Globalization as an Inevitable Process: History, Crisis, and AI

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Globalization as an Inevitable Process: History, Crisis, and AI

Introduction: Globalization as an Inevitable Transformation

Globalization is not just a media catchphrase, but a fundamental shift in the conditions of human coexistence. According to Christopher Meissner, it is a structurally irreversible process resulting from the human capacity for specialization and exchange. Although its historical forms—such as the gold standard or Bretton Woods—have collapsed, integration itself continues. This article analyzes the evolution of this phenomenon: from 19th-century trade waves and sovereignty crises to the new era of artificial intelligence. You will learn why a return to isolationism is an illusion and how to design institutions capable of managing global risks in the digital age.

History, the Trilemma, and the Foundations of Success

Economic history is an archipelago of episodes of integration and disintegration. The first wave of globalization broke in 1914 when communal governance failed and elites tried to revive systems ill-suited for mass democracy. A key mechanism here is path dependency—the inertia of structures, such as dollar hegemony, which makes changing the financial architecture nearly impossible. Rodrik’s Trilemma explains that it is impossible to simultaneously maintain deep integration, state sovereignty, and full democracy.

Whether a state benefits from opening up is determined by national institutions. Settler colonies (such as the USA and Canada) turned globalization into an engine of growth thanks to strong property rights. Conversely, in extractive colonies, weak institutions turned integration into a mechanism for resource draining. It was this Great Divergence that shaped modern inequalities between the North and the South.

The China Shock and the Aporias of Regional Integration

Globalization is not uniform. In Arab countries, it took the form of selective modernization, allowing for financial integration while maintaining tight political control. The so-called China Shock in the US brought entirely different results. The rapid reallocation of production to Asia following China's entry into the WTO led to the erosion of the middle class and political radicalization, fueling protectionist narratives.

In Europe, the Eurozone exposed the aporia of fiscal sovereignty. Member states, by giving up monetary autonomy without creating a fiscal union, were forced into pro-cyclical austerity in the face of crisis. Meissner shows that under conditions of deep integration, national sovereignty becomes a fiction, and domestic policy becomes merely the administration of external constraints.

Computational Globalization and the Era of AI

Modern computational globalization turns AI into a general-purpose technology that optimizes global value chains in real-time. However, this leads to techno-feudalism, where the traditional market gives way to the dominance of cloud capital owners. In these conditions, isolationism is impossible—the material unity of the world rests on data flows and climate threats that borders cannot stop.

The answer must be recursive globalization. This is a model based on the coordination of energy, technology, and ethics. It requires the establishment of a new class of transnational institutions capable of regulating not only trade but also algorithmic parameters and risk models. In the age of AI, globalization must become a feedback system in which technology serves to enhance human agency rather than eliminate it.

Summary: Globalization as a Procedure of Justice

Globalization can become a procedure of justice if the decisions made by algorithms and markets are subjected to transnational oversight and justification. In a world of feedback loops, wisdom lies not in dominance, but in coordination. Globalization is a structural fact, but its quality remains a political project. It is up to us whether it transforms into digital anarchy or into an order worthy of human reason, combining technological efficiency with democratic responsibility for our shared future.

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Frequently Asked Questions

Is globalization a process that can be completely stopped?
According to Christopher Meissner, globalization is structurally inevitable as long as the human tendency to trade and specialize exists, although its specific historical forms may break down.
What was the problem with the gold standard in the interwar period?
The attempt to maintain a fixed exchange rate clashed with the growing democratic demands of societies that no longer accepted the costs of deflation and unemployment as the price of monetary stability.
What is the “China shock” in the context of the global economy?
This is a sharp reallocation of industrial production to Asia following China's entry into the WTO, which led to the decline of traditional manufacturing sectors in the US and a rise in protectionist sentiment.
How does artificial intelligence influence contemporary globalization?
AI optimizes global supply chains in real time and reduces transaction costs, but it also promotes the concentration of power in the hands of technology giants, creating new forms of dependency.
Why have some countries benefited more from globalization than others?
Institutions proved crucial; countries with strong property rights and efficient administrations used integration as a growth engine, while countries with weak structures often suffered from resource drain.

Related Questions

Tags: globalization Christopher Meissner path dependency gold standard Rodrik's trilemma China shock technofeudalism The Great Divergence cloud capital value chains economic integration autarky Heckscher-Ohlin model state sovereignty artificial intelligence