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Economic Globalisation

Origins and consequences

image of Economic Globalisation

Few subjects are as controversial – and poorly understood – as globalisation. While in its broadest sense, economic globalisation is as old as trade itself, the recent financial crisis has amplified the complexity associated with the global interconnectedness of the world’s economies and its ramifications on our livelihoods.

This publication reviews the major turning points in the history of economic integration, and in particular the pace at which it has accelerated since the 1990s. It also considers its impact in four crucial areas, namely employment, development, the environment and financial stability: does globalisation foster development or create inequality? Does it promote or destroy jobs? Is it damaging to the environment or compatible with its preservation? Are we heading towards de-globalisation or can globalisation in fact enable recovery?

English French, German, Spanish

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Does globalisation promote employment?

Even though competition from low-wage countries has some negative effects on employment in OECD countries, the link between globalisation and job losses is less obvious than it first appears. In times of economic shock such as the recent recession, globalisation seems to create more jobs overall than it destroys. Likewise, the total increase in wage inequality of the past two decades seems more linked to technology and legislation than globalisation – which does nevertheless undeniably contribute to increased job insecurity in some cases. The challenge is to help the losers of globalisation stay in the race and seize the new opportunities offered by openness to international trade.

English French, German

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