Political Limits to Globalization

Abstract

We live in an unprecedented age of globalization, where technology, ideas, factors of production, and goods are increasingly mobile across national boundaries. The current wave of globalization is distinguished from previous ones in part because of the major role of information technology. Nevertheless, globalization is not irreversible. Openness to international trade, finance, and technology is a choice that countries make, and despite the facilitating role of information technology, many countries, even many leading players in the world economy including the United States, China, India, Brazil, and Russia, could decide to close their borders. A major cause of the end of the previous (also historically unprecedented) nineteenth century wave of globalization was disillusionment with the international economic order, in large part precipitated by the Great Depression (e.g., Harold James 2001). Another, somewhat less emphasized though not necessarily less important cause was the rise of nationalism, militarism, and international conflict (e.g., Ronald Findlay and Kevin H. O’Rourke 2007, Reuven Glick and Alan M. Taylor 2005).1 The previous wave of globalization took place in the context of the 100 years following the end of the 1 Militarism is defined as the doctrine or policy of “aggressive military preparedness,” which typically leads to a country’s maintaining a strong military capability to defend or promote its national interests. growth in a partially de-globalized world† Political Limits to Globalization By Daron Acemoglu and Pierre Yared Napoleonic wars, which were unusually peaceful for European powers; it came to an end following the most widespread conflict that human society had experienced until then, World War I.