Globalization, a New World or a Dead End
Economic globalization is at a Crossroad, the next step to be taken by major players will lead to either a New World or a Dead End.
The world is a place in time when protectionism, populism and isolationism are on the rise in the developed countries, as seen in a trend of anti-globalization, anti-free trade, anti-establishment votes and domestic social divisions.
As it is now, protectionism, populism and isolationism have found economic and political outlets, including depressed cross-border trade and investment, heightened trade barriers, stalled regional integration and stricter immigrant policies.
They have emerged where there are economic downturns or crises. The sluggish economy has begun to halt the interest to share, hitting particularly the middle class workers.
Globalization is in the headlight, and critics are focused on the defects in economic structure and governance.
This comes at a time when the last round of technological and industrial revolution and old-fashioned economic and development patterns have exhausted their fuels for growth, falling short of enabling a balance in both development and benefit distribution.
It has been a challenge so far in the process of globalization to achieve a balance. However, the proponents say the failure should not mean an end.
It just calls for ideas and actions to make things better. The process of globalization has so far worked to lift millions of people out of poverty around the world.
The existing discontent about globalization reflects the existence of problems in how to manage and control the globalization process, instead of globalization itself, according to US economist and Nobel laureate Joseph Stiglitz.
Globalization once came as a historical choice and reasonable solution to advancements in social productivity and technology.
It was driven by new scientific and technological outcomes, it has led to industrial transfers and resources re-groupings worldwide in the form of globalized trade and investment by trans-national companies, this notion began in the Bush (41) Administration.
On top of the emerging new round of technological and industrial revolution, transformations in both the international labor division system and the global value chain are ushering in a new stage of the economic globalization.
The world scenario that boasts some 900-M social media users and some 360-M participants of cross-border e-Commerce, with an increase in cross-border personnel movement is among the early signs.
The cross-border information flow nowadays, 46X that in Y 2005 as shown by a Mckinsey Global Institute report last February, means a gigantic exchange of commodities, services, capital and personnel.
This implies a lowered threshold for accession to globalization for smaller companies, start-ups and individuals.
While turning the world into a deeply interdependent one, globalization has also re-shaped some of the world’s thinkers thinking. Many issues and their solutions in parts of the world can no longer be closed off from the rest of the world, as economic and political factors have interlocked and domestic and international problems overlap a never before.
Where to go at this crucial moment of economic globalization will be discussed at the 2017 annual meeting of the World Economic Forum (WEF) to be opened Tuesday, 17 January in Davos, CH.
FLASH: UBS Group AG Chairman Axel Weber said executives and policy makers gathering this week at the World Economic Forum in Davos are too gloomy after the recent resurgence of populism around the world.