In recent years, the effects of economic openness and technological change have fuelled growing dissatisfaction with established political systems and led to new forms of political populism that exploit the economic and political resentment created by globalization This shift in politics was evident in the decision by UK voters to leave the EU in June 2016, the November 2016 election of Donald Trump to the presidency of the United States, as well as the rise of populist movements on left and right through out much of Europe To many voters, the economy appears to be broken Conventional politics is failing Parties of the left and centre-left have struggled to forge a convincing response to this new phase of globalization in the aftermath of the 2008 crisis This book examines the challenges that the new era of globalization poses for progressive parties and movements across the world It brings together leading thinkers and experts including Andrew Gamble, Jeffry Frieden and Vivien Schmidt to debate the structural causes and political consequences of this new wave of globalization The Crisis of Globalization.indb 09/11/18 4:33 PM In the series: After the Third Way: The Future of Social Democracy in Europe Edited by Olaf Cramme and Patrick Diamond ISBN: 978 84885 992 (HB); 978 84885 993 (PB) Europe’s Immigration Challenge: Reconciling Work, Welfare and Mobility Edited by Elena Jurado and Grete Brochmann ISBN: 978 78076 225 (HB); 978 78076 226 (PB) Left Without a Future? Social Justice in Anxious Times Anthony Painter ISBN: 978 78076 660 (HB); 978 78076 661 (PB) Progressive Politics after the Crash: Governing from the Left Edited by Olaf Cramme, Patrick Diamond and Michael McTernan ISBN: 978 78076 763 (HB); 978 78076 764 (PB) Governing Britain: Power, Politics and the Prime Minister Patrick Diamond ISBN: 978 78076 581 (HB); 978 78076 582 (PB) The Europe Dilemma: Britain and the Drama of EU Integration Roger Liddle ISBN: 978 78076 222 (HB); 978 78076 223 (PB) The Predistribution Agenda: Tackling Inequality and Supporting Sustainable Growth Edited by Claudia Chwalisz and Patrick Diamond ISBN: 978 78453 440 (HB); 978 78453 441 (PB) The Crisis of Globalization: Democracy, Capitalism and Inequality in the Twenty-First Century Edited by Patrick Diamond ISBN: 978 78831 515 (HB); 978 78831 516 (PB) The Crisis of Globalization.indb 09/11/18 4:33 PM Edited by Patrick Diamond the crisis of globalization Democracy, Capitalism and Inequality in the Twenty-First Century The Crisis of Globalization.indb 09/11/18 4:33 PM Published in 2019 by I.B.Tauris & Co Ltd London • New York www.ibtauris.com Copyright Editorial Selection © 2019 Policy Network Copyright Individual Chapters © 2019 Lorenza Antonucci, Patrick Diamond, Jeffry Frieden, Andrew Gamble, Jane Gingrich, Anton Hemerijck, Robin Huguenot-Noel, Roger Liddle, Silvia Merler, Manuel de la Rocha, Patricia Rodi, Vivien A Schmidt, Dimitris Tsarouhas, Loukas Tsoukalis, Frank Vandenbroucke The right of Patrick Diamond to be identified as the editor of this work has been asserted by the editor in accordance with the Copyright, Designs and Patents Act 1988 All rights reserved Except for brief quotations in a review, this book, or any part thereof, may not be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher Every attempt has been made to gain permission for the use of the images in this book Any omissions will be rectified in future editions References to websites were correct at the time of writing ISBN: 9781788315159 (HB) ISBN: 9781788315166 (PB) eISBN: 978 78831 628 ePDF: 978 78831 629 A full CIP record for this book is available from the British Library A full CIP record is available from the Library of Congress Library of Congress Catalog Card Number: available Typeset by Riverside Publishing Solutions, Salisbury SP4 6NQ Printed and bound in Great Britain The Crisis of Globalization.indb 09/11/18 4:33 PM Contents Contributors vii List of Figures ix Preface x Introduction The Great Globalization Disruption: Democracy, Capitalism and Inequality in the Industrialized World Patrick Diamond Part I Taking Stock – the Rise of the New Populism Globalization and the New Populism 27 Andrew Gamble The Backlash Against Globalization and the Future of the International Economic Order 43 Jeffry Frieden Populist Political Communication Going Mainstream? The Influence of Populist Parties on Centre-Left Parties in Western Europe 53 Patricia Rodi Europeans and Globalization: Does the EU Square the Circle? 73 Silvia Merler How can Social Democratic Parties in Government Deal with the Consequences of Globalization? 