Branko Milanovic on What Comes After Globalization

The global economic order is shifting from neoliberal globalization toward a new era of "national market liberalism," characterized by mercantilist policies and a retreat from free trade. Research professor Branko Milanovic argues that this transition stems from the failure of the neoliberal consensus to address domestic income stagnation and the rise of China as a dominant economic power. This transformation manifests in "homoplautia," a phenomenon where the elite class simultaneously captures wealth through high labor income and capital gains. While China’s rapid development has historically reduced global inequality, its current growth now contributes to it, creating tensions as Western nations prioritize domestic supply chains and industrial sovereignty. Ultimately, the move toward nationalistic economic policies, driven by security concerns and industrial competition, signals the end of the post-Cold War fantasy of a frictionless, integrated global market.