Globalization, deglobalization and reglobalization: adapting liberal international order

Abstract

Abstract Liberalism has been the most successful political ideology during the past two centuries in withstanding challenges and adapting to new environments. The liberal international order, set up after the Second World War and strengthened at the end of the Cold War, is going through a series of crises, propelled by deglobalization pressures, and the rise of illiberal and populist leaders, all challenging the three pillars of the liberal order: democracy, economic interdependence and international institutions. Two critical reasons for the decline of the liberal order are internal in terms of income distribution and institutional malaise. The article argues that the demise of the liberal order is not inevitable provided liberal states take remedial measures and adapt to the new environment as they did in 1919, 1930s, the second half of the 1940s, 1960s and 1991. Reformed globalization, or re-globalization is essential for facing the geopolitical challenges emanating from China and other illiberal states. The inability of other systems to offer both prosperity and freedom that the liberal order can provide is its main attractiveness. The connection between internal reforms in liberal states to address deepening inequalities and wealth distribution, a by-product of intensified globalization, and the prospects of liberal order's success is highlighted. The need for a refined welfare state taking into account the new realities to tackle the internal challenges is proposed.