Saturday, June 7, 2014

Economic Insecurity and the Rise of Nationalism by NOURIEL ROUBINI

Weak recovery has provided an opening for populist and protectionist parties to blame foreign trade and foreign workers for the prolonged malaise

In the immediate aftermath of the 2008 global financial crisis, policymakers' success in preventing the Great Recession from turning into Great Depression II held in check demands for protectionist and inward-looking measures. But now the backlash against globalisation – and the freer movement of goods, services, capital, labour, and technology that came with it – has arrived.
This new nationalism takes different economic forms: trade barriers, asset protection, reaction against foreign direct investment, policies favouring domestic workers and firms, anti-immigration measures, state capitalism, and resource nationalism. In the political realm, populist, anti-globalisation, anti-immigration, and in some cases outright racist and antisemitic parties are on the rise.
These forces loath the alphabet soup of supranational governance institutions – the EU, the UN, the WTO, and the IMF, among others – that globalisation requires. Even the internet, the epitome of globalisation for the past two decades, is at risk of being balkanised as more authoritarian countries – including China, Iran, Turkey, and Russia – seek to restrict access to social media and crack down on free expression.

read more @

 Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
Related Posts Plugin for WordPress, Blogger...