Global systemic transformations

The articles in this opening chapter assess the shift in global economic equilibrium from Western hegemony to Asian resurgence through different country and regional perspectives. It is probable that historians will see the 2008–2009 financial crisis as hugely significant in the relative redistribution of geopolitical and economic power. The robustness of the multilateral trading system over the next decade will partly depend on how we manage this transition. Established powers will need to accommodate newcomers whereas emerging powers will need to assume responsibilities to govern the international system.

Seven of the fourteen articles focus on Asia although we return in detail to other regions of the world in subsequent chapters of the book. As all of the articles demonstrate, the global scene is one of intense systemic shifts. The global trade chessboard is undergoing considerable transformations: new actors are emerging in more prominent roles and new trade and investment channels are being explored.

The first four articles chart the re-emergence of Asia, with an emphasis on China, look at dynamics within the United States, and offer an assessment of the benefits and interests of the USA–China trade relationship. We then turn to India's domestic reform path. Japan, Korea and Vietnam, countries that have all relied on the expansion of exports for development, are the subject of the following three contributions. Europe, a leading trading bloc and a unique model of integration, is then discussed. This is followed by an analysis of internal dynamics in the Russian Federation.