Protectionism and Globalisation
The article examines the resurgence of protectionism, the decline of globalisation, and the revitalization of nation-states, particularly in light of US President Donald Trump's tariffs. It delves into the historical and contemporary dynamics shaping these phenomena.
Historical Context of Globalisation
- Globalisation is as old as capitalism, extending into colonial regions tied to European centers.
- The acceleration of globalisation was marked in the 20th century, especially with the financialisation of the economy in the 1970s.
- Financialisation enabled cross-border trade and investment flows, while migration faced resistance.
- Technological advancements in communication further boosted globalisation.
20th Century Developments
- The fall of the Berlin Wall and the Cold War's end reinforced the notion of diminishing nation-states.
- Thomas Friedman's book The Lexus and the Olive Tree epitomized the era's confidence in globalisation.
India's Economic Reforms
- India’s 1991 reforms under Prime Minister PV Narasimha Rao and Finance Minister Manmohan Singh embraced globalisation.
- Reforms included liberalisation, privatisation, and globalisation (LPG), ending the 'license permit raj.'
- The Indian economy experienced near double-digit growth rates during the 1990s and 2000s.
Challenges to Globalisation
- The 2008 financial crisis underscored the vulnerabilities of an unregulated free market tied to globalisation.
- Responses from global institutions focused on market adjustments rather than systemic changes.
- Deindustrialisation hit industrialised regions in the US and UK, resulting in resentment and employment challenges.
Rise of Protectionism
- Increased protectionism, exemplified by the US imposing 50% tariffs on Indian goods, reflects backlash against globalisation.
- Brexit and US policies under Trump illustrate the reassertion of national sovereignty and border control.
- Immigration has become a contentious issue, affecting political discourse across Europe and the US.
Conclusion
The article concludes with a reflection on the post-Cold War world transitioning towards sovereign nationalism as a response to the perceived failures of globalisation. It presents a critical examination of the historical forces influencing today's political and economic landscapes.
