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QUESTION 15 - A crisis of Globalization
What evidence is there from developments in the global political economy to could justify the conclusion that
we are experiencing a ’crisis of liberal globalisation’
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Conceptually and Practically a multifaceted concept, it touches politics, economy,
business, finance, IT, and any social sciences as whole
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The difficulty relies in the manifestations Globalization takes,
depending on ​contexts and ​constructs​, ​timespan and ​localizations​: Multiples approaches have been
undertaken in attempts to fully frame a phenomenon that no one seems to be able to grasp, ​organizations​,
financial institutions and ​government ​acknowledge the existence and comply to their capacity to the forces in
hope to profit from it​, but no real formula has been found around the extent of the process
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This process is claimed to be accelerated by the fourth industrial
revolution, the age of data, and mainly the overthrown of giant MNCs (the blue chips, and unicorns) on
governments
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Globalization is expanding and regressing overtime, over historical periods,
between trade liberalization and protectionism, mimicking the Kondratieff cycles and super-cycles
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The
competition of powers raised to the ​World Stage, and it can be considered to be the early forms of
Globalization in its recent definition (through trade, and economic means)
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During period of ​Wars​, Globalization went to an extreme reverse and international trade and
cooperation was for malicious purposes
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Naturally,
some rejected its concept, adopting ​protectionism in the 30s to come back to a form of ​Order​
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Some saw in a
balanced approach of Social LIberalism​, imposing ​some degree of control over the market forces​, a
salvational power prevailing the ​Golden Age​
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The latest trend was toward ​Neoliberalism from the ​1980s onwards
which precipitated the ​end of the Bretton Wood​s system and the consequential exertion of the volatile and
unsecure​ nature of Globalism, Capitalism and Globalization combined
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Bello):

In ​Deglobalization​, W
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He identifies 3 key
moments in the recent deepening of the crisis of globalization:
- the ​Asian financial crisis of 1977 touching the proud ​tigers of East Asia, revealing that the key tenets
of globalization (the liberalization of the capital account to promote freer flows of capital, especially in

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finance or speculative capital) could be profoundly destabilizing
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This crisis was qualified as the
“Stalingrad” of the IMF due to its ​structural adjustment​
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This institutionalized stagnation worsened poverty and increased
inequality
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Indeed, the WTO has
hailed in the establishment press as the gem of global economic governance in the area of
globalization
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Conflicts about ​developing countries ​rebelling against
the Northern Diktat, massive popular opposition​, and the trade conflicts between the EU and the
USA
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The stagnation of the real economy led to capital being
shifted to the financial sector, resulting in dizzying rise of the share values
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These examples prove that Globalization as a sub-phenomenon of Capitalism backed by international
governance, can become deleterious for the countries with developing status, or alternative national
constructs
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For example, in Latin America, Carvallo envisioned
globalization as both a harness and an engine for Argentina's economy
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He thusly accelerated the ​privatization, deregulation and ​opened up
the national economy
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There is an inevitable clash between ​politics and ​hyperglobalization​, behind this, the political trilemma of the
World Economy: hyperglobalization, nation state, domestic politics
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- a mix of nation state and hyperglobalization is what the neoliberals support, as the golden
straightjacket
- integrating democratic politics in the hyperglobalism movement leads to a global governance and the
commitment in the institutions
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The Rise of Populism, a comeback of the 1930s ?
Globalization is seen as the accelerated integration of capital, production and markets globally, a process
driven by the logic of corporate profitability (Bello, 2002)

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