Globalization under attack. Can it survive?

CNN Business

19 Jan 201702:49

Summary

TLDRThe World Economic Forum in Davos grapples with the question of whether globalization is coming to an end. The script highlights the anxiety among global elites regarding the recent votes in the UK and the US, which have challenged the status quo. It acknowledges that while globalization has lifted millions out of poverty, it has also created losers, whose suffering is now influencing the political landscape in the West. The attendees at Davos are questioned on their understanding of the frustrations and anxieties of those affected by job losses due to technological advancements like robotics and automation, which are a greater cause of unemployment than economic globalization. The summary calls for a reevaluation of policies to reduce inequalities and provide a safety net for those displaced by technological change, emphasizing the need for managing the transition in a shrinking yet interconnected world.

Takeaways

🌐 Globalization has played a significant role in lifting millions of people out of poverty, but it has also created losers who are now influencing the political agenda in the Western world.
🏛️ The votes in the UK and the US have led to a rethinking of the status quo by global elites who have been the primary beneficiaries of international trade.
🤔 Delegates at the World Economic Forum in Davos are questioned on whether they understand the public's frustrations or if they are simply being defensive.
🔄 The world is described as interdependent and interconnected, with a global community of destiny, implying that protectionist measures could lead to isolation.
⚠️ Warning signals are being sent about the dangers of pursuing protectionism, which could keep out the negative aspects but also block opportunities and growth.
👫 There is recognition of the legitimate fears and anxieties of communities in developed countries, particularly regarding job losses and economic security.
🏭 The loss of factory jobs and the impact on families and future generations is a significant concern that is being acknowledged.
📉 Economic globalization is not the only cause of job loss; technological advancements in robotics and automation are identified as a more significant factor.
🛠️ There is a call for policies and measures to reduce inequalities and provide a safety net for those affected by technological disruptions in the workplace.
🌱 The role of technology in job displacement is emphasized, suggesting that managing this transition is crucial for societal stability.
🌟 The world is at a critical crossroads in history, indicating the importance of the decisions made by global leaders and the potential impact on the future.

Q & A

What is the main concern being discussed at the World Economic Forum in Davos?
-The main concern is whether globalization is coming to an end and how the votes in the UK and the US have impacted the global elites, who are seen as the primary beneficiaries of international trade.
What has globalization contributed to in terms of global poverty?
-Globalization has helped hundreds of millions of people out of poverty by creating economic opportunities and increasing access to markets.
What are the consequences of protectionism as mentioned in the transcript?
-Protectionism is likened to locking oneself in a dark room, where it may keep out the wind and rain (negative aspects of globalization), but it also blocks light (positive opportunities).
What does the phrase 'global community of destiny' imply?
-It implies that nations are interconnected and interdependent, sharing a common fate in a globalized world, where the actions of one can impact others.
Why are there warning signals being sent out regarding protectionism?
-Warning signals are being sent out because protectionism could potentially harm the global economy by reducing trade and cooperation among nations.
What is causing a significant job loss in the United States according to the transcript?
-The transcript suggests that automation and robotics are a far bigger cause of job loss in the United States than economic globalization.
How do the concerns of developed world communities relate to the political agenda?
-The concerns of developed world communities, such as the fear of losing factory jobs and the impact on families, are driving the political agenda as voters express their dissatisfaction with the status quo.
What is the role of technology in the current economic landscape?
-Technology plays a significant role as it is disrupting and changing the workplace, leading to a transition that requires management and support for those dislocated by these changes.
What is the expectation for children of factory workers as mentioned in the script?
-The expectation is that their children would have an even better life than their parents, with more opportunities and a higher standard of living.
What policies and measures are being questioned in response to the changing economic landscape?
-The script questions what policies are in place and what more can be done to reduce inequalities and provide a safety net for people affected by technological disruptions rather than globalization.
Why is the world described as not flat but round and shrinking?
-This metaphor suggests that while the world is not uniform ('not flat'), it is becoming more interconnected and seemingly smaller ('round and shrinking') due to advancements in technology and communication.
What does the term 'critical crossroads in history' refer to?
-It refers to a significant point in time where the decisions made can greatly influence the future direction of global economic and political structures.

