Professor Rodrik desribed the “inescapable trilemma of the world economy”. Democracy, national sovereignty and global economic integration are incompatible, he says. You can combine any two of those elements, but not have all three simultaneously.
Can the economy grow indefinitely or does economic growth actually have natural limits? Some scientists predict that we might be approaching the turn in global consumption.
Ever since its origin, human society has been predominantly rural. In 2010, the number of people living in urban areas (3.5 billion) has surpassed the number living in rural areas.
International financial institutions, such as the World Bank and IMF, have been slow to reflext geopolitical shifts. Europe is over-represented while developing countries are under-represented.
Countries have not been able to negotiate multilateral trade agreement under the umbrella of WTO. Instead, they turn to regional trade agreements such as Trans-Pacific Partnership (TPP).
Modern commerce is dominated by global supply-chains through which transnational companies manage and distribute goods and services to maximize profit.
Modern economic growth brings less inequality as opposed to traditional pre-modern societies. Alas, this trend has turned into more inequality after 1970s.
Although the number of foreign aid projects grows, their average size diminishes. This could increase administrative costs and reduce aid effectiveness.
Effective foreign aid has four pillars: 1. Partner countries set their own priorities, 2) Donors align with priorities of partner countries, 3) Donors harmonize their assistance among themselves, 4) Aid is driven by results.
Illicit financial flows from Africa outweight what the continent gets in the form of foreign direct investment and foreign aid.