The old globalizing paradigm of world neoliberalism has fallen out of favor, and economic nationalism is now the norm. For decades, capitalism had invested in nations with inexpensive labor and lax environmental regulations, bringing enormous profits back to its original centers. However, these world investments shifted production to China, India, and Brazil and accelerated their market growth. This resulted in the atrophy of the middle class in the ancient urban centers, leaving behind low-wage jobs and increased income inequality. Tax cuts for corporations and the affluent, austerity measures, and infrastructure dereliction widened the wealth gap. This caused individuals to reject neoliberal globalization and embrace economic nationalism.
The Impact of Neoliberal Globalization on Capitalism
The escalating problems of neoliberal globalization compelled capitalism to adapt to the new reality, and governments implemented more economic interventions to maintain the system. The replacement of neoliberalism with economic nationalism rationalized the expansion of state power. Both the private and public sectors were considered “capitalist.” The coexistence of state and private enterprises in China and India produced remarkable economic growth rates, which profoundly influenced economic nationalisms worldwide to adopt the same hybrid as a model.
A Turmoil in the Global Economy
Emerging as a potential outcome of the turmoil encircling the formation of a new global economy are projects to progress beyond capitalism. Despite attempts by the status quo to maintain the status quo, capitalism confronts new forms of competition, and the emergence of BRICS (Brazil, Russia, India, China, and South Africa) has the potential to form the core of the new global order. However, the future is uncertain, and the new emerging global economy displays contradictions between vehement rejections and enthusiastic celebrations of the new.
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