Just Sociology

Reglobalisation: Why international cooperation is crucial for a prosperous future

The global economy’s recent turn towards protectionist policies highlights the idea of ‘globalisation in reverse.’ This shift in policy has occurred due to political events such as the rise of Donald Trump and the election of Joe Biden, who has implemented an immigration bill that slows down the influx of foreign workers. Additionally, the Russian war on Ukraine and the global supply-chain issues resulting from the Coronavirus pandemic are also indicators of increased seclusion from global markets.

One of the most prominent aspects of ‘globalisation in reverse’ is protectionist policies such as trade barriers. The World Trade Organization (WTO) was founded with the purpose of encouraging free trade with a global framework for international trade rules.

However, the idea that increased trade equals everyone benefiting can be too simplistic in global politics. Protectionism exists to protect national gain, which may not coincide with the interests of other nations.

Tariffs and non-tariff barriers slow down the inflow of foreign goods into a country. However, this can result in GDP loss as other nations retaliate with similar measures.

Whereas subsidies and export controls are measures taken to provide incentives to domestic producers to encourage job creation for the local population. Strategic industries that are vital to a nation’s security are also kept under government control to protect and regulate foreign involvement.

But why have globalisation and free trade become a prevalent topic in modern times? The keyword is ‘flows.’ Globalisation is not merely the exchange of goods but the free flow of everything, from people to finance to ideas.

It is the economies of scale that push the price of goods down and the competition that drives production efficiency up. The globalisation of the economy has led to poverty reduction due to increased job creation and competition.

By opening up to global market opportunities, businesses can grow and hire more people. Therefore, the globalisation of labour has helped with the creation of jobs in developing countries.

Historical events have also contributed to the benefits of globalisation. The collapse of the USSR was a defining moment in history that opened up Eastern European markets and the integration of Europe to yield substantial economic benefits.

China’s opening to foreign market opportunities, particularly after its admission to the WTO in 2001, allowed it to become a vital player in the global economy. The World Wide Web was another momentous event that has revolutionized and accelerated the globalisation of information and ideas.

In conclusion, globalisation in reverse is a phenomenon occurring due to recent political events and has led to the rise of protectionist policies. While protectionism may be necessary to safeguard national interests, easy access to global markets will continue to provide benefits to developing countries.

Furthermore, access to the global market helps in poverty reduction and creates more job opportunities. Historical events such as the fall of the USSR, integration of Europe, and the opening of China, as well as technological progress such as the World Wide Web, all act as catalysts for globalisation.

The globalisation of ideas and information has revolutionized the way in which we think and work. The twenty-first century saw globalisation as the driving force behind economic growth and global prosperity.

However, the world today is at crossroads, where a shift towards de-globalisation indicates an increasing trend towards economic nationalism. The reasons for this shift towards de-globalisation are many, and the same can be attributed to issues of inequality, nationalism, Donald Trump’s presidency, and Brexit, to name a few.

While the benefits of globalisation were clearly visible in terms of economic growth, its pitfalls have also resulted in a host of issues concerning inequality, climate change, and international cooperation. The idea behind de-globalisation is to curb inequalities by protecting the interests of local economies.

Since the 2008 financial crisis, a wave of economic anxiety has influenced the rise of populist politicians and nationalism in several parts of the world. It has created a situation where people have become resentful of elites and their policies, leading to a distrust towards globalisation.

Brexit is one such example, where the British people voted to leave the European Union, and the Trump administration’s America First policy also reflects the same trend. De-globalisation is problematic because it intensifies the existing tensions between developed and developing countries.

It could lead to environmental challenges concerning climate change where nations pull in different directions concerning their priorities. It also means that developing nations that rely on exports will face difficulties in accessing export markets due to trade barriers.

A reduction in international cooperation could also lead to increased poverty levels in underdeveloped nations. It is essential that policies be enacted that protects the interests of the local economy but not at the cost of other nations.

The solution to the issues of globalisation can come from implementing fairer taxation and redistribution policies. Neoliberal globalisation had resulted in the erosion of the social contract between the governments and the people.

Corporations have benefitted from low taxes and tax havens, leading to a weaker infrastructure in terms of healthcare, education, and other social services for the people. To address these issues, governments should increase corporate taxes, close tax havens, and promote welfare policies that support their citizens.

To address the problems of de-globalisation, governments should embrace the idea of reglobalisation. This would mean taking steps to ensure that there is global cooperation concerning international problems such as climate change, pandemics, and conflicts.

Governments should start by focusing on creating global corporate tax on multinational corporations. A global corporate tax will ensure that all companies pay a fair share of tax, which can then be used to fund welfare policies across the world.

A diversification of supply chains will also ensure that developing countries have access to markets, leading to job creation and economic stability. Reskilling is an important aspect of reglobalisation, where workers need to be reskilled to be able to work in a changing world.

With the shifting trends towards automation and artificial intelligence, industries are now looking to hire workers who are equipped with new technological skill sets. Governments should invest in developing new educational programs to help train workers in the relevant areas.

Furthermore, international cooperation is needed to deal with climate change, pandemics, and other challenges that require a collective approach. In conclusion, de-globalisation is a consequence of economic anxiety stemming from neoliberal globalisation.

While protecting the interests of the local economy is crucial, crucial economic and environmental issues require global cooperation. Therefore, steps should be taken to address the issues and promote reglobalisation.

Fairer taxation and redistribution policies that support welfare policies should be enforced, and global corporate tax should be put in place to ensure that multi-national corporations pay their fair share. Finally, governments should invest in reskilling programs to develop workers who are equipped with the necessary skill sets in the changing global economy.

In conclusion, the phenomenon of globalisation has had profound economic implications for the world, raising important questions regarding protectionism, the costs, and benefits of globalisation, and the need for international cooperation. The shift towards de-globalisation and its underlying trends towards nationalism and economic anxiety must be countered with policies that promote a reglobalisation effort.

Solutions such as fairer taxation policies, global cooperation, and reskilling programs can help overcome the challenges of globalisation to lead to a more prosperous and sustainable future. FAQs:

1.

What caused the shift towards de-globalisation? Answer: Economic anxiety fueled by the 2008 financial crisis, the rise of populist politicians, and nationalism were major factors leading to the shift towards de-globalisation.

2. What are the problems with de-globalisation?

Answer: De-globalisation intensifies tensions between developed and developing countries, leading to environmental and poverty-related challenges, increased trade barriers, and reduced international cooperation. 3.

What solutions can be put in place to overcome the challenges of globalisation? Answer: Solutions include fairer taxation policies, global cooperation, and reskilling programs, among others, which can help to promote a reglobalisation effort.

4. Can de-globalisation protect the interests of the local economy?

Answer: Yes, but policies should be put in place that protect the interests of the local economy while ensuring that there is no adverse impact on other nations. 5.

What is reglobalisation? Answer: Reglobalisation refers to the idea of promoting global cooperation to address international problems such as climate change, pandemics, and conflicts, among others.

Popular Posts