Global localisation in a regulated non-market

Policy needs to be comprehensive and governments must be pressured to promote cooperation. Jonathan Michie explains.

In 1997 Dani Rodrik asked: “Has globalisation gone too far?” arguing that globalisation was triggering domestic, social and political pressures.  But globalisation was cheered on by politicians, academics and practitioners alike.  Then in 2007-2008 the process proved unsustainable; risk-sharing arrangements that were sold (quite literally) as designed to avoid a crash, crashed; and politicians who had pronounced government intervention a thing of the past, and nationalisation no longer practicable, intervened and nationalised their banks to save the private sector from itself.

Ten years after the start of the global financial crisis of 2007-2008, for many countries, output, employment and wage levels are barely higher than when the crisis struck.  For the OECD countries, employment reached its post-crisis trough in the first quarter of 2010, with 58.6% of the population (aged 15-74) employed – 2.2 percentage points lower than in 2007, corresponding to 20.3 million jobs; by the end of 2015 employment was still 5.6 million lower than previously.

Rethinking economics

You need to login to view the rest of the content. Please . Not a Member? Join Us

Jonathan Michie

Jonathan Michie, Oxford’s Professor of Innovation & Knowledge Exchange, Director of Continuing Education, and President of Kellogg, has just published ‘An Advanced Introduction to Globalisation’ (Edward Elgar 2017), and discounted …

Read More »

Leave a Reply

Your email address will not be published. Required fields are marked *