From semiconductors to electric vehicles, governments are identifying the strategic industries of the future and intervening to support them – abandoning decades of neoliberal orthodoxy in the process. Are industrial policies the key to tackling twenty-first-century economic challenges or a recipe for market distortions and lower efficiency?
MADRID – The Mediterranean is undergoing a monumental political transformation. Protests on its southern shores have now begun the process of bringing democracy to this region. Less visibly, perhaps, the Mediterranean is also undergoing another revival, equally important in terms of geo-economics.
The changes in the world’s balance of power from the West to the East, from the Atlantic to the Pacific, is making both the United States and Europe apprehensive. Their loss of geopolitical and economic power is evident. Although the future geopolitical behavior of the rising new powers – Brazil, China, and India – remains uncertain, this shift may nonetheless provide an opportunity for the Mediterranean.
With the world focused on the West, the Atlantic region dominated the last three centuries. In a world focused on the East, however, the main linkages are the Pacific and Indian Oceans and, given today’s close relationship between Asia and Europe, the Mediterranean Sea.
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