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대외경제정책연구원 [KIEP] KIEP Opinions KIEP Opinions 제254권
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2023.1
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Globalization, which flourished under the auspice of a stable international order in the 20th century, is currently retreating. Britain's withdrawal from the European Union (EU), strategic competition between the US and China, reshuffling of global supply chains due to the COVID-19 pandemic, and the devastating war between Russia and Ukraine are all indicating the shift toward deglobalization. The retreat of globalization has been evident from movements observed in European politics as well. The far right – based on nationalism, xenophobia, and Euroscepticism – have risen around all of Europe. Despite the clear benefit of free trade and free migration, the fruits of globalization have not been distributed equally to everyone. The international division of labor means that certain domestic industries would lose their position and be withdrawn from the market. The influx of immigrants may affect the income and employment of native workers, especially those who are low-skilled and low-educated and those who hold non-regular jobs. As long as the gains from free trade and international migration are concentrated in a few hands, globalization is nothing but planting the seeds of its own destruction. In order to continue enjoying the obvious benefits of enhanced efficiency due to international exchange, the question of inequality must be addressed first.

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