Outlines

00:00

🌐 Globalization's Impact and Future

The paragraph discusses the current anxiety surrounding globalization, particularly in the context of the World Economic Forum in Davos. It raises the question of whether we are witnessing the end of globalization, with recent votes in the UK and the US indicating a shift away from global elites who have traditionally benefited from international trade. The paragraph acknowledges that while globalization has lifted many out of poverty, there are also 'losers' whose suffering is influencing political agendas in the Western world. The attendees at Davos are questioned about their understanding of the situation and whether they are being defensive. The speaker emphasizes the interdependence and interconnectedness of the global community and the need to heed warning signals against protectionism. The frustration and fears of those who have lost jobs, particularly in factories, are highlighted as a significant concern. The paragraph concludes by suggesting that technology, rather than globalization, is the primary cause of job displacement and that there is a need for policies and measures to address growing inequalities and to provide a safety net for those affected by technological disruptions.

Mindmap

Keywords

💡Globalization

Globalization refers to the increasing interconnectedness and interdependence of the world's markets and businesses. It is the process by which different countries become more economically and culturally integrated. In the video, it is discussed as a factor that has helped millions out of poverty but also as a cause of concern for those who feel left behind, leading to political shifts and a reevaluation of its benefits and drawbacks.

💡World Economic Forum

The World Economic Forum is an annual meeting of global political and business elites held in Davos, Switzerland. It serves as a platform for discussing pressing issues facing the world, including economic trends and policy changes. In the context of the video, it is the setting where concerns about the future of globalization are being voiced and debated.

💡Economic Protectionism

Economic protectionism is the policy of shielding a country's domestic industries from foreign competition by taxing imports. The video uses the metaphor of 'locking oneself in a dark room' to illustrate the negative consequences of protectionism, suggesting that while it may protect from external threats, it also isolates a country from the benefits of global trade and cooperation.

💡Poverty Alleviation

Poverty alleviation refers to efforts made to reduce the prevalence of poverty in society. The video mentions that globalization has played a significant role in lifting hundreds of millions of people out of poverty, highlighting the positive impact of economic integration on improving living standards worldwide.

💡Political Agenda

The political agenda refers to the set of issues or concerns that are prioritized by politicians and policymakers. In the video, it is suggested that the suffering and frustrations of people who have been negatively affected by globalization are now driving the political agenda in the Western world, leading to a reevaluation of the status quo.

💡Interconnected World

An interconnected world is one where the actions and decisions in one part of the globe can have significant effects on others. The video emphasizes that we live in a global community of destiny, where interdependence is a reality that must be acknowledged and managed for the benefit of all.

💡Inequalities

Inequalities refer to the disparities in wealth, opportunities, and living conditions among different segments of society. The video discusses the need to address inequalities, which have been exacerbated by certain aspects of globalization, and to establish safety nets for those affected by economic changes.

💡Technological Disruption

Technological disruption describes the way in which new technologies can significantly alter existing industries and labor markets, often leading to job displacement. The video suggests that automation and robotics are a more significant cause of job loss than economic globalization and that policies need to be in place to help manage this transition.

💡Factory Jobs

Factory jobs, or jobs in manufacturing, have traditionally been a source of stable employment for many. The video touches on the anxiety of parents who worry about losing these jobs, which have historically allowed them to provide for their families, and the concern that their children may not have better opportunities in the future.

💡Safety Net

A safety net refers to the social programs and policies designed to protect individuals from the harshest effects of economic downturns or job loss. The video calls for the establishment of such measures to support those who have been dislocated by changes in the economy, such as the shift towards automation.

💡Crossroads in History

A crossroads in history signifies a critical juncture or turning point that can lead to significant changes in the course of events. The video suggests that we are at such a moment, where decisions about globalization, technology, and economic policy will shape the future direction of society.

Highlights

Anxiety at the World Economic Forum in Davos regarding the potential end of globalization.

Votes in the UK and the US have raised questions about the beneficiaries of international trade.

Global elites are rethinking the status quo in the face of globalization's impact.

Globalization has helped millions out of poverty, but there are also losers.

The suffering of the people is driving the political agenda in the Western world.

Attendees at Davos are questioned about their understanding or defensiveness regarding the current situation.

Interdependence and interconnectedness are emphasized as part of the global community of destiny.

Warning signals are sent against pursuing protectionism, likening it to locking oneself in a dark room.

Recognition of the frustrations and anxieties of existing communities in the developed world.

Concerns of parents about losing factory jobs and the impact on their families' future.

The need to address strong voter signals and the time to reassess policies to reduce inequalities.

Discussion on the role of technology as a disruptor in the workplace, rather than globalization.

The challenge of managing the transition for people dislocated by robotics and automation.

Acknowledgment that job loss in the United States is more significantly caused by automation than economic globalization.

The world is described as not flat but round and shrinking, indicating a critical historical crossroads.

The importance of creating a safety net for people affected by technological changes in the workplace.

The critical crossroads in history where decisions on globalization and technology's impact on jobs must be made.