Is globalism in retreat? Trump nixed the Pacific trade agreement. Britain voted to leave the European Union. The 2008 financial crisis cast doubt on traditional economic structures.
An article in the May/June 2018 issue of Foreign Affairs draws a different conclusion. Globalization, the article states, has “simply entered a different phase.” (Susan Lund and Laura Tyson, “Globalization Is Not in Retreat”)
The key is the digital economy. Buying and selling is done irrespective of physical boundaries. They continue to grow and overtake traditional forms of trading.
A changing work force also is part of this global economy. According to the article, “almost 250 million people live and work outside their country of birth. . . . 90 percent of them do so voluntarily to improve their economic prospects . . . ”
Further, “Economic migrants have become a major source of growth.” This growth is balanced against losses by some workers, as certain jobs have disappeared. Skills needed for other jobs have changed as well.
Interestingly enough, draconian measures to end migration on the southern border of the United States have created difficulties for some American businesses—agriculture and construction, for example.
Instead, we could understand migration as a healthy part of our global economy. Instead of attempts to stop it, we would do better to bring workers into the new economy. Steps in this direction would include better job training for American workers as well as a reasonable amount of immigration.
Lund and Tyson also suggest portable benefits and “ending the practice of tying health-care, retirement, and child-care benefits to a single employer.”
Much of the world has benefitted from increased global commerce, but unfortunately not all. Karl Marx may still return if fair treatment of workers is not a part of the global order.