201571879

June29,2016
IR201:
PowerShift:TheDeclineoftheWest,TheRiseoftheBRICs,&WorldOrderinaNew
AsianCentury

Isglobalizationasourceofinsecurityorstability?

ThePerniciousEffectsofGlobalization

Theneoliberalglobalistconsensusseemstobebreakinginthisverymoment.Therise
ofantiglobalistpopulistcandidateshastakentheworldbystorminthepastseveralyears.
FrancesNationalFrontledbyMarineLePenmakesgainseveryelection.DonaldTrumpwon
thenominationoftheRepublicanPartyoftheUnitedStateswithantitraderhetoricthatisthe
oppositeofbothhispartyanditsopponentsorthodoxy.Mostrecently,Britainexitedthe
EuropeanUnion,ledbyNigelFarage,BorisJohnson,andtheformerlymarginalUnited
KingdomIndependenceParty.Thesupportfromthesecandidatescomesnotonlyfromthe
traditionalrightbutalsofromthetraditionalleft.Whatdidtheneoliberalsdosowrongtolose
theworkingclass?Theylosttouchwiththeaveragepersonintheircountry.Astheneoliberals
grewrichthroughcapitalism,theworkingpersonlosthisjobasmanufacturingjobsmoveto
Asiancountriestryingexportleddevelopmentandimmigrantsfloodthedomesticworkplace.
Thusfortheaveragepersoninmanyofthesecountriesglobalizationisasourceofinstability:
first,itdestabilizesnationalandlocalculturesand,second,itcauseseconomicdisruptionthat
causesmanytolosetheirjobs.
Nationalandlocalculturehavebeendeterioratingbecauseofglobalization.Immigration
duringtherecentwaveofglobalizationoftenlackedculturalassimilationwhichcauseda
denigrationofculture.Manyimmigrantscomefromplaceswithvastlydifferentculturesthan
Westerncultureanddonotculturallyassimilatewell.
Whilesomemaysaythelackofcultural

assimilationisthefaultofracistorxenophobicnativecitizens,evidencesuggeststhatthisisnot
thecase.BenSchwarzmakesthefollowingargumentintheAmericanConservative:
TakeablackimmigrantfromJamaicainthe1950s.HethefirstNewCommonwealthimmigrants
wereoverwhelminglymenwasprobablyAnglican,likelycricketplaying,andquitepossiblya
wartimeveteranoftheBritisharmedforcesormerchantnavy.Hadhebeenschooled,hewould
havelearnedEnglandshistoryandbeenintroducedtoitsliterature.Probablyowingtothese
commonalities,todaysblackCaribbeanpopulationhasthehighestrateofintermarriagewithBritish
whitesofanyminoritygroup.1

Thusthereasonforlackofculturalassimilationseemstonotberacebutculturaldifferences.
WhileimmigrantscamefromBritishcoloniesforyearsbeforethemostrecentwaveof
globalization,theseimmigrantshadBritishculture.ImmigrantsfromEuropeanUnioncountries
likeRomaniaorBulgaria,letaloneimmigrantsfromMiddleEasterncountries,aremuchless
likelytoshareBritishculture.
ManyMiddleEasternimmigrantscomingtoEurope,forexample,
lackanyideaofhowtobehaveinWesternsociety.Thelackofunderstandingissoludicrous
that,forexample,aNorwegiancurriculumforimmigrantsactuallyneedstostate
toforce
someoneintosexisnotpermitted.2
Thislackofassimilationcausesadenigrationofculturewhichcausesinstability.
HarvardsocialscientistRobertPutnamarguesthatuncheckedimmigrationcangreatlyharm
socialcohesion.Thefearofimmigrantsandofwhatisnewanddifferentmeansthatincreased
immigrationanddiversityreducetrust,socialsolidarity,andsocialcapital.3Putnamthinksthat
culturalassimilationisveryimportanttomakesurethattheseimportantsocietalattributesare
notreducedandthatthepurposeofpublicpolicyinthiscontextmustbetotrytomakesure
everyonefeelsmorecomfortablewiththisnewdiversityintheirenvironment,boththe
immigrantsandthenatives.Yet,globalizationmakesnoefforttotrytomakethenativesmore

http://www.theamericanconservative.com/articles/unmakingengland/
http://www.nytimes.com/2015/12/20/world/europe/norwayoffersmigrantsalessoninhowtotreatwomen.
html
3
https://www.hks.harvard.edu/newsevents/publications/insight/democratic/robertputnam
2

