“De-Globalization?”

The classic study of the “swirl of processes and events” that ended previous globalization episodes is the theme of Princeton Professor Harold James’ 2002 book, The End of Globalization: Lessons from the Great Depression.

Globalization” is here. Signified by an increasingly close economic interconnection that has led to profound political and social change worldwide, the process seems irreversible. In this book, however, Harold James provides a sobering historical perspective, exploring the circumstances in which the globally integrated world of an earlier era broke down under the pressure of unexpected events.

James examines one of the great historical nightmares of the twentieth century: the collapse of globalism in the Great Depression. Analyzing this collapse in terms of three main components of global economicscapital flows, trade and international migrationJames argues that it was not simply a consequence of the strains of World War I, but resulted from the interplay of resentments against all these elements of mobility, as well as from the policies and institutions designed to assuage the threats of globalism.

Could it happen again? There are significant parallels today: highly integrated systems are inherently vulnerable to collapse, and world financial markets are vulnerable and unstable.

While James does not foresee another Great Depression, his book provides a cautionary tale in which institutions meant to save the world from the consequences of globalization—think WTO and IMF, in our own time—ended by destroying both prosperity and peace.

Legitimate fears about “globalization reversal” have been well put by Zakaria:

Davos, Switzerland

President Trump’s speech here at the World Economic Forum went over relatively well. That’s partly because Davos is a conclave of business executives, and they like Trump’s pro-business message. But mostly, the president’s reception was a testament to the fact that he and what he represents are no longer unusual or exceptional. Look around the world and you will see: Trump and Trumpism have become normalized.

Davos was once the place where countries clamored to demonstrate their commitment to opening up their economies and societies. After all, these forces were producing global growth and lifting hundreds of millions out of poverty. Every year, a different nation would become the star of the forum, usually with a celebrated finance minister who was seen as the architect of a boom. The United States was the most energetic promoter of these twin ideas of economic openness and political freedom.

Today, Davos feels very different. Despite the fact that, throughout the world, growth remains solid and countries are moving ahead, the tenor of the times has changed. Where globalization was once the main topic, today it is the populist backlash to it. Where once there was a firm conviction about the way of the future, today there is uncertainty and unease.

This is not simply atmospherics and rhetoric. Ruchir Sharma of Morgan Stanley Investment Management points out that since 2008, we have entered a phase of “deglobalization.” Global trade, which rose almost uninterruptedly since the 1970s, has stagnated, while capital flows have fallen. Net migration flows from poor countries to rich ones have also dropped. In 2018, net migration to the United States hit its lowest point in a decade.

The shift in approach can best be seen in the case of India. In 2018, Prime Minister Narendra Modi came to Davos to decry the fact that “many countries are becoming inward focused and globalization is shrinking.” Since then, his government has increased tariffs on hundreds of items and taken steps to shield India’s farmers, shopkeepers, digital companies and many others from the dangers of international competition. The Office of the U.S. Trade Representative recently called out India for having the highest tariffs of any major economy in the world.

Indian officials used to aggressively court foreign investment, which was much needed to spur growth. Last week, with India’s economy slowing badly, Jeff Bezos announced a $1 billion investment in the country. (Bezos owns The Post.) But the minister of commerce and industry scoffed at the move, saying Amazon wasn’t “doing a great favor to India” and besides was probably engaging in anti-competitive, “predatory” practices. Often, protectionist policies help favored local producers. Malaysian Prime Minister Mahathir Mohamad recently criticized some of Modi’s policies toward Muslims. The Indian government effectively cut off imports of Malaysian palm oil. In a familiar pattern, one of the chief beneficiaries was a local billionaire long associated with Modi.

The Economist notes that Europe, once one of the chief motors for openness in economics and politics, is also rediscovering state intervention to prop up domestic industries. And if you think the Internet is exempt from these tendencies, think again. The European Center for International Political Economy tracks the number of protectionist measures put in place to “localize” the digital economy in 64 countries. It has been surging for years, especially since 2008.

It’s important not to exaggerate the backlash to globalization.

