Putin and Xi Exposed the Great Illusion of Capitalism John Micklethwait and Adrian Wooldridge https://www.bloomberg.com/opinion/articles/2022-03-24/ukraine-war-has-russia-s-putin-xi-jinping-exposing-capitalism-s-great-illusion?srnd=opinion&sref=oVpPkljO March 24, 2022
Unless the U.S. and its allies mobilize to save it, the second great age of globalization is coming to a catastrophic close.
globalization has been under sustained attack for two decades, with serious assaults in 2001 (when two planes, hitherto symbols of modernity, slammed into the World Trade Center); 2008 (when Lehman Brothers collapsed and the global financial system went into cardiac arrest); and 2016 (when the British voted to leave the world’s largest free-trade zone and Americans elected a nativist TV personality as president). The “decoupling” of the global economy into Chinese and Western portions has been gathering pace for some time. And the biggest drama before Ukraine was a virus that froze supply chains and forced the world into hibernation.
And yet, at the beginning of 2022, many of us shared the assumptions of Keynes’s Londoner. We ordered exotic goods in the confident expectation that Amazon would deliver them to our doors the next day. We invested in emerging-market stocks, purchased Bitcoin, and chatted with people on the other side of the world via Zoom. Many of us dismissed Covid-19 as a temporary suspension of our global lifestyle. Vladimir Putin’s “projects and politics of militarism” seemed like diversions in the loonier regions of the Twittersphere.
Now that we have been shaken awake, most of our attention is on the bloodshed in Ukraine, and rightly so. But just as World War I mattered for reasons beyond the slaughter of millions of human beings, this conflict could mark a lasting change in the way the world economy works — and the way we all live our lives, however far we are from the carnage in Eastern Europe. The “inevitable” integration of the world economy has slowed, and the various serpents in our paradise — from ethnic rivalries to angry autocracies to a generalized fury with the rich — are slithering where they will.