Grave New World

Globalization

Globalization’s promised a new world: Residents of rich countries could keep their comfortable living standards, while citizens of the developing world suddenly would discover a path out of poverty. It appeared that economists and politicians had unlocked the mysteries of endless growth, mild inflation and muted volatility. In recent years, however, geopolitical realities complicated this optimistic vision of globalization. The rich grew richer while everyone else treaded water at best. Many realized that globalization benefited the fortunate few without lifting all boats. The 2008 financial crisis only underscored the realization that globalization is not a panacea. Amid a widespread backlash, populist politicians and disgruntled voters have registered strong protests against an economic order of free trade and open borders. The march of globalization has stopped, raising the possibility that it could “go into reverse.” Enthusiasm for globalization has cooled even in Europe, where income gaps are comparably mild. From the 1980s to about 2007, prevailing wisdom said free market capitalism and liberal democracy were the unquestioned solutions...