by WALDEN BELLO
“Let goods be homespun whenever it is reasonably and conveniently possible, and, above all, let finance be primarily national” – this advice from Keynes remains just as relevant today as it was in the 1930s.
On Sept 23, 2025, the Foreign Policy Association and the Committee of 100 hosted a debate on the topic “Is Deglobalization Inevitable?,” with Walden Bello, co-chair of the Board of Focus on the Global South, and Edward Ashbee of the Copenhagen Business School, with Bello defending the affirmative side, after a fireside chat with Nobel Laureate Joseph Stiglitz. The audience judged Bello’s position the more persuasive of the two sides.
In the 1990s, we were told that we were entering an era, known as globalization, that, owing to free trade and unobstructed capital flows in a borderless global economy, would lead to the best of all possible worlds. Most of the West’s economic, political, and intellectual elites bought into this vision. I still remember how the venerable Thomas Friedman of The New York Times lampooned those of us who resisted this vision as “flat-earthers,” or believers in a flat earth. I still recall the equally venerable Economist magazine singling me out as coining the word “deglobalization,” not with the aim of hailing me as a prophet but as a fool preaching a return to a Jurassic past.
Thirty years on, this flat-earther takes no pride in having forecast the mess we are in, to which unfettered globalization has been a central contributor: the highest rates of inequality in decades, growing poverty in both the Global North and the Global South, deindustrialization in the United States and many other countries, massive indebtedness of consumers in the Global North and whole countries in the Global South, financial crisis after financial crisis, the rise of the far right, uncontrolled climate change, and intensifying geopolitical conflict.
Globalization did not lead to a new world order but to the Brave New World.
Snapshots of a Dreary Era
Let me present three snapshots of that era of globalization that we are now leaving:
Snapshot No 1: Apple was one of the main beneficiaries of globalization. Apple led the escape away from the confines of the national economy to create global supply chains propped up by cheap labor. Let me just quote The New York Times in this regard:
Apple employs 43,000 people in the United States and 20,000 overseas, a small fraction of the over 400,000 American workers at General Motors in the 1950s, or the hundreds of thousands at General Electric in the 1980s. Many more people work for Apple’s contractors: an additional 700,000 people engineer, build and assemble iPads, iPhones and Apple’s other products. But almost none of them work in the United States. Instead, they work for foreign companies in Asia, Europe, and elsewhere, at factories that almost all electronics designers rely upon to build their wares.
Apple, of course, was not alone in the drive to deindustrialize America. It was accompanied by fellow IT corporations Microsoft, Intel, and Invidia; automakers GM, Ford, and Tesla; pharmaceutical giants Johnson and Johnson and Pfizer; and other leaders in other industries and services, such as Procter and Gamble, Coca Cola, Walmart, and Amazon, to name just a few. The favorite destination was China, where wages were 3-5 percent of wages of workers in the United States. The “China Shock” is estimated, conservatively, to have led to the loss of 2.4 million U.S. jobs. Employment in manufacturing dropped to 11.7 million in October 2009, a loss of 5.5 million or 32 percent of all manufacturing jobs since October 2000. The last time fewer than 12 million people worked in the manufacturing sector was before World War II, in 1941.
Snapshot 2: The removal of the barriers to the free flow of capital globally led to the Third World Debt Crisis in the early 1980s, which almost brought down the Citibank and other U.S. financial institutions, and the Asian Financial Crisis of 1997, which brought down the so-called Asian miracle economies. Removing global capital controls was accompanied by the deregulation of the U.S. financial system, which led to the creation of massive profit-making scams through the so-called magic of financial engineering like the frenzied trading in sub-prime mortgages. Not only were millions bankrupted and lost their homes when the subprime securities were exposed as rotten, but the whole global system stood on the brink of collapse in 2008, and it was saved only by the bailout of U.S. banks, with U.S. taxpayers money, to the tune of over $1 trillion.
Snapshot 3 is the famous French economist Thomas Piketty’s summing up of the U.S. economic tragedy of the first quarter of the twenty-first century.
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