consequently, nations and businesses are no longer focused solely on minimizing costs; they are now also concerned about ensuring supply continuity, diversifying sources, and reducing foreign dependency, even if this entails additional expenses. Therefore, globalization is no longer driven solely by profit and efficiency logic; it is now also influenced by considerations of economic security, diminishing dependency, and struggles for power and influence. This shift redefines the very notion of economic efficiency—trade is no longer separate from security, energy is not merely a commodity, technology is not just a sector, and finance is not immune to geopolitical tensions. Even supply chains have become part of the power calculations among nations. As a result, the criteria for economic efficiency alone are no longer sufficient; states are actively seeking not only cost reductions but also resilience and the diversification of sources and partners to minimize strategic dependencies.
As reported by ar.lemaghreb.tn.
