Top Economist Declares Globalization Is ‘Over’ Thanks to Ukraine War
'We have to bury the idea of a global market'
A leading economist said that economic globalization is now “over” due to Russian President Vladimir Putin’s invasion of Ukraine.
World-renowned economist Gabriel Felbermayr declared that globalization is now “over” thanks to the ongoing war in Ukraine, which has dominated the headlines for almost a month.
The economist believes that the current economic world order will crumble and be replaced with a multilateral system, meaning regions will be broken off into distinct economic blocks, dominated by the West, China, and Russia.
“The 30 glorious years of globalization are over,” Der Spiegel reports the prize-winning economist as saying.
“We have to bury the idea of a global market," he said.
“Ever since the financial market crisis of 2008 and 2009, it has been clear that hyper-globalization is over,” he continued.
“At the latest since Donald Trump’s economic war and the Russian invasion, it has been clear that a new Iron Curtain will probably be lowered between the West and the Russian sphere of influence," Felbermayr added.
Felbermayr’s warning matches those made by others, including Larry Fink, the CEO and chairman of BlackRock, who admitted last week that Russia’s invasion of Ukraine had disrupted the world order.
“The Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades,” Fink said.
“It has left many communities and people feeling isolated and looking inward.”
“I believe this has exacerbated the polarization and extremist behavior we are seeing across society today,” he said.
The supply of food is one major area where the war has caused significant damage due to the world’s reliance on grain and fertilizer from Ukraine and Russia.
One UN expert has warned of a “hell on earth” migrant crisis caused by chronic food shortages if Europe does not fund more aid for at-risk areas.
Russian President Vladimir Putin reiterated threats to cut off gas supplies completely from “unfriendly” nations, causing tensions between Russia and the West.
As Neon Nettle reported last month:
Putin also ordered the central bank and government to determine the scheme of ruble payments for Russian gas and ordered Gazprom to make corresponding changes to gas contracts.
The Russian leader also said they would continue supplying contracted volumes, and will only change payment currency.
Such a cut-off would prove catastrophic for Germany, which has become highly addicted to Moscow’s supply, receiving 55 percent of its natural gas from Putin’s Russia.
This overreliance on an energy supply controlled by Russia has left the country’s authorities scrambling for alternatives.
But the country is still seemingly not desperate enough to cease its green agenda as it moves to shut down its nuclear and coal-fired power stations in the midst of the current crisis.
Felbermayr also critised those who got the central European state hooked on Russian gas.
“Here, few people from the energy industry and politics in Germany made the wrong decision to make themselves so dependent on Russia,” Der Spiegel reports the man as saying.
“The citizens are now footing the bill for this policy,” he concluded.