The ‘Doom Loop’ of Global Disorder

Why It Matters

The doom loop threatens both worldwide economic growth and geopolitical stability, making coordinated institutional reforms essential for averting deeper global disorder.

Key Takeaways

• Globalization’s benefits masked rising economic dislocation and inequality.
• Discontent fuels populist politics, eroding trust in institutions.
• US and China present unreliable, competing superpower alternatives.
• Middle powers face forced pragmatism, lacking stable alliances.
• Destructive state competition drives a doom loop of disorder.

Summary

The podcast introduces Ishwar Prasad’s "doom loop" thesis: economic globalization, domestic politics and geopolitics are now locked in a negative feedback cycle that amplifies disorder rather than reinforcing each other. The once‑celebrated trio of free trade, liberal democracy and stable international relations has unraveled as trade‑induced job losses, technological change and policy capture left large swaths of the population feeling abandoned by elites.

Prasad argues that the aggregate gains of globalization were eclipsed by rising inequality and a perception that political institutions were rigged to favor the already‑advantaged. This perception fueled populist nationalism in the United States and elsewhere, eroding the credibility of traditional alliances. At the same time, the United States appears increasingly unreliable as a security partner, while China offers financing with few overt conditions but often ties it to debt‑laden projects, as illustrated by Sri Lanka’s port concession.

The discussion highlights how competition among states has shifted from a constructive race for higher standards to a race to the lowest common denominator, producing authoritarian backsliding and fragile coalitions. Middle powers such as India, Vietnam and South Korea are forced into a precarious pragmatism, balancing between a distrustful U.S. and a China whose institutional framework offers limited reassurance.

The "doom loop" signals that without renewed institutional norms and a credible, rules‑based order, global growth could stall and geopolitical tensions may intensify. Policymakers must address the underlying economic dislocations, restore faith in democratic processes, and craft a more dependable multilateral framework to break the cycle.

Original Description

Not so long ago, it appeared to many observers that economic globalization, political liberalization and geopolitical stability were an unstoppable trio. They supported each other and created an economic and political environment that countries around the world couldn’t help but want to be a part of.

Some called it “the great moderation,” some, “the end of history.” Whatever name you want to give it, it seemed like it was here to stay.

Which, of course, it wasn't.

Today, according to this episode’s guest, instability in all three of these realms — economics, domestic politics and geopolitics — is creating just the opposite: a vicious cycle of economic and political disorder, which we seem ill-equipped to get ourselves out of.

Eswar Prasad, is a professor of Trade Policy and Economics at Cornell University, and author of the new book “The Doom Loop: Why the World Economic Order Is Spiraling into Disorder.” In this episode, he speaks with Mark Blyth and Brown University Assistant Professor of Political Science Aditi Sahasrabuddhe about the “doom loop” — what caused it, why it’s so hard to stop, and what it means for the future of our global order.

Learn more about and purchase “The Doom Loop: Why the World Economic Order Is Spiraling into Disorder. (https://thedoomloopbook.com/) ”

Transcript coming soon to our website (http://google.com/search?q=rhodes+center+podcast&rlz=1C5GCCM_enUS1193US1193&oq=rhodes+center+podcast&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIICAEQABgWGB4yBwgCEAAY7wUyBwgDEAAY7wUyCggEEAAYgAQYogQyBggFEEUYPNIBCDMwNjhqMGo0qAIAsAIB&sourceid=chrome&ie=UTF-8) .