Globalization Deglobalization

I still do not fully understand why it happened.

— Alan Greenspan, 23 October 2008

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China sanctions Northrop Grumman, Lockheed Martin for arms sales to Taiwan

https://www.reuters.com/business/aerospace-defense/china-sanctions-northrop-grumman-lockheed-martin-over-arms-sales-taiwan-2023-09-15/

China Cancels 23 Loans to Africa Amid ‘Debt Trap’ Debate

https://www.voanews.com/a/china-cancels-23-loans-to-africa-amid-debt-trap-debate-/6716397.html

Biden To Push IMF And World Bank Reforms At G20 Summit: White House

https://www.barrons.com/news/biden-to-push-imf-and-world-bank-reforms-at-g20-summit-white-house-604b0d72

https://www.globaltimes.cn/page/202308/1296855.shtml

https://www.scmp.com/news/china/diplomacy/article/3226430/china-curbs-critical-metal-exports-retaliation-western-restrictions-chip-industry

Make in India

https://en.wikipedia.org/wiki/Make_in_India

https://www.cnbc.com/2023/08/04/apple-samsung-could-be-hit-by-india-laptop-and-pc-import-restrictions.html

https://www.cnbc.com/2023/09/08/india-investment-economy-g20.html

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China

 
 
 

 

US national security adviser Jake Sullivan said this week the United States believed there should be high-standard, non-coercive lending options available to low- and middle-income countries.

https://www.irishtimes.com/business/economy/2023/09/07/us-to-press-for-fundamental-reforms-of-imf-and-world-bank-at-g20-summit/

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Collapse of USSR  (16 November 1988 – 26 December 1991)   (3 years, 1 month, and 10 days)

US dominance  (US IRAQ WAR 1991)

Since the 1980s, modern globalization has spread rapidly through the expansion of capitalism and neoliberal ideologies.[45] 

The implementation of neoliberal policies has allowed for the privatization of public industry, deregulation of laws or policies that interfered with the free flow of the market, as well as cut-backs to governmental social services.[46] 

These neoliberal policies were introduced to many developing countries in the form of structural adjustment programs (SAPs) that were implemented by the World Bank and the International Monetary Fund (IMF).[45]   +WTO

These programs required that the country receiving monetary aid would open its markets to capitalism, privatize public industry, allow free trade, cut social services like healthcare and education and allow the free movement of giant multinational corporations.[47] 

These programs allowed the World Bank and the IMF to become global financial market regulators that would promote neoliberalism and the creation of free markets for multinational corporations on a global scale.[48]

2008 melt down and confession of Greenspan.

 

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John Ralston Saul:

in May 2012 the European statistics bureau could declare the continent to have escaped recession, even though Greece was in freefall: Spain at 25 percent
unemployment and 50 percent youth unemployment; Portugal not far behind at somewhere between 30 percent and 45
percent youth unemployment, with its economy in constant contraction, in spite of a bailout and strict austerity measures? 

As the technocrats try to measure out recoveries, the reality of economics lies in young, well-educated people,
fleeing abroad. This is the third great exodus of Greeks in a hundred years. Except that the first two were dominated by the lesser educated and poor. In classic class terminology, they left in order to better themselves. This time, of the almost half million Greeks who have left, 50 percent are young and educated. Often highly educated. A long-term catastrophe for Greece.
Even more catastrophic, given that following these departures there is still a 50 percent youth unemployment rate. A long-term unemployment rate of over 60 percent of the unemployed. And none of that includes those no longer looking for jobs.

Greece is by no means alone. Over 1.8 million young people have left Spain since 2008 and yet the official youth
unemployment rate remains at little below 50 percent. And a large percentage of the jobs are either precarious or part-time.
Well over a million young people have left France. Again, well educated. Again, a quarter of the young remain unemployed; still more have given up.

2018 preface edition: Saul, John. 2005. The Collapse of Globalism: And the Reinvention of the World. Viking Canada.

First published in Canada by Viking Canada, an imprint of the Penguin Group (Canada), a division of Pearson Penguin Canada Inc., in 2005.

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2008–Present: contemporary wave of deglobalization

The 2008 financial crisis marked a second wave of deglobalization. In particular, during the crisis global trade and investments slowed down because of the risk faced by banks and enterprises. In addition governments began to prioritize domestic markets and industries instead of international trade while the trust in multilateral institutions, like the IMF and the WTO, fall due to financial instability.