91 Manuel de la Rocha Part II Brexit, Populism and the Future of the European Union Brexit and Globalization: Collateral Damage or an Accident Waiting to Happen? 109 Loukas Tsoukalis The EU in Crises: Brexit, Populism and the Future of the Union 127 Dimitris Tsarouhas The Crisis of Globalization.indb 09/11/18 4:33 PM vi The Crisis of Globalization Brexit: A Consequence of Globalization or a Case of British Exceptionalism? 145 Roger Liddle Part III What is to be Done? Domestic and International Policies to Deal with Globalization Where Might the Next Generation of Progressive Ideas and Programmes Come From? Contemporary Discontents, Future Possibilities for Europe 167 Vivien A Schmidt 10 Globalization as a Losing Game? Reforming Social Policies to Address the Malaise of Globalization’s Losers 187 Lorenza Antonucci 11 Social Investment Beyond Lip-Service 207 Anton Hemerijck and Robin Huguenot-Noel 12 Addressing Global Inequality: Is the EU Part of the Equation? 235 Frank Vandenbroucke 13 Social Democracy in an Era of Automation and Globalization 259 Jane Gingrich Postscript 277 Patrick Diamond Index 282 The Crisis of Globalization.indb 09/11/18 4:33 PM Contributors Lorenza Antonucci is currently Research Fellow in the Department of Social Policy, University of Birmingham Patrick Diamond is Senior Lecturer in Public Policy, Queen Mary, University of London and Chair of Policy Network Jeffry Frieden is Professor of Government at Harvard University Andrew Gamble is Emeritus Professor of Politics at the University of Cambridge Jane Gingrich is Associate Professor of Comparative Political Economy at the University of Oxford Anton Hemerijck is Professor of Political Science, European University Institute, Florence and Centennial Professor of Social Policy, London School of Economics and Political Science Robin Huguenot-Noel is a policy analyst at the European Policy Centre Roger Liddle is a Labour member of the House of the Lords Silvia Merler is Affiliate Fellow at the Bruegel thinktank in Brussels Manuel de la Rocha is an Economist and former Economic Adviser to the Spanish Socialist Party Patricia Rodi is a postgraduate researcher at Loughborough University Vivien A Schmidt is the Jean Monnet Chair of European Integration and Professor of International Relations at the Pardee School of Global Studies at Boston University The Crisis of Globalization.indb 09/11/18 4:33 PM viii The Crisis of Globalization Dimitris Tsarouhas is Professor of Political Science in the Department of International Relations at Bilkent University, Turkey Loukas Tsoukalis is Jean Monnet Professor of European Organization, University of Athens and President, Hellenic Foundation for European and Foreign Policy (ELIAMEP) Frank Vandenbroucke is Professor at the University of Amsterdam The Crisis of Globalization.indb 09/11/18 4:33 PM List of Figures Figure 4.1 European’s perception of globalization 74 Figure 4.2 Demographics 76 Figure 4.3 Education 77 Figure 4.4 Education 78 Figure 4.5a EFSI statistics 83 Figure 4.5b EFSI statistics 84 Figure 11.1 Social protection spending vs competitiveness 212 Figure 11.2 Unemployment 2017 212 Figure 11.3 Participation rate 213 Figure 11.4 Female participation rate 214 Figure 11.5 Elderly participation rate 215 Figure 11.6 ALMP spending per unemployed 216 Figure 11.7 Employment rate by educational level 216 Figure 11.8 At-risk-of-poverty before and after taxes 217 Figure 11.9 Child income poverty rate 219 Figure 11.10 Public debt to GDP ratio 2017 219 Figure 11.11 Social investment life-course multiplier effect 220 Figure 13.1 Public support for redistribution in five EU countries 260 Figure 13.2 EU relative employment loss in manufacturing 1991–2014 262 Figure 13.3 GVA per capita across Europe’s regions in 2014 263 Figure 13.4 Income support programmes in major industrialized countries268 List of Tables Table 4.1 Table 4.2 Allocation of European Fund for Strategic Investments Youth Guarantee across EU countries The Crisis of Globalization.indb 81 85 09/11/18 4:33 PM ... (PB) The Crisis of Globalization. indb 09/11/18 4:33 PM Edited by Patrick Diamond the crisis of globalization Democracy, Capitalism and Inequality in the Twenty-First Century The Crisis of Globalization. indb... breaking out of the impasse The root cause of the malaise is that since the financial crisis and Great Recession in the aftermath of the 2008 meltdown, global capitalism no The Crisis of Globalization. indb... hardest The Crisis of Globalization. indb 15 09/11/18 4:33 PM 16 The Crisis of Globalization The coherence of the EU has been further eroded by the advance of political populism and the growth of ‘increasingly