With the ascent of Marshall McLuhan's "global village" in the 1960s came the gradual forces of globalization, but with such dramatic world-wide changes come "growing pains" that can create unsettling effects.
These unsettling effects cause nations caught in our deep, world-wide recession to withdraw from progressive, evolutionary trade practices and to hedge on past agreements using protectionist remedies of the "bad, old days" when protectionism was the norm.
Over past decades of globalization and free trade and, with an eye to even more liberal trade practises, no one could have foreseen the trade problems and the dilemma nations find themselves in today - honour their commitments and continue free trade or renege on their agreements by introducing protectionist policies and gaining favour at home with lower unemployment.
Whether East or West, democratic or communist, all nations find themselves caught in a global recession with their citizens clamouring for relief from unemployment. And, wherever national elections are prevalent it is popular to place the blame on others in the global, trade network.
For example, in China they blame the U.S. and in the U.S., presidential candidates blame China for unethical trade practices, trade imbalances and currency manipulation. In south Europe they blame Germany and France and in France and Germany they blame south Europe for continuing deficits. In actual fact, there is plenty of blame to go around with the too-rapid growth of the European Union and inclusion of members who should have been vetted more carefully.
Now, it appears that in the midst of decades of rapid growth and rapid globalization and one severe world-wide recession, centrifugal forces are currently threatening the many advances and successes made along the way by G8 and G20 nations.
The U.S. is in the midst of placing tariffs on Chinese-made goods, China is placing tariffs on American-made goods, Germany has placed tariffs on Chinese-made solar panels and China has placed stiff tariffs on German-made cars, especially Audis - a favourite of the new, Chinese moneyed-class.
Brazil, also upset with China, especially with its currency manipulation, has placed tariffs on Chinese-made imports and has raised its own subsidies to Brazilian companies to ensure a level playing field. At the same time, Brazil has promoted a "buy-Brazilian" program to counter "buy-American" and "buy-European" programs seen elsewhere. When criticised for its actions, Brazil has cleverly turned the tables and proclaimed that its actions are not "protectionist" but "defensive."
India has also joined the trade fight and is using extreme tactics by back-taxing foreign companies (as far back as 1962) who acquired Indian assets and have used cheap labour to amass vast fortunes.
The people and government of India have finally had enough and are now retaliating, but where such retaliation will end is unknown.
China has also come "under-the-gun" for limiting its sale of rare-earth products vital to the high-tech industries world wide for environmental reasons.
China is definitely in control of this market and its prices - at least for now.
With demand being high and China's ability to limit supply, the cost of high-tech devices may rise.
For a brief moment in time, until the recession ends, the centrifugal forces of de-globalization are in effect and driving all trading nations toward a period of autarchy.
