Taming the Dark Side of the New Globalization

Advanced digital technology enables the new globalization. Together, these forces have improved living standards for millions of people, but there is also a dark side to the story. Digital technology and globalization create “losers” as well as “winners,” leading to economic and social disruption. Developing countries are especially at risk; their advances in recent decades may be reversed (Bremmer, Us vs. Them: The Failure of Globalism. New York: Penguin Random House, 2018). They need to address the negative impacts to reap the full benefit of digitally enabled globalization. This chapter highlights the negative impacts of digitally enabled globalization on individuals, communities, and nation-states, then reviews proposals for mitigating these impacts, derived from literature. Various proposals involve curbs on monopoly power, regulatory reform, restoring the proper role of government, improved education, labor market reform, universal basic income, and increased international cooperation. At the level of implementation, there is significant integration among these proposals. For example, curbing monopolies will involve regulatory reform, and increased international cooperation may be necessary to achieve other reforms. This topic is timely: a recent statement of purpose by nearly 200 CEOs of global corporations suggests that business leaders may be ready to acknowledge the dark side of the new globalization and join efforts to mitigate the harm.