The global system is fragmenting economically, politically, and institutionally. This is a signal that the systems shaping our economies and societies are under strain and in need of renewal.
In his recent article, “From Geopolitical Fragmentation to a Healthy Global Economy“, IDGR Research Lead Juan David Rojas Calle draws on the 2026 “Munich Security Conference” (MSC) to examine the forces driving today’s instability, and makes the case that they are deeply interconnected. Economic fragility, geopolitical tension, and institutional failure are best understood trans- & interdisciplinary with a system dynamics perspective. They reinforce one another, creating cycles that incremental reform alone cannot break.
The article introduces “The New Healthy Global Economy” framework, one that measures success not only by how efficiently wealth is produced, but by how well economic systems sustain societies through disruption, serve everyone equitably, stay within ecological limits, and make decisions today that future generations will not have to pay for. None of that is possible, Rojas Calle argues, without institutions that are genuinely accountable for the long term.
The implications for global governance are significant. As risks grow more complex and cross borders, sectors, and generations, responses must become more coordinated. Policies designed in isolation will continue to fall short.
On financing, Rojas Calle makes it clear that the world does not lack capital. Global financial resources already exceed what a sustainable transition requires. What is missing is the alignment of these resources, good coordination of these resources, and systems to direct these resources toward long-term stability.
The article frames this moment as a turning point. Periods of fragmentation have historically created the conditions for institutional renewal. Whether this moment leads to deeper instability or a stronger, more resilient global system will depend on the choices made now, before fragmentation deepens further.
picture shows “spiltpapers” (2013) by Artémis Athénaïs
