{"id":229026,"date":"2023-02-27T20:37:39","date_gmt":"2023-02-27T15:07:39","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=229026"},"modified":"2023-02-27T20:39:18","modified_gmt":"2023-02-27T15:09:18","slug":"the-new-abnormal-global-institutions-consensus-are-fraying-under-pressure-from-protectionism","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-new-abnormal-global-institutions-consensus-are-fraying-under-pressure-from-protectionism\/","title":{"rendered":"The New Abnormal: Global institutions, consensus are fraying under pressure from protectionism"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cThe New Abnormal: Global institutions, consensus are fraying under pressure from protectionism\u201d <\/strong>published in The Indian Express <\/strong>on 27th February 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3- Economy<\/p>\n

Relevance:<\/strong> Economic scenario across the world<\/p>\n

News-<\/strong> The world economy is undergoing major changes in recent times.<\/p>\n

What is happening across the global economy in recent times?<\/strong><\/h2>\n

De-globalisation and protectionism<\/strong> has reached new heights in recent times. The environment of growing distrust and reactionary policy actions <\/strong>is worrying.<\/p>\n

The supply-side disruptions<\/strong> during the last three years have created problems for the world economy. Countries are adopting policies that build self-reliance and self-sufficiency<\/strong>.<\/p>\n

Some policies also aim at exploiting the opportunity and becoming a part of the disrupted global supply chains<\/strong>. Many such policies do not comply with WTO rules.<\/p>\n

In the US, \u201cAmerica first\u201d policies<\/strong> are directed at protecting US producers from foreign competition. The Inflation Reduction Act<\/strong> promotes protectionism<\/strong>.<\/p>\n

The European Commission<\/strong> has introduced its own Green Deal Industrial Plan<\/strong>. It provides for state aid<\/strong> to help Europe in clean tech products manufacturing<\/strong>.<\/p>\n

The EU has also come out with a Carbon Border Adjustment Mechanism<\/strong> to protect its industries from imports from jurisdictions with \u201cless stringent\u201d climate policies.<\/p>\n

High global inflation<\/strong> is another unusual phenomenon.<\/p>\n

What is the economic scenario in India?<\/strong><\/h2>\n

India\u2019s stance on trade policy<\/strong> has been confusing. It has not joined many important free trade agreements<\/strong> in the name of \u201cnational interest<\/strong>\u201d. This inward-looking stance<\/strong> contradicts the aspiration to be a part of global value supply chains<\/strong>.<\/p>\n

India’s desire to restrict trade with and investments from China hasn\u2019t worked. India\u2019s trade deficit with China has increased to $73 billion in 2021-22 and has reportedly crossed $64 billion during the first nine months of the current financial year.<\/p>\n

CPI inflation<\/strong> hasn\u2019t come down to 4%. It has been consistently high in recent months.<\/p>\n

Its quest for atmanirbharta<\/strong> has kept import tariffs high. This is leading to a high-cost economy <\/strong>besides bringing in production inefficiencies<\/strong>.<\/p>\n

The existing PLI scheme <\/strong>should be critically reviewed<\/strong> and its objectives spelt out.<\/p>\n

What are the consequences of economic policies adopted across the world?<\/strong><\/h2>\n

The basic structure of the world orde<\/strong>r is under threat. It was established over decades through trust, multilateral institutions and mutually beneficial and well-intentioned global negotiations<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cThe New Abnormal: Global institutions, consensus are fraying under pressure from protectionism\u201d published in The Indian Express on 27th February 2023. Syllabus: GS3- Economy Relevance: Economic scenario across the world News- The world economy is undergoing major changes in recent times. What is happening across the global… Continue reading The New Abnormal: Global institutions, consensus are fraying under pressure from protectionism<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10500],"class_list":["post-229026","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/229026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=229026"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/229026\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=229026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=229026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=229026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}