Thomas Friedman, (The Lexus and the Olive Tree), defines globalization as the inexorable integration of markets, nation-states, and technologies, making it farther, faster, deeper, and cheaper. However, at present, the world is witnessing ‘Deglobalisation’.
Waning of Globalization
Global trade as % of GDP peaked at 61% in 2008, declining to ~52% by 2024 (World Bank).
Reversal of Liberalization- Trade wars, tariffs (US-China), and reshoring policies mark a retreat from free markets.
The splinternet, 5G bans, and AI regulation indicate the politicisation of technology.
Weakening of Global Institutions- paralysis of WTO, and unilateral sanctions. Eg- USA’s CAATSA
Regionalism replacing globalization – RCEP, IPEF, BRICS+, EU strategic autonomy.
Rise of Sovereign Nationalism
Economic Nationalism – US “America First”, India’s Atmanirbhar Bharat, EU’s strategic autonomy.
Resource Nationalism- Nations asserting control over rare earths, energy, and food exports. Eg- Indonesia’s nickel ban.
Political Sovereignty – Brexit (2016) justified as “taking back control”.
Identity Politics- Nationalist rhetoric linked to cultural, ethnic, or religious identity. Eg- rise of Neo Fascist powers in Europe.
Strategic Assertion – Russia’s rejection of Western dominance through the Ukraine war.
Digital Sovereignty – EU’s GDPR and DSA for data protection; China’s Great Firewall.
Security Nationalism – Eg- Iran’s nuclear program
Vaccine & Resource Nationalism during COVID-19
Backlash Against Migration- Eg- Immigration controls in UK, EU, USA
Public Opinion Shift- Global surveys (Pew, 2023) show declining trust in globalization and preference for domestic self-reliance.
The retreat of globalization signals a transition from hyper-interdependence to guarded sovereignty and realist state-centric politics