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Chapter 1 — Geoeconomics
Geoeconomics

From Globalization to Strategic Interdependence: The New Logic of Power

Pandemics, war, and technology rivalries have exposed the fragility of the old model. Countries are now prioritizing resilience over pure efficiency.

SB
Mr. Srikant Badiga
Group Director Phoenix, Chairman EPCES, Ministry of Commerce & Industry, Govt. of India
February 2026 · 8 min

The past few years have seen a seismic shift in the world economy. Where open globalization once linked continents with seamless supply chains and cheap goods, today's reality is more complicated — and more cautious.

Globalization is not over. It's been reinvented into something more robust and better suited to a world of uncertainty.

Globalization hasn't ended, but its focus has changed. Countries and companies are prioritizing resilience over pure efficiency, building alliances that can withstand shocks. By 2026, China's share of U.S. imports has fallen sharply, Mexico and Vietnam are rising.

The Shifting Landscape

The WTO's influence is waning, replaced by a patchwork of regional and bilateral deals. Technology has become a new arena for national power. Sovereign technology funds are surging, and Gulf countries are funneling oil money into AI and semiconductors.

The Path Forward

If countries embrace openness in green technology and AI, global GDP could jump by $7 trillion by 2030. But if protectionism wins out, we could lose just as much.

GlobalizationStrategic InterdependenceSupply Chains

Discussion

2 comments
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RR
R. Ravi Kumar Mar 18, 2026
An insightful framing of the geoeconomic realities India faces. The balance between resilience and openness is the defining challenge.
▲ 18 Reply
DS
Dr. Shreeram Iyer Mar 18, 2026
Well documented shift. We must be careful not to let the pendulum swing too far toward protectionism.
▲ 12 Reply

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