Living at the End of an Era
Reflection on Globalization and Personal Growth
We are living in a time of unpredictable flux. In the past few years, the world has gone through the COVID-19 pandemic, the rise of authoritarianism, full-scale wars in different regions, increasing geopolitical tensions and numerous economic crises of varying scopes and magnitudes. Living through major political and economic changes brings both opportunities and challenges. In this essay, I reflect on the concepts of globalization and de-globalization, the ending of globalization as we know it, and its implication on personal growth and development.
How should we understand globalization and de-globalization?
The origin of globalization is difficult to pin-point and economic literature has proposed different historical moments for the emergence of globalization. Nevertheless, it is generally agreed among economists that the past few decades since the end of the cold war have ushered in a period of explosive growth of international trade in goods and services, which is commonly referred to as globalization in public discussion of world affairs.
Globalization has lifted many people around the world out of poverty and created a much more integrated world economy. At the same time, it has also intensified social divide and inequality, accelerated environmental deterioration, and posed geopolitical and economic challenges that were not foreseen by its advocates. The global supply chain has been leveraged by state actors during the COVID-19 pandemic as a tool of economic and diplomatic influence, while others have capitalized on oil and natural gas resources to finance military capabilities.
While the process of globalization has never followed a linear or homogeneous trajectory, the past few years have seen an increasing momentum in conversations concerning de-globalization1. Economic data on the decline of foreign investment, the slowdown of merger and acquisitions activity globally, as well as the reshoring or dismantling of the global supply chain, reveal an acceleration of the slow-down of globalization, a trend that is reinforced by the geopolitical rivalry2.
Is globalization truly ending?
In face of growing international conflicts and geopolitical tensions, countries are realigning and re-evaluating their economic strategy. The COVID-19, ongoing geopolitical conflicts, and escalating trade tensions have forced countries to prioritize security over international trade. In the words of Sir Mark Tucker, HSBC chair, “Globalization may have now run its course in its current form”.
That said, a deeper dive into the economic data shows that while the growth of the global economy has slowed, the global trade of service and merchandise trade are still increasing, even though at a slower pace. In that sense, the ending of globalization as we know it has opened the door for a new form of globalization, which attempts to address the many downsides of globalization.
How should we navigate the uncertainty and ever-shifting circumstances in the global context?
Here at Aalto, the campus life shows no sign of de-globalization. In Finland, Aalto is no doubt at the front-line of internationalization. Talented, ambitious and motivated students are selected from all over the world through a competitive admission process. Take a brief five-minute walk across the Otaniemi campus, you will encounter students of various skin colors, languages, and nationalities, who have all chosen Aalto for its rigorous learning programs and the chance to apply their learning to solve real-world problems.
In addition to a diverse and vibrant student body, Aalto has the highest proportion of international researchers among Finnish universities3. It could be contended that Aalto is in its own international bubble. But this bubble has allowed Aalto to take advantage of its growing international network and collaboration and develop deep technology innovations.
Students at the School of Business should embrace Aalto's open mindset and adopt an attitude of respect towards perspectives, cultures and experiences other than their own. While the rise of protectionism, alongside territorial and economic clashes in the world can easily leave one feeling disheartened, overwhelmed or even depressed, we could always draw strength from Aalto’s vibrant and close-knit community.
The economic theories that are taught through different courses and interdisciplinary studies would enable students to engage in a critical evaluation of the current political trends and trade policies. Students and academics from diverse intellectual and cultural backgrounds can also enrich discussion and debates about international affairs. We don’t know what the future of the global economy would look like and it is likely that new risks and challenges will continue to emerge in forms that we have not seen before. Let’s support and help each other to navigate this brave new world with resilience.