As a 2019 report by DHL demonstrates, globalization is still strong and, by some measures, continues to expand. People still want to trade, travel and transact across the world. But in government policy, where economic logic once trumped politics, today it is often the reverse. Economist Nouriel Roubini argues that the cumulative result of all these measures — protecting local industries, subsidizing national champions, restricting immigration — is to sap growth. “It means slower growth, fewer jobs, less efficient economies,” he told me recently. We’ve seen it happen many times in the past, not least in India, which suffered decades of stagnation as a result of protectionist policies, and we will see the impact in years to come.

Nevertheless, today, nationalism and protectionism prevail.

This phase of deglobalization is being steered from the top. The world’s leading nations are, as always, the agenda-setters. The example of China, which has shielded some of its markets and still grown rapidly, has made a deep impression on much of the world. Probably deeper still is the example of the planet’s greatest champion of liberty and openness, the United States, which now has a president who calls for managed trade, more limited immigration and protectionist measures. At Davos, Trump invited every nation to follow his example. More and more are complying.

The world is de-globalizing. Trump set the example.The Washington Post, Fareed Zakaria

Students should sense that while history does not repeat itself, it sometimes rhymes and this is a major danger. It also might imply that coping with climate change will be all the harder because American-led unilateralism everywhere would mean world policy paralysis.

Do Disintegrating Societies “Vomit Up” Disturbed and Demonic Leaders? Durkheim’s “Anomie”

The great American social critic Chris Hedges, who has seen a lot of disintegrating political systems in his travels as a foreign correspondent, offers a very resonant or thought-provoking concept when he says that disintegrating societies often “vomit up” criminal psychopathic leaders like the Serbs Mladić, Karadžić, Milošević, et al and Trump himself.

Hedges brings back the Émile Durkheim (one of the fathers of sociology who died in 1917) usage of “anomie” which Durkheim introduces in his masterful book Suicide from 1897. Anomie refers to a level of social bewilderment and lostness where a person or people opens the door to suicide or demonic demagogues who become cult figures rather like Trump to his supporters.

The real question becomes the social rot and dislocatedness that allowed for the rise of the devilish leaders (and secondarily the leaders themselves). The anomie is the problem, the leader a symptom of the problem.

The term anomie—“a reborrowing with French spelling of anomy”—comes from Greek: anomía (ἀνομία, ‘lawlessness’), namely the privative alpha prefix (a-, ‘without’), and nomos (νόμος, ‘law’). The Greeks distinguished between nomos, and arché (ἀρχή, ‘starting rule, axiom, principle’). For example, a monarch is a single ruler but he may still be subject to, and not exempt from, the prevailing laws (i.e., nomos). In the original city state democracy, the majority rule was an aspect of arché because it was a rule-based, customary system, which may or may not make laws (i.e., nomos). Thus, the original meaning of anomie defined anything or anyone against or outside the law, or a condition where the current laws were not applied resulting in a state of illegitimacy or lawlessness.

The contemporary English understanding of the word anomie can accept greater flexibility in the word “norm,” and some have used the idea of normlessness to reflect a similar situation to the idea of anarchy. However, as used by Émile Durkheim and later theorists, anomie is a reaction against or a retreat from the regulatory social controls of society, and is a completely separate concept from anarchy, which consists of the absence of the roles of rulers and submitted.

Nineteenth-century French pioneer sociologist Émile Durkheim borrowed the term anomie from French philosopher Jean-Marie Guyau. Durkheim used it in his influential book Suicide (1897) in order to outline the social (and not individual) causes of suicide, characterized by a rapid change of the standards or values of societies (often erroneously referred to as normlessness), and an associated feeling of alienation and purposelessness. He believed that anomie is common when the surrounding society has undergone significant changes in its economic fortunes, whether for better or for worse and, more generally, when there is a significant discrepancy between the ideological theories and values commonly professed and what was actually achievable in everyday life. This was contrary to previous theories on suicide which generally maintained that suicide was precipitated by negative events in a person’s life and their subsequent depression.

In Durkheim’s view, traditional religions often provided the basis for the shared values which the anomic individual lacks. Furthermore, he argued that the division of labor that had been prevalent in economic life since the Industrial Revolution led individuals to pursue egoistic ends rather than seeking the good of a larger community. Robert King Merton also adopted the idea of anomie to develop strain theory, defining it as the discrepancy between common social goals and the legitimate means to attain those goals. In other words, an individual suffering from anomie would strive to attain the common goals of a specific society yet would not be able to reach these goals legitimately because of the structural limitations in society. As a result, the individual would exhibit deviant behavior. Friedrich Hayek notably uses the word anomie with this meaning.

