The mantra has long been the same: globalization is progress, an unstoppable engine of growth and prosperity for all. However, the end of this era seems imminent.
But if we look at the current socio-economic landscape, marked by increasing inequalities, rising populism, and a West that seems to be faltering, a question increasingly insinuates itself. In the end, who has really benefited from this unconstrained globalization?
Rana Foroohar, associate editor at the Financial Times, in her provocative and illuminating book “Homecoming: The Path to Prosperity in a Post-Global World,” paints a very different picture. It contrasts with the idyllic one often propagated, pointing towards the end of perceived progress.
Through a lucid and well-documented analysis, Foroohar guides us on a journey through strategic errors. She explores the perverse dynamics that have led to a rapidly evolving “post-global” world.
A world where the promises of widespread wealth have been shattered against the harsh reality of increasingly powerful multinationals and millions of people left behind.
The heart of the problem, according to Foroohar, lies in the obsessive pursuit of short-term profit maximization and the excessive financialization of Western economies.
The elites of Europe and the United States, seduced by the mirage of easy and quick gains, have progressively dismantled real economies. They offshored production to countries with lower labor costs. Furthermore, they focused on sophisticated financial operations often disconnected from tangible value creation.
The result? A surge in wealth in the hands of a few, a decline of the middle class in Western countries, the desertification of entire industrial sectors, and inevitably, an end to equitable growth.
This fertile ground of frustration and resentment has inevitably fueled the rise of populist movements. These movements are embodied in figures like Donald Trump and other political forces. They ride the wave of popular discontent. The promise of bringing jobs back and defending national interests has found a powerful echo. It resonates in segments of the population who have felt betrayed and forgotten by the benefits of globalization.
But the narrative doesn’t stop here. While the West chased the chimera of globalized finance, another global player moved with pragmatism and long-term vision: China. Taking advantage of Western weaknesses and strategic errors, China has been able to attract investment. It developed a powerful production infrastructure and climbed positions in the global economy.
Foroohar does not hesitate to point out how our own choices have unintentionally paved the way for China’s rise. China is now ready to contend for world leadership.
“Homecoming” is not only a ruthless diagnosis of the present but also an urgent invitation to understand the forces shaping our future. For anyone who wants to understand the deep roots of Western unease, the rise of populism, and the emerging new global order, reading this essay proves not only recommended but essential to comprehend the possible end of an era.
It is an opportunity to open our eyes to what has happened under our noses. It invites us to begin to imagine, perhaps, a more equitable and sustainable development model for the future.