Global Development Institute podcast Lecture: Dani Rodrik on the economics of populism
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Oct 27, 2017 
Dani Rodrik, a Harvard University professor known for his insights into the economics of populism and globalization, dives into the rise of populist movements globally. He distinguishes between left-wing and right-wing populism, shedding light on their varied expressions in Latin America and Europe. Rodrik discusses how economic anxieties, from trade agreements to wage stagnation, fuel these political shifts. He emphasizes the historical backdrop of globalization and its complex interplay with societal reactions, offering predictions for the future of democracy.
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Populism's Predictable Economic Roots
- Populism's rise is predictable through economic theory, especially globalization effects.
- It is a global phenomenon with historical continuity since the 1980s.
Trade's Unequal Impact Revealed
- Trade liberalization creates winners and absolute losers, often low-skill workers.
- Redistribution needs increase as trade barriers fall, raising political costs despite efficiency gains.
Real-World Trade Shocks
- NAFTA caused a 17 percentage point drop in wage growth in U.S. affected industries.
- China's WTO entry led to lasting employment and unemployment impacts a decade later.