(Wikipedia’s entry for “Anomie”)

Chris Hedges’ point is intriguing because it offers an unusual “flashlight” on the problem of “destructive charisma” in leadership styles where the socially diseased state of the society itself calls forth (i.e., “vomits up”) such leaders from Hitler to Trump.

While not perhaps the whole story, it does get at something crucial, the “endogeneity problem” not in economics where it is usually discussed but in politics. Endogeneity comes from endogenous (i.e., generated from within). Exogenous is the opposite.

The German literary masterpiece Berlin Alexanderplatz (1929) shows a society where life and values are too topsy-turvy and dislocated to be sustainable and this creates an “ecosystem” of disorientation where Nazis begin to emerge or rather “crawl forth.” Thus the Hedges metaphor of “vomit up” is suggestive.

Some Historical Notes on the Three Quests of China: Dignity, Stability, Understanding

Dignity Quest

In “The Philosopher,” a chapter in the 1922 travel book On a Chinese Screen, W. Somerset Maugham comments, “He was the greatest authority in China on Confucian learning.”

The philosopher mentioned above tells Maugham: 

“I took the Ph.D. in Berlin, you know,” he said.  “And afterwards I studied in Oxford.   …  But his study of Western philosophy had only served in the end to satisfy him that wisdom after all was to be found within the limits of the Confucian canon.  He accepted its philosophy with conviction.  If Confucianism gained so firm a hold on the Chinese it is because it explained and expressed them as no other system of thought could do.  He loathed the modern cry for individualism.  For him society was the unit, and the family the foundation of society.  He upheld the old China and the old school, monarchy, and the rigid canon of Confucius.  He grew violent and bitter as he spoke of the students fresh from foreign universities, who with sacrilegious hands tore down the oldest civilization in the world. ”

“But you, do you know what you are doing?” he exclaimed. “What is the reason for which you deem yourselves our betters? Have you excelled us in arts or letters? Have our thinkers been less profound than yours? Has our civilization been less elaborate, less complicated, less refined than yours? Why, when you lived in caves and clothed yourselves with skins we were a cultured people. Do you know that we tried an experiment which is unique in the history of the world? We sought to rule this great country not by force, but by wisdom. And for centuries we succeeded. Then why does the white man despise the yellow? Shall I tell you? Because he has invented the machine gun. That is your superiority. We are a defenseless horde and you can blow us into eternity. You have shattered the dream of our philosophers that the world could be governed by the power of law and order. And now you are teaching our young men your secret. You have thrust your hideous inventions upon us. Do you not know that we have a genius for mechanics? Do you not know that there are in this country four hundred millions of the most practical and industrious people in the world? Do you think it will take us long to learn? And what will become of your superiority when the yellow man can make as good guns as the white and fire them as straight? You have appealed to the machine gun and by the machine gun shall you be judged.”

Stability Quest

  1. The decade of the 1850s gives a most revealing picture of the Chinese sense of things falling apart.  The Taiping Rebellion, convulsed China in the 1850s. It was a utopian movement which wants to go backwards and forwards at the same time and arrive at a historical paradise.

  2. From 1859-1860, the Second Opium War racks China. The British extract more concessions from the Chinese by the Treaty of Tientsin, a tremendous new humiliation for the Chinese. As part of Britishshock and awe” of that time the Summer Palace in Beijing is burned down.

  3. In Chinese society, to add to this misery, there is a tremendous conflict in China between the Hakka (客家, “Guest People”) with the Punti (本地, “Native/Original People”) called the HakkaPunti conflict, and is referred to in the movie The Hawaiians, based on the James Michener novel.

  4. All of this Chinese turmoil and national weakness is itself taking place in a global context that is threatening. Commodore Perry and his “Black Ships” sail into Edo Bay (now Tokyo Bay) in 1853, to dictate terms to the Japanese which amount to “trade or die” (an Americanshock and awe”).

