Skip to main content

Fracturing and the impact on geopolitics & institutions

In a fractured world, the role of global institutions is likely to decline even further. The consequences of weakened multilateral economic institutions (e.g. the IMF and World Bank) would be felt most heavily in emerging markets by reinforcing the trend of slowing productivity growth. At the same time, a diminished global security architecture could make conflict more prevalent. In extreme cases, this could trigger an abrupt rupture of relations between China and the West with disastrous economic consequences. And even if conflicts occur that don’t have such seismic effects, they could still trigger sporadic bouts of financial market volatility and inflation.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access