Deglobalization

Deglobalization, also deglobalisation (chiefly UK/Ireland), refers to a process of diminishing interdependence and integration between certain units around the world, typically nation-states. It stands in contrast to globalization, in which units become increasingly integrated over time, and generally spans the time between periods of globalization.

While as with globalization, it can refer to economic, trade, social, technological, cultural and political dimensions, much of the work that has been conducted in the study of deglobalization refers to the field of international economics. Periods of deglobalization are seen as interesting comparators to other periods, such as 1850-1914 and 1950-2007, in which globalization has been the norm. Given that globalization is the norm for most people and thus even periods of stagnant international interaction are often seen as periods of deglobalization.

Measures of deglobalization

As with globalization, economic deglobalization can be measured in different ways. These centre around the four main economic flows:

• Goods and services, e.g. exports plus imports as a proportion of national income or per head of population.
• Labour/people, e.g. net migration rates; inward or outward migration flows, weighted by population (and resultant remittances in per cent of GDP)
• Capital, e.g. inward or outward direct investment as a proportion of national income or per head of population

It is generally not thought possible to measure deglobalization through lack of flows of technology, the fourth main flow. Those areas that are measurable do suggest other possible measures, including:

• Average tariffs
• Border restrictions on labour
• Restrictions on foreign direct investment or outward direct investment

Risks of deglobalization

Typically a reduction of the level of international integration of economies (and the world economy at large) are expected to exert second round effects related to four feedback mechanisms^[1]

• a reduction of (the rate of growth) of international trade will feed negatively into to long-run growth
• a loss of interaction , the co-movement of economies,
• trade policy feedbacks in the sense that reduced international interaction and lower growth will stimulate protectionism and non-economic issue areas where reduced cooperation among countries and even an increasing risk of international conflict can be expected..^[2]

International Political Economy of Deglobalization

Deglobalization has also been used as a political agenda item or a term in framing the debate on a new World Economic order, for example by Walden Bello in his 2005 book Deglobalization^[3]

See also

• Globalization
• Trade

External links

Daily Markets Deglobalizationblogspot Econbrowser Economist's view Engineering.com Mr. Globalization Opinio Juris Share the world's resources The curious capitalist The New Yorker Walden Bello

References

1. ^ , Peter A.G. van Bergeijk, On the brink of Deglobalization, Edward Elgar, 2010
2. ^ Link text, Peter A.G. van Bergeijk, Some economic historic perspectives on the 2009 world trade collapse, ISS WP 476, The Hague 2009.
3. ^ [1], Walden Bello, Deglobalization, 2005.