The Regionalization of Interdependencies in the World Economy

Abstract

The global economy operates within a intricate web of interconnectedness among its participants, necessitating continual adaptation—a crucial imperative in the modern era. Numerous factors contribute to or impede the harmonization of international economic relations, particularly concerning the development of production factors. Hyperglobalization stands out as a positive force, fostering unprecedented prosperity from 1990 to 2008. Conversely, global crises represent a starkly negative aspect, precipitating the economic downturn we currently face and stalling the expansion of global interdependencies in recent times. The dual challenges of the pandemic crisis and Russia's invasion of Ukraine loom large, threatening to setback global economic progress by several decades. Within this context, this article endeavors to identify strategies for addressing the complexities of interdependency within the global economic system, specifically by focusing on enhancing regional economic potential while still acknowledging the importance of the global dimension. This approach does not advocate for forsaking global interconnectedness; rather, it suggests fostering a more organized alignment of interdependencies and production forces at the regional level, promoting global values through integration and peaceful adaptation to change. Simultaneously, it advocates for the development of robust global systems, institutions, and norms. This paradigm shift would introduce a new regional dimension to economic development strategies worldwide. The article critically examines the transition from a global to a regional focus—a predominant trend in the current global economic landscape—and assesses its impact on aligning interdependencies and production forces. A pertinent question arises: Can the expansion of BRICS with six new members serve as an exemplar of this adjustment, or might it exacerbate global instability by heightening tensions between established entities like the OECD and the BRICS, or between the G7 and the E7? DOI: https://doi.org/10.53486/cike2023.76; UDC: [339.94+339.923]:[332.14+338.124.4]; JEL: F02, F15, F53, O19