Globalization and Populism

Abstract

The ongoing wave of globalization has helped to increase growth in the world economy by promoting specialization and the division of labor, but it has simultaneously brought about social and economic insecurity. The discontent with globalization manifests mainly in the widening income inequality and the cultural backlash of rising intolerance and xenophobia, which are the ingredients for the rise of populism. In this chapter, first, we analyze the differences and driving forces of the two waves of globalization (1870–1914 and 1960 to present); second, we discuss the concepts, causes, and consequences of populism; and third, we study the relationship between both phenomena by investigating the links between populism and both income inequality and cultural backlash. While populism is a response to the current economic and social issues, it cannot provide sustainable and long-term solutions.