Is Globalisation Dead ?

In the past two decades, most of the countries across the globe opened up their economies. With the result, movement of goods, services and people was unprecedented. You go to Khan Market in Delhi, Whole Food Stores in Seattle, Alfa Market in Vile Parle, Bombay or small stores closer to South Harrow Station in London the bins and isles at these places are full of stuff from all across the globe. Similarly, top multinational companies in the length and breadth of globe are having workforce consisting of multiple nationalities.

But in the recent time, most of the countries including Big Wigs like America, UK, France and other European countries started running campaigns like  Country First, and  imposing restrictions on movement of workforce, curtailing exports. Will it be the end of the phenomenon called globalisation ?

In the past few years, global economic growth has been much slower than the average of  previous four decades, and trade & capital flows across borders, measured against global GDP, show signs of decelerating, too. Trade and technology are posing serious threats to jobs and income distribution around the world. Immigration has become highly contentious. Terrorism, cyber threats, financial instability and natural disasters have together made every one feel more vulnerable in a world with so many open channels that connect our societies. All of these factors are causing lots of citizens as well as  their leaders to wonder whether there has been too much globalisation, too fast and laeding many politicians to want to reclaim national control, reflected in  the growth of stridently nationalist political parties in UK, Germany, France, Spain.

There are some serious longer term challenges to globalisation. They will test the governments, corporations, non governmental organisations. With opening up China and growing prosperity in so much of the developing world, we have seen the rise of middle class of some two billion people demanding all manners of good  and services and thus creating huge opportunities for business but also straining production and  delivery systems. Hyper urbanisation is under way around the  world and  will bring with it a new chance for poor people.from the rural area but also a critical need for better water, food, health care, public safety.

Climate change is also a very important factor, poses existential challenges for which we have not yet found an answer. in the minds of many people, probably the silent global majority, the challenges of modern globalisation have grown too large for any government of the day, There is a  widespread fear of global leadership deficit.

We should not minimise the impact of changing geo politics on globalisation. let us accept that world order in which globalisation prospered in the last decades is over. The United States no longer dominates as it did , and India,  China, Brazil, Russia are claiming more influence. It is no exaggeration to say that where the global economy is concerned a huge number of underpinnings are in flux philosophy, ideals rules, enforcement. 

All this said, the trends of history, lead to the conclusion that whatever setbacks occur in the next few years, the long term trend will be for globalisation to regain momentum, and to widen and deepen.