comfortablewiththenewdiversityinfact,thosewhoexpressdiscomfortwiththenewdiversity
intheirenvironmentsareridiculedasracistorxenophobic.
Cultureisnotonlylostthroughunassimilatedimmigrants,butisalsolostthroughthe
cosmopolitanethospreachedbyglobalization.Globalistsareloathetoacknowledgethat
patrioticornationalisticideascanbecatalystsforsocialcohesion.Instead,ideaslikeglobal
citizenshipareinvokedthatdonothavethesamecohesiveeffect.WhiletheEuropeanUnion
attemptstoactlikeanationstatewithitsflaganditsnationalanthem,suchglobalistattempts
seemsocontrivedthattheyareunlikelytoeverwork.Instead,suchsymbolsservetoweaken
thenationalbondsthathaveheldsomeWesternsocietiestogetherforcenturies.Neoliberal
economicstreatpeopleasindividualswithnosocialwebandnoculturalinfluences.Theresult
oftheimplementationoftheirpoliciesisthatcultureisignoredanddestroyedatbehestof
wealthcreation.4 Cosmopolitansincitieseducatedinneoliberaleconomicsopenlymakefunof
thosewhostillcareabouttraditional,nationalculture.PresidentObamaoncecriticizedMiddle
AmericaforclingingtogunsandreligionandcosmopolitanLondonersendlesslyridiculed
thosewhovotedforBrexitdespitethewealthcreationofglobalization.Yet,thesecosmopolitan
globalistsfailtounderstandtheeffectthatculturehasonmanypeopleslives.Thereis
evidencethattheeffectissubstantial.
Alossofcultureisassociatedwithsocietalinstability.
Nationalculturebindssocieties
togetherasasourceofmeaningandsolidarity.Culturalconnectionscausepeopletowantto
worktogetherforthecommongood.
Thelossofculturethuscauseshighlynegativeoutcomes.
InAmerica,forexample,accordingtoPrincetonsocialscientists,therewasamarkedincrease
intheallcausemortalityofmiddleagedwhitenonHispanicmenandwomenintheUnited

http://unipdcentrodirittiumani.it/public/docs/cult_glob.pdf

Statesbetween1999and2013.5Despitenodeclineinincomeoremployment,middleclass
whiteAmericansarekillingthemselvesthroughsuicide,alcoholism,anddrugoverdose.
Thereforetheremustbeabreakdownincommunitybroughtstability.Thelossofthestrong
ethicsofcultureandriseofrelativismmeansthatitismoresociallyacceptableforpeopleto
makeworsedecisions.CharlesMurraydocumentsinhisbook
ComingApart
thatbluecollar
womenroutinelyhavechildrenoutsideofmarriageandthatlessthanathirdofitschildrengrow
upinhouseholdsthatincludebothbiologicalparents.Themenclaimphysicaldisabilityat
astoundingratesandarelesslikelytoholddownjobsthaninthepast.Churchgoingamongthe
whiteworkingclasshasdeclined,erodingthesocialcapitalthatorganizedreligiononce
provided.6Furthermore,theriseoffarrightpopulistslikeDonaldTrump,MarineLePenand
othersshowstherisingdiscontenttheaveragenativecitizenofaWesterncountryhaswithhis
orherlife.Thusunassimilatedimmigrantsandcosmopolitanglobalistvalueshavecauseda
lossofculturethathadtangible,destabilizingeffectsontheWesternworld.
Foratleastageneration,politiciansandacademicshavetoutedtheeconomicbenefits
ofglobalizationhowever,whileglobalizationmayhelpcreatemoreoverallwealthitis
destabilizingfortheeconomyasitdisplacesmanyworkers.Theeconomistssufferthepitfallof
failingtoneglectculturalandsocialties.HarvardeconomistGregoryMankiwtypifiedthis
mindsetwhenaskedwhatthepeopleofFlint,Michigan,wholosttheirmanufacturingjobs
shoulddo.Hereplied,Iknowwhatthepeopleshoulddo.Theyshouldmove.7Howeverfor
manypeople,movingisahugehardshipthatrequiresseveringallthesocialtiestheyhaveever

http://wws.princeton.edu/facultyresearch/research/item/risingmorbidityandmortalitymidlifeamongwhite
nonhispanic
6
http://www.nytimes.com/2012/02/12/books/review/charlesmurrayexaminesthewhiteworkingclassincom
ingapart.html
7
http://www.thecrimson.com/article/2006/3/2/aneveningwitheconomicchampionsa/

