Be wary of the three consequences of rapid deglobalization

A lady wearing a face mask stares at a mural fresco portraying a global map with tags saying ‘Fragile’ by French street artist Ender, 28 May 2020, Paris, France. (Source: CHESNOT)

The second effect of deglobalization has been to worsen the global political and social crises. Globalization 20,000 extra soldiers to NATO’s eastern flank since the war began. Many NATO countries are likewise beefing up their military posture in Eastern and Southeast Europe. Finland and Sweden, two long-standing NATO partners, announced their intention to pursue NATO membership last month.” “The United States fully supports Finland and Sweden’s applications,” he continued. Blinken asserted that both nations are more than competent to become full members of NATO and that joining NATO will enhance the transatlantic military has two sides to it. On the one hand, it promotes market integration, optimizes the allocation of global resources and factors, improves the efficiency of specialized division of labor and enhances consumer welfare, and promotes the global economy’s sustainable development and prosperity; on the other hand, it widens the gap between the rich and the poor. 

It violates the sovereignty, economic and social stability, and traditional values of small and weak countries, resulting in poverty and inequality, constraining democracy, deteriorating the environment, lowering labor standards, endangering indigenous cultures, undermining women’s rights, and exploiting child labor, among other things. Once serious problems such as poverty, a widening income gap, environmental pollution, and violations of labor rights and interests emerge, globalization will arouse strong disappointment and dissatisfaction among those who have lost interests, and this resistance is frequently manipulated and exploited politically by populists, forming a trend of anti-globalization, and the voice against globalization has become increasingly louder. 

Simultaneously, the acceleration of anti-globalization sentiment has resulted in economic stagnation and decline, ballooning budget deficits, and increased sovereign debt problems. The rise in the number of impoverished people has exacerbated social disputes, exacerbated the underlying social and political tensions in many nations, induced social division, instability, and disorder, and exacerbated the global political and social crises. It is more visible in affluent nations as political polarization; in poor countries, lack of institutional flexibility is more likely to lead to economic stagnation and social discontent in some countries due to a lack of governance competence. 

The third part is that anti-globalization sentiment has increased competitiveness among major states. Globalization encourages worldwide division of labor in industries and increases country dependency. The essence of anti-globalization is to obstruct the optimal allocation of production factors such as commodities, technology, information, services, currency, personnel, capital, and management experience in the global market, thereby weakening the degree of international cooperation and interdependence between countries in terms of politics and economy. This will certainly intensify competition among the great powers.