Why Does Globalization Fuel Populism? Economics, Culture, and the Rise of Right-Wing Populism

Globalization figures prominently in discussions of populism. Especially in its post-1990s variant -- which might be better called “hyperglobalization” -- international economic integration seems to have produced domestic disintegration in many countries, deepening the divide between the winners and losers of exposure to global competition. There is nothing particularly surprising about this from the standpoint of economic theory. Standard trade theory is quite clear about the sharp redistributive effects of free trade and open economy macroeconomics has long grappled with the instability of global financial markets. Economic history is equally suggestive. The high points of globalization in previous eras have also been marked by a populist backlash.