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“Deglobalisation is displacing globalisation.” Comment. 20 Marks. (UPSC CSE Mains 2024- Political Science and International Relations, Paper 2).
- According to the World Economic Forum (WEF), deglobalisation refers to the retreat from global economic integration, marked by the rise of trade barriers, the reshoring of supply chains, and a decline in cross-border investments and mobility.
- Deglobalisation shifts economies toward greater self-sufficiency by prioritising domestic industries, strengthening local supply chains, and reducing dependence on global markets.
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Trump’s “America First” Agenda: A Blow to Globalisation
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Causes of Deglobalisation
- Geopolitical Tensions: Conflicts like the Russia-Ukraine war and the Israel-Gaza crisis have disrupted global trade, led to economic sanctions, and increased regional instability.
- Weakening Global Governance: Institutions like the WTO, IMF, and WHO have struggled to manage trade disputes, financial crises, and pandemic responses, leading nations to pursue independent policies.
- Rise of Protectionism: Countries are imposing trade barriers, tariffs, and localisation policies, as seen in the UK’s post-Brexit trade policies, the U.S. Inflation Reduction Act, and India’s PLI schemes to boost domestic industries.
- Faltering Regional Cooperation: Events like BREXIT, U.S. withdrawal from TPP, and EU internal divisions have weakened multilateral trade agreements and economic blocs.
- Supply Chain Disruptions: The COVID-19 pandemic, Suez Canal crisis, and Red Sea attacks (2024) exposed vulnerabilities, pushing nations to reshore and friend-shore critical industries.
- Job Losses in Developed Nations: Offshoring to countries like India and China has caused unemployment concerns in the UK, U.S., and Europe, fuelling nationalist economic policies.
- Rising Economic Inequality: According to Oxfam (2024), the top 1% owns 50% of global wealth, intensifying the backlash against globalisation and corporate dominance.
- Political Polarisation and Nationalism: The rise of right-wing governments in Europe & America, policies like ‘America First’, & economic sanctions on Russia & Iran have reinforced economic fragmentation.
Impacts of Deglobalisation
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Globalised World |
Deglobalised World |
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Economic interdependence fosters peace and stability, reducing the chances of war. |
Increased conflicts due to weakened economic ties & rising nationalism. Eg., Indo-China tensions. |
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Optimised supply chains, free movement of labour, and stable trade flows drive global growth. |
Lower growth rates, higher inflation, & economic volatility due to trade barriers & supply disruptions. |
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Foreign investments, trade, and outsourcing fuel economic growth and poverty reduction. |
Reduced investments and trade hit service-based economies like India, the Philippines, and Malaysia, affecting job creation and GDP. |
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Cross-border collaboration accelerates technological advancements and research. |
Limited knowledge exchange slows down innovation, impacting industries like AI & green energy. |
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Global cooperation strengthens international institutions (UN, WTO, IMF) and trade blocs (EU, ASEAN). |
Nations prioritise self-interest, weakening diplomatic ties and multilateral organisations, increasing risk of conflicts. |
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Open markets ensure free movement of workers, balancing global labour demands |
Reshoring and trade restrictions disrupt jobs. Eg., Gulf nations faced labour shortages during border closures in the pandemic. |
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Developing nations receive global aid through institutions like IMF, World Bank, and UNDP. |
Declining foreign aid leaves vulnerable nations exposed to crises like wars, famines, and disasters. |
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Collective action through agreements like the Paris Climate Accord ensures sustainable solutions. |
Fragmented global responses weaken efforts to combat climate change, food, & terrorism. |
Road ahead
- In order to stifle nationalist and protectionist feelings, we must produce stability and security.
- There is a need to bring emerging countries into closer association with world governance, implying that, in return, they share the responsibility and the costs of underpinning capitalism and an open society.
- Promotion of new forms of international and regional integration that preserve and allow the multiple dimensions of life to flourish.
- Cooperation is vital to make the world economy more predictable, to mitigate vulnerabilities and to strengthen the free trade system.
- the culture of tolerance and understanding must be promoted which provides space for positive dialogue
The spectre of protectionism is haunting the global economy, as politicians in many parts of the world cast doubt on the benefits of globalization and free trade. Deglobalization does not oppose trade nor the exchange of products or services, but proposes that trade is not done at the expense of the communities, the local and national economies and the diversity of its products, whether agricultural or industrial.
As Kofi Annan said, “Arguing against globalisation is like arguing against the laws of gravity.” While deglobalisation may offer short-term national gains, a balanced approach — integrating self-reliance with strategic global cooperation — is essential for sustainable progress, peace, and shared prosperity.
POSTED ON 13-02-2025 BY ADMIN
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