Medellin, 12 December 2023: The International Economic Association (IEA) held a plenary session on New Global Economic Order as part of the 20th IEA World Congress, hosted at Universidad EAFIT in Medellin, Colombia from 11 to 15 December 2023. The plenary session, chaired by Prof Dani Rodrik, Professor of International Political Economy at Harvard University, featured distinguished speakers including Dr Lili Yan Ing, ERIA’s Lead Advisor for Southeast Asia region, Prof Justin Lin, Professor of Economics from Peking University, Prof Jayati Ghosh, Professor of Economics of University of Massachusetts Amherst, and Prof Jose Antonio Ocampo, Professor at the School of International and Public Affairs of Columbia University.

Dr Ing highlighted challenges arising from technological advancements, particularly in digital technologies. She noted the substantial growth of robots and AI that have transformed people’s lifestyles. Dr Ing pointed out that over the past decade, companies operating in the digital sector, such as Apple and Amazon, amassed revenues of US$383 billion and US$554 billion, respectively, this year. Amazon’s revenue is comparable to the GDP of 29 low-income countries combined. Dr Ing concluded by advocating for the consolidation of resources to regulate digital technologies, aiming to make them key enablers rather than potential disasters.

Prof Ocampo highlighted countries’ interest in industrial policy, underscoring the significance of reinstating the World Trade Organization’s Dispute Settlement Mechanism to foster collaboration between developed and developing nations. Prof Ghosh illuminated pressing challenges in global governance, highlighting that power often rests with the bad actors. Despite the intended purpose of the multilateral system, she observed its failure to function as expected, a viewpoint echoed by numerous commissions over the years with minimal tangible change observed. Prof Lin emphasised three key points: managing industrialisation and structural transformation to shift from great divergence to great convergence, considering climate change and green transformation, and seizing the opportunities presented  by digital technologies.

Prof Rodrik concluded the session by summarising key insights and highlighting significant points raised by each speaker. The session then transitioned to a Question and Answer segment, inviting questions from the audience. Several topics were discussed, including international tax coordination, digital opportunities and technologies, inequalities, and climate change.