Rise of right wing politics world over

This article has a interesting perspective on rise of far right wing world over.

“..the startling conclusion of a report brought out by the McKinsey Global Institute this month. The report, titled Poorer than their Parents? Flat or Falling incomes in advanced economies, says that 97% of the population in Italy, 81% of the population in the US, 70% in the UK and the Netherlands and 63% in France saw flat or falling incomes between 2005 and 2014.”

“Our survey also found that those who were not advancing and not hopeful about the future were more likely… to support nationalist political parties such as France’s National Front or, in the United Kingdom, to support the move to leave the European Union”

“At least so far there are few signs of any acceleration in growth. This is a structural crisis, the kind the global economy experienced in the 1930s during the Great Depression and in the 1970s when the Bretton Woods arrangement broke down. A structural crisis, as the earlier examples demonstrated, needs a structural change in the economy. For example, the Depression was followed by the welfare state and the sharing of the surplus with workers in the advanced economies. The 1970s crisis led to privatisation, globalization and free movement of capital. A new regime of accumulation is needed to power the global economy. But we have seen few signs of such change so far. Where, then, is growth to come from? Will it be the same debt-fuelled growth that led to the previous boom and bust?”

“For the first time in many years globalization is facing a serious challenge. The only consolation is that the elites, both in the developed and developing countries, benefit handsomely from globalization and will fight tooth and nail for it. The question then could soon become: who is in the best position to discipline the restive masses? It’s worth remembering that in the 1930s, one response to the economic crisis was the rise of fascism.

Hmm.. interesting observations.

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Author: Bobbur Abhilash

I am a fourth year Doctoral student in the Finance and Control Department at IIM Calcutta.

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