Davos 2026 | Globalisation now a zero-sum game, warns Eswar Prasad

Eswar Prasad, Professor of Economics at Cornell University, said the global economic and political order appears increasingly fragile, with long-standing institutions losing credibility amid rising geopolitical

and economic tensions.

Speaking to CNBC-TV18 on the sidelines of the World Economic Forum in Davos, Prasad said there is a visible crumbling of the world order this year, with globalisation increasingly being viewed as a zero-sum game. Institutions that were once responsible for setting global rules are now being seen as less legitimate, he added.

On China, Prasad said the country is facing significant internal challenges, even as it continues to rely heavily on exports as a key source of revenue generation.

Turning to artificial intelligence, he said AI is expected to have a very large impact across sectors, but its bottomline impact on companies has so far been relatively muted. Prasad warned that employment growth could become a major global issue as AI adoption accelerates worldwide.

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