In a bid to promote its national pride and boost tourism, the previous Georgian government greeted travellers with a small bottle of wine. The present government briefly revived the practice over the past Christmas. But visitors may have reason to feel less welcome since Georgia adopted a new immigration law in September 2014. Read more
The decision of several European countries to join the China-inspired Asian Infrastructure Investment Bank has created a widely believed narrative as follows. Beijing, frustrated by its exclusion from the centres of power in existing international economic institutions, creates its own. The accession of the UK to the bank, followed by (to date) five other European countries, is a powerful testament to China’s role as a rising hegemon.
This narrative is not wrong, but is far from the whole story. First, China’s decision to bypass multilateral institutions and go it alone with development lending was hardly forced on it. Second, Beijing’s willingness to allow western nations to join the AIIB is also an admission that its bilateral efforts have often not worked well. Read more
By Takashi Mitachi, Boston Consulting Group
The prize of a new World Trade Organisation (WTO) deal eluded negotiators in Bali at the end of 2013, collapsing over Indian concerns that the planned deal would endanger domestic grain subsidies that help feed India’s poor. In the meantime, there has been a surge of trade talks taking place across the world − some pan-regional, some regional, some bilateral.
Though these agreements may stimulate growth, they are likely to accelerate the multipolarisation of the world and even competition among regional blocs far beyond trade. Larger states are using trade as a geo-economic weapon to increase their dominance of their neighbours and promote their own national champions. And governments are rejecting the shared belief in a ‘win-win’ form of globalisation, where free trade and mutual interdependence bring peace and prosperity. Read more