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Reasons for Rejecting Globalisation: Beyond Inequality and Xenophobia

 

Courtesy of SliceofNYC/Flickr. (CC BY 2.0)

This article was originally published by the Elcano Royal Institute on 14 March 2017.

Theme

The authors analyse reasons accounting for the growing discontent with globalisation and the liberal establishment in advanced democracies.

Summary

This paper presents five hypotheses to account for support for anti-establishment and anti-globalisation movements. In addition to the predominant perception that the economic decline of the middle classes and the growing xenophobia evident in the West account for Donald Trump’s victory in the US, Brexit and the rise of the National Front in France, among others, the authors set out another three reasons: the difficulties that significant layers of the population are having in adapting to technological change, the crisis of the welfare state and the growing disenchantment with representative democracy.

Analysis

A consensus has existed for decades among the main political forces of the US and Europe revolving around the idea that economic openness is positive. The flows of trade and investment and, to a lesser extent, workers have thus been gradually liberalised over time. Thanks to this liberal order, Western societies have become more prosperous, more open and more cosmopolitan. Although some lost out from this economic openness, the majority of voters were prepared to accept a greater level of globalisation. As consumers they could acquire products more cheaply from countries such as China, and they also understood that the welfare state would protect them appropriately if they temporarily fell into the category of the losers (in political economy this is known as the ‘compensation hypothesis’,1 according to which more open countries tend to have larger state sectors and redistribute more). For their part, developing countries have also benefitted from economic globalisation, exporting products to the wealthy transatlantic market (which is more and more open) and sending remittances from the West to their countries of origin. The invention seemed to work.

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What We’re Reading: Recommended Books From 2016

Painted pages

Courtesy of Lenna Young Andrews/Flickr. CC BY-NC-ND 2.0

This article was originally published by IPI Global Observatory on 15 December 2016.

As 2016 comes to a close, the Global Observatory offers a list of notable books published throughout the year, recommended by staff of the International Peace Institute.

Arab Spring: Negotiating in the Shadows of the Intifadat, edited by I. William Zartman (University of Georgia Press)

Though the process is still very much still in progress, there has been no shortage of attempts to explain the origins, trace the trajectory, and draw out the conclusions of the Arab uprisings. However, the attempt by I. William Zartman in his edited volume Arab Spring: Negotiating in the Shadow of the Intifadat stands apart. This very prolific professor of international relations has over the decades—and through the pages of some 20 books—turned conflict resolution into an academic discipline in its own right. In the process, he has defined its parameters. Zartman is therefore uniquely equipped to place the tumultuous recent events of the Arab region in their proper historical and academic context. These were—and still are—a set of developments determined by a desire for change from an old to a new order and, therefore, at heart involved a negotiation of that transformation. It is through this lens that Zartman offers a conceptual framework for negotiating transitions, with a team of experts—most of them from the very countries where the events they describe took place—providing their insights. There is also a chapter on South Africa and another on Serbia, which serve as points of comparison. Recommended by Jose Vericat, Adviser.

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The Global Crisis of Multilateralism

Labyrinth of Wall Street

Courtesy of Wally Gobetz/Flickr. CC BY-NC-ND 2.0

This article was originally published by E-International Relations on 3 December 2016.

Britain’s decision to leave the EU has been labelled an ‘exceptional act of self-harm’. But is it? In October South Africa became the first country to announce its formal withdrawal from the International Criminal Court (ICC). This was soon followed by the exit of Burundi and Gambia and by Russia’s announcement that it intends to withdraw from the Rome Statute which establishes the ICC. Although the Court has been hampered since its inception by the refusal of major states such as the US, China and Russia to submit to its jurisdiction, these withdrawals represent an unprecedented challenge to its legitimacy. Things look no brighter in the area of international security cooperation, as illustrated by the slow acceptance of Additional Protocol safeguards under the NPT and the failure of Annex 2 countries to ratify the Comprehensive Treat Ban Treaty. Even longstanding alliances seem at risk of unravelling. In June Uzbekistan announced its (re-)exit from the Collective Security Treaty Organization, and NATO leaders are growing increasingly nervous that the Trump Administration will turn its back on America’s allies. Meanwhile, there is a growing trend towards withdrawal from and denunciation of international human rights treaties, the G8 has shrunk to the G7, and the use of UNSC vetoes—which were at a historic low during the 1990s—is once again on the rise.

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Is Unbridled Globalization Creating Mafia States?

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Courtesy Moyan Brenn/Flickr

This article was originally published by IPI Global Observatory on 11 October 2016.

Around the world, political and criminal actors appear to be working more closely together than ever before. In 2011, the White House warned that criminal networks were forging alliances with political actors to undermine the interests of the United States. Spanish prosecutors have alleged that in many former Soviet states organized crime groups work “as a complement to state structures,” doing “whatever the government…cannot.” Concerns about political and public sector corruption in eastern Europe have grown. A recent report suggests that organized crime groups are taking control of local democracy in countries as varied as Afghanistan, Colombia, and Niger. In the Middle East, organizations such as Hezbollah in Lebanon and the Islamic State combine local social service provision, militant activity, and transnational organized crime to develop governmental power. And in North Korea, the ruling regime is accused of counterfeiting, drug-running, and even human trafficking. “Mafia states,” as this convergence of political and criminal power has been described, appear to be on the rise worldwide.

Why Now?

Political and criminal actors have long collaborated—not least in the US. As I show in my new book, Hidden Power: The Strategic Logic of Organized Crime, the US government worked closely with the American mafia during World War II and the Cold War to extend its power overseas. In the process, the Mob became an active player in international affairs, mounting armed insurgences, engaging in transnational terrorism, and even engineering regime change in some countries. But the move towards criminalized politics appears to have accelerated in the last two decades. Why?

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Is Globalisation Really Fuelling Populism?

One world / courtesy of Kai Schreiber/flickr

This article was originally published by the the Centre for European Policy Studies (CEPS) on 11 May 2016.

On both sides of the Atlantic, populism on the left and the right is on the rise. Its most visible standard-bearer in the United States is Donald Trump, the Republican Party’s presumptive presidential nominee. In Europe, there are many strands – from Spain’s leftist Podemos party to France’s right-wing National Front – but all share the same opposition to centrist parties and to the establishment in general. What accounts for voters’ growing revolt against the status quo?

The prevailing explanation is that rising populism amounts to a rebellion by ‘globalisation’s losers’. By pursuing successive rounds of trade liberalisation, the logic goes, leaders in the US and Europe ‘hollowed out’ the domestic manufacturing base, reducing the availability of high-paying jobs for low-skilled workers, who now have to choose between protracted unemployment and menial service-sector jobs. Fed up, those workers are now supposedly rejecting establishment parties for having spearheaded this ‘elite project’.

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