Political trilemma of the world economy

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The political trilemma of the world economy is a concept created by economist Dani Rodrik to capture the trade-offs that governments faced in their responses to globalization. [1] [2] [3] [4] [5] The trilemma holds that "democracy, national sovereignty and global economic integration are mutually incompatible: we can combine any two of the three, but never have all three simultaneously and in full." [6] According to Rodrik, states embraced globalization and national autonomy in the late 20th century, but sacrificed democratic decision-making. [7] In the post-World War II period, states sacrificed globalization while embracing democracy at home and national autonomy. [7] The trilemma suggests that the backlash against globalization in the last few decades is rooted in a desire to reclaim democracy and national autonomy, even if it undermines economic integration. [7] Rodrik first presented the trilemma in a 2000 paper. [8]

According to TheEconomist, one rebuttal to the trilemma is found in Albert Hirschman's writings. [9] Hirschman observed that diversification of trade (global economic integration) could bolster national sovereignty by making it harder for a state to be coerced by any other single state. [9]

See also

References

  1. ↑ "Why governments can't have it all". www.ft.com. 2017. Retrieved 2021-07-24.
  2. ↑ Snell, Jukka (2016). "The Trilemma of European Economic and Monetary Integration, and Its Consequences". European Law Journal. 22 (2): 157–179. doi:10.1111/eulj.12165. ISSN   1468-0386. S2CID   155875883.
  3. ↑ Schoenmaker, Dirk (2011-04-01). "The financial trilemma". Economics Letters. 111 (1): 57–59. doi:10.1016/j.econlet.2011.01.010. ISSN   0165-1765.
  4. ↑ Crum, Ben (2013). "Saving the Euro at the Cost of Democracy?". JCMS: Journal of Common Market Studies. 51 (4): 614–630. doi:10.1111/jcms.12019. ISSN   1468-5965. S2CID   153922655.
  5. ↑ Wolf, Nikolaus (2012-12-01). "Crises and policy responses within the political trilemma: Europe, 1929–36 and 2008–11". European Review of History: Revue européenne d'histoire. 19 (6): 855–879. doi:10.1080/13507486.2012.741113. hdl: 10419/246947 . ISSN   1350-7486. S2CID   154673582.
  6. ↑ Rodrik, Dani (2007-06-27), "The inescapable trilemma of the world economy", rodrik.typepad.com, Typepad (Endurance International Group)[ self-published source ]
  7. 1 2 3 Oatley, Thomas (2019). International Political Economy: Sixth Edition. Routledge. pp. 462–464. ISBN   978-1-351-03464-7.
  8. ↑ Rodrik, Dani (2000). "How Far Will International Economic Integration Go?". Journal of Economic Perspectives. 14 (1): 177–186. doi: 10.1257/jep.14.1.177 . ISSN   0895-3309.
  9. 1 2 "The new globalisation paradox". The Economist. 2025. ISSN   0013-0613.


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