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The fallacy of the globalization trilemma: reframing the political economy of globalization and implications for democracy

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  • Thomas I. Palley

Abstract

This paper argues Rodrik?s (2011) globalization trilemma is analytically mistaken. Rather than a trilemma, globalization poses a dilemma between more globalization and reduced national policy space. Not only may globalization shrink policy space, it may also twist it. The character of the twist depends on the type of globalization. There is no inherent contradiction between globalization and the democratic nation state. However, globalization has significant implications for the content of democratic politics which it tends to restrict. Furthermore, globalization can generate policy lock-in (Palley, 2017) which permanently reduces policy space. That has enormous implications for democracy and future democratic policymaking.

Suggested Citation

  • Thomas I. Palley, 2017. "The fallacy of the globalization trilemma: reframing the political economy of globalization and implications for democracy," FMM Working Paper 08-2017, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    • Handle: RePEc:imk:fmmpap:08-2017
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    References listed on IDEAS

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    1. Daron Acemoglu & James A. Robinson, 2013. "Economics versus Politics: Pitfalls of Policy Advice," Journal of Economic Perspectives, American Economic Association, vol. 27(2), pages 173-192, Spring.
    2. repec:ilo:ilowps:487471 is not listed on IDEAS
    3. Maurice Obstfeld & Alan M. Taylor, 1998. "The Great Depression as a Watershed: International Capital Mobility over the Long Run," NBER Chapters, in: The Defining Moment: The Great Depression and the American Economy in the Twentieth Century, pages 353-402, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Saccal, Alessandro, 2019. "The mercantile dilemma: formalisations and historical conclusions," MPRA Paper 107639, University Library of Munich, Germany.

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    JEL classification:

    • F0 - International Economics - - General
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General

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