Globalisation

Good or bad?
Direct Link Trade and growth
 Why Globalisation?
• Neo-liberalism
• Economic growth
• Expansion of western ideas?
• Spatial expansion of capitalism?
• Forces of modernity
• Restoring pre-nation state order
 Martin Wolf on Crisis in Globalisation

• http://video.ft.com/5115753205001/Martin-
Wolf-on-globalisation/world

Norm Chomsky on globalisation

The deceptive promise of free trade

 Why Anti-Globalism?
• Rise of localism
• Environmentalism
• Populism/xenophobia/nationalism
• New technologies – encourage re-shoring
• Erosion of western hegemony
• Fear of new economies – low cost labour
• Cultural factors
 Important recent crisis
• Global financial crisis
• Euro zone crisis
• Commodity crisis
• Migration Crisis
US Rising Inequality and Trade Deficit- shape
narrative
Abuse of System
Globalism and the Rise of Populism
• Populism and Globalism
 How to reform globalisation?
• Restrict capital flows?
• Freer trade/investment – limit migration
incentives
• Universal basic Income
• Protectionism?
• Control excesses (e.g. tax havens)
 Compensating the Losers- Universal Basic
Income
• Compensate for loss of jobs to globalisation
and technology
• Logic to offer floor to income – flat rate
• Reduce existing welfare but also comp
• But require increase in taxes and less targeted
on poor
• Reduce incentives to work
Slowbalisation
Less need to extend GVCs
• Technology is speeding
up supply chains
• Benefits from
localisation of supply –
shortening and
simplifying GVCs