Mike O'Sullivan: The end of globalization (and the beginning of something new) | TED

Summary

The video explores the decline of globalization, highlighting its successes in lifting billions out of poverty and connecting economies but also its failures, such as rising inequality and global debt. The COVID-19 pandemic further exposed the limitations of global cooperation. Moving forward, the world will likely be shaped by regional values rather than global economic goals, with countries forging new alliances based on shared principles. Small nations and emerging economies will play a critical role in crafting new institutions, while the geopolitical influence of major powers like the U.S., China, and Europe wanes.

Takeaways

• 🌍 Globalization is coming to an end, and we may miss it as it drifts into history.
• 📈 The second wave of globalization, starting in the '90s, lifted billions out of poverty and increased wealth in countries like Vietnam and Bangladesh.
• 💼 Economic inequalities and high levels of debt, along with mismanagement, have exposed the limitations of globalization.
• 🇺🇸 Countries like Russia and the US suffer from extreme wealth inequality, which has convinced many that globalization doesn't benefit everyone equally.
• 🌐 The COVID-19 pandemic exposed a lack of global collaboration, marking a shift from the united responses seen in past crises.
• 🧊 The world is transitioning to a new order, with distinct, value-driven approaches replacing the economic unity that once characterized globalization.
• 💻 The internet, once global, is now fragmented, with regions like the US, China, and Europe having vastly different approaches to technology and data.
• 🤝 Small countries like Scotland, Iceland, and New Zealand are leading new forms of collaboration based on shared values, like well-being and sustainable development.
• 🇪🇺 Europe is slowly trying to redefine itself around common values rather than just geography, though tensions exist with countries like Hungary and Poland.
• 🌍 Emerging economies, such as Ethiopia, Nigeria, and Indonesia, now have more choices and opportunities to define their paths and build alliances, instead of following models set by global powers like the IMF.

Q & A

What were the main benefits of the second wave of globalization that began in the early '90s?

The second wave of globalization led to billions of people rising out of poverty and significant economic growth in countries like Vietnam and Bangladesh, where wealth per adult increased by over six times in the last 20 years. It also resulted in more democracies and improved the roles of women globally, particularly in wage equality and access to education.

How has globalization influenced everyday life?

Globalization has significantly impacted how we live by altering our diets, communication methods, news consumption, entertainment, travel, and work practices. It has reshaped the world by spreading supply chains, financial systems, and cultures across borders.

What challenges has globalization faced in recent years?

Globalization has faced challenges due to rising inequality and record levels of indebtedness, with world debt-to-GDP ratios reaching heights not seen since the Napoleonic Wars. Mismanagement of globalization's benefits led to the Global Financial Crisis, and many countries have struggled to address the resulting issues.

How have different countries responded to the problems arising from globalization?

Countries like Ireland and the Netherlands have addressed income inequality through higher taxes and social welfare programs, while others, like Russia and the United States, have extreme levels of wealth inequality. The pandemic further exacerbated these divides, revealing a lack of global cooperation.

Why is the speaker suggesting that we are witnessing the end of globalization?

Globalization is declining due to economic and political shifts, such as rising inequality, debt, and geopolitical crises like the pandemic. The speaker suggests that the global consensus on trade, finance, and cooperation is breaking apart, leading to a more fragmented and values-driven world.

What does the speaker mean by a 'values-based' new world order?

The speaker predicts that the new world order will be based more on shared values rather than geography or economic goals. Countries will increasingly collaborate based on common values, like well-being or democratic principles, rather than just trade and finance.

How does the internet serve as an example of the new value-driven fragmentation of the world?

The internet, once global, is now fragmented by values: the US prioritizes tech innovation and financial rewards, China views the internet through a political lens and restricts it, while Europe focuses on data privacy. These differing values drive distinct approaches to the internet's governance.

How have small countries like Scotland, Iceland, and New Zealand demonstrated value-based collaboration?

These countries have joined the Wellbeing Economy Governments, focusing on ecological and human well-being in addition to economic growth. They have developed well-being budgeting, well-being-led tourism, and applied these frameworks to combat COVID-19, emphasizing a shared value system over geographic proximity.

What is the speaker's view on Europe’s future in this new world order?

The speaker believes Europe must shift from a geographically-based union to one based on shared values. However, European countries need to better define and communicate these values, particularly in the face of internal tensions with countries like Hungary and Poland that challenge democratic norms.

How are rising powers like China shaping the new global order?

China’s values are deeply rooted in its history and focus on a social contract where people trade personal liberties for prosperity, order, and national prestige. China's influence is growing, especially in countries involved in its Belt and Road Initiative, but this comes with political and economic strings attached.