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Iqbal, B.A.; Yadav, A. Economic Resilience After Globalization: Regional and Global Perspectives. Encyclopedia. Available online: https://encyclopedia.pub/entry/59627 (accessed on 27 March 2026).
Iqbal BA, Yadav A. Economic Resilience After Globalization: Regional and Global Perspectives. Encyclopedia. Available at: https://encyclopedia.pub/entry/59627. Accessed March 27, 2026.
Iqbal, Badar Alam, Arti Yadav. "Economic Resilience After Globalization: Regional and Global Perspectives" Encyclopedia, https://encyclopedia.pub/entry/59627 (accessed March 27, 2026).
Iqbal, B.A., & Yadav, A. (2026, March 24). Economic Resilience After Globalization: Regional and Global Perspectives. In Encyclopedia. https://encyclopedia.pub/entry/59627
Iqbal, Badar Alam and Arti Yadav. "Economic Resilience After Globalization: Regional and Global Perspectives." Encyclopedia. Web. 24 March, 2026.
Peer Reviewed
Economic Resilience After Globalization: Regional and Global Perspectives
This is a peer-reviewed entry published in Encyclopedia Journal, full entry can be found at 10.3390/encyclopedia6030067

In an era of rising geopolitical tensions, repeated global crises, and growing uncertainty in trade and finance, economic resilience has become a key priority for policymakers. This study presents an understanding by distinguishing regional resilience from global resilience, offering hardnosed explanations of both concepts and outlining mensurable indicators for each. Regional resilience is the capacity of an economy to endure and recuperate from shocks by way of strong, cost-effective connections in its region. These could be seen in terms of intra-bloc trade power, trade concentration, intra-regional investment flows and constant capital flows, which indicate the deep economical integration and interdependence. On the contrary, global resilience is concerned with the extent to which an economy is guarded by larger global diversification. It is quantified by the distribution of exports and investments geographically, the extent and diversity of trade partners, membership on global value chains, and the stability of the cross-border capital flows. Understanding the difference between these two forms of resilience has become increasingly important for policy design, especially in a period marked by repeated crises, geopolitical tension, and shifting trade and financial conditions. Countries must decide not only how open their economies should be, but also whether openness should be integrated regionally, diversified globally, or stable through a hybrid approach. Further, it argues that regional integration is peculiarly invaluable during region-wide disruptions such as pandemics, financial crises, or supply shortages, where integrated policies can reduce adjustment costs and protect demand and supply chains. However, global diversification becomes significant in areas such as energy and commodity security, where dependence on limited suppliers can magnify risks. Ultimately, most economies benefit from combining both approaches (a hybrid approach), adapting their strategy to the development stage, institutional strengths, and exposure to external shocks.

