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Journal number 3 ∘ Elguja Mekvabishvili
Metamorphoses of Globalization: Political Economy Aspect

journal N 3.2023


The article discusses globalization of the economy as a component of the historical process and a natural result of its certain stage. In the evolution of globalization there are recorded turning moments or so-called bifurcation points, defining:
• The logic of the beginning of globalization, manifested in the transformation of the internationalization of the world economy into economic globalization at the turn of the 1980s and 1990s;
• Alternation of globalization forms with the forms of turbulent and confrontational globalization;
• The determinism of the content of globalization of the economy and the trajectory of changes in its forms.
It is noted that the current globalization is corporate globalization in its content. This means that it proceeds under the dictates of large transnational corporations and primarily serves their interests. Mainstream corporate globalization is characterized by internal contradictions, which are manifested at the current stage:
• The growth rates of both the world economy and the post-industrial countries economy are significantly reduced;
• Strengthening the instability of the economy at the global and regional levels and the rapid spread of the "financial-economic virus";
• General deepening of economic and social inequality.
The global and financial-economic crisis of 2007-2009, the economic crisis caused by the covid-19 pandemic and the negative impact of the Russian-Ukrainian war on the world economy caused serious obstacles in the process of globalization, which was manifested in:
• Localization of production;
• Breaking global supply chains;
• Beginning of the trend of dedolarization;
• Growing fragmentation of the modern world economy.
The trend of localization of production first emerged in the United States after the end of the global financial and economic crisis. It manifested itself in the priority of job creation in the national economy and opposed the policy of "runaway factories", which American TNCs have been implementing around the world for decades. This trend has intensified against the background of the covid-19 pandemic.
The breakdown of value creation and supply chains also began during the global financial crisis, but was especially aggravated during the period of the "great lockdown", when there was a total lockdown of the economies of the countries of the world. This fact has dealt a strong blow to the world economy, since the share of global production chains in the cumulative growth of the world economy is currently about 70%. As a result, we got a significant increase in the rate of inflation around the world.
The start of the dedolarization trend is linked to the strengthening of the BRICS and the increase its share in the global GDP: it currently amounts to 31.5% and is predicted to reach 35% by 2028. Over the past ten years, BRICS' share in the global GDP has increased by 12%, while G7's share has decreased by 20%.
The countries in the BRICS consider de-polarization as their main priority, and for this purpose conclude agreements that provide for trade among themselves in national currencies.
The change in geopolitical priorities had an active impact on the globalization of the world economy, in terms of strengthening its fragmentation. Two directions of fragmentation are distinguished:
• On shoring of production from another country to their own country;
• Freed shoring of production in countries with similar geopolitical interests and goals.
Despite the obstacles in the globalization of the economy, there is no reason to argue about the suspension of this process, and even more so de-globalization. The article expresses the opinion that today we are not dealing with globalization in general, but with the crisis of its mainstream model - corporate globalization. Accordingly, the necessity of replacing it with a new model of globalization is on the agenda, which is very difficult and impossible to characterize today. At the same time, the fundamental qualities that should be characteristic of the new model of globalization can be theoretically determined: anthropocentricity, or a predominantly human orientation, social justice, ecological efficiency, concentration on sustainable development and multipolarity.
Undoubtedly, the future belongs to human globalization, which we consider to be the best way to avoid the existential threat to humanity.


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Keywords: Globalization, bifurcation points, turbulent and confrontational globalization, corporate globalization, de-globalization, fragmentation.
JEL Codes: F02, P16, P48