The Current Financial Crisis and Its Challenge to Economic Globalization

Over the past half century, the primary economic forces of the world have becomeincreasingly integrated and interconnected. However, the financial crisis and worldwidecontraction of2008-2009 have raised many questions about the sustainability andviability ofeconomic globalization. A review ofhistory reveals that similar eras ofheightened commercial linkages have existed in the past, but all of them eventuallycollapsed. When determining whether free trade and open markets will survive thistumultuous period, it is important to understand both how a similar world order wasundermined during The Great Depression and the ways in which globalization haschanged in recent years. A thorough analysis ofthe evidence demonstrates that, despitesome protectiorust measures, institutional flaws, and potential international flashpoints,the current wave of economic globalization will endure. Yet, a rise in anti-globalizationforces may occur as a result of the present situation which will pose challenges topolicymakers in the future.