The Losers of Deglobalization

Brexit and Donald Trump’s presidency both rode to success on a wave of nationalistic fervor, based on the view that globalization on balance harms the UK and the US. Yet the histories of those countries demonstrate that economic protectionism can lead to political instability and worse, total war. In the 1930s, devaluation of British and American currencies, in the aim of making their own goods more competitive, led to currency wars and tensions that eventually contributed to World War II, notes Pierpaolo Barbieri for Foreign Affairs. Indeed, currency devaluation and protective tariffs not only harm developing nations, as they are “deprived of trade as a way to improve their lot,” but also decreases efficiency for the world at large. In fact, deglobalization “can leave everyone worse off and ultimately damage the states that made them.” Trade and alliances provide a strong base for international security, and without such security, economic devastation and conflicts are more likely. – YaleGlobal