James, Harold (2018). “Deglobalization: The Rise of Disembedded Unilateralism”. Annual Review of Financial Economics. 10: 219–237. doi:10.1146/annurev-financial-110217-022625. ISSN 1941-1367.

بحران مالی سال 2008 موج دوم از بین بردن تجاوز را نشان داد. به ویژه ، در طول بحران تجارت جهانی و سرمایه گذاری به دلیل ریسک پیش روی بانک ها و بنگاه ها کند شد. علاوه بر این ، دولت ها به جای تجارت بین المللی ، اولویت بندی بازارهای داخلی و صنایع را آغاز کردند در حالی که اعتماد به نهادهای چند جانبه مانند صندوق بین المللی پول و تجارت جهانی به دلیل بی ثباتی
مالی سقوط می کند. 

During the 2010s, multiple events affected the global trade, causing a deglobalization process. The main events include:

  • Brexit (2016): The United Kingdom voted to leave the European Union, signalling a rejection of economic integration.[9]
  • U.S.-China Trade War (2018–2020): The U.S. imposed tariffs on Chinese goods, leading to resentful measures and increasing trade restrictions.[9]
  • The COVID-19 pandemic (2020–2022) further accelerated deglobalization by exposing vulnerabilities in global supply chains.[10]

United States of America, where the Bush and Obama administration instituted Buy American Act clause as party of massive stimulus package, which was designed to favor American-made goods over traded goods. Likewise, the EU has imposed new subsidies to protect their agricultural sectors for their own protection. These movements of deglobalization can be seen as the example of how developed nations react to the Financial crisis of 2007–08 through deglobalization movements.[16] 

Recently a change in the pattern of anti-globalism has been observed: anti-globalism now has a strong foothold in the Global North and among right-wing (conservative) politicians,[17] 

with much different attitudes in the Global South, particular among the BRICS countries.

https://en.wikipedia.org/wiki/Deglobalization#:~:text=A%20loss%20of%20interaction%2C%20the,international%20conflict%20can%20be%20expected.

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China files complaint to WTO against US tariffs. Ersin Çelik. 07:15 . 23/08/2018 Thursday

https://www.yenisafak.com/en/news/china-files-complaint-to-wto-against-us-tariffs-3439390

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The Trump administration began to restrict semiconductor sales to Huawei in 2019.

2022 the Biden administration expanded those controls, cutting Huawei’s access to both U.S. consumers and suppliers and issuing a punishing freeze on chip-making equipment to large swaths of China’s semiconductor industry.

URL:https://www.nytimes.com/2023/03/31/business/huawei-annual-earnings-2022.html#:~:text=The%20Trump%20administration%20began%20to,swaths%20of%20China’s%20semiconductor%20industry.

The ‘Three Amigos’ Talk Microchips  Jan 2023

URL: https://foreignpolicy.com/2023/01/13/us-mexico-canada-summit-immigration-semiconductors/

 

1378 نگرانی فولادسازان از کاهش تعرفه واردات آهن‌آلات

https://donya-e-eqtesad.com/%D8%A8%D8%AE%D8%B4-%D8%A8%D9%88%D8%B1%D8%B3-%DA%A9%D8%A7%D9%84%D8%A7-13/558384-%D9%86%DA%AF%D8%B1%D8%A7%D9%86%DB%8C-%D9%81%D9%88%D9%84%D8%A7%D8%AF%D8%B3%D8%A7%D8%B2%D8%A7%D9%86-%D8%A7%D8%B2-%DA%A9%D8%A7%D9%87%D8%B4-%D8%AA%D8%B9%D8%B1%D9%81%D9%87-%D9%88%D8%A7%D8%B1%D8%AF%D8%A7%D8%AA-%D8%A2%D9%87%D9%86-%D8%A2%D9%84%D8%A7%D8%AA

نصف شدن تعرفه واردات در سال ۹۱

https://ayaronline.ir/1396/06/251072.html

World Bank Welcomes Iran Subsidy Cuts, Foresees Sanction Woes

https://www.mees.com/2012/9/7/economics-finance/world-bank-welcomes-iran-subsidy-cuts-foresees-sanction-woes/e2d80280-4932-11e7-ad65-01d82ee3caa9

