Davos 2019: Geopolitical Tensions Could Be “Catastrophic” In The Medium Term, Says Adam Tooze
Structural issues like U.S.-China trade tensions and climate change could trigger a catastrophe which could in turn affect growth of emerging countries like India and China, according to Adam Tooze.
“There is reason for profound pessimism which we have to adjust to a distinct possibility of a catastrophic outcome due to these structural issues,” Tooze, Professor of History at Columbia University, told BloombergQuint on the sidelines of World Economic Forum in Davos, Switzerland. “This from the point of view of the rising nations is particularly tragic as their set (stability) in national terms will coincide with darkening horizons for humanity as a whole.”
The 2008 crisis depended critically on weaknesses in the cardio-vascular system of modern economy in the banking sector. Since then, we have had a heart transplant and a pacemaker. There is every reason to think the banking system has been neutralised as a source of crisis.Adam Tooze, Professor of History at Columbia University
Tooze said 2008 global crisis was “one in a century heart-attack” and doesn't expect it to repeat amid the global economic slowdown.