Deglobalization, Public Policy, and Government Intervention — with Dambisa Moyo

Economic Trends

Dambisa Moyo, a global economist, outlines key economic trends expected to shape the post-pandemic world. She predicts a larger role for government, with increased debts and deficits, as well as more significant government intervention in capital and labor markets 1. This shift is likely to result in a smaller private sector, as companies face heightened regulatory scrutiny and consolidation 2.

The private sector will get smaller... as many companies shy away from the sort of heavy regulatory scrutiny and burden.

--- Dambisa Moyo

Additionally, Moyo anticipates higher taxation and regulation, reminiscent of the post-Gilded Age era, along with a trend towards deglobalization 2.

   

Global Power Shifts

The conversation shifts to global power dynamics, particularly the roles of the US and China in a post-pandemic landscape. Dambisa Moyo suggests that both nations will remain influential, necessitating cooperation in various sectors 3. She also highlights the challenges of energy access, emphasizing the need for sustainable solutions that do not exacerbate poverty or migration issues.

Both