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Learning to govern a fragmented world

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When G7 leaders gather in Évian on June 15, they will confront a postwar order that has run its course. The United Nations, the Bretton Woods institutions, and other pillars of international cooperation—all founded on the belief that universal rules could underpin global governance—delivered decades of relative stability and economic integration. But today’s world is too multipolar, too digitally interconnected, and too politically heterogeneous for broad consensus alone to serve as the primary mechanism for managing global affairs.  As national interests diverge, economic interdependence is increasingly wielded as an instrument of coercion, giving rise to rival strategic blocs at a moment when global challenges such as climate change, migration, and AI are intensifying faster than existing institutions can respond. While it may be tempting to cling to a fading order or resign ourselves to permanent geopolitical rivalry, what is needed is a transition to a new model of international cooperation grounded in coalition-based governance.

In many respects, this shift is already underway, though it remains largely unrecognized. From semiconductor supply chains to climate and security, countries are increasingly cooperating through issue-specific coalitions—flexible partnerships reflecting the realities of a fragmented yet deeply interconnected world.

The question facing the G7, then, is not whether coalition-based governance will emerge, but whether democracies will shape this transition or allow it to be driven by power politics alone. Few bodies are better positioned to guide the process than the G7, which combines economic scale, technological capability, institutional capacity, and broadly aligned political values. But that requires rethinking governance accordingly.  For starters, policymakers must move beyond the pursuit of universal agreement. Consensus increasingly leads to paralysis, and even when broad agreements are reached, implementation is often inconsistent. The 2015 Paris climate agreement illustrates the problem: while it established shared goals, national commitments vary widely and enforcement remains weak. Similar problems are now evident in digital governance, taxation, trade, and migration policy.

Coalition-based governance offers a more practical alternative. Rather than requiring universal agreement, it allows countries to work together on specific challenges while committing to common standards, monitoring mechanisms, and enforcement tools. Participation remains voluntary, but membership comes with responsibilities.  AI is a case in point. Countries could form a coalition to establish shared standards for frontier AI systems, common data-governance rules, coordinated oversight of AI supply chains, and safeguards against systemic risks. Access to coalition markets, financial systems, research networks, and digital infrastructure would be contingent on meeting those standards. The same logic could be applied to climate policy, trade, critical minerals, biotechnology, cybersecurity, and financial transparency.

Far from abandoning multilateralism, this approach adapts it to today’s multipolar reality. Coalition-based governance offers a more flexible and effective framework for cooperation in a world in which major powers no longer share the same interests, values, or political models.

At the same time, governance must become more integrated. Today’s most pressing challenges are deeply interconnected, but governments continue to approach them through bureaucratic silos. This makes no sense. Trade policy cannot be separated from environmental sustainability and technological security. Financial regulation must account for climate change and geopolitical risk. And digital governance must balance innovation and competition with democratic resilience and national security.

The G7 could lead this shift by building coalitions around interlinked systemic challenges that require integrated policy responses, such as food, water, and energy security; AI, employment, and digital human rights; and climate change, biodiversity loss, and industrial transformation. Bringing together finance ministries, regulators, central banks, security agencies, businesses, and civil-society organizations, these coalitions would align economic, technological, and security priorities rather than merely coordinate policy.

Perhaps most importantly, governments must rethink how they define success. For decades, economic output has been the primary measure of performance. But as recent experience has shown, robust GDP growth can coexist with economic insecurity, social fragmentation, political polarization, declining trust, and environmental degradation.

Governments that measure success narrowly tend to govern narrowly. One promising alternative is the SAGE dashboard, which offers a simple evaluative framework that organizes the major drivers of human flourishing around four factors that have enabled societies to thrive throughout history: solidarity, agency, material gain, and environmental sustainability. Instead of defining success solely in terms of economic output, this framework evaluates whether people enjoy cohesive communities, meaningful agency over their lives, and a healthy environment.

Crucially, such measures would not replace GDP; they would place economic performance in a broader context. The G7 could advance this shift by requiring major initiatives to be assessed against a wider set of social, economic, and environmental objectives. Infrastructure projects, for example, would be judged by their contributions to social cohesion and environmental resilience, alongside economic growth. AI systems would be evaluated according to the productivity gains they generate and their implications for democratic agency. Trade agreements, for their part, would be expected to advance sustainability, labor-market resilience, and digital accountability, not just economic efficiency.

