FM Nirmala Sitharaman (File Photo)
Union Finance Minister Nirmala Sitharaman Friday defined the existing world order with economists present in the gathering. An idea that needs to not just be pondered but to be used to shape the future economic order. Putting it out in the open for everyone, Sitharaman said, ” The conflicts are intensifying. Sanctions, Tariffs and decoupling strategies are re-shaping global supply chains. Wars and Strategic rivalries redrawing boundaries of cooperation and conflict.”
Sitharaman was addressing the Kautilya Economic Forum in the national capital today on “Seeking Prosperity in Turbulent Times.”
How FM described the new global order –
- Era of great Uncertainty and volatility. Foundation of global order are shifting beneath our feet.
- To state that present is turbulent would-be understatement regarding challenge at hand.
- Dislocations define this new era.
She further elaborated that the international order is morphing and Trade flows are being reshaped , alliances being tested, investments are being rerouted along geopolitical lines, shared commitments are being re-examined.
While many would call it a temporary disruption of the order, FM said, “What we face is not a temporary disruption but structural transformation. “
And that Epochal historical points do not come around every year.
FM also said that India’s rise as a stabilising force is neither accidental nor transient. “Indian economy is resilient . However, just as eternal vigilance is price of liberty, eternal performance is price of strategic independence. There is no room for complacency,” she added.
In a thought provoking address she said that there are Questions that many smaller developing nations face about Multi polarity or unipolar world.
“History offers no guarantees but possibility of fragmented world with multiple centres of power is likely, ” concluded the FM.
Speaking about Trade offs and Imbalances, Sitharaman said that trade offs are accentuated in a world with trends towards derailing, decoupling and slow globalisation. Every imbalance has made some societies chronically dependent on costly imports, added Sitharaman.
Also elaborating on task cut out before the countries today , FM said, “Task before us is not just to manage uncertainty but to confront imbalances. Choices are stark. We see efforts to reimagine global financial system,” she said.