Resilience and vitality through innovation

Building trust in the global economy

By Glenn Diesen

For decades, the international economic system has helped countries trade, invest and grow through increasingly interconnected markets. Today, economic activity depends not only on the movement of goods, but also on technology, transport corridors, banking, currencies and payment systems. These connections create opportunities for growth, but they also raise an important question: how can we make the global economy more stable and resilient?

Economic interdependence has brought considerable benefits. Businesses can source materials from different markets, reach customers across borders and use established infrastructure to move goods efficiently. Yet when critical supply chains or financial networks face disruptions, the effects can spread beyond individual companies or countries.

Stability therefore requires more than efficiency. Businesses and economies must consider how to manage risks, diversify supply sources and maintain alternatives when unexpected disruptions occur. Depending too heavily on a single supplier, transport route or essential service can leave an otherwise efficient system vulnerable. Building resilience means ensuring that economic connections remain reliable even when conditions change.

Technology and infrastructure are central to this effort. Advances in manufacturing, logistics and digital systems can improve productivity and make supply chains more responsive. Reliable transport links and effective banking and payment networks are equally important. As these systems become more closely connected, their development must be accompanied by appropriate standards, clear rules and effective coordination.

Governance, however, cannot be treated as a purely technical exercise. International economic activities involve different markets, institutions and priorities. Cooperation requires communication, mutual understanding and mechanisms that allow participants to address shared challenges.

International organizations and multilateral cooperation can help provide a framework for such efforts. As new technologies and industries develop, existing rules and institutions may need to adapt. The challenge is to establish arrangements that reflect changing economic realities while remaining practical, transparent and inclusive. Countries need opportunities to participate in emerging industries, develop new capabilities and benefit from cross-border cooperation.

There is no single formula for ensuring economic stability. Different economies face different risks, but share an interest in reliable supply chains, predictable financial arrangements and effective channels for cooperation.

A more resilient global economy does not require countries to eliminate their interdependence. It requires a better balance between efficiency and security, national capabilities and international cooperation, and technological progress and sound governance.

Ultimately, stability depends on more than the strength of individual economies. It also depends on whether the systems connecting them can adapt to change, manage uncertainty and continue to support shared economic development. Strengthening these foundations is essential to building confidence in the global economy and ensuring that its benefits remain widely accessible.

The author is a professor of international relations at the University of South-Eastern Norway. The views don't necessarily reflect those of China Daily.

If you have a specific expertise, or would like to share your thought about our stories, then send us your writings at opinion@chinadaily.com.cn, and comment@chinadaily.com.cn.