  5. In 1857-1858, India convulses with the Indian Mutiny, which has been described as the opening chapter of the Indian Independence Movement. The Indian Mutiny, also known as the Sepoy Mutiny, was put down with shocking brutality. The Chinese watching the event, feel rage about the insouciant attitude of Westerners towards non-Western people.(A recent masterpiece Human Smoke by Nicholson Baker shows you the same insouciant attitude in the Bengal Famine of the 1940s and with Churchill’s dismissive comments about the human misery.) The Chinese who were studying news reports coming out of India suddenly learnt that control of India in 1858 was transferred permanently from the East India Company to the Crown, showing that the British could change the rules of the game at will.

  6. In the 19th century Chinese and Japanese thinkers came up with two definitive slogans, which they used to orient themselves.

    Slogan One

    “Western Technology, Eastern Ethics.” What is the balance point between West and the East? Xi Jinping (习近平) is also trying to find a balance. How American must a Chinese Silicon Valley have to be?

    Slogan Two

    “Rich Country, Strong Army.” How fast could China become a rich country with a strong army, without provoking a global backlash—think Chinese leaders since Mao.

  7. Certain opaque and chaotic phenomena in Chinese history haunt the Chinese mind. Mao was reading Chinese historians all his life to try to understand these phenomena. Chinese schoolboys are trying to understand the rebellion called the An Lu-Shan (安禄山) of 755-763, which takes place in the middle of the Tang Dynasty and plunges China into chaos. Leaders, scholars and schoolchildren of China want to decipher the events of this very classic rebellion in Chinese history and to understand what they are always trying to understand: how things go bad. An Lu-Shan was of Turkish and Sogdian origins, which created another kind of nervousness: turmoil in China coming from non-Chinese ethnic groups. Chinese brutality toward both the Tibetans and the Muslims within China echo these anxieties. This classical rebellion is interpreted by Chinese as the beginning of the end of the Tang Dynasty, the first Chinese Golden Age. China’s preoccupation with stability comes from its insecurity about national turmoil such as the An Lu-Shan Rebellion case, which could merge with foreign threats creating a nightmare for China.

  8. China was conquered by the Mongols who created the Yuan Dynasty circa 1300 A.D. China was conquered by the Manchus from 1644-1911. The Japanese assaulted China in the 1930s. Europeans colonized and broke China into pieces in the 19th century. The ultimate symbol of China’s defeat was the two Opium Wars—1839 and 1859—by the British. The tremendous humiliation suffered by the Chinese is masterfully conveyed by Arthur Waley’s classic book, The Opium War Through Chinese Eyes.

Quest to Understand

China and Charles Darwin, by James Pusey, captures the perplexity of the Western intellectual impact on China in the last few lines of the book. “But Charles Darwin honestly entered those mixtures in Chinese heads and made them different. So his influence was real. Chinese of course confused Darwin’s ideas and were confused by them, and of course they got confused in Chinese directions, but small wonder. Every people has gotten confused. For the fact of the matter is, when all is said and done, that no one knows what to make of evolution.”

Many Western ideas and philosophies are troubling and destabilizing for the Chinese such as, individualism before society and family; marriage based on romantic love alone; a society based on innovate-or-die.

The Chinese quest for such modes of stability has a perennial quality.

What We Mean by “Towards a Composite Understanding of Education”

(MI slogan, motto or catchphrase)

Let’s be concrete and start with the title of the classic 1978 book by the Princeton professor and 1979 Nobel Prize winner, Sir Arthur Lewis, Growth and Fluctuations, 1870-1913 (introduced in the previous essay on “Looking Backwards and Forwards at the Same Time”).

Notice the following other dimensions that have to be included to “compositize” our understanding:

  1. The period 1870-1913/4 is called Globalization I by economic historians. Globalization in this view is not about Marco Polo, but the rise of world prices, such as for wheat.

