Nathalie Chusseau «The economic and social consequences of globalization»

Respondent: Francis Danvers
Since the 1980s, there has been a rise in income and wealth inequality in all advanced economies, with the United States returning to a level of income inequality at the beginning of the twentieth century. At the same time, the large emerging low-wage countries have integrated the world trade thus upsetting the great international balances. This new international competition profoundly changes the international specialization of advanced countries which cannot remain competitive in the face of such low labour costs. These changes in specialization have direct consequences on the living conditions of the inhabitants, and on the institutions of advanced countries: job cuts, de-unionization, weakening of social policies… We can then question the economic and social consequences of the current globalization process, and try to identify the winners and losers of globalization.