World Bank praises Iran for noticeable progress

https://en.trend.az/iran/2060963.html

The dark side of globalization – UNuniversity Collections

https://collections.unu.edu/eserv/UNU:2507/ebrary9789280811940.pdf

 

Here is a regionally organized list of countries in South America, Africa, and Asia that are frequently cited in academic and policy literature as having experienced devastating consequences from globalization—in the form of deindustrialization, resource extraction without reinvestment, agrarian displacement, dependency on volatile commodity exports, IMF/World Bank structural adjustment, or erosion of local sovereignty.

🌎 South America

(Globalization often coincided with neoliberal reforms, privatization, and deindustrialization)

  1. Argentina – Financial crises (notably in 2001), industrial collapse, and austerity under IMF conditions.

  2. Bolivia – Water privatization crisis (Cochabamba 2000); resource exploitation with little local benefit.

  3. Peru – Extractivist economic model (mining) with minimal redistribution and environmental destruction.

  4. Ecuador – Oil exports and dollarization led to economic dependency and indigenous displacement.

  5. Paraguay – Land grabs for soy monoculture; massive rural displacement and loss of food sovereignty.

  6. Venezuela – Oil dependency worsened by global price shocks; sanctions and capital flight worsened conditions.

  7. Brazil (partial) – Deindustrialization and deep inequality in favelas; Amazon deforestation for global markets.

🌍 Africa

(Many were subject to structural adjustment, privatization of public goods, land grabs, and debt dependency)

  1. Zambia – Copper privatization; debt crises; collapse of public health and education under IMF reforms.

  2. Ghana – Structural adjustment led to cuts in public services and collapse of local manufacturing.

  3. Nigeria – Oil dependency; pollution in Niger Delta; deindustrialization and foreign capital outflows.

  4. Democratic Republic of Congo – Resource plundering; foreign corporate interests fuelled conflict and instability.

  5. Somalia – Local agriculture destroyed by imported subsidized food; collapse of state institutions.

  6. Sudan – Oil exports did not lead to development; foreign interests exacerbated internal conflicts.

  7. Mozambique – IMF-led liberalization worsened poverty and enabled foreign land acquisitions.

  8. Tanzania – SAPs led to loss of industrial base and weakened health/education sectors.

  9. Malawi – Agricultural dependency worsened by trade liberalization and fertilizer subsidy removals.

  10. South Africa (partial) – Post-apartheid globalization widened inequality despite economic growth.

🌏 Asia

(SAPs, deregulation, global labor exploitation, land and housing marketization, and foreign capital dominance)

  1. Indonesia – 1997 crisis devastated economy; IMF-mandated liberalization hurt small farmers and workers.

  2. Philippines – Agriculture weakened by imports; OFW labor export dependency; urban poverty explosion.

  3. Bangladesh – Garment sector boomed for foreign markets, but with harsh labor conditions and safety disasters (e.g. Rana Plaza).

  4. Nepal – Massive labor migration dependency; local economy hollowed out; remittance-driven fragility.

  5. Pakistan – Industrial decline, IMF debt cycles, reliance on foreign remittances, and rising inequality.

  6. Sri Lanka – Foreign debt, Chinese-funded infrastructure “debt trap,” collapse of local industries.

  7. Mongolia – Mining boom led by foreign corporations caused environmental degradation and economic volatility.

  8. Laos – Foreign-led dam and land projects displaced rural populations without adequate compensation.

  9. Kyrgyzstan – Economic dependency on remittances and foreign mining; weak domestic capacity.

  10. Cambodia – Rapid garment industry growth led to exploitation, land evictions, and economic fragility.

These examples are frequently cited in academic work on dependency theory, world-systems analysis, postcolonial political economy, and critiques of neoliberal globalization (e.g., Joseph Stiglitz, Walden Bello, Ha-Joon Chang, Samir Amin).

