For our world in flux: Some hard lessons in history from the 1930s

We need enlightened leadership and a new architecture for international cooperation to curb the risk of repeating past errors

- DEEPAK NAYYAR

The world is in a state of flux. Economies are going through difficult times, if not crises. Politics within countries is contentious, if not polarized. The geo-political divides are visible, and sharper than they have been for decades. International relations are strained, and there are several potential flashpoints. It would seem that our world in the third decade of the 21st century presents a picture which has striking similarities with the world one hundred years ago. The potential implications are indeed worrisome.

There are several symptoms of the difficult times we live in. The coronavirus pandemic prompted repeated lockdowns across the world, leading to sharp contraction in output and employment everywhere. The economic recovery has been slow. In many countries, national income in 2022 just about returned to its 2019 levels. The recovery has been K-shaped, so economic inequalities have continued to rise. The pandemic also disrupted integrated global production networks, while stifling international trade and investment flows.