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In a conference titled “Forced to grow,” Carlo Calenda, Italian Minister of Economic Development said:
“The WTO does not work, international agreements do not work, there are no tools and places to gain governance”. Moreover, He forecasted a collapse of trade in 2017.
A Minister does not often use such dramatic and alarming tones.
These words are coherent to trade’s data. Indeed, the WTO has registered, in the past two years, a 70% increase of protectionist measures.
The stagnant economic environment promotes protectionist policies due to the continuation of a hyper-competitive framework. The volume of trade decreases, leading to defensive choices.
What is more, Immanuel Wallerstein notes that the cyclical difficulties of economy have been historically faced with a step backward and two ahead. Unlikely, nowadays the propulsive push seems exhausted.
We are facing a process of deglobalization that exactly begins in Anglo-Saxon countries, the ones in which it started.
The management of globalization has therefore led to economic and social polarization, undermining its premise of growth and development.
Exploited as long as needed, globalization has come to a breaking point in the “global village”. The perspectives taken by governments are changing, it is not more considered the global village but everyone looks after his own village.
The reaffirmation of protectionist policies, as a result of the implosion of globalization, would lead to a transition from the redistribution of the economic system to its breakdown. The transition would not probably be so smooth.