2017 Reports

Rethinking Globalization in the Trump Era: US-China Relations

Stiglitz, Joseph E.

The global economic and political order that was created in the aftermath of World War II –an order that has been of enormous benefit to the entire world-- is under attack by President Trump. That order has provided conditions for the enormous growth of emerging markets and the moving out of poverty of hundreds of millions of people. That order is supported now by an effective set of institutions that, even if they could not have been created without US engagement, institutions have taken on a life of their own. We have created a system of global governance without global government. These institutions can help the world maintain an open yet regulated trading and financial system, even if the US withdraws into its shell, or decides to take actions which violate its obligations. The global geo-economic and geo-political order of the 21st century would, in any case, have to be different from that created in the aftermath of the Second World War. Trump’s actions have only hastened the change, increasing the urgency for such change. That new order will be a much more multi-polar world. This short note has described some of the ways that China might respond in ways which support the creation of this new 21st century globalization—a globalization which will continue to support the growth of countries and the improvements in the standards of living of citizens all over the world.