Politico -2- The U.S. and China are in a race to see which nation can develop the most regionalised societies and economies, a new analysis of data and surveys finds.
The U.N. Intergovernmental Panel on Climate Change (IPCC) and other experts have been saying for years that regionalism is the new normal.
The world’s five largest economies have been building coalitions of countries in their regions to push forward economic integration and climate change action.
In the world’s biggest economy, this is being challenged by the emerging power of China and India.
The findings from the World Economic Forum (WEF) and a new study by the Institute for Economics and Peace, which was released on Tuesday, paint a picture of a world where regionalism has been overtaken by the growth of a single economic superpower: China.
The World Economic forum has been warning for some time that China, the world leader in coalitions, would take over as the global leader in regionalisation.
In recent months, however, China has moved to consolidate its regional dominance by increasing its trade and investment with countries that are more integrated and dependent on China than ever before.
While some of these countries, such as Brazil and India, have been growing, others, such the United States and Europe, have slowed down their economic growth and diversified into regions such as the Middle East and Africa, according to the study.
In the first half of the 20th century, China grew at a rate of 3 per cent a year.
In contrast, the United Kingdom’s economy expanded at a faster rate of 2.8 per cent per year.
China has also increased its share of the world economy by an astonishing 1.4 percentage points in the last 15 years.
The growth in China is outpacing that of the rest of the global economy, which grew by 2.7 per cent, the WEF said.
The global economy is now growing at an average annual rate of about 2 per cent.
But the world has been increasingly reliant on regionalism, with economies in the Middle and East being the least developed regions in the world.
“In a globalised world, there is growing demand for regional integration and regional economic power, especially from Asia and the Pacific region, where the regional integration has been built up over the past century,” said Ipso Petitjean, chief economist at the WEFs Global Centre for Policy Research.
“The shift to more regionalisation has been accompanied by a shift to a globalisation that is less driven by the needs of the local economy, but more driven by those of the transnational global economy.”
The global economic slowdown is a result of two factors: first, there are no significant new opportunities for regional economies; and second, the current global trade and financial climate makes it difficult to build regional economies in response to the slowdown in global growth.
This is why the region has been growing faster than the global average over the last decade.
China is rapidly increasing its share in global GDP by more than 7 percentage points over the period between 2010 and 2020, the study found.
It is now a net contributor to global GDP, and China’s share of global GDP is rising faster than any other country.
“For a while now, there has been an almost complete divergence between the regional economies, and this is now shifting.
China is the global economic superpower and has a clear grip on regional economic growth,” said Peter Hiltzik, director of the World Resources Institute’s Centre for Energy and the Environment.
China’s growth has driven a shift away from the internationalised economic model that the WEFS has been advocating for decades.
Instead, regional economies are increasingly relying on globalisation, which the WEFP calls the “new global order”.
This means that countries that can benefit from international trade and finance and which can benefit more from investments from their neighbours, such Europe and North America, are being forced to be more regionalised.
The WEF study also shows that, in the 21st century, globalisation has brought about a decline in regionalism and a shift towards a more globalised economic structure.
For instance, a number of countries that have been able to rely on free trade and international investment are increasingly struggling with globalisation.
“As the globalisation model is increasingly based on the use of the WTO rules, a weakening of the international trading system and a weakening or even collapse of the European Union and other international institutions, there will be a more pronounced shift towards globalisation,” Petitjun said.
“A stronger global economy has the potential to increase the opportunities of countries to compete globally in the future.”
While China and the United State have been expanding their influence, other emerging economies, such South Africa and Brazil, are now emerging as regional powerhouses, with the potential for regionalisation to accelerate.
“These countries have a strong commitment to regionalisation, but they also have the potential of becoming more regional and global,” Hiltik said.
“There are several reasons why they might