Re-not de-globalise, Minus the salty bits

World Trade Organisation (WTO) director-general Ngozi Okonjo-Iweala is right in saying what the world needs is ‘re-globalisation’, not ‘de-globalisation’. Those in disagreement would argue that the head of the multilateral trade body is hardly likely to argue against globalisation. But the fact is that open global trade has been beneficial for growth and development – lifting millions out of poverty – allowing many developing countries to grow, create jobs and improve lives. But there is no denying that the late 20th-century version of globalisation did leave much of the globe behind. Okonjo-Iweala’s call for re-globalisation is a reminder of that, as well as a call for calibrated correction.

Reforming globalisation to ensure that benefits reach those left behind and address its discontents will require strengthening bodies like WTO and its mechanisms. The call for diversifying supply chains and decentralising manufacturing in the aftermath of disruptions due to the Covid pandemic and Russian invasion of Ukraine is an opportunity. It opens up the possibility to take the benefits of global trade to a wider set, increasing the capacity of countries without undermining global interdependence.

India has benefited from globalisation. At the same time, it also knows its pitfalls. This mixed experience, and the need to ensure that developing countries are not left behind (again) gives India an important voice in this reconfiguring. It should be at the forefront of ensuring that trade is used as a tool to tackle global challenges such as climate change in a manner that is beneficial to all rather than becoming an obstacle to growth, job creation and tackling poverty. Globalisation bears the sweets. Just take out the salty bits.