Deglobalization and the “Great Stagnation”

ABSTRACT

Modern capitalism is going through a crisis of globalization. The activity of world trade and capital flows is decreasing, protectionist tendencies are growing, countries confront each other in currency wars and sanctions regimes. This originated from the extensive nature of the capitalist development of the latest decades through subordinating the non-capitalist periphery, its markets and sources of natural resources, using low-cost labor. It intensified the contradictions of the economic development of both the core and the periphery of the world economy: growing inequality, financialization, unemployment, slowdown in scientific progress and caused the long lasting “great stagnation,” which can be identified by the lower growth rate of the world GDP after 2008.

KEYWORDS:

• Globalization
• development
• protectionism
• inequality
• Karl Marx

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Notes on Contributor

Oleg Komolov is an assistant professor at the Plekhanov Russian University of Economics, senior research associate at the Institute of Economics, Russian Academy of Sciences, and assistant professor at the Financial University under the Government of the Russian Federation, Moscow, Russia.