A-Infos (en) Poland, FA: Between globalization and deglobalization (ca, de, it, pt, tr)[machine translation]

As some statistics indicate, the level of international capital flow has 
clearly decreased in recent years. Has globalization collapsed? ---- The 
term "globalization" is associated with the intensification of 
international trade relations, the exchange of goods and services, the 
transfer of capital between countries, also in the form of direct 
investment. Corporations from rich countries invested in poorer 
countries, establishing or taking over factories, mines, logistics 
centers and offices there. They could exploit natural resources and 
human labor, and transfer financial profits back to rich countries. In 
order to facilitate globalization, many customs barriers and other 
restrictions were removed, and international agreements and institutions 
such as the WTO (International Trade Organization) supervised the free 
flow of capital and goods.

However, as some statistics indicate, the level of capital flow across 
borders has clearly decreased in recent years. This was noted, among 
others, a year ago by The Economist magazine[1]. This is also indicated 
by some data from the International Monetary Fund[2]. Could it be that 
the current global exchange system has collapsed?

A lifeline for capital
To answer the above questions, we must return to the year 2008. The 
global crisis that broke out at that time led to economic disruptions 
and was manifested primarily by the fact that the growth rate of many 
national economies began to slow down. A collapse was imminent, and not 
only on the stock exchanges. Governments began to take action to save 
the world. Trillions of dollars of public money flowed in to save banks 
and, for example, the declining automotive industry. The second transfer 
to support business took place during the COVID-19 pandemic. As a 
result, countries returned to protectionist policies. Each began to 
defend its own capitalism and market.

As a result, among other things, the current global capitalist system 
collapsed. On the political level, the ideology of national 
particularism, expressed in nationalism, came to the fore. In many 
countries, right-wing forces have seized power, and economic rivalry is 
transforming into regular armed conflicts before our eyes: in Ukraine, 
Yemen, Libya, Syria, Palestine, in African countries, etc. Military 
spending has increased. It is currently higher than at the end of the 
"Cold War"[3].

Until recently, it was not clear to everyone that globalization and a 
certain model of global capitalism had come to an end. Today, it is 
difficult to find anyone who believes in the vaunted freedom of trade. 
Sanctions and tariffs are multiplying. The US trade war with the rest of 
the world is ongoing. However, it began during Donald Trump's first 
term, or perhaps even earlier.

Trump vs. globalization
Therefore, unresolved contradictions have accumulated on a broad 
economic, but also social and political basis, which are resulting in 
increased international and internal tensions. Unfortunately, the 
current crisis is having a negative impact primarily on the lowest 
classes of societies in many countries. There are growing epidemics, 
hunger and malnutrition, ecological degradation, inflation and falling 
real incomes. Finally, armed conflicts break out, social inequalities 
increase, and social gains are threatened.

Moreover, along with barriers to the flow of goods and capital, 
restrictions related to the freedom of movement of people are growing. 
Borders were tightened along with the construction of a series of fences 
and walls. Hostility towards migrants and refugees has increased. In 
short, we are currently observing the greatest destabilization since 
World War II. We can therefore speak of a complete retreat from 
globalization, i.e. deglobalization.

But in view of the above, should deglobalization be treated as a 
phenomenon - from the point of view of the so-called ordinary person - 
negative? First, it must be clearly stated that globalization and 
deglobalization are just two different regimes of capital circulation 
and accumulation. They are two sides of the same coin. The processes of 
globalization and deglobalization have already occurred within 
capitalism. These are not new phenomena historically.

Secondly, some claim that the current form of globalisation is specific 
in that deglobalisation has become impossible. Despite their attempts, 
Trump and the US will not be able to destroy it, even if they wanted to. 
There is no turning back from international or interstate economic 
dependencies. The global order is being built not only by states, but 
also by other powerful entities such as international corporations. 
Capital no longer has nationality. Therefore, they argue, globalisation 
will not collapse, or at least it will not collapse in the way it did in 
the past. The entire capitalism will collapse faster.

Bridges and roads instead of liberal values
Thirdly, it must be remembered that globalisation has not been 
beneficial to all countries in the world and to all social classes 
equally. As Italian leftist researcher Andrea Ricci has argued, the 
countries of the capitalist core, the broadly understood West, gained 
from capital flows and trade, while others lost. For example, in 2019, 
per capita in the West it was plus 3,810 USD, while in the poor 
periphery countries lost minus 571 USD per capita in the same period[4].

What is more, globalization was not beneficial even for all Westerners. 
The abolition of customs barriers within the WTO allowed entire 
industries to be transferred from the countries of the capitalist core 
to the southern periphery. Capital could thus realize a higher rate of 
profit. But in the West, deindustrialization took place. Millions of 
jobs were eliminated. Incomes of many social groups fell. The social 
security system was undermined. Trump would now like to reverse this 
process by imposing horrendous tariffs on goods and forcing capital to 
invest directly in the United States so that the US would once again 
become an industrial powerhouse. Is this even possible?

What's more, it is also said that globalization, if it brought any 
benefits, has not reached some countries at all. Thanks to China, 
African countries have only recently been able to benefit from it - 
thanks to the influx of Chinese capital and technology. Paradoxically, 
this was best expressed by today's Vice President of the United States 
J. D. Vance, who said in November 2024: "We have created[he meant the 
USA]a foreign policy based on admonishing, moralizing and lecturing 
countries that want nothing to do with it. The Chinese are conducting a 
foreign policy based on building roads, bridges and feeding poor people"[5].

Globalization to date has promoted the West and given it not only 
economic benefits, but also cultural expansion and political domination. 
Economic expansion has been accompanied by the expansion of liberal 
values, which, however, on the "peripheries" were perceived as the 
dictate of the "white man". China proposes globalization that is to be 
based on principles other than Western ones. In his book "Adam Smith in 
Peking", Giovanni Arrighi had some hopes for this new model. However, 
there can be no illusions - the new Chinese, "Eastern" regime of 
globalization and capital accumulation will probably not be less brutal 
than the "Western". The mixture of Maoism and capitalism does not bode 
well. This is not a recipe for a free, equal and just world, as 
postulated by the alter-globalist movement. As fought for today by the 
anarchist movement.

Jaroslaw Urbanski

www.rozbrat.org

Footnotes:

[1]https://www.economist.com/special-report/2024/05/03/the-movement-of-capital-globally-is-in-decline

[2]https://enterprise.press/stories/2017/08/24/globalization-in-retreat-capital-flows-decline-since-crisis/

[3]https://www.rozbrat.org/publicystyka/polityka/4899-nowy-wyscig-broen

[4]Andrea Ricci, "Value And Unequal Exchange In International Trade. The 
Geography of Global Capitalist Exploitation", Routledge 2021, p. 217.

[5]https://nevillegafa.com/2024/11/06/j-d-vance-about-us-foreign-policy/

https://federacja-anarchistyczna.pl/2025/06/17/miedzy-globalizacja-i-deglobalizacja/
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