Geoeconomics of globalising markets
Though much has been written on geopolitical forces, this is one of the few books on geoeconomic forces.india Updated: Feb 16, 2006 21:23 IST
The Geoeconomic Realignment of Globalizing Markets
by Jagdish N. Sheth and Rajendra S. Sisodia
Price: Rs 550
While the world is still coming to grips with the implications of globalization, Tectonic Shift investigates what the globe’s economic and geopolitical future looks like and discovers the unfolding of an unprecedented realignment of forces. Based on extensive study and analysis, the authors of this compelling book argue that regionalization will replace the much celebrated globalization, characterized by extensive North-South integration between developed and developing nations. They describe how the world is evolving into three huge economic and political unions, which will take shape by 2020, and predict that:
- The EU will expand both eastward as well as to the south, right up to Southern Africa.
- The Asian block, initially led by Japan and then by China, will encompass a united Korea, ASEAN, Australia and New Zealand and create a vast free trade area by approximately 2015.
- The US and Latin American nations will revive the Free Trade Area of the Americas (FTAA), and will be joined by the UK.
- South Asia will have its own free trade area, which will eventually ally with the FTAA.
Sheth and Sisodia argue that these evolving, strategic partnerships will involve free trade, monetary union, cross-border infrastructure investments, regional development agencies, and conflict resolution mechanisms. They also discuss the key steps that each region will have to take to be successful, and how it can overcome obstacles to change. Handled properly, the authors further argue, this evolution will result in faster and broader economic development coupled with diminished conflict among nations.
Here is an excerpt from the Preface:
This book presents an optimistic and practical view of the future that is predicated on strengthened relationships between developed and developing countries that are based not on charity but on enlightened self-interest. We propose that the best way forward (i.e. the one that will generate the most prosperity for the largest number of people) lies in such "North-South" integration. Moreover, this is most likely to be successful in the context of regional integration (though in some cases, countries that offer a strong strategic fit but are geographically distant will join a regional economic union), and will result in the formation of three huge regional economies bound together through the glue of free trade, a common currency, shared values, and shared developmental priorities and institutions.