Globalization and “Inter-System Competition”
The globalization of politics and the economy as well as the shift of economic weightings to Asia, especially to China, are among the formative economic developments of the last decades. However, support for economic globalization and international policy coordination has declined dramatically in recent years. It is important to examine the consequences this has for the players concerned. At the same time, China’s economic success raises new questions. Competition with China’s state capitalism can be viewed as “third system competition.” The prevailing economic system there a combination of market economy elements and strong state control seems to be able to compete with the European model of the social market economy, and possibly even outstrip it. In state capitalism, however, new rules apply that Western stakeholders need to understand and deal with.
“For decades, globalization has been very beneficial – economically, politically and socially. It is interesting to look at why the process is faltering now and what that means for our societies in the West.”
Prof. Dr. Niklas Potrafke, Director of the ifo Center for Public Finance and Political Economy
