Is Globalization Broken?

On Monday, May 13, we bring together researchers and politicians to discuss the current state of globalization and exchange ideas about its future course.

The Dark Side of Globalization

The Financial Crisis of 2008 gave globalization a bad name. Ever since, it has been synonymous with a loss of control and an increase in instability – particularly in the West. This sentiment shows in our 2018 survey on attitudes toward globalization. While there still a vague feeling that globalization has its good sides, respondents fear its negative effects on income growth, job security and social cohesion. Calls for a “safety net” for globalization have been growing louder and louder. In Germany, for instance, only 25 percent of all respondents were convinced that the government has done enough to shelter its citizens from the pains of globalization.

The Big Backlash

Tapping into this mood, populist movements all across Europe and in the United States have started to sing the siren songs of isolationism. The widening economic gap between the winners and losers from the global integration of markets and societies provides them with massive resonance space. As a result, populist parties and platforms could very well continue their rise and their winning streak at the ballot box. The nationalist and protectionist policies threaten to bring about a new era of economic and political fragmentation. The tariff saber rattling between the United States and China might be just one shape of the things to come.

Reviving Globalization

De-globalization is not the answer. It does not make the world a more safe, just or prosperous place. Quite to the contrary, steps toward disintegration come at a huge political and economic cost. What we need instead is a sound assessment of what went wrong with “globalization 1.0” and a compelling vision of how “globalization 2.0” should look like in order to regain the support for open markets and societies. How can we increase trust in democratic governance and the social market economy in times of disruption and transition? How can we reform political systems and empower people to cope with the challenges of globalization?

Our Event

In order to answer these questions, we team up with Berlin Zentrum Liberale Moderne and organize a roundtable in Berlin on Monday, May 13 (discussion in German, original title: “Globalisierung kaput?”). Marcel Fratzscher, President of DIW Berlin and Karen Horn (Journalist and Author) will kick of the event by taking a closer look at the current state of globalization. Members of Parliament Danyal Bayaz (Green Party), Andreas Nick (Conservative Party) and Michael Theurer (Liberal Party) will contribute ideas on how we should move ahead – on the national, the European or even on the international level.