"Geoeconomics will constantly merge with geopolitics. Great dangers will arise, because China and the USA will compete more. Friendly competition is fine, but hostile confrontation – catastrophic" – writes prof. Kołodko in "China Daily Global".
Prof. Grzegorz W. Kołodko, using the example of the Great Depression of 1929-1933, shows, that the economic collapses have both negative and positive effects.
Professor presents four paths, that can be implemented in a global economy in a post-pandemic period. The first is to return to business, as if the lock-down had not taken place before. Capitalism with limited democracy is the second option. The third one is – so-called "chinism" – a one-party meritocratic system, with ownership pluralism and a flexible synergy of the powers of an invisible hand of market and a visible hand of state.
– "It may prove to be an attractive political model, because China has not only been very successful in managing incredible economic growth in the past four decades, but has also been highly successful in its fight against the pandemic" – writes prof. Kołodko.
The fourth path is inclusive globalization based on cooperation between social market economies, to which as many countries as possible should evolve in the pandemic world.
– "The future will be a combination of these four paths. None of them will gain an advantage or become universal. Their heterogeneous coexistence will be smooth and conflicting" – forecasts prof. Kołodko.
The entire article is available here.