Strategic Re-Globalisation in a Fractured World Economy

Abstract

The contemporary global economic order is undergoing a fundamental transformation, moving beyond traditional narratives of deglobalisation towards a more complex phenomenon of strategic re-globalisation. This paper challenges conventional interpretations of retreating global integration by demonstrating how nations are actively restructuring their economic relationships through geopolitical realignment, technological competition, and security-conscious policymaking. Contrary to surface-level indicators — such as trade barriers and supply chain disruptions — a deeper analysis reveals a sophisticated recalibration, wherein states maintain global connections while asserting greater control over critical sectors. Three distinct pathways emerge for this re-globalised future: the probable development of rival technological ecosystems within fragmented techno-blocs; the high-risk potential of complete economic bifurcation in a Cold War 2.0 scenario; and the more optimistic possibility of pragmatic multipolarity maintaining selective cooperation. These trajectories are shaped by intensifying US – China rivalry, the growing assertiveness of Global South economies, and rapid advancements in artificial intelligence and sustainable technologies. The study concludes that this new era of globalisation will retain global interconnectedness while exhibiting reduced Western dominance, increased policy unpredictability, and a diminished adherence to liberal economic principles. Practical recommendations are offered for navigating this complex landscape, emphasising the need for adaptable governance structures capable of reconciling national security imperatives with the benefits of international economic engagement.