Only a fool would claim it would be desirable to reduce British wages to Indonesian levels, but this ignores the impact of trade with developing countries in reducing demand for unskilled labour in advanced countries, while increasing demand for the more skilled. That relatively small levels of trade with developing countries have had a significant impact on wages and employment shows how significant globalisation is, not the opposite.
Globalisation has led to a relative rather than absolute shift in power from nation states to global markets, but this has still undermined much of the post-war order. A good example is industrial policy. In Britain, as in many other countries, this has largely been reduced to offering incentives to multinationals to locate here, effectively transferring taxpayers' money to them.
Political Economy Research Centre, University of SheffieldReuse content