The Fallacy of Globalization

I’ve written several pieces on globalization.

Globalization has painted quite a different picture across the globe. Two major factors have driven globalization: wage arbitrage and high levels of international capital flows.

The fuel for Korea’s economic engine had been manufacturing and innovation. The 1997 financial crisis largely caused by overleveraged chaebols which had pursued globalization was one of major inflection points for the Korean economy as Korea got exposed to external global forces to a significant degree.

Globalization has been one of the underlying forces behind worldwide economic slowdown. For a number of countries, it has impeded wealth producing growth, blowing bubbles.

Yet, again, global forces are no excuses for domestic policy errors. Policy tools should be backed by morality.

We need to reconsider globalization and its scope and impact on policy actions before it is too late.