De-globalisation?
A corollary of a low growth scenario, weighed down by domestic concerns, is a less welcoming attitude to globalization. There may not be actually be ‘deglobalization' but the earlier orthodoxy that globalization is an unmixed blessing is being increasingly challenged. The rationale was, and hopefully is, that even as advanced countries may see low end jobs being outsourced, they will still benefit from globalization because for every low end job gone, another high end job - that is more skill intensive, more productive - will be created. If this does not happen rapidly enough or visibly enough, protectionist pressures will arise, and rapidly become vociferous and politically compelling. The wave of currency depreciations that we are seeing around the world is a manifestation of protectionist pressures. - RBI Governor Dr. D. Subba Rao at the IMF, Washington DC on October 9, 2010.