Opinion

Asia has taken a stand against economic nationalism

The nationalist, protectionist model for the world is failing already. But RCEP has re-ignited the formula that has made Asia so prosperous, and it's vital for Australia too.

Peter Drysdale and Adam Triggs

Nov 6, 2019 – 9.57am

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The worldview of populist politicians has been in the ascendancy, characterised by isolationism, protectionism and nationalism. The path to prosperity, they argue, is one where economies are closed. Trade is restricted. Markets are managed. Foreign investment is blocked. Immigrants are expelled. Economic co-operation is for the weak.

The protectionist, isolationist economic model of the populists has been nothing short of a catastrophic failure, associated with a collapse of global confidence and investment that threatens global jobs and growth. Global GDP growth is falling, trade growth has halved since 2017, foreign investment has fallen by almost a third since 2017 and supply chains are unravelling at dangerous speed, threatening a sharp rise in production costs and a sharp fall in already anaemic productivity growth.

Peter Drysdale is emeritus professor of economics and head of the East Asian Bureau of Economic Research and East Asia Forum at the Crawford School of Public Policy at the Australian National University.

Adam Triggs is director of research of the Asian Bureau of Economic Research at the Crawford School of Public Policy, The Australian National University, and a non-resident fellow in the Global Economy and Development program, Brookings Institution.