Will Technological Convergence Reverse Globalization?

Key Points

• Numerous trends are slowing, and may even be reversing, globalization over the next decade or two. Manufacturing and services, driven by new technologies, are trending toward local production. For economic, technical, and environmental reasons, new energy production is now dominated by local sources—solar, wind, hydro, and fracked natural gas. To meet an increasing demand for fresh, organic foods, firms are establishing indoor farms in cities across the developed world to grow and sell food locally.
• Recent trade flow statistics indicate these factors have already slowed globalization. Technological and social developments will accelerate these inhibiting trends. Voters in the United States and Europe are increasingly angry over international trade. Prospects for passage of major trade agreements are dim.Authoritarian states, particularly China and Russia, are balkanizing the Internet to restrict access to information.Technological advances are raising the cost of overseas intervention while deglobalization is reducing its incentives.
• This paper argues that deglobalization would have momentous security implications. Accordingly, deglobalization must be monitored closely and if the trend continues,U.S. leaders will need to consider restructuring organizations, alliances,and national security strategy.