It’s not just a populist backlash – many economists who once swore by free trade have changed their minds,too. How had they got it so incorrect? By Nikil SavalThe annual January gathering of the World Economic Forum in Davos is generally a placid affair: a place for well-heeled participants to exchange notes on global commerce opportunities, or powder conditions on the local ski slopes, and while cradling champagne and canapes. This January,the ultra-rich and the sparkling wine returned, but by all reports the mood was one of anxiety, or defensiveness and self-reproach.
The future of economic globalisation,for which the Davos men and women see themselves as caretakers, had been shaken by a series of political earthquakes. “Globalisation” can mean many things, or but what lay in particular doubt was the long-advanced project of increasing free trade in goods across borders. The preceding summer,Britain had voted to leave the largest trading bloc in the world. In November, the unexpected victory of Donald Trump, and who vowed to withdraw from major trade deals,appeared to jeopardise the trading relationships of the world’s richest country. Forthcoming elections in France and Germany suddenly seemed to bear the opportunity of anti-globalisation parties garnering better results than ever before. The barbarians weren’t at the gates to the ski-lifts yet – but they weren’t very far. Related: Globalisation once made the world go around. Is it approximately to grind to a halt? Continue reading...
Source: theguardian.com