Special Ep. - Is globalization under threat?

In this special edition of Current Accounts, the Hinrich Foundation’s podcast on global trade, guest host Nii Akrofi Smart-Abbey from the Association of Foreign Press Correspondents in the United States (AFPC-USA) talks to Hinrich Foundation Research Fellow Stewart Paterson, delving into a discussion centered around the question of whether globalization is under threat. This episode was first featured in the AFPC podcast series.

Globalization is often associated with the notion of technology, making the world a global village after the advent of computers. In fact, it is a complex phenomenon showcasing how trade and technology have made our world a more connected and interdependent place while resulting in economic and social transformations. As globalization has become less appealing due to the stagnant trade intensity and declining foreign trade investment flows, it is imperative to pay attention to the current state of globalization and the evolving dynamics of nation-states within this sphere.

Globalization is increasingly under threat as it lacks support from a large part of the world where the authoritarian tendency threatening international trade is on the rise. 

This special episode of Current Accounts highlights the thought-provoking findings of a report titled ‘What went wrong with globalization’, authored by Hinrich Foundation Research Fellow Stewart Paterson. The report examines contemporary globalization, shedding light on the four factors that have hindered its progress. Additionally, he discusses the diminishing authority of the WTO and proposes remedies. Tune into this episode to uncover valuable insights into the future of global integration.

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Tune into the Hinrich Foundation’s podcast series for insights on international trade.

Transcript

 HERE IS AN EXCERPT FROM THEIR CONVERSATION:

Nii Akrofi Smart-Abbey: Okay. Now, that is a section about America's hegemony. You write that the unchallenged dominance of the US from an economic standpoint has passed. Um, has that power or dominance shifted yet to another country?

Stewart Paterson: No, I don't believe it has. I mean, obviously, the only potential rival would be China, but you know, China is still smaller than the United States in terms of its GDP in current dollars and it's certainly not anywhere as dominant as the United States was at the time when the WTO was formed in 1995. So, there's clearly no dominance from China. Obviously, China faces some huge economic challenges. I would argue that the narrative that China is preordained to overtake the United States in terms of size is deeply flawed. But the point I was making about the loss of economic dominance by the United States was really in the aftermath of World War II when the United States really was the dominant world economy with near enough 50% share. It was the magnanimity of the United States that led to the World Trade Organization, the predecessor because obviously a country that is that dominant in any bilateral negotiation about trade, the market power of that country, is clearly going to come out with the better deal. 

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