Many scholars and experts are voicing a deep concern about what the next global economic order is going to look like in a more fragmented geopolitical world. Many international relations specialists declare that the growing influence of Russia and the investment power of China globally poses serious threats to the US-led liberal international order. Two words will shape the next global economic order. The new global economic ecosystem, including both trade as well as the economy, will be the result of the convergence of two words: rules and values. In foreign policy exchanges, rules and values are of great importance because they direct the interests of nations in the global economy.
In this article, we explore the significance of rules and values in the development of the next global economic order.
Importance of rules in the next order
A global economic order is made up of institutions and organizations. Institutions are basically rules. Rules and norms are the glue that holds the international liberal order together. This is reflected in the very establishment of international organizations such as the International Monetary Fund, World Bank Group, World Trade Organization, United Nations, and its many agencies. These organizations enact a number of rules that would govern world affairs, be it political, economic, or cultural. In doing so, they help monitor the behaviors and actions of players in a way that benefits everyone in the order. For example, the United Nations was created in 1945, following the devastation of the Second World War, with one central mission: the maintenance of international peace and security. To realize this noble mission and vision, the United Nations works with 195 member countries to prevent conflictual situations, maintain peace among actors in conflict, send soldiers, and bring nations together to promote peace and security. Another example is that of the World Trade Organization. The overall objective of the World Trade Organization is to help its members use trade as a means to raise living standards, create jobs and improve people’s lives. The WTO operates the global system of trade rules and helps developing economies build their trade capacity. Global rules of trade provide assurance and stability.
The International Monetary Fund, also known as the IMF, was founded to pursue three important missions: furthering international monetary cooperation, encouraging the expansion of trade and economic growth, and discouraging policies that would harm prosperity. To fulfill these missions, IMF member countries work collaboratively with each other and with other international bodies.
Importance of values in the next order
The next international economic order for many countries, or individuals, will be shaped by values. Values derive from history, traditions, myth, cultural, religious background, and ethnic make-up. Values have the capacity to influence the choice of partners a nation chooses.
Values determine policy .The dynamics of the upcoming global economic relations in the 21st century more often will move from the traditional balance of power to a values-based competitiveness leadership, two conditions of international cooperation. Therefore, national values begin to play an ever-larger role, sometimes even prevailing over the discussions in business diplomacy and the international trade cooperation battle. This values-based competitiveness leadership factor will become of particular significance for the perception of global cooperation by society in several nations.
Rules or Values?
The choice will be particularly concerned with how formal and informal institutional actors enact sets of rules and norms, whether through regulation, enforcement, monitoring, localization, appropriation or contestation. It is important that each country chooses its own direction in the international economy and relations. The failure of multilateralism to maintain global peace and create an inclusive international cooperation system is setting the stage for developing countries to chart a new course of action for themselves. It is clear that if some nations do not follow cooperative rules, these nations will have many problems in the international relations systems. In this complex contemporary society, both values and rules will be the foundation of an international cooperation that everyone has to follow.
Countries that will act based on their national values will challenge the liberal interests of the existing global economic order. It is a kind of values-based decision-making that will allow them to throw away old rule books. When a group of nations espouse an agreed set of values and understand which behaviors support those values, then they no longer need to rely on others to follow global rules and principles setting out what leaders should or should not do in specific situations.
In Africa, we see countries and populations bound together by a shared past of struggle, problems, challenges, and opportunities. In Africa, for example, leaders and populations are working toward a common future. This includes building successful and thriving economies for their nations and communities. African nations want to belong to a global community where their values are respected, treasured, and appreciated. Several countries in Sub-Saharan Africa are further exploring effective strategies to challenge the dominant worldview, which is the international rules-based order. In so doing, these countries draw on different vantage points, whether in terms of global, regional, transnational, or private players and fields.
Final Thoughts
The new global economic order is already here. It is taking real form day after day. Looking around the world, there is so much that unites rather than divides. In the next global economic order, we must pursue peace over domination. Countries in the developing world, especially African counterparts must pursue collaboration without fear, hope without despair, and ambitions without apologies. Countries should have the opportunity to decide the kind of economic order they want for their people. Some will decide based on values, while others will belong to a liberal international economic order. They must be free to choose what meets their aspirations and development goals. When countries are free to decide for themselves, there are several avenues for cooperation and peacemaking. This is what strong leaders must pursue and accomplish for the good of all human beings on earth.
Author The Author
Jean Narcisse Djaha, Ph.D., is the Founding President and Chairman of the African Council on Foreign Relations. He is guided by Romans 8:30” And those he predestined, he also called; those he called, he also justified; those he justified, he also glorified”.
