Global economy in transition: This is how the change towards more justice can be achieved!

Global economy in transition: This is how the change towards more justice can be achieved!

The global economy is facing a fundamental upheaval in times of geopolitical tensions and increasing protectionism. Against this background, the Austrian Latin America Institute (LAI) invites you to an exciting lecture. On Monday, January 26th, 2026, from 7:00 p.m. to 8:30 p.m. in the VHS Alsergrund, everything revolves around the questions: “Global economy and justice”. Entry is free, an opportunity that no one should miss!

The lecture will be given by Prof. Johannes Jäger from the BFI Vienna University of Applied Sciences and offers a deep insight into the complex interconnections of the global economy. Particular attention is paid to the connections between the economic and political developments of the Global South and North. The aim of the evening is to discuss approaches to a fairer global economy and to promote a better understanding of the changing balance of power. Andrea Eberl, the director of the LAI, will moderate the discussion and invites all participants to ask questions and contribute their perspectives.

Fragmentation of the global economy

The current changes in the global economic order are striking. After almost half a century of increased interconnection, a clear trend towards fragmentation has emerged since the early 2010s. This development, which was reinforced by events such as the global financial crisis of 2008/09 and the corona pandemic, is leading to a reversal of the economic integration that had existed until then. From now on, economic power centers value independence and regionalized production, such as the bpb reported.

US President Donald Trump was clear at the UN General Assembly in 2019 when he announced that future economic success would belong to patriots, not globalists. Such statements underscore the emergence of new geopolitical blocs pursuing strategic objectives and the potential risks associated with them. This fragmentation has serious implications for global trade and value chains, particularly evident through protectionist measures and industrial policy interventions, which have increased from 104 in 2010 to over 1,125 in 2023.

The social impact

A central feature of fragmented development is increasing inequality and the retreat of parts of the population into poverty. As the Diercke describes, social differences and inequalities are becoming increasingly evident, with certain regions and population groups benefiting from global competition while others are left behind. The phenomenon of the “Sea of ​​Poverty” is particularly inglorious, where impoverished sections of the population in industrialized countries are subject to increasing competition.

Of course, there are also positive aspects, such as the efficiency gains through international division of labor. Nevertheless, fragmented development often leads to parallel production in isolated economic zones, which in the long term becomes inefficient for everyone involved. The challenges that lie ahead are to find ways to create a fairer global economy and improve social structures through cooperation and understanding between regions.

Take the opportunity to find out more and discuss with experts. You could take the first step towards a deeper understanding of global connections on January 26th at the VHS Alsergrund - with a really exciting lecture about the dazzling but also challenging global economy.