economic resilience global resilience regional resilience globalization trade
Today, resilience is the ability of regions and the global system to handle shocks like pandemics, war, trade disruptions, and extreme weather, and to adapt over the period. The issue of resilience has always been important to the survival and growth of people. It is the ability to change, recuperate, and continue despite the problems [1]. The trend of 2020 is that policymakers are no longer pursuing quick solutions but instead developing long-term resilience through supply chain diversification, more climate finance, and better global crisis responses. According to recent reports, though resilience is holding, it is still weak, as it faces increased trade strains and financial risks [2].
Some of the factors that are driving the current risk environment include geopolitical fragmentation, and this is largely due to the tensions between the U.S. and China over technology and export restrictions, and it is making companies and governments reconsider their supply chains. Following the introduction of stricter export controls in late 2025 by China, numerous European companies have begun seeking alternatives [3]. In addition, extreme weather and climate change are also raising the issues of loss and damage. The COP28’s new loss and damage fund by the UNFCCC is altering the manner in which vulnerable areas are handling financial risk [4]. Moreover, macro-financial weaknesses persist, as the IMF has alerted that global growth is stunted and has problems brought about by barriers to trade, excessive debts, and overvalued assets [2].
Areas that experience diverse economies, well-organized local institutions, and that are targeted financially can better manage disruptions and bounce back. For example, nearshoring and multi-sourcing are increasingly becoming popular strategies of more EU manufacturers, so as not to be dependent on a single supplier country and remain efficient and competitive [5]. According to OECD reports, the presence of a variety of suppliers is beneficial to regions in case of problems in global trade or abrupt shortages. In a similar manner, IMF research results indicate that post-major economic shocks, enhancing social protection and active labor market initiatives, including worker retraining, mobility assistance and portable benefits, can reduce long-term unemployment. These tools have enabled areas to be flexible, as workers and businesses find it easier to transport and relocate between sectors when they are needed, hence maintaining the same level of productivity [6][7].
The world has developed resilience systems, though these are yet to be completed. Multilateral organizations have achieved a certain success, including developing loss and damage financing under the UNFCCC and making new commitments through new G20 climate and development efforts to be more generous with adaptation finance and developing development loans [8]. The above actions indicate that an increasing number of individuals are becoming aware that global issues, especially the ones related to climate change, should be addressed collectively on the international level and cannot be resolved unless hefty funding is taken into account. Nevertheless, there are still huge gaps because development has been slow, and the political differences complicate collaboration. World organizations would be able to handle the crisis faster and with increased resources, yet political limits tend to complicate matters, as organizations do not have enough funds to raise enough. Both the IMF and OECD not only caution that further policy ambiguity, the introduction of new tariffs, and deteriorating trade relations may undermine the already thin veneer on current global economic projections, but also state that this might happen [2][6]. This implies that global resilience is not a given, and it has to be reinforced by continuous and collaborative leadership.
Accordingly, this paper presents an understanding by comparing regional and global resilience using indicators of trade and investment. It shows how each level reacts differently as the world economy becomes more fragmented. By 2025, resilience should include both technical work in supply chains, finance, and capital, and political efforts in cooperation, trade, and governance. For this reason, it is important to clearly separate regional and global resilience. New measures like operational loss and damage financing and updated OECD/IMF guidance are positive steps. However, ongoing geopolitical tensions and tighter budgets mean that the global system is still only partly resilient and remains vulnerable to repeated shocks. The study, therefore, will present indicators to track diversification, regional integration, external risks, and institutional strength. The aim is to help researchers and policymakers identify gaps in resilience and develop practical policies.

References

  1. Global Peace Institute. The Power of Resilience in a Turbulent World. 2025. Available online: https://globalpeaceinstitute.org/the-power-of-resilience-in-a-turbulent-world/ (accessed on 19 August 2025).
  2. International Monetary Fund. Global Economy in Flux, Prospects Remain Dim. In World Economic Outlook; International Monetary Fund: Washington, DC, USA, 2025; Available online: https://www.imf.org/-/media/files/publications/weo/2025/october/english/text.pdf (accessed on 7 November 2025).
  3. World Economic Forum. Global Risks 2025: A World of Growing Divisions; Global Risks Report 2025; World Economic Forum: Geneva, Switzerland, 2025; Available online: https://www.weforum.org/publications/global-risks-report-2025/in-full/global-risks-2025-a-world-of-growing-divisions-c943fe3ba0/ (accessed on 24 February 2025).
  4. UNEP. About Loss and Damage; United Nations Environment Programme: Nairobi, Kenya, 2025; Available online: https://www.unep.org/topics/climate-action/loss-and-damage/about-loss-and-damage (accessed on 5 October 2025).
  5. Sutton, J.; Arcidiacono, A.; Torrisi, G.; Arku, R.N. Regional economic resilience: A scoping review. Prog. Hum. Geogr. 2023, 47, 500–532.
  6. OECD. Strengthening Regional Policy for Resilient Places: Key Issues and Policy Considerations; OECD Regional Development Papers; OECD Publishing: Paris, France, 2025.
  7. Kentikelenis, A.; Stubbs, T. Social protection and the International Monetary Fund: Promise versus performance. Glob. Health 2024, 20, 41.
  8. World Bank Group. Rising to the Challenge: Success Stories and Strategies for Achieving Climate Adaptation and Resilience. 2024. Available online: https://www.worldbank.org/en/publication/rising-to-the-challenge-climate-adaptation-resilience (accessed on 11 June 2025).
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Subjects: Economics
Contributors MDPI registered users' name will be linked to their SciProfiles pages. To register with us, please refer to https://encyclopedia.pub/register :
Badar Alam Iqbal
, Arti Yadav
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Online Date: 24 Mar 2026
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