The end of an era: from globalisation to autarky

Weeks when decades happen

Lenin is quoted as saying “There are decades where nothing happens, and there are weeks where decades happen”.

That is certainly the way it feels right now. Until recently, the world has been on a multi-decade path of greater integration, both at the geopolitical level and so far as economic activity is concerned. Indeed, since the start of the new millennium, globalisation has gathered momentum and, until Trumpism, Brexit and Covid-19, it was a dominant factor driving financial markets.  As predicted by Adam Smith, the Scottish economist and philosopher, the pursuit of comparative advantage supported and enhanced the wealth of nations. While there was sometimes vigorous debate around the fair di...