 

 

 

Here’s an updated list of selected low‑ and middle‑income (third‑world) countries—grouped by South America, Africa, and Asia—where external/public debt is both substantial and widely recognized as a consequence of globalization pressures (e.g. structural adjustment programs, commodity-backed borrowing, infrastructure loans). For each, I’ve included:

  • Total public or external debt (latest available)

  • Debt service as a share of government budget revenues (or interest burden proxy, where direct data exists)

🌎 South America

Data from UNCTAD and World Bank shows that many countries faced debt crises tied to neoliberal borrowing and commodity dependency. A number of countries spend at least 10 percent of government revenue servicing external debt, though country-level budget share data is limited.

🌍 Africa

UNCTAD and country‑level reports provide both debt and budget‑share insight.

🌏 Asia

From global datasets and country-specific reports (Pakistan).

  • Pakistan: Public debt around 79.6% of GDP, external debt $116.5 billion Financial Times.

    • Nearly half of Pakistan’s federal budget is spent servicing debt (~50% of revenue) according to recent economic surveys The Economic Times.

  • Sri Lanka: Public debt ~101% of GDP, external debt $56.3 billion Our World in Data+15Wikipedia+15World Bank Open Data+15.

    • Debt service burden likely well above 10% of government revenue.

  • Bangladesh: Public debt ~39.5% of GDP, external debt $67.7 billion Wikipedia.

  • Nepal: Public debt ~42.2% of GDP, external debt $7.9 billion Wikipedia.

    • Debt-service burden presumed in similar range.

  • Kyrgyz Republic: Public debt $6.6 billion, external $4.5 billion (~37.6% and 25% of GDP respectively) Wikipedia.

    • Servicing costs are lower interest (~1.6% average), but still a growing share of constrained revenue.

📊 Summary Table

Region Country External/Public Debt Public debt (% of GDP) Debt service / govt revenue
South America Argentina ~$254 billion ~103% Likely ≥ 10%
  Bolivia ~$15 billion ~78% Likely ≥ 10%
  Ecuador ~$56 billion ~61% Likely ≥ 10%
  Peru ~$73 billion ~32% Likely ≥ 10%
Africa Kenya ~$38 billion ~68% ~33%
  Ghana ~$31 billion ~78% Likely ≥ 10%
  Mozambique ~$20.9 billion ~119% Likely ≥ 10%
  Ethiopia ~$30.4 billion ~55% Likely ≥ 10%
  Zambia ~$30 billion ~140% Likely ≥ 10%
  Nigeria ~$70.6 billion external ~35% Likely ≥ 10%
Asia Pakistan ~$116.5 billion ~79.6% ~50%
  Sri Lanka ~$56.3 billion ~101% Likely ≥ 10%
  Bangladesh ~$67.7 billion ~39.5% Likely ≥ 10%
  Nepal ~$7.9 billion ~42.2% Likely ≥ 10%
  Kyrgyzstan ~$4.5 billion (external) ~37.6% Moderate (~interest low)

 

 

 

 

 

 

 

Here are the countries from your previous list that have been identified as experiencing debt distress or severe difficulty servicing their obligations, based on the latest IMF assessments, ratings agencies, and credible press sources—all part of globalization-linked borrowing dynamics:

🌍 Africa

✅ Kenya

⚠️ Mozambique

  • Previously had sovereign risk-spread in distress territory; recently it has retreated—but only after sustained stress, and remains vulnerable Wikipedia+4Bloomberg.com+4Reuters+4.

⚠️ Ghana, Zambia, Malawi

⚠️ Senegal

  • A recent audit exposed hidden debt (estimated $11–13 billion), driving its debt-to‑GDP to about 99.7% (possibly up to 119%), and prompting the IMF to suspend a $1.8B loan. Its program is now in limbo pending corrective steps Reuters+1Reuters+1.

🌏 Asia

⚠️ Pakistan

  • Daily servicing obligations (~$6 billion/year) confront narrow reserves and a federal budget where ~50% of revenue goes to servicing debt, heightening default risk WikipediaThe Economic TimesThe Times of India.

  • Debt–to‑GDP ratio around 80%, with external debt exceeding $130 billion; much owed to China (~$69B) Wikipedia.

❗ Sri Lanka

  • Went into sovereign default in April 2022 due to unsustainable debt burden (~$51 billion); underwent restructuring and IMF bailouts in 2022–2024 Wikipedia+1Wikipedia+1.

  • Recovery underway but vulnerability remains; debt restructured in late 2024.

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