ABSTRACT
Globalization is at a crossroads as it stands at the beginning of a new geopolitical era. After three decades of accelerating deregulation and economic integration, economies and societies seek to retain national sovereignty and to “take back control” politically in shaping the effects of globalization on domestic policy-making and regulation. There have been forces of populism and protectionism that have pulled apart nations, economies and societies at a time when tighter cooperation is needed facing challenges like climate change, migration, or data security. It is argued in this chapter that a re-globalization rather than a de-globalization is needed in order to act multilaterally on a global level. Moreover, COVID-19 has hit the global economy severely and asymmetrically, which could easily lead to further economic divergence and a fragmentation of the global economy. Differences in access to vaccination can furthermore increase global inequality. Different fiscal and monetary policy stances can also trigger a higher degree of macroeconomic instability. Collective action is required to create a tighter policy coordination and regulatory cooperation for a safe and reliable institutional environment for transformation and innovation defining the way forward to a common path of sustainable progress and resilient welfare.
