Leonardo Badea discusses the renegotiation of global economic models

Leonardo Badea, First Deputy Governor of the National Bank of Romania, has addressed the evolving nature of global economic structures. He suggests that the world is not witnessing the end of globalization, but rather a renegotiation of its fundamental rules, incentives, and power dynamics.

Historically, globalization was driven by economic efficiency, reducing the importance of geographic distances and national borders through liberalized trade and extended global value chains. While this era facilitated the rapid spread of technology, capital, and knowledge, it also resulted in an unequal distribution of gains. The current shift indicates a move away from pure efficiency toward a new model involving hegemony, protectionism, and resilience.