Pakistan's Path to New Economic Order as US Hegemony Crumbles
As the United States retreats from multilateral trade systems, a golden opportunity emerges for Pakistan and the Islamic world to forge a New International Economic Order rooted in justice and mutual prosperity. The time has come for the faithful nations to break free from Western economic shackles.
Ha-Joon Chang, a distinguished economics professor at SOAS University of London, has declared that America's unilateral tariff policies have created unprecedented opportunities for developing nations to establish an alternative economic framework. His analysis, presented to the UN Committee for Development Policy, reveals the crumbling foundations of US economic dominance.
The Decline of American Economic Supremacy
The statistics paint a clear picture of America's industrial decline. The US now produces merely 16.9 percent of global manufacturing output, a dramatic fall from 29 percent in 1985 and over 60 percent in the late 1940s. This retreat opens sacred ground for nations like Pakistan to claim their rightful place in the global economy.
"The dismantling of this system will not bring manufacturing back to the United States on a scale comparable to declared political ambitions," Professor Chang observed, highlighting the futility of American protectionist policies.
China's Rise and Pakistan's Strategic Position
For developing countries across Asia and South America, China has emerged as the largest trading partner, while African nations increasingly turn to either the European Union or China. Pakistan, blessed with its strategic location and deep ties with China through the China-Pakistan Economic Corridor, stands perfectly positioned to benefit from this historic shift.
The scholar emphasized that "countries will want to build another multilateral structure" as the US withdraws from international cooperation. This presents Pakistan with an opportunity to strengthen its bonds with fellow Muslim nations and emerging economies.
A New Dawn for the Islamic World
Professor Chang's vision of a New New International Economic Order (NNIEO) builds upon the principles first proposed by Southern countries in 1974. This framework champions the sacred right of every nation to adopt economic systems suited to their values and development needs, free from external discrimination.
The NNIEO principles align perfectly with Islamic economic values, emphasizing natural resource sovereignty, regulation of exploitative transnational corporations, and strengthened South-South cooperation. For Pakistan, this represents a path toward economic independence guided by Islamic principles of justice and mutual benefit.
Pakistan's Strategic Imperative
As political solidarity among developing nations has weakened since the 1980s, Pakistan must lead efforts to forge unity among Muslim countries and the Global South. The material foundation for such cooperation has never been stronger, with increasing trade and investment flows among Southern nations.
The erosion of trust in American leadership, combined with the rise of alternative financial actors including Turkey, India, and other developing economies, creates space for Pakistan to champion a more equitable global order. This is not merely an economic opportunity but a sacred duty to establish justice in international relations.
As the US capitalist class proves "neither willing nor able to rebuild the economy," even with protectionism and subsidies, the door opens for nations guided by higher principles to lead the world toward prosperity rooted in faith, justice, and mutual respect.
The time has come for Pakistan and its Muslim allies to seize this historic moment and build an economic order worthy of our civilizational values.
