PremiumWorldwide, inward impulses on trade policy can be traced to a sudden phase of so-called ‘slowbalization’ that followed the West’s financial crisis more than a decade ago. But undisguised economic nationalism has gained traction relatively recently. Trade barriers have been on the rise
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As the Ukraine war worsens old ruptures and creates new ones, globalization could end up as collateral damage. Autarky is in the air, globally. On Thursday, Prime Minister Narendra Modi emphasized a need to scale up local manufacturing and reduce import dependence. This was important, he said, for “national security". That he specifically mentioned opportunities in the production of electric vehicles and semiconductors reflects the role that an acute chip shortage may have played. But he’s not alone. A day earlier, US President Joe Biden made a “Made in America" pitch, urging Americans to have “everything from the deck of an aircraft carrier to the steel on highway guardrails" bear that label.
Worldwide, inward impulses on trade policy can be traced to a sudden phase of so-called “slowbalization" that followed the West’s financial crisis more than a decade ago. But undisguised economic nationalism has gained traction relatively recently. Trade barriers have been on the rise. The rationale behind frictionless cross-border commerce for mutual gains seems largely lost on policymakers. As every country can’t be good at making everything, we could all end up worse off.
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