is globalization an inevitable state or could it unravel

In the lead article, Kobrin poses a series of questions generated by recent anti- and deglobalization trends. He wonders whether globalization is an inevitable state or could unravel, and also whether a global system could be constructed that both promotes economic integration and all of the benefits it generates, while acknowledging the need for national sovereignty and independence, and preserving the rights of nation-states to oversee important aspects of their domestic economic destiny. Regarding the first question, he contends that such a system is not inevitable: a strong economy must take the lead to create a dynamic system of trade that will benefit the broadest group of nations and their stakeholders. He contends that leaders of the strongest of economies must move beyond a mercantile mindset and shorter-term, zero sum assessments of economic gain by recognizing longer-term benefits of trade on economic stability and peace. Following Rodrik, Stiglitz, and others, Kobrin observes that the "second wave" of globalization involved much deeper integration than the first wave, generating spillovers into areas that heretofore had been the purview of national governments. This "behind the border" integration, and the increased attention to the visible - but highly concentrated - costs of trade that unfortunately command the attention of politicians and the media, has created a fundamental fissure in the global trading system. As economies grow in scope and complexity, it is harder for leaders to balance competing interests, and those stakeholders who perceive their interests to be harmed are often the most vocal and can command considerable voice and influence. He concludes with a challenge to the AIB community to engage in these important debates that can help to preserve the global trading system, while acknowledging those who have been harmed by it.

Jonathan Doh, and John M. Mezias. "Special Issue Introduction and Commentary on Trade and Economic Diplomacy." AIB Insights 19.1 (2019): 10-11.

Comments

Popular posts from this blog

The spectre of deglobalization and the European elections

Disrupted production location choices