Great Fracture As 3 Rival Blueprints For The Global Economy Emerge

2025-10-09 08:10:20

(MENAFN- Asia Times) The 80th UN General Assembly convened under the hopeful banner of“Better Together,” yet the speeches from the world's major powers revealed a starkly different reality. Instead of renewing a shared vision, they unveiled competing and often contradictory economic worldviews.

This anniversary was not a moment of consensus, but the formal debut of a fractured global order, where the foundational assumption of a common set of rules no longer holds. The era of a single, Western-led economic system, governed by the principles of liberal internationalism, is rapidly eroding.

The world is fragmenting into at least three distinct geo-economic blocs, each with its own blueprint for prosperity, power and technological governance. This is no longer an academic debate confined to think tanks; it is the declared and operational strategy of the world's most powerful nations.

The implications are profound, creating unprecedented volatility for multinational corporations, forcing a radical rethinking of global supply chains, and introducing complex new risks – from weaponized finance to data localization – into the calculus of every investor and corporate board.

1. The sovereignty-first model (US)

This paradigm prioritizes national and economic security over unconditional multilateral commitments. It is a direct reflection of Washington's latest National Security Strategy, which frames the global landscape as one of“strategic competition” and mandates the building of“secure, resilient supply chains with like-minded partners.”

In practice, this translates into assertive industrial policies like the CHIPS Act and the Inflation Reduction Act, which use subsidies and incentives to onshore or“friend-shore” critical industries such as semiconductors and green technology. US subsidies under the IRA alone are estimated at over $369 billion, reshaping investment flows.

For global firms, this model ends the era of frictionless globalization. Market access, technology transfers and capital flows are increasingly conditional on geopolitical alignment. Those outside the US-defined security circle face systemic exclusion from key technological ecosystems.

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