Trade, Globalization and Inequality: An Old Debate with a New Twist

In developed countries, people from different social backgrounds and of diverse ideological profiles are questioning the benefits of neo-liberal globalisation, and challenging the globalist policy framework because of increased inequality, stagnant wage growth, and financial insecurity.

In recent times, the concept of globalisation has come under intense scrutiny. In developed countries, people from different social backgrounds and of diverse ideological profiles are questioning the benefits of neo-liberal globalisation, and challenging the globalist policy framework because of increased inequality, stagnant wage growth, and financial insecurity. This discussion paper introduces some of the basic arguments in the discussion on trade and explains some new trends, which may have a bearing on the current political debate. It offers an analysis of how free trade or a retreat from it can potentially affect both developing and developed countries.