On Brexit and Trump: Globalization continues, isolationism not the answer
Isolationism and fear of immigration and free trade will not end globalization, Michael Schuman writes for Bloomberg Businessweek. “Rather than retrenching, globalization is deepening and expanding — whether angry Trump supporters or British Leave voters like it or not,” Schuman thinks. Trade relations are growing between countries, with more regions moving towards establishing free trade areas in Asia and Africa. And investments abroad by companies, including from the emerging countries, increased dramatically over the past 10-20 years. Trade between China and India grew from USD 1.7 bn in 1997 to USD 72 bn in 2014, one of several examples Schuman cites. Chinese companies alone invested USD 111 bn around the world, ten times bigger than in 2005. Schuman admits that Brexit could dampen growth in Europe and outside of it, yet insists globalization will not be stopped. “Instead of pandering to isolationist forces, politicians would do better to address their very real concerns directly,” writes Schuman.