Global resilience in a divided world calls for unified action

Amid rising protectionism, shifting trade dynamics and deepening geopolitical rifts, economic resilience will increasingly hinge on diversifying markets, mobilizing investments and enhancing international cooperation. These themes were the focus of financial leaders at the 2026 IMF and World Bank Group Annual Meetings in Bangkok.

Kristalina Georgieva, managing director of the International Monetary Fund, highlighted the far-reaching consequences of waning global cooperation. Beyond hampering economic efficiency, weakened collaboration risks eroding trust and stifling innovation.

"The price of reduced cooperation manifests in three critical areas," Georgieva explained. "First, duplicative efforts result in inefficiencies, as tasks that could benefit the collective are redundantly undertaken. Second, the possibilities for groundbreaking advancements diminish without robust, cross-border research collaboration. Most critically, the erosion of global trust undermines the very fabric of international well-being and unity."

She emphasized that countries need to fortify their fiscal resilience and ensure robust monetary policies to navigate an era of frequent and often unforeseen economic shocks.

Georgieva said that in a world increasingly defined by fragmentation, countries should prioritize diversification over economic isolationism. By embracing regional integration, nations can unlock growth potential through reduced trade barriers, expanded market linkages and collaborative energy strategies, such as those proposed in Europe to lower costs and boost competitiveness.

The IMF, she added, stands committed to building global bridges and maintaining stability in an environment marked by growing divisions.

Ajay Banga, president of the World Bank Group, pointed to evolving global trends in trade, capital flows, and labor mobility as potential avenues for fostering development in emerging economies. However, he underscored the critical importance of creating an enabling ecosystem for investments that merge public, private and philanthropic funding.

"Global trade has quadrupled, and the share of developing economies in this trade has doubled," Banga noted. "Trade between developing nations now constitutes half of their total trade, offering a tremendous opportunity to deepen economic ties across regions such as South Asia, Africa and Latin America."

Banga also stressed that investment efforts must go beyond providing financial incentives. He highlighted the importance of building reliable infrastructure, including transportation, utilities, and digital networks, while investing significantly in education, healthcare and skill development to sustain long-term economic productivity.

"The demographic dividend is enormous," he said. "Over the next 12 to 15 years, 1.2 billion young people in emerging markets will turn 18. Giving them access to essential services and economic opportunities will be key to transforming this potential into tangible economic growth."

Banga also drew attention to the importance of predictable governance and transparent regulations in attracting private capital. Unclear or inconsistent policies, he warned, discourage investment by heightening risks and costs.

Addressing the forum, Thailand's Deputy Prime Minister and Finance Minister, Ekniti Nitithanprapas, added his voice to the call for enhanced international collaboration, cautioning against protectionism at a time when economic connectivity is more critical than ever.

"In Europe, intra-regional trade accounts for approximately 60 percent of total trade, while in our region, we're only at around 20 percent," Ekniti emphasized. "This demonstrates the untapped potential for strengthening economic integration within Asia."

Ekniti also urged countries to join forces in addressing emerging risks from digital technologies, including artificial intelligence. He advocated for shared digital public infrastructure and adaptive regulatory frameworks, encouraging cooperation not just among states but also between businesses and international financial entities such as the World Bank.

Investment in sustainable development, inclusive finance and green infrastructure, such as higher-quality steel and cleaner construction materials, would further bolster global economic resilience, he added.

Given its strategic location and strong economic foundations, Thailand could serve as a vital connector between larger and smaller economies, Ekniti said. This could include facilitating collaborative energy and infrastructure projects across borders. He concluded by emphasizing that global aspirations must be underpinned by tangible, localized efforts to build robust systems.

yangwanli@chinadaily.com.cn