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In this AGI Public Policy Seminar, Danny Quah discussed the evolving relationship between economics and geopolitics, challenging traditional views that treat economics as a stabilizing force and geopolitics as disruptive. He argued that since World War II, economics and geopolitics have been aligned, working in tandem. Quah also emphasized that while most of the world’s population lives outside the US and China, they are nonetheless significantly affected by US-China competition. Key takeaways from his speech include: • Multilateralism as a foundation: Multilateralism provides an order-based system where every country has a fair opportunity, with international cooperation as its default mode. However, US-China competition is eroding this international order. • Perceptions of trade: While the principle of comparative advantage remains valid, many now view trade as a source of crisis and external shocks. A significant portion of the general public, who are crucial in shaping political outcomes, perceives trade as one nation exploiting another. • Economics and the future of multilateralism: Economics remains central to sustaining multilateralism. Despite current geopolitical trends toward isolationism and decoupling, the long-term economic costs of fragmentation will likely drive a return to international cooperation and a multilateral system.