After three decades of poorly managed integration, globalization is threatened by social discontent and the rise of populist forces. A new paradigm will need better ways not only to compensate the groups that have lost, but to distribute the gains more broadly from the start.
The long post-war wave of globalization has come to a halt and the world economy is now threatened by disintegration.
What Went Wrong
Liberalizing international trade will lift all boats, since the losers from globalization can easily be compensated.
New Economy in Progress
Globalization produces discontent and policy needs to take costs and compensation more seriously.
5 WAYS THAT ARE DISCUSSED TO MAKE GLOBALIZATION WORK FOR ALL
Training programs, job search assistance and more effective redistribution
Regions react differently to trade shocks, so policies must focus on their particular needs
Governments could refrain from signing up to “deep” trade agreements
Increase cross-border labour mobility by allowing more workers to migrate from poor to rich countries
Stronger industrial policies, subsidies or protectionism of selected industries in developing countries
CHART: WHO HAS GAINED FROM GLOBALIZATION?
Shock therapy for Market Orthodoxy
From a Better Understanding of the Drivers of Populism to a New Political Agenda
Forum Working paper series - a new contribution by Robert Gold on the drivers of and measures against populism
The roaring globalization of the 2020s? Harold James says a new golden age of globalization is approaching
Princeton professor Harold James explains why the current crisis, like past crises, could trigger a new push for globalisation - on 26 May at our VIII New Paradigm Workshop.
New Economy Working Paper – How to reduce Germany’s current account surplus
Trump will go. But what about US complaints about Germany’s export surplus? Probably not, argue Achim Truger, Jan Behringer and Till van Treeck in an upcomming Op-Ed for the SZ which is based on a study for Forum New Economy.
Germany's current account surplus with Matt Klein and Till van Treeck
In the fourth edition of our New Economy Short Cuts we discussed Germany's current account surplus with Matt Klein and Till van Treeck. Watch the video here.
Dani Rodrik – Why Does Globalization Fuel Populism?
The Global Consequences of Germany’s “Educational Imperialism”
Matthew Klein describes how Germany's export strategy is damaging Europe and the rest of the world.
Digital Global Solutions Summit: Global Table
The Future of Multilateralism and Global Governance - Curated and produced by Forum New Economy
What were the Driving Forces in the 2019 UK General Election?
Thiemo Fetzer with an analysis.
Populism and the economics of globalization
Dani Rodrik on populism.
OTHER MAIN TOPICS
After decades of overly naive market belief, we urgently need new answers to the great challenges of our time. More so, we need a whole new paradigm to guide us. We collect everything about the people and the community who are dealing with the question of a new paradigm and who analyze the historical and present impact of paradigms and narratives – whether in new contributions, performances, books and events.
the role of
THE ROLE OF
For decades, there was a consensus that reducing the role of the state and cutting public debt would generate wealth. This contributed to a chronic underinvestment in education and public infrastructure. New research focuses on establishing when and how governments need to intervene to better contribute to long-term prosperity and to stabilize rather than aggravate economic fluctuations.
More than a decade after the financial crisis there still seems to be something seriously wrong with the financial system. Financial markets still tend to periodically misprice risk and contribute to boom and bust cycles. A better financial system needs to discourage short-termism and speculative activity, curtail systemic risk and distribute wealth more broadly.
During the high point of market orthodoxy, economists argued that the most 'efficient' way to combat climate change was to simply let markets determine the price of carbon emissions. Today, there is a growing consensus that prices need to be regulated and that a carbon price on its own might not be enough.
The rising gap between rich and poor has become a threat to social cohesion in most rich countries. To reverse this trend it will be crucial to better understand the importance of different drivers of income and wealth inequality.
Do we need a whole new understanding of economic growth? What would be a real alternative? How viable are alternatives to GDP when it comes to measuring prosperity? These and other more fundamental challenges are what this section is about.
The euro was planned during a period in which economic policy making was driven by a deep belief in market liberalism and the near impossibility of systemic financial crises. This belief has been brought into question since the euro crisis, which showed that panics do happen. New thinking needs to focus on developing mechanisms to protect eurozone countries from such panics and to foster economic convergence between members.
The current Corona crisis is probably the worst economic crisis of the post-World War 2 era. Economists are working hard on mitigating the economic effects caused by COVID-19 to prevent a second Great Depression, the break-up of the Eurozone and the end of globalisation. We collect the most important contributions.