Lowy Institute Papers | 07 June 2007

Second thoughts on globalisation

Globalisation is one of the key forces shaping the global economy. It is also a policy choice.

  • Mark Thirlwell

Globalisation is one of the key forces shaping the global economy. It is also a policy choice.

  • Mark Thirlwell

Key Findings

  • Gobalisation is partly a product of technologically-driven falls in the price of transport and communication. But it also reflects policy choices as to the flows of goods, services, capital and people.
  • The globalisation-powered rise of the big emerging markets is creating adjustment strains in significant parts of the developed world. These strains include fears about the geo-political consequences of emerging market outperformance, concerns about domestic inequality, and worries about environmental sustainability.
  • Such concerns are limiting the developed world’s appetite for further liberalisation.

Executive Summary

This Paper looks at how attitudes to globalisation in the developed world are changing in response to the Great Convergence, and in particular, how the success of emerging economies and some of the consequent adjustment strains are prompting a rethink.

The Paper can be downloaded here.