Globalization, its development and contemporary crisis

Abstract

Globalization is a historical process driven by the expansion of capitalist markets. It is characterized by periods of fast growing and integration, followed by intervals of protectionist and nationalist policies that delay further market integration.
The current era, which began in the mid-2010s, exemplifies such a historical period. During the post-World War II Fordist period, national governments significantly intervened to mediate between the interests of capital and labor. This intervention
facilitated the expansion of labor rights and well-being while also contributing to the growth of large corporations. Under Fordism, labor unions gained strength, and pro-labor legislation was enhanced, however, the oil crisis of the 1970s and the resulting global stagflation precipitated the decline of Fordism. It was subsequently replaced by a neoliberal regime that promoted globalization. During this period, pro-labor legislation was reduced or eliminated, and corporations were able to reduce costs by relocating production to less expensive and politically compliant domestic and international locations. Between 1975 and 2020, economic inequality increased significantly, with a notable concentration of wealth among specific social classes and countries. Initial opposition to neoliberal globalization came from left-leaning groups who criticized its anti-labor and anti-environment policies. By the mid-2010s, new populist movements emerged, opposing globalization on
nationalist and authoritarian platforms. These movements support large corporations and the wealthy, while only nominally addressing labor concerns. Their attacks on democratic principles, citizens’ rights, and the rule of law, coupled with policies  that deteriorate the conditions of the middle and working classes, create a pathway to authoritarianism that exacerbates rather than resolves the contradictions of contemporary capitalism.