We have learned an abridged history, and from politicians rather than historians. They have taught us that we were the first nation that stood up against imperialism among victimized and oppressed peoples. The emphasis is on the victory upon which the republic was founded. But this abridged history hides the fact that we lost an empire and that the founders were responsible for running the imperial government that we lost in the World War I debacle.Still today both the “left” and the “right” abhor imperialism, and globalization is directly associated with that. That is why nature, the inevitability of it and how the process, proceeds is not properly observed, and suitable reflexes are not shown to manage necessary change. For example, today the global slump is still lingering, although losing its intensity as compared to a year ago. Simultaneously, the current economic slump has slowed down globalization to a certain degree. Will it ever stop it? Oh no! Although G-20 countries may increase protectionism, globalization trends will not be reversed. The reason is simple: If trends are reversed, they will have a negative impact on national or country economies such as a) an increase in layoffs b) an increase in the prices of goods and services and c) a decrease in wages and salaries.
Take the American experiment of adopting steel tariffs, which in turn led to an increase in the price of steel in the domestic market. This was done in the name of protecting US industry. However, this initiative did not save the US steel industry. On the contrary, it affected the US automobile industry; American carmakers had to pay more for steel than their foreign competitors. As a consequence, they increased the price of automobiles they produced and customers turned to imported cars.
Hence, governments introducing protective measures may slow down the globalization of goods and services. But restricting free trade and free market conditions may take their toll on national economies because globalization has intertwined countries into one global economic network. Take the financial crisis that started in the US. Hasn’t it affected the entire world to differing degrees?
The anxiety that emerged after the world economic crisis resulted in many politicians and economists insisting that some stringent or disciplinary measures would be introduced to harness financial institution failures. Indeed some measures have been put into effect; however, these financial regulations will put capital control restrictions on companies. But it may be naïve to assume that they will adversely affect financial globalization trends.
A qualified workforce, or brain power, is the driving force of industrial production and scientific innovation. Due to the current crisis, some governments in less developed countries try to put restrictions on employment of foreign “knowledge workers.” The motivation of this move is to soothe unemployed, local qualified white collar workers. But as the global economy improves, such immigration restrictions will only be short term and have to be relaxed. In conclusion, although national governments are trying to impose some restrictions on globalization due to the current recession, the giant will not be slain. Eventually the world economy -- Leviathan -- will recover and shake off the fetters of restrictions imposed during dire days. However, the lessons learned from the behavior of uncontrolled market forces and unregulated dealings that do not heed human exigencies and neglect ethical practices are expected to pave the way for a more human-oriented system.
