Say,'"No!", to Globalisation

Rethink the movements and exchanges (of people, goods, services, capital, technologies and cultural practices) on Planet Earth.

Source local produce

Deglobalisation: Importance and Benefits

Deglobalisation refers to the process by which economies reduce their interdependence on global markets through reduced trade, investment, and cultural exchange. Though globalisation has long been hailed for promoting economic growth and efficiency, recent global events, such as the COVID-19 pandemic, supply chain disruptions, and geopolitical tensions, have reignited discussions around the merits of deglobalisation.

Take a look at this BBC News article from back in 2015, Is deglobalisation on the way?

One key importance of deglobalisation lies in enhancing national resilience. By reshoring industries and investing in local supply chains, countries can mitigate vulnerabilities linked to over-dependence on foreign suppliers. For example, during the COVID-19 pandemic, disruptions in medical supply chains exposed the risks of excessive reliance on global manufacturing hubs (Javorcik, 2020).

Deglobalisation promotes greater self-sufficiency and safeguards essential sectors. It can also help reduce inequality within countries. While globalisation has lifted millions out of poverty, it has also contributed to rising income disparities in developed economies by displacing low-skilled workers (Rodrik, 2018). A shift toward localised production can create more inclusive job opportunities and revitalise domestic industries.

Deglobalisation and Climate Change: Environmental Positives

Deglobalisation also holds significant promise for addressing climate change, primarily by reducing carbon-intensive practices associated with global trade. One of the most immediate environmental benefits is the decline in emissions from transportation. The shipping industry alone contributes approximately 2.89% of global carbon dioxide emissions, largely due to the long-distance movement of goods (IMO, 2021). As countries move toward localised production and consumption, the demand for international freight and air cargo decreases, leading to a measurable drop in greenhouse gas emissions.

Additionally, localised economies are better positioned to implement and enforce environmentally friendly production practices. Global supply chains often involve sourcing from regions with lax environmental regulations, allowing companies to offload pollution-intensive manufacturing. Deglobalisation empowers nations to produce within frameworks that uphold higher environmental standards, contributing to cleaner industrial processes and greater ecological accountability (Altintzoglou et al., 2020).

Moreover, deglobalisation can foster the growth of circular economies, where production is closely tied to local recycling and reuse systems. With shorter, more traceable supply chains, governments and consumers alike can exert more pressure on producers to adopt sustainable methods, reducing resource depletion and environmental degradation.

Reduced international trade often means lower carbon emissions associated with long-distance transportation (James & Steger, 2014). Localising production encourages shorter supply chains and fosters regional sustainability practices.

However, it is important to note that deglobalisation does not imply complete isolation. Rather, it is about strategic autonomy, ensuring that nations retain control over critical areas while still engaging globally in a more balanced manner. While globalisation remains valuable, deglobalisation presents an opportunity to rethink economic models in favour of resilience, equity, and sustainability. It promotes diversified development pathways that are better suited to national contexts in an increasingly uncertain world.

Finally, I recommend giving this 10-minute reel a watch , Less is More: Can Degrowth Save The World?

Any thoughts?

References:

• Javorcik, B. (2020). Global supply chains will not be the same in the post-COVID-19 world. World Economic Forum.

• Rodrik, D. (2018). Straight Talk on Trade: Ideas for a Sane World Economy. Princeton University Press.

• James, P., & Steger, M. B. (2014). A Genealogy of 'Globalization': The Career of a Concept. Globalizations, 11(4), 417–434.

• International Maritime Organization (IMO). (2021). Fourth IMO GHG Study.

• Altintzoglou, T., Røttingen, J.-A., & Tunsjø, O. (2020). Deglobalisation and Environmental Governance: Towards More Localised Environmental Solutions. Environmental Politics, 29(4), 670–688.

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