Those countries that choose more globalization lose their domestic sovereignty, while those that limit globalization can have greater control over their domestic economies. This is the thesis of Dani Rodrik, a unique thinker on trade and globalization issues. The issue is not either black or white, but accepting hyper-globalization will impact an economy driven by the behavior of other countries. Independence in sound production and capital movement is lost. There is a substantial benefit, but in the extreme, cheaper imported goods may hollow out internal production, which generates less domestic control over the economy. Globalization may be at odds with national security. Again, there is a loss of control. The globalization shock worldwide was swift, often with limited consideration of the long-term impact, yet reversing the effects of hyper-globalization is not simply a reversal of the trade. The process of deglobalization, even on the margin, takes time and will have costs.
Solving a contradiction is not without costs. There will be winners and losers, and it takes time. A process of reversal will be painful and needs careful consideration.
No comments:
Post a Comment