The globalization paradox in 21st century and its applicability in analysis of international stability

Abstract

Abstract The scale and depth of economic integration that has taken place the last three decades (1975-2017) has raised concerns among scholars that these developments are reminiscent of the era of pre-Great Depression liberalization. Critics of globalization point out that the removal of trade barriers and capital controls would tilt the balance of power towards capital holders and richer economies. This undermines state sovereignty, democracy and internal stability. A growing number of scholars have dismissed those concerns pointing out the net benefits of trade and globalization as well as the reduction of world poverty. This paper finds that concerns of the demise of the nation state due to increased economic globalization are exaggerated. Increased liberalization has only served to strengthen the role of governments. However, the net gains from increased economic exchange have not been equally shared domestically or across trading regions. Countries that have embraced globalization but maintained their reservations over its negative effects on their people have made most benefits and positive gains.