Anaemic economic recovery has given populist parties an opening to blame foreign trade and foreign workers
by Nouriel Roubini
In the immediate
aftermath of the 2008 global financial crisis, policymakers’ success in
preventing the Great Recession from turning into Great Depression II
held in check demands for protectionist and inward-looking measures. But
now the backlash against globalization—and the freer movement of goods,
services, capital, labour, and technology that came with it—has
arrived.
This new nationalism takes different economic forms: trade barriers,
asset protection, reaction against foreign direct investment, policies
favouring domestic workers and firms, anti-immigration measures, state
capitalism, and resource nationalism. In the political realm, populist,
anti-globalization, anti-immigration, and in some cases outright racist
and anti-Semitic parties are on the rise.
These forces loath the alphabet soup of supra-national governance
institutions—EU (European Union), UN (United Nations), WTO (World Trade
Organization), and IMF (International Monetary Fund), among others—that
globalization requires. Even the Internet, the epitome of globalization
for the past two decades, is at risk of being balkanized as more
authoritarian countries—including China, Iran, Turkey, and Russia—seek
to restrict access to social media and crack down on free expression.
Read more at: http://www.livemint.com/Opinion/ro89h9RPtLE7b4Xh72THCM/The-great-global-backlash.html?utm_source=copy
Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics