Resisting globalisation is a losing strategy (I)

On both sides of the Atlantic, the challenges to fairness and growth come mainly from the signature economic developments of the time: the spread of contemporary globalisation and the economic impact of information and communications technologies. Reforms to restore the capacity of market-based economies to deliver fairness with growth have to address how these two developments are reshaping our economic lives.

1. The hallmark of contemporary globalisation is the large waves of foreign direct investments in developing nations by multinationals in advanced countries.

2. However, the process of contemporary globalisation carries some significant costs for advanced economies.

3. Globalisation squeezes average incomes in advanced economies in another way.

4. The big European nations sometimes try to resist globalisation, but that is a losing strategy.