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Deglobalization Scenarios: Who Wins? Who Loses?

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  • Hillebrand Evan E

    ()
    (University of Kentucky)

Abstract

The process of globalization is being harshly criticized for a variety of reasons, but mostly because the income of large and/or vocal segments of the population of this and other countries is threatened by the dislocation and competition of trade and investment and by the inability or unwillingness of states to compensate the losers. Based on analysis with the International Futures Model, this paper concludes that if globalization halts or recedes the results will be profoundly negative for most countries and most income groups. While a retreat into protectionism may improve income equality in some countries, it will reduce incomes of both the poor and the rich and poverty headcounts will be increased. In addition, political instability will rise in a majority of countries and the probability of interstate war will increase. These results suggest that it would be far better to deal with the negative aspects of globalization directly by improving trade adjustment assistance, providing more secure access to health care, and negotiating new international agreements that benefit all countries.

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Bibliographic Info

Article provided by De Gruyter in its journal Global Economy Journal.

Volume (Year): 10 (2010)
Issue (Month): 2 (May)
Pages: 1-21

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Handle: RePEc:bpj:glecon:v:10:y:2010:i:2:n:3

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