No emerging international order will revolve around a single center of power, development model, or set of priorities. In the best case, it will comprise overlapping coalitions focused on different issues and sectors. The challenge is to ensure that what overlaps also reinforces, rather than causing friction, fueling conflict, and perpetuating incoherence.

The future of global governance lies in learning how to govern a more diverse and fragmented world. The G7 summit offers a unique opportunity to articulate a coalition-based vision of international cooperation that can expand and evolve to incorporate new partners from the G20 and beyond. In doing so, it can help lay the foundation for a more adaptive and resilient world order.

JUNTU Technologies Partners with Chery Group to Debut OMODA and JAECOO EVs in Ethiopia

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JUNTU Technologies Trading PLC has officially inaugurated and commenced operations at its state-of-the-art vehicle showroom and after-sales service center built for the OMODA and JAECOO brands in Addis Ababa.

Located in the Nifas Silk Lafto sub-city, this massive facility marks the formal entry of these two prominent, modern electric vehicle brands—subsidiaries of China’s Chery Automobile Group—into the country’s market.

This expansion comes at a time when the Ethiopian automotive market has shifted its focus entirely toward electric vehicles (EVs), following the government’s historic decision to halt the import of gasoline and diesel passenger vehicles.

Backed by aggressive tax incentives and policy reforms aimed at curbing steep fuel import costs and easing foreign exchange pressures, the country has become a primary target for global green-energy manufacturers.

The newly inaugurated facility, developed by JUNTU Technologies, is expected to provide a significant boost to the country’s transition toward green development and its national movement to reduce carbon emissions, as Ethiopia moves away from a heavy dependency on fuel imports that drain foreign currency. The opening of such large-scale hubs is rapidly shifting the nation’s transport sector toward an eco-friendly ecosystem.

Launched over the weekend, the facility will operate as a comprehensive hub offering vehicle sales, specialized maintenance services, and direct access to spare parts under one roof. Industry observers note that the lack of technical infrastructure and replacement parts has historically been a major source of anxiety and a significant deterrent for local EV buyers.

Speaking at the launch event, Lucas, Country Director for the international Chery Group, expressed his delight, noting that the favorable policy environment created by the Ethiopian government has opened up great opportunities for global manufacturers.

He emphasized that this center is specifically designed to permanently address those consumer anxieties by offering a reliable, long-term support network, thereby instilling full confidence and giving dependable guarantees to customers.
Furthermore, JUNTU’s General Manager, Kende, highlighted that the investment extends far beyond vehicle sales. The facility is expected to stimulate the local economy by creating new employment opportunities and fostering technical skill development for local mechanics and engineers adapting to the new electric mobility technology.

Currently, the importer JUNTU Company has built a massive capacity to supply up to 10,000 electric vehicles per month to the domestic market.

The two newly introduced brands target distinct consumer segments within Ethiopia’s growing middle class. OMODA is engineered with a focus on futuristic design, cutting-edge technology, and urban commuting, blending comfort with luxury, with a price tag of 5.9 million Birr (or $36,500). Meanwhile, JAECOO is built for high-performance durability, strength, and elegance, specifically tailored to easily navigate off-road terrains and rugged road conditions, and is priced at 5.58 million Birr (or $34,900).

Ethiopian Court Extends Detention of Suspect in Massive ‘Viva’ Tissue Counterfeit Ring

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The Federal First Instance Court, Arada Division First Crime Remand Bench, has granted the Federal Police an additional 7 days of investigation time to fully expose a widespread counterfeit distribution network and trademark infringement ring that allegedly harmed public health, reduced government tax revenue, and disrupted the stability of the country’s free market.

Seyid Mohammednur, who was arrested under suspicion of committing a trademark infringement crime against the “Viva” (Viva Soft)  tissue product line, appeared in court today, June 11, 2026 , following the expiration of the previous 7-day investigation tracking period granted on June 3, 2026.

During the session, the Federal Police Crime Investigation Bureau presented its accomplished tasks to the court, explaining that more time is required to gather numerous remaining pieces of evidence and to track down unapprehended accomplices.

