GLOBAL IMBALANCES AND NEW PROTECTIONISM: AN INSTITUTIONAL HYPOTHESIS
Abstract
Part of the causes of current aggravation of trade, financial and geo-economic imbalances and conflicts is within the value-institutional plane. Over the past 25 years, the space of TNCs’ economic power has rapidly spread through new technologies and innovative financial instruments. Competitive pressure has forced TNCs to move into a global space, to absorb global human, natural and technological resources. World capitalism attracts to modern technologies huge masses of people with different values, preferences and motives. Different social epochs and civilizations converged on the same resource space: from archaic and traditional societies to post- and neo-modern, with a variety of their rhythms of social life.
Thanks to global markets, information networks, liberalization of terms of international trade and capital flows, as well as market transformations in countries of state socialism, the number of interacting entities over the past 25 years has increased by an order of magnitude (by a factor of 10); at the same time the complexity of the system could grow by several orders (100 or more times). Institutions of industrial origin are not able to effectively reduce the uncertainty of such a broad and complex financial and economic space. Failures, shocks, crises will accompany the mutual adaptation of the actual complexity of the global economy and the integrating capabilities of its institutional order. "New protectionism" as a change in approaches to assessing the gains and losses of globalization by the US can be the beginning of a reduction in the imbalances in the institutional distribution of responsibility between sovereign states and international institutions in accordance with the actual distribution of resources and economic power in modern society. The new model of globalization will continue the processes of deepening the positive interdependence, but on the basis of adapting the sovereign identity and social responsibility of nation states to new technological and institutional-social realities
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