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📑🌐 Digital Agreements: New Trends in International Alliances

Biden’s multilateralism does not refer to participation in a collective security organisation such as the United Nations; it is a euphemism, describing the perseverance of the Cold War-era NATO military alliance in contemporary times.

Its lack of confidence in its own strength and development renders it unable to respond to external competition in a normal way, which is the vital mechanism in promoting digital agreements, writes Shen Yi, Director of the Cyberspace International Governance Research Institute, Fudan University.

#Corporations_and_Economy

https://valdaiclub.com/a/highlights/digital-agreements-new-trends-in-international-all/
🪙 Will inflation be back?

In the last three decades, inflation which posed a challenge in both advanced (AEs) and emerging-market and developing economies (EMDEs) in the 1970s and 1980s, was on the continuous decline. As a result, it disappeared as a threat and severe risk factor from economic policymaking in many countries. However, dramatic monetary and fiscal policy choices caused by the COVID-19 crisis brought the inflation question back to the agenda.

The most recent inflation data from the US and several other countries signal that consumer prices started to rise. The question remains open whether this is a temporary post-pandemic rebound or the beginning of a more persistent inflationary trend, writes Valdai Club expert Marek Dabrowski

#Corporations_and_Economy

https://valdaiclub.com/a/highlights/will-be-inflation-back/
👥🌐 The development of “human capital” may even be recognised as a goal in itself for economic development.

Ultimately, it is precisely the development that increases the potential growth of the economy while reducing imbalances associated with inequality and inadequate institutions.

The standard guidelines for economic policy prescribe either the maximisation of economic growth rates (accelerated modernisation, so-called “catch-up development”), or macroeconomic stabilisation (the reduction of inflation, budget imbalances and public debt). But there is a kind of "third way", namely the development of "human capital", which has more long-term objectives and which in many respects should serve as a basis for all other macroeconomic priorities. 

The basis of an economic strategy focused on the development of "human capital" must necessarily be a strategy for the long-term development of the economy, with which all short-term and medium-term economic priorities are coordinated, writes Yaroslav Lissovolik, Programme Director of the Valdai Discussion Club.

#Corporations_and_Economy

https://valdaiclub.com/a/highlights/the-macroeconomics-of-human-capital-development/
🇮🇳💻 One of the seeming paradoxes of today's India is the desire of the country's leadership to achieve a technological breakthrough, and at the same time return to the traditional basics of Indian civilisation, which Indian leaders, led by Narendra Modi, see primarily in the canons of Hinduism and Vedic principles

Among the public, Indian politicians and officials are often criticised for creating a climate in the country where those practicing religions other than Hinduism feel uncomfortable, and science is forced to go underground, while anti-scientific concepts flourish. 

Meanwhile, India is making significant progress on the path of innovative development, and there is ample evidence that, despite some peculiar manifestations returning Indians to their roots, the country is simultaneously moving towards its highly ambitious goal of becoming a powerful new technological player in the near future.

A possible explanation of this contradiction between tradition and modernisation may be related to the fact that Indians are not afraid of the painful changes associated with technological progress, since in the coordinated system of Indian philosophy variability is the only constant in nature, writes Lydia Kulik, Head of India Studies at the SKOLKOVO Institute for Emerging Market Studies, Moscow School of Management SKOLKOVO.

#Corporations_and_Economy

https://valdaiclub.com/a/highlights/india-s-digitalisation-profile-distinguishing/
💸 The impact of the pandemic just deals another blow to the vulnerable world economy that faces sluggish demand, excessive debts, de-globalization and some other challenges and risks.

This is actually owed to the fact that the human society can neither effectively tackle the challenges from economic globalization nor advance the healthy development of economic globalization.

As the COVID-19 pandemic increased the instabilities and uncertainties in world economy, all countries need opening-up and cooperation than ever before. History tells us, no matter what risks, disasters or setbacks humans encountered, the society always moved on and is bound to move on.

Cooperation for common opening-up is an important guarantee for humans to move forward. In the special period, efforts must be made to maximize the role of every player in global governance.

With the development of economy and society, participants in global governance will cover not only sovereign states and international organizations, but also development institutions, multinational corporations and some other private sectors.

In face of the current challenge, we shall focus on how to give play to the role of each country, particularly major powers, the role of international development financial institutions, World Bank, Asian Development Bank as well as the New Development Bank and Asian Infrastructure Investment Bank founded in recent years, so as to improve global governance and jointly advance the recovery of world economy, writes Zhang Henglong, Professor and Dean, Social Development Research Institute, Shanghai University, China.

#Corporations_and_Economy @valdai_club

https://valdaiclub.com/a/highlights/strategy-for-post-pandemic-recovery-of-the-world/
💸 Inflation is on the rise across the globe – whether in the US, in Europe or in Asia.

