More decentralisation is needed for better economies

 
TL;DR
Economic growth has become a central focus for leaders across the Atlantic as Europe and the United States grapple with slowdowns that threaten their global influence and security. Europe faces high debt, demographic decline, and underinvestment, while the US has seen a decline in growth since the 1970s. According to Dalibor Rohac, both regions must address these challenges through more decentralized economic and political systems, empowering local regions and sectors to drive innovation. Greater global integration and competition are also necessary to maintain competitiveness, particularly as geopolitical rivals like China and Russia pose threats. Decentralization and collaboration will be key to sustainable growth and stability.
 
The global economy is at a crossroads, according to moderate conservative intellectual Dalibor Rohac, with major Western (EU, USA, Canada, etc) economies on both sides of the Atlantic facing significant challenges that, if not addressed, could have profound consequences on their prosperity and geopolitical stability. Political leaders like Kamala Harris are pushing for an "opportunity economy" to promote upward mobility in the United States. In Europe, reports like Mario Draghi's are sounding alarms that Europe is falling behind, with high debt burdens and demographic challenges threatening future growth.
 
However, economic revitalization can only partially depend on top-down solutions. Instead, the decentralization of political and economic power is critical. Western economies can leverage diversity, innovation, and entrepreneurship to build more dynamic systems by enabling local regions, industries, and communities to drive growth. Centralized economic policies and heavy regulation, especially in Europe, have often hindered flexibility and innovation. For example, overregulating the housing and energy sectors has stifled economic dynamism, limiting productivity and the ability to scale investments.
 
Decentralization, combined with global integration and competition, provides a way forward. On the political front, decentralizing power would allow local governments to make more tailored economic decisions, promoting responsiveness and innovation. Economically, reducing barriers between regions and industries would foster a more competitive landscape that encourages investment, research, and development across various sectors.
 
At the same time, further global integration is important for sustainable growth. The West must reassert its presence on the global stage, not just militarily but economically. Developing stronger partnerships with emerging economies and competing in international markets are essential for maintaining influence. For instance, Europe and the US must invest more in technologies like clean energy, digitalization, and advanced manufacturing while collaborating with other economies to expand trade and investment. Global competition, when embraced, can serve as a powerful driver for innovation and efficiency.
 
Decentralization and integration are also crucial for dealing with geopolitical challenges. China and Russia's growing influence and threats to international norms demand a strong, integrated Western response. However, this response must be built on strong economic foundations, which can only come through growth. Suppose Western nations, particularly in Europe, continue to stagnate. In that case, their military and diplomatic power will weaken, leaving them vulnerable to geopolitical adversaries. Building up decentralized, competitive economies will make the West more resilient and capable of defending its values and interests.
 
A more decentralized, globally competitive economy promises greater innovation and enhances the flexibility to respond to economic and political crises. Decentralization empowers local communities and sectors to address their unique challenges, which creates a dynamic environment for long-term growth. In the era of rapid technological change, local initiative and global competition will allow Western economies to adapt faster and stay ahead of global rivals.
 
Conclusion
Western economies must prioritize decentralizing political and economic systems to foster innovation and responsiveness. Global integration and competition are equally essential for maintaining influence and growth in an increasingly multipolar world. By decentralizing power and encouraging local initiative, economies can better tackle their unique challenges while contributing to the broader global economy. The time for action is now, as economic growth is fundamental to prosperity and planetary survival.
 
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