When I was reading basic economics at school many years ago, trying to cram the relationships of Phillips curves and the thoughts of Keynes. An element which was essentially a given, unstated, and probably too subtle for a high-school economics curriculum was the notion of the zero-sum-world. I guess a quirk of greater global policy making, general global trends, the state of emerging nations and a balancing of respective individual nation needs provided for a win-win framework.
A zero-sum world is that situation in which [all] participant's or nation’s gain or loss off a utility is exactly balanced by the gains and losses of utility of nations. That is, when the sum of total gains and total losses sum to zero.
The Economists (Nov 22nd 2010 The World In 2011 print edition) suggests how in the process of large economies grappling with recent threats of a depression some international politics have soured. Look at Europe for example.
20 years of good times and global economic integration, post the cold war, had helped create a “win-win world” with all the major economies having reason to be satisfied. The United States was enjoying its “unipolar moment”; the European Union was expanding and prospering; China and India felling themselves getting richer and more powerful.
It is possible after a long period of co-operation, competition and rivalry are returning to the international system. A win-win world is giving way to a zero-sum world. According to the Economists the 3 most important symptoms may include:
· Worsening relations between the United States and China.
· Arguments within the EU
· Difficulty progressing big items such as climate change and nuclear proliferation.