In its clarification to the court, the police recalled that the criminal act involves the unauthorized use of the “VIVa” Tissue trademark without the owner’s recognition or permission. This trademark falls under International Class 16 and was granted to “Pure Wood Pulp and Paper Packaging PLC” by the Ethiopian Intellectual Property Authority under legal registration certificate number LTM/3249/2017.

The investigative team revealed that since 2024 the suspect had been illegally copying and mimicking the Viva Soft plastic packaging, filling it with substandard, counterfeit tissue products, and covertly distributing them on a large scale across Addis Ababa and various regional states through hidden representatives and accomplices.

Detailing the nature of the act based on documents previously reviewed by Capital, the police explained that this case goes far beyond routine property rights violations. It is a complex economic crime that directly contradicts the macroeconomic reforms the country is currently undertaking to stabilize the market, curb inflation, and ensure consumer benefit.

Furthermore, it was stated that besides distorting healthy market competition, the operation deprived the government of significant tax revenue that it should have collected.
Beyond the economic crisis, the police warned that this counterfeit tissue product poses a severe threat to consumer health.

While the original Viva product is manufactured under strict quality controls, tips and leads have confirmed that the seized counterfeit product was made from substandard waste materials and hazardous chemical additives that are dangerous to handle.

Although the police indicated that they had recorded the testimonies of four individuals over the past few days, they explained to the court that vital documentary and expert evidence from various institutions is still pending.

Accordingly, they are awaiting results after officially requesting information and professional opinions from relevant entities, including the Ethiopian Intellectual Property Authority, the Ethiopian Conformity Assessment Enterprise, the Ethiopian Public Health Institute, the Oromia Revenues Bureau, and the Oromia Trade Bureau.

Additionally, the police noted that time is required to inspect the large volume of counterfeit tissue products currently stored in regional warehouses.

Although investigators requested a 14-day extension to fully complete the investigation file, the court examined the arguments from both sides and granted a final 7-day investigation extension. Consequently, it has been understood that the court adjourned the case to June 18, to hear the final results of the investigation.

$80M IFC Investment to Fund Sheraton Addis Revamp and Launch Ethiopia’s First Green-Certified Hotels

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The International Finance Corporation (IFC) has announced a landmark partnership with MIDROC Ethiopia PLC (MEP) to invest $80 million in the country’s premium hospitality (guest reception) sector.

It was indicated that the project, backed by a long-term loan from the IFC, aims to expand upscale hotel capacity, bolster the national tourism ecosystem, and drive high, inclusive economic growth across Ethiopia.

The company has officially confirmed that this multimillion-dollar credit facility will fund two major structural initiatives in the capital city, Addis Ababa. First, it will support the comprehensive refurbishment of the renowned Sheraton Addis (Luxury Collection) hotel. On the other hand, it was noted that the investment will fund the construction of a brand-new, modern Sheraton hotel. Both properties will continue to be managed under the premium portfolio of Marriott International.

Crucially, this expansion work is expected to introduce Ethiopia’s very first “green-certified” (environmentally compliant) hotels.

By increasing premium room capacity, this project is believed to provide strategic assistance in preparing Addis Ababa to welcome over 80,000 delegates when it hosts the United Nations Climate Change Conference (COP32) in November 2027 (Whidar 2020 E.C.).

“Tourism is a powerful engine for jobs and revenue,” said Ethiopis Tafara, IFC Regional Vice President for Africa. “Our partnership with MIDROC Ethiopia reflects how we work best — with strong partners on assets that anchor growth.”

With nearly two million people entering the national workforce annually, it is stated that this investment directly supports the World Bank Group’s Gender Strategy and its Country Partnership Framework, which views tourism as a primary engine for macroeconomic growth.

Jemal Ahmed, CEO of MIDROC Investment Group, added: “This collaboration will play a pivotal role in modernizing the domestic hospitality sector while delivering a sustained and meaningful impact on job creation.”
It was explained that this initiative aligns with the World Bank Group’s Country Partnership Framework (extended to fiscal year 2026), which positions tourism as a primary driving force for macroeconomic growth, as well as the World Bank Group’s Gender Strategy (fiscal year 2024–30).