Tokyo, 20 August 2024: Dr Lili Yan Ing, ERIA’s Senior Economist and IEA’s Secretary General, shared insights from her forthcoming book on the New Global Economic Order at a symposium hosted by the Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO). The symposium was opened with a welcoming speech by Prof. Fukunari Kimura, President of IDE-JETRO, and attended by prominent figures including Dr Isamu Wakamatsu, Director General of International Affairs at IDE-JETRO, alongside several leading researchers from the organisation.

Dr Ing began by highlighting three key observations from her research. First, she noted that the global economy has expanded sixfold over the past 50 years, with an annual growth rate of 4%, largely driven by increased trade and investment, which has lifted half of the world's population out of poverty. Second, she pointed out that in the last decade, seven of the ten largest companies by market capitalisation have been tech giants, including Apple, Microsoft, NVIDIA, Alphabet, Amazon, Meta, and TSMC. Third, she observed that the wealthiest 1% of the global population have earned nearly twice as much as the remaining 99% combined.

Dr Ing provided a brief historical overview of when global economic frameworks have been revised due to their restrictive nature, such as the shift away from the gold standard. She emphasised the importance of balancing national interests with global fairness and advocated for a minimalist approach to global governance. According to her book, this approach would allow countries to pursue their own paths while ensuring their actions do not harm others.

She also addressed the rise of regional and plurilateral agreements as alternatives to increasingly ineffective global institutions like the World Trade Organization (WTO). While acknowledging that these agreements could help maintain economic connectivity, she cautioned that they must be carefully managed to avoid exacerbating global divisions.

On the topic of AI governance, Dr Ing underscored the urgent need for a multipolar framework that includes the perspectives of workers and citizens, particularly those in developing nations. She expressed concern that current AI development is being driven by the priorities of the tech industry, which may not align with broader social and democratic goals. Dr Ing called for a more inclusive approach to AI governance, one that ensures the technology serves the public good and supports economic and social equity.

Finally, Dr Ing highlighted the critical need for international financial and tax reforms. She advocated for stronger roles for multilateral development banks and more inclusive global financial institutions to effectively address global challenges and support sustainable development.

The full version of the book: New Global Economic Order (eds. Lili Yan Ing and Dani Rodrik), New York and London: Routledge (forthcoming)

Dr Lili Yan Ing's Presentation

Publication: Economic Transformation and a New Economic Order