As the world economy is coming to its senses after the blows of the pandemic, new risks and vulnerabilities are emerging in the aftermath of the unprecedented stimulus unleashed by both emerging and advanced economies.

The key risk that is starting to unnerve financial markets and policymakers is the specter of higher inflation as reflected in the latest figures coming out of the US and emerging markets.

Russia is having its fair share of inflationary pressures, which the CBR is likely to counter through further rate hikes. And while the dominant view in the markets is still that the pick-up in inflationary pressures is temporary, there is a rising concern that the risks of higher inflation have been underestimated, including by the monetary authorities.

The multiplicity of factors serving to build up inflationary pressures in the current market conditions is daunting. Inflationary expectations are on the rise and approaching multi-year levels in Russia and abroad, writes Valdai Club Programme Director Yaroslav Lissovolik.

#Corporations_and_Economy

https://valdaiclub.com/a/highlights/inflation-staging-a-comeback/
📈🌐 The rise in economic inequality has widely been termed in the past several years as the key factors contributing to the vulnerabilities of the global economy.

But while most of the attention with respect to inequality has centered on the rising income differentials of households, there is also an important sectoral and corporate dimension with regard to the uneven and unbalanced development of the global economy. In particular, one of the implications of the pandemic in 2020 has been a marked rise in the level of market concentration across multiple sectors of the global economy.

The rise in market concentration may be a longer term challenge for the global economy, given that some of the drivers of these trends involve structural transformations. In particular, the green transformation and the rising importance of ESG may favour the larger companies that are more in a position to stomach the higher costs associated with such changes, writes Valdai Club Programme Director Yaroslav Lissovolik.

https://valdaiclub.com/a/highlights/the-specter-of-rising-market-concentration/

#Corporations_and_Economy @valdai_club
🌐 The current crisis is that it is not a one-off stumbling block on the road to greater prosperity in the future.

There are just too many vulnerabilities and road-bumps along the current path that necessitate an outright rethink of the development itinerary.

“Enlightened self-interest” and “invisible hands” as guiding principles have not served the global community well. If the challenge of the current pandemic is ever to be decisively surmounted, it is going to be through a joint response.

The hope is that this common effort will be transformational for the global community and will lead to emergence of new pathways and institutions for international cooperation, writes Valdai Club Programme Director Yaroslav Lissovolik.

#Corporations_and_Economy

https://valdaiclub.com/a/highlights/passing-the-test-of-the-covid-pandemic/
🇨🇳 The economy of the PRC has been constantly growing over the past 30 years. China’s economic development plans are ambitious.

▪️ China ranks second in the world in terms of nominal GDP, behind only the United States. Since the early 2000s, China’s gross domestic product has increased 12-fold.

▪️ In terms of nominal GDP, China has surpassed Italy (2000), France (2002), Great Britain (2006), Germany (2007) and Japan (2010). 

▪️ Also, China is leading in terms of industrial production.

▪️ Chinese companies such as Alibaba and Tencent are among the TOP 10 companies in the world in terms of capitalisation; their market value is already approaching $ 1 trillion each.

▪️ Other companies such as Baidu, Xiaomi, Huawei, Lenovo and many others are also actively developing.

▪️ There is a significant increase in the capitalisation of Chinese companies, especially in the field of telecommunications, e-commerce, pharmaceuticals, etc.

The coronavirus pandemic has made adjustments to the economic growth indicators of every country. In recent years, the growth rate of the Chinese economy has exceeded 6% per year. However, since 2017, there has been a slowdown in GDP, caused not only by external factors, but also by internal ones — a significant investment in the development of the domestic market, as well as in infrastructure, transport and roads; the payback period of such projects is long-term. In 2020, China’s GDP grew by 2.3%, its lowest growth rate since 1976. However, already in the fourth quarter of 2020, China managed to restore its economic indicators, and the country became the leader in economic growth during the period of the pandemic.

According to some experts, the Chinese economy will overtake the US economy within the next 5-7 years, writes Anastasia Stepanova, Deputy Head of the Business Tourism Development Center, Russian-Chinese Chamber for Machinery, Technologies and Innovations.

#Corporations_and_Economy

https://valdaiclub.com/a/highlights/the-main-directions-of-chinese-economic-policy/
💸 During the first global financial crisis since 2008, sovereign wealth funds were not only at the front of the fiscal response but also actively investing in their countries’ economies.

For governments with a stabilisation or a savings fund with liquidity, the immediate action was to draw down on the fund or to access international debt markets.

The main difference to the Global Financial Crisis is that sovereign funds have mainly invested domestically across all sectors, as opposed to overseas investments in financial services in 2008-9, writes Enrico Soddu, Head of Data & Analytics, International Forum of Sovereign Wealth Funds.

#Corporations_and_Economy

https://valdaiclub.com/a/highlights/the-role-of-sovereign-wealth-funds-in-the-pandemic/