5/21/2015

Wait a minute. De-globalization?


For years we've heard about globalization: the world getting smaller, technology bringing us closer. I credit Thomas Friedman, who made the saying "the world is flat" fashionable once again. 

But now I'm reading about de-globalization. Say what? 

Basically, as I understand it, it refers to a new kind of isolationism brought on by conflict in the world's various hot spots and counter measures against the bad actors.

De-globalization now ranks as one of the bigger threats to economic and societal stability, according to Swiss Re. They came out with their new list of emerging risks and explained that de-globalization takes the form of "sanctions and other interventionist policy ... to stop the flow of capital, goods and people across borders." Think sanctions against Russia, they say.

Big business is sure to bristle at the thought of more obstacles to free enterprise. When it comes to regulation, no one wants to have to play by 130 different sets of rules. I'm not a political scientist but I'm smart enough to suspect this bears watching. 

Here's the report. See p 8.