{"id":232091,"date":"2023-03-17T19:40:35","date_gmt":"2023-03-17T14:10:35","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=232091"},"modified":"2023-03-17T19:40:35","modified_gmt":"2023-03-17T14:10:35","slug":"the-end-of-hyper-globalization-should-yield-a-better-alternative","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-end-of-hyper-globalization-should-yield-a-better-alternative\/","title":{"rendered":"The end of hyper-globalization should yield a better alternative"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cThe end of hyper-globalization should yield a better alternative<\/strong>\u201d published in Mint <\/strong>on\u00a017th<\/sup> March 2023<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Economy<\/strong><\/p>\n

Relevance: <\/strong>About different Global Economic Narratives<\/p>\n

News<\/strong>: There are different narratives in the global economic system. The article discusses those narratives and provides alternatives to it.<\/p>\n

What was the global economic narrative until the late 19th century?<\/strong><\/h2>\n

The global economy till the late 19th century was self-adjusting, self-equilibrating system in which stability was best achieved if governments did not interfere. This global economic narrative was referred to as the gold standard<\/strong>.<\/p>\n

It was thought that free capital movement, free trade and better macro-economic policies would achieve the best results for the world economy and countries alike.<\/p>\n

However, the gold standard collapsed and the Great Depression made this narrative false. <\/strong>After the collapse, the global economic narrative changed towards the Bretton Woods regime.<\/p>\n

What was the Bretton Woods economic narrative?<\/strong><\/h2>\n

The Bretton Woods regime<\/strong> emerged after World War II. It relied on Keynesian macroeconomic management<\/strong> to stabilize the global economy and gave the state a much more prominent role.<\/p>\n

The regime believed that only a strong welfare state<\/strong> could provide social insurance and support the market economy.<\/p>\n

This system altered the relationship between domestic and global interests.\u00a0It made the world to focus on achieving the goals of full domestic employment and establishing equitable societies.\u00a0<\/strong><\/p>\n

However, other than this narrative, the narrative of neoliberal hyper-globalization became dominant in the 1990s.<\/p>\n

What is Neoliberal Hyper-Globalization?<\/strong><\/h2>\n

This narrative believes in free flow of finance<\/strong> and in many ways, it similar to the gold-standard narrative of self-adjusting markets.<\/strong><\/p>\n

It emphasized the role of the government in enforcing specific rules that made the world safe for large corporations and big banks.<\/p>\n

It believed to end international conflict and strengthen democratic forces around the world, especially in communist countries such as China.<\/p>\n

It also believed that goals of social equity, environmental protection and national security could be achieved through policy instruments<\/strong> that did not interfere with free trade and finance.<\/p>\n

However, the Hyper-globalization narrative failed since the global crisis of 2008<\/strong> because it could not overcome its inherent contradictions. Hence, the world might look for alternatives.<\/p>\n

What can be the alternatives to Hyper-globalization narrative?<\/strong><\/h2>\n

Productivism<\/strong>: It emphasizes the role of governments in addressing inequality, public health and the clean-energy transition. It emphasizes domestic political priorities along with supporting an open world economy.<\/p>\n

Hyper-realism:<\/strong> It emphasizes the geopolitical rivalry between the US and China and applies a zero-sum logic to economic relations<\/strong> between major powers. This framework views economic inter-dependence not as a source of mutual gain but as a weapon to harm the global economic system.<\/strong><\/p>\n

What can be the way ahead?<\/strong><\/h2>\n

It is anticipated that governments would move towards more protectionist approach, encouraging industrial policies for advanced manufacturing and more green measures that support domestic goods.<\/p>\n

However, hyper-realist narrative would prevail if a country looks at the geopolitical aims. But this would endanger global economic stability.<\/p>\n

Hence, it would be better to correct the wrongs of hyper-globalization<\/strong> and establish a better global order based on a vision of shared prosperity.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cThe end of hyper-globalization should yield a better alternative\u201d published in Mint on\u00a017th March 2023. Syllabus: GS 3 \u2013 Economy Relevance: About different Global Economic Narratives News: There are different narratives in the global economic system. The article discusses those narratives and provides alternatives to it. What was… Continue reading The end of hyper-globalization should yield a better alternative<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501,11125],"class_list":["post-232091","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","tag-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/232091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=232091"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/232091\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=232091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=232091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=232091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}