Issue Policy area 3: states balance strategic interest, core values and competitiveness at once

Summary

This issue gathers the report's cross-cutting implications for economics, the longest of its four policy lists. Countries may need a complex balancing act among strategic interests, core values and global competitiveness. Widespread protectionist industrial and trade policies, driven by tensions, ideology or supply security, could make world trade less open and cooperative. Major supply chain revisions may also open new markets for firms in states with good geographic positions, skilled workforces and stable societies, while active government picking of sectors could bring misallocation, market distortion and rent-seeking. Automation may intensify international competition for hard-to-automate and traditionally undervalued skills, such as those of care workers. If work disruptions leave people unable to meet basic needs, some states could see their international standing weakened by social unrest or mass emigration.