20/04/2025

theSunday Special VI ON SUNDAY APRIL 20, 2025 ON SUNDAY APRIL 20, 2025 theSunday Special VI

Future of globalisation: Has the tidal wave receded?

F

OR years, globalisation was seen as an unstoppable force. Borders blurred as companies expanded across continents, supply chains stretched across multiple time

The benefits were clear. Companies gained access to cheaper labour, expanded customer bases and reduced production costs. Consumers, in turn, enjoyed a greater variety of goods at lower prices. But globalisation was never a one-size fits-all success story. While multinational corporations thrived, local industries in many regions struggled to compete. Wage stagnation, job losses in traditional sectors and environmental concerns have led to growing resentment. The idea that globalisation lifted all boats began to face serious scrutiny. For all its advantages, globalisation has had unintended consequences. Entire industries in developed nations were hollowed out as businesses relocated manufacturing to lower-cost regions. Local businesses in developing countries often find themselves unable to compete with the influx of foreign corporations. Meanwhile, income inequality widened, with the benefits of globalisation dispro portionately favouring large corporations and wealthy investors. W hile some governments sought to mitigate these effects through policy interventions, others fuelled the shift towards nationalism and protectionism. The idea that globalisation was the only viable economic model started to crumble.

Why the world isn’t as interconnected as we once believed and what that means for us today

zones and talent was sourced from every corner of the planet. Economic integration was not just an ideal – it was the defin ing reality of the modern world. Then, something changed. Political shifts, trade wars and a global pandemic forced businesses and govern ments to rethink their dependence on far-flung markets. Suddenly, globalisa tion – the engine that powered economic expansion for decades, appeared to be slowing. But has it truly receded, or is it simply evolving into something new?

BY BOBBY VARANASI

Illusion of an unstoppable wave For much of the late 20th and early 21st century, globalisation was viewed as inevitable. It was fuelled by two powerful forces: technology and policy. The internet and digital connectivity have erased tra ditional barriers, allowing businesses to operate across borders easily. Meanwhile, governments largely embraced open markets, creating free trade agreements and removing restrictions on foreign investment.

Political shifts, trade wars and a global pandemic forced businesses and governments to rethink their dependence on far-flung markets.”

Globalisation was never a one-size fits-all success story. While

multinational corporations thrived, local

industries in many regions struggled to compete.”