Geoeconomic fragmentation: what risks for the financial and monetary system?

On Friday, May 26, the FES New York office was pleased to host an off-the-record roundtable discussion with UN Member States on the risks of "geoeconomic fragmentation" for the international financial and monetary system. Delivering keynote remarks, Prof. Paola Subacchi (Professor of International Economics, Queen Mary University of London and formerly Director of Research at Chatham House) presented insights from her forthcoming research paper on the topic - please stay tuned!

The question of whether “geoeconomic fragmentation” – resulting in a division of the global economy into separate and sometimes conflicting economic blocs, with different sets of rules, regulations, and standards – could be underway, has recently arisen in international policy.

Such fragmentation can arise from a variety of factors, including political, economic, and historical tensions and rivalries. Complex trends around fragmentation include the governance of the international order, the energy transition, domestic and cross-border inequalities in the distribution of income and wealth, international trade, and national security. Each of these trends impacts the implementation of the Sustainable Development Goals (SDGs).