Does globalization still best define the dynamics of the global economy? This term, coined in the 1990s, reflects the proliferation of trade, the powerful role of markets, but also the perception of the blurring of borders and the perception of a shrinking world.

This phase of the global economy, observed particularly since the early 1980s, is not a first. Fernand Braudel spoke of world economies that could coexist without interacting. Suzanne Berger spoke of the first globalization ending with the First World War. On this point, Keynes spoke in joking terms of the ability of a British person to command the rest of the world according to his needs.

Since the pandemic, perspectives have changed and the term deglobalization has emerged.

To clarify, the period of globalization from the 1980s until the pandemic can be characterized by 5 criteria:

1 – The market place, which has asserted itself to the detriment of state regulation. This has been seen particularly in the financial sphere, but also in goods and services. Regulation via the markets has been carried out by central banks.

2 – The emergence on a significant scale of globalized supply and demand, reflecting both the ability of Western countries to satisfy their demand and emerging countries to increase their supply capacity. This has resulted in a densification of trade, a drop in costs and global goods manufactured here, there and elsewhere.

3 – The emergence of a form of common culture, particularly due to American soft power. The American middle class has made people dream of moving from Romorantin to Jakarta.

4 – More intense relationships, a form of space-time compression since relations, from one place to another, have become instantaneous and very cheap. This may notably reflect dynamics between clients here and execution thousands of kilometers away.

5 – The emergence of global common goods such as climate, biodiversity but also a form of cooperation, of a global social network beyond the economy.

Of the five characteristics, three have been weakened since the pandemic. States are regaining power over markets, as seen in the industrial policies that governments hope will shape the economic landscape. The issue of common goods, particularly the climate, is no longer as widely shared, even though there are exceptions. Finally, American soft power is less of a source of dreams and goals, particularly because China’s success is so desirable.

Trade is still very intense between the various regions of the world, even if we note here and there shifts, notably from China to the USA and Germany.

Globalization remains a living, breathing thing that is evolving rapidly; it is still too early to talk about deglobalization.