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If the Global Economy Melts Down, Politics Will Make Things Worse

If the Global Economy Melts Down, Politics Will Make Things Worse

As topsy-turvy as global politics has been over the past several years –Brexit, Trump, the rise of anti-establishment leaders in France, the Philippines, Italy, Pakistan, and Brazil, the surge of the European far right and so on – it's all unfolded during a time when the global economy was actually doing pretty well.

So what happens when the inevitable recession hits? Earlier this week, markets suffered their worst day of the year as investors confronted that question.

Germany's economy, the world's fourth-largest, is shrinking. China's factories are churning at their slowest rate in 17 years. The trade fights between the US and China, the US and Europe, and South Korea and Japan involve countries that together account for half the global economy. And worries about a chaotic British exit from the EU aren't helping either.

Even more worrying than these individual trends, through, is that the zero-sum politics driving all this disruption might also make a global economic swoon harder to get out of.

During the last big economic crisis in the wake of the 2008 financial meltdown, the world's major economies were able to compromise and coordinate their responses to the recession in ways that avoided an even deeper downturn.

In today's more cutthroat political environment, that kind of cooperation is a lot less likely -- particularly if a downturn fuels even more of social and political polarization within countries that has empowered economic nationalists in the first place.

We're not in a recession yet. But buckle up, because when the next downturn hits, politics is going to make it harder to contain the pain.

Wales, early 19th century: During breaks from his law studies, William Robert Grove indulges in his passion for science to become an inventor. On his honeymoon in Europe, he learns about the new energy source everyone's talking about: electricity. After learning that electricity allows water to be broken down into its two components, hydrogen and oxygen, his intuition leads him to an idea that ends up making him a pioneer of sustainable energy production.

Watch the story of William Robert Grove in Eni's MINDS series, where we travel through time seeking scientists.

Listen: The country's top infectious disease expert, Dr. Anthony Fauci, joins Ian Bremmer to talk vaccines, school re-openings, and when—and how—the pandemic could finally come end. He was last on GZERO World just weeks before the pandemic hit in the fall of 2019 and he described at the time what kept him up at night: a "pandemic-like respiratory illness." This time, he talks about how closely that nightmare scenario foreshadowed the COVID-19 pandemic. He also offers some guidance about what public health measures vaccinated Americans should continue to take in the coming months (hint: masks stay on).

Subscribe to the GZERO World Podcast on Apple Podcasts, Spotify, Stitcher, or your preferred podcast platform to receive new episodes as soon as they're published.

Ian Bremmer's Quick Take:

Hi, everybody. Ian Bremmer here, and as we head into the weekend, a Quick Take on, well, the first bombing campaign of the new Biden administration. You kind of knew it was going to happen. Against some Iranian-backed militias in Syria, looks like a couple of dozen, perhaps more killed, and some militia-connected military facilities destroyed. I think there are a few ways to look at this, maybe three different lenses.

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Afghanistan frustrated nineteenth-century British imperialists for 40 years, and ejected the Soviet army in 1989 after a bloody decade there. And though American and NATO forces ousted the Taliban government in 2001 over its support for al-Qaeda, there's no good reason for confidence that nearly 20 years of occupation have brought lasting results for security and development across the country.

But… could China succeed where other outsiders have failed – and without a costly and risky military presence? Is the promise of lucrative trade and investment enough to ensure a power-sharing deal among Afghanistan's warring factions?

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Carl Bildt, former Prime Minister and Foreign Minister of Sweden, shares his perspective from Stockholm on Europe In 60 Seconds:

Is there a military coup ongoing in Armenia?

Well, it isn't a military coup as of yet, but it's not far from it either. This is the turmoil that is resulting from the war with Azerbaijan, which Armenia took a large death loss. What happened was that the head of the armed forces asked for the prime minister to resign. That was not quite a coup, but not very far from it. Now, the prime minister sacked the head of the armed forces, there's considerable uncertainty. Watch the space.

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The GZERO World Podcast with Ian Bremmer. Listen now.

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