THE INTERNATIONAL ECONOMIC MODEL : PRECIS

 

The International Economic Model authored and implemented in Bretton Woods and redefined through Washington Consensus is creaking under its own weight.

Distortions and imbalances arising out of it are now impinging on the social compact between the state and the society.

Meant to give its authors perennial global eminence it has instead forced an introspection as neither economy nor politics are anymore constrained by physical borders and artificial controls.

Trade is liberalised to the almost extreme sense of laissez faire. Free market is unrestrained. The WTO exists but is barely the vehicle of control.

Sanctions don't work and are blatantly disregarded - both Russia and Iran come to mind. China and India virtually dictate their own rules. The essence and strength of international trade and interdependence is now its own lord.

Only weaker nations remain apprehensive of the fallout of breaking conventions and losing space and favor.

Similarly, technology is the new master. Taiwan can tell off both China and the US of what level of nanotechnology can it share with them.

The World Students Society thanks author Shahzad Chaudhry.