New Globalization Phase: Key Elements and Perspectives

821
DOI: 10.20542/0131-2227-2018-62-6-5-17

V. Kondrat’ev (v.b.kondr@imemo.ru),
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation 



Abstract

The new economic nationalism is on the march in Europe and America. It argues that globalization has benefited the elites and penalized the ordinary workers, so governments should favor domestic producers and restrict global flows of people, goods and capital. The latest proposal came from the President Trump in March 2017 – a thread to ignore World Trade Organization rules and impose tariffs on countries with “unfair” trade practice. The experts suggest that the world may have entered into a new phase of post-WWII economy and a phase of new globalization. The next era could see globalization in retreat for the first time since 1945. The British vote to leave the European Union is a watershed event. It marks the end of an era of globalization driven by deregulation and the giving power over trade and regulation to the international institutions like the EU and the World Trade Organization. Outsourcing and growing trade with low-wage countries, including East Europe, as well as China, India and other countries with large low-wage labor forces have put downward pressure on wages. The message that leaders in the United Kingdom, Europe, and indeed the United States took away from Brexit is that the time has come to stop promoting austerity and business-as-usual trade deals like the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership and to instead get serious about rebuilding manufacturing and an economy that works for everyone. The political challenge in many countries is to develop a “responsible nationalism”, the policy that privilege local interests and local people over more cosmopolitan concerns. In the United States, such policies begin with plans to rebuild manufacturing and create more good jobs. Brexit is a moment of crisis for the global economy, one which demands a fundamental re-examination of contemporary core values. It is time to develop alternatives to the current model of globalization, which benefits only those who are most well-off in the modern society. 


Keywords

globalization, international trade, capital flows, transnational corporations 


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For citation:
Kondratev V. New Globalization Phase: Key Elements and Perspectives. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2018, vol. 62, No 6, pp. 5-17. https://doi.org/10.20542/0131-2227-2018-62-6-5-17



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