The Current Global Scenario
The global scenario is chaotic and perilous, characterized by the following features:
- The proliferation of populist leaders has doubled since 2000, now present in 40 countries.
- The power struggle between the US and China fuels a competition for allies and adversaries.
- Peace in Ukraine remains elusive as Trump desires the Russia-occupied region for its rare earth mineral wealth, a stance rejected by Putin.
- The Middle East grapples with a protracted conflict, with Trump’s proposal to transform Gaza into a “resort” deemed fantastical.
- Putin aims to dismantle the European Union and NATO.
- Trump’s tariffs negatively impact both US consumers and global markets.
- The EU has withdrawn from nearly 50 international agreements related to health, justice, education, culture, development assistance, climate change, and more, eroding its global influence.
- The international security and cooperation system is in crisis.
The Plight of Developing Nations
Developing countries face marginalization from international institutional support and dominant nations exercising leadership due to their power.
Historically, numerous developing nations implemented subpar reforms, exacerbating inequality.
Essential Considerations for Developing Nations
- Institutional Quality: Respect for the law and public and private property rights, balance between state and market, and attention to income distribution.
- Prudent Macroeconomic Management: Requires flexible financial, monetary, fiscal, and debt policies to avoid imbalances.
- Coordination of Policy Instruments: Synchronization of public policies for regulation, exports, production, technological innovation to foster a competitive microeconomy and boost global economic productivity, productive investment, and profitability.
- Trade and Development: US protectionism adversely affects all export-oriented countries. International institutions should rectify these issues as they have in the past.
- International Financial Institutions: Developing nations are underrepresented in these institutions, with proposals for reform facing resistance from the US opposing changes to the World Bank and IMF.
- Migration: Migratory movements benefit the global economy, necessitating guidelines for transborder movement. Remittances from emigrants are crucial income sources for their home countries and recipient families.
- Climate Change: Deadly weather phenomena resulting from climate change demand responsible policy implementation by all nations.
Key Questions and Answers
- Q: What challenges do developing nations face? A: Developing countries confront marginalization from international institutional support and dominant nations, exacerbated by past subpar reforms that worsened inequality.
- Q: How does the current global scenario impact developing nations? A: The chaotic global landscape, marked by populist leaders, US-China power struggles, and trade protectionism, negatively affects developing nations’ progress.
- Q: What are essential considerations for developing nations? A: Institutional quality, prudent macroeconomic management, coordination of policy instruments, trade and development strategies, international financial institution representation, migration management, and climate change policy implementation are crucial for developing nations.
