Asia & the Pacific

Joseph S. Nye argues that history shows that globalization is largely driven by technological changes that reduce the importance of distance, and that will not change.

The geopolitical and geo-economic forces wrought by the coronavirus pandemic, as examined previously in this series, are likely to slow the transition to a more sustainable global energy mix. Fortunately, the pandemic has also resulted in governments gaining vastly greater influence over whether this shift stalls or accelerates.

For most people, there was nothing to celebrate when the International Monetary Fund downgraded its outlook for global economic growth in June, anticipating a contraction of 4.9% for 2020. Yet for others, such as the small but persistent group of economists and others known as the “degrowth movement,” the Covid-induced economic slowdown has a silver lining.

The search for silver linings to the coronavirus pandemic has come up woefully short. But one hopeful — and much talked of — prospect is that the disruption will accelerate the global shift to a more sustainable energy future.

Joseph Nye writes that the world is increasingly obsessed with the ongoing power struggle between the United States and China. But the technology-driven shift of power away from states to transnational actors and global forces brings a new and unfamiliar complexity to global affairs.

Joseph Nye suggests that a new U.S. administration might take a leaf from the success of the post-1945 American presidents that are described in Do Morals Matter? Presidents and Foreign Policy from FDR to Trump. The United States could launch a massive COVID-19 aid program like the Marshall Plan.

Today’s economic crisis leaves us with an unsettling and perplexing regret. Why weren’t financial portfolios already adjusted for risks that stem from health events such as pandemics? After all, financial portfolios are adjusted for liquidity risks, market risks, credit risks, and even operational and political risks.