FT News Briefing Martin Wolf: The geopolitical threat to globalisation
Nov 24, 2022
Martin Wolf, the Chief Economics Commentator at the Financial Times, explores the profound challenges facing globalization today. He discusses how geopolitical tensions, like the U.S.-China trade war and the Ukraine conflict, are prompting nations to prioritize self-sufficiency. Wolf emphasizes the delicate balance between globalization and international cooperation, noting that while protectionism is on the rise, history suggests that stability could catalyze a new era of global trade. His insights delve into the risks of deglobalization and the future of economic interdependence.
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Politics of Globalization
- Globalization is influenced by domestic interests negatively affected by trade.
- Larger geopolitical conflicts also use trade as an instrument and consequence.
Cycles of Globalization
- Historically, globalization has seen periods of growth (1870-1914, 1950-present) and decline (World Wars, Great Depression).
- Geopolitics plays a significant role, but trade can restart after stability returns, as seen post-WWII.
Trade Dependence and Security
- Over-dependence on trade can create vulnerabilities, as seen with Russia's energy leverage.
- Smaller countries inevitably rely on trade due to limited self-sufficiency.