known.Labordoesnotmoveasfreelyassucheconomistsimagineitdoesintheireconomic
models.ManypeoplearestuckintownslikeFlint,Michigan,withnojobsandnoprospects.
Theresultofglobalizationisthusthatmanypeoplelosethesteadymiddleincomejobs
theyhadpreviously.Therehasbecomeanextremepolarizationofjobopportunities,occurring
graduallyduringthelastthreedecadesduringwhichmanyfreetradeagreementshavebeen
signed.8NewYorkUniversityeconomistandNobelPrizewinnerMichaelSpenceexplainsthat
oftgripedaboutincomeinequalityisaresultofglobalization:
Byrelocatingsomepartsofinternationalsupplychains,globalizationhasbeenaffectingthepriceof
goods,jobpatterns,andwagesalmosteverywhere.Itischangingthestructureofindividual
economiesinwaysthataffectdifferentgroupswithinthosecountriesdifferently.Intheadvanced
economies,itisredistributingemploymentopportunitiesandincomes.Formostofthepostwar
period,U.S.policymakersassumedthatgrowthandemploymentwenthandinhand,andtheU.S.
economy'sperformancelargelyconfirmedthatassumption.Butthestructuralevolutionoftheglobal
economytodayanditseffectsontheU.S.economymeanthat,forthefirsttime,growthand
employmentintheUnitedStatesarestartingtodiverge.[...]Theresultisgrowingdisparitiesin
incomeandemploymentacrosstheU.S.economy,withhighlyeducatedworkersenjoyingmore
opportunitiesandworkerswithlesseducationfacingdecliningemploymentprospectsandstagnant
incomes.TheU.S.governmentmusturgentlydevelopalongtermpolicytoaddressthese
distributionaleffectsandtheirstructuralunderpinningsandrestorecompetitivenessandgrowthto
theU.S.economy.9

Incomeinequalityisadestabilizingforcethatcausesdivisionsandbickeringalongclasslinesin
thetheWest,especiallytheUnitedStates.Thelossofthesteadymiddleincomejobhasbeen
causedahugeculturalshiftintheUnitedStates,desolatingMiddleAmericacommunitieswhile
increasingthewealthavailableforthoseinhighskillsectorslikefinance.Destabilizing
movementslikeOccupyWallStreetroseasaresponsetothisinequality.Theircritiqueofthe
neoliberalworldorderwas,accordingtoanalysislikeSpences,probablyjustified,yetthe
nationaltensioncausedbysuchmovementsispalpableandpernicious.
Globalizationisalsodestabilizingbydestroyinglaborunions.AsHofstraProfessorJune
Zacconenotes,Itiseasiertoattackunionswhentheirexistenceisdescribedasabarriertojob

8
9

http://njfac.org/wpcontent/uploads/2015/07/GloblMClass.pdf
https://www.foreignaffairs.com/articles/unitedstates/20110602/globalizationandunemployment

creationorglobalcompetitiveness. 10Majordeclinesinunionparticipationhaveoccurred,most
accentuatedincountrieswiththemostneoliberalpolicies.Unionsforoveracenturyhave
bargainedforhigherlivingstandardssuchaspaidholidaysandsickleave.Unionsparticipation
isalsoassociatedwithhighervoterturnoutrates,whichisasignofsocialcohesion.Thelabor
unionisthusoneofglobalizationsmostwretchedvictims.
Whileglobalizationisdestroyingcultureandnegativelydisruptingtheeconomy,isthere
anythingthatcanbedone?Isglobalizationinevitable?Differentpeoplehavedifferentideas.
Mostoftheworldseliteremaincommittedtotheneoliberalworldorder,whilesomeonthe
farleftandfarrightcontinuetocritiqueglobalization.BrexitandtheriseofDonaldTrumppoint
toarisingantiglobalisttideyet,theEuropeanUnionseemssettosurvivewithoutBritain,ifit
evenendsupreallyleaving,andneoliberalHillaryClintonholdsasteadyleadoverTrump.
Whileatradedealortwowillbesacrificedaroundtheedges,globalizationwillcontinueits
marchonwardfortheforeseeablefutureunlessthereisafullfledgedrevoltagainstelites
throughouttheWest.Mostlikely,theneoliberalworldorderwillremain.

10

http://njfac.org/wpcontent/uploads/2015/07/GloblMClass.pdf