  2. Paul Kennedy (Yale), who is known for his Rise and Fall of the Great Powers classic, wrote a tighter book called The Rise of the Anglo-German Antagonism, 1860-1914 (1980), described as follows:

    “This book gives an account of the rivalry between Great Britain and Germany in the period leading to the First World War. It gives readers a thorough comparison of the two societies, their political cultures, economies, party politics, courts, the role of the press and pressure groups, and so on. …”

  3. The first treaty between a European power and an Asian country was signed in 1902, “The Anglo-Japanese Alliance.”

    “In this book, Professor Nish deals with one of the most important aspects of far eastern politics in the critical period between 1894 and 1907. His object is to demonstrate how Britain and Japan, at first separately and later jointly, reacted to Russian encroachments in China and east Asia; he is concerned also with the policies of the other European powers and of the U.S., to whose hostility towards the Anglo-Japanese alliance after 1905 Britain showed…”

  4. The first defeat of a European by an Asian nation (i.e., the Russo-Japanese War, 1904-5). The famous Indian writer Pankaj Mishra wrote a recent book on this, showing how this defeat of a European country sent shock waves through the world and especially through the anti-colonial movements of Asia and Africa

  5. Partition of Africa:

    “Between 1870 and 1914 the whole of Africa, apart from one or two small areas, was partitioned by the European powers.”

    (David Thomson, England in the Nineteenth Century, 1815-1914, 1978, Penguin Books, page 203)

  6. Rise of Suburbia:

    “The 1890s saw the coming of the first electric trams, the first “tubes,” and the first motor-cars. By 1914, almost any provincial city of any size had its electric trams, mostly under municipal control, and London had its buses and underground (i.e., subway). “These changes in urban transport created suburbia.”

    (David Thomson, England in the Nineteenth Century, 1815-1914, 1978, Penguin Books, page 202)

In other words, the world itself is a crisscrossing composite of processes at different scales.

We have growth and fluctuations, the partition of Africa, suburbanization, Anglo-German tensions, techno-revolutions (including those in urban transport), interacting with Globalization I.

All of this culminated in the “guns of August” (i.e., World War I).

We are downstream from World War I, what the Germans call the “Urkatastrophe” (i.e., original calamity), and its reincarnation in World War II and its progeny, the Cold War.

The more you can “compositize” the elements of this “historical matrix,” the deeper your MetaIntelligence will be. Hence the catchphrase for the MI site:

Towards a Composite Understanding of Education

Education and Causality Changes

Scientific classification
Kingdom:Animalia
Phylum:Chordata
Class:Mammalia
Order:Primates
Suborder:Haplorhini
Infraorder:Simiiformes
Family:Hominidae
Subfamily:Homininae
Tribe:Hominini
Genus:Homo
Species:H. naledi
Binomial name:Homo naledi
Berger et al., 2015

The box above shows you, if you reflect for a moment, how involved and hierarchical taxonomy can be. The box refers to the tremendous fossil finds around 2013 outside Johannesburg, South Africa by Professor Lee Berger of Witwatersrand University and his team and associates in caves nearby.

The fossil finds are determined to be “homo” and not “australo” as you see in the table above (to the right of the word genus).

The PBS NOVA program “Dawn of Humanity” (2015), is about the story of these fossil finds and the interpretations of the finds which are deeply instructive for all knowledge-seekers, students, etc. because they leave behind any idea of a linear clearly branching “tree of life” in favor of the “bushiness” of evolution (no clear tree structure) and the whole process finally seen as a “braided stream.” This refers to a geological concept of the multiple pathways and reticulations of glacial ice and snow melt going down a mountain valley to a lake. The rivulets, channels, are crisscrossing in a “fluvial” flow pattern that is so complex one doesn’t know exactly which “exact” water went into the lake. If you say the lake is “homo sapiens” (humanity) and the swirling bushy tangled flow is the evolutionary raw material, some final causality is elusive.
When a “braided stream” (this kind of glacial water flow) metaphor gets fused with a “bushiness” one, then one sees that the random factors and endless crisscrossing obscures linear mono-causal explanations as we always imagined.

If you imagine a time when these concepts are applied to history, economy, and society you can begin to sense many “causality revolutions” in front of us where today’s textbooks will seem charmingly naive.

Every student, enrolled or not, should ponder the concepts of “braided streamtaxonomy (shown in the initial table above) and “bushiness” as opposed to tree structure. The student might also “walk around” these metaphors and ask what they imply for the “fractal geometry of nature” (a twig is like a little tree or branch on a bigger tree or branch and so on).