Presented by ESMT Berlin
How can businesses and governments navigate a changing geopolitical landscape and create confidence in a multipolar world? Berlin Global Dialogue's Founder and Chair Lars-Hendrik Röller and Managing Director Carolin Albrecht share the idea behind "Shifting Power, Shaping Prosperity," the theme of this year's summit.
In today’s multipolar world, various actors are expanding their economic, political, and military influence, reshaping the new geopolitical landscape and altering the balance of power for the foreseeable future. Whilst the emerging multipolar system is primarily defined by the competition between the United States and China, power is not confined to these two superpowers. Numerous capable middle powers also contribute to the international environment, leading to what has been coined “complex” or “unbalanced” multipolarity.
Power is not only more diffused but rapid technological advancements are also redefining its very nature. Leadership in technology, particularly in artificial intelligence, promises significant economic and military advantages and can potentially transform entire industries and societies. This technological edge also provides smaller powers with the opportunity to gain substantial influence within the multipolar system.
We are currently in the process of carving out the frameworks and rules of engagement that will shape this emerging multipolar world order. Will interactions be governed solely by power, or will the rules-based order endure? Will short-term transactionalism overshadow long-term alliances? In the absence of consensus on multilateral agreements, will plurilateral agreements among like-minded states lead to a fragmented global governance landscape?
For businesses, the multipolar world is adding new layers of complexity. Today’s interconnectedness might be tomorrow’s liability. Diverging regulation and the introduction of new tariffs or trade restrictions risk driving up the price of doing business at a time when many economies and businesses are already under pressure. At the same time, the influence of business in shaping the international environment is growing. Enhanced dialogue between business and government is essential to develop effective economic and industrial policy. The role of business in fostering and maintaining economic interconnectedness is becoming increasingly crucial for stability.
While navigating a multipolar world presents challenges, it also offers the potential for increased opportunity, equity, and prosperity for all. To thrive in this environment, governments and businesses must diversify their partnerships and create new trade opportunities. This approach will open new markets and expand the value chain, including in regions historically less connected to the global economy but with large economic and demographic potential.
In a multipolar world, a global governance system that accurately reflects the power distribution of the 21st century is essential. If both established and emerging powers remain committed to maintaining a baseline of multilateralism and reforming international institutions, an upgraded global governance structure will benefit from greater legitimacy and representation, leading to long-term stability.
Multipolarity broadens the responsibility of maintaining global order to a wider range of actors. If we embrace this responsibility, multipolarity can serve as the catalyst for global growth and stability. Under the theme “Shifting Power, Shaping Prosperity,” this year’s Berlin Global Dialogue approaches multipolarity in a constructive way by offering a platform for leaders from business, government, and academia to explore joint opportunities, forge new partnerships, and collectively build confidence in a multipolar world.
