Economic dimensions of the multipolar world: what do GDP figures really tell

The article discusses strengths and weaknesses of using gross domestic product (GDP) data as a measure of economic power in international relations. It is argued that country comparisons based on GDP figures calculated with current exchange rates provide biased results that can be unduly used to substantiate the idea of the new bipolar (USA vs. China) world order. In contrast, GDP calculations based on purchasing power parity (PPP) provide much more realistic and balanced picture. Three groups of countries and regional blocks are identified on the basis of their economic potential that can be used to grant them leading positions in the emerging global order. The first group consists of ‘economic supergiants’ (China, US, EU); India and ASEAN with rapidly growing economies follow as members of the second group, while the third group is comprised of economies with less than 4 per cent (and mostly declining or stagnant) individual shares in global GDP. Key issues of global economic and political rivalry where coalition formation among the global national and subnational players are listed. Economic power of the Russian Federation is discussed in comparative perspective as well as opportunities to join national economic potential with partner countries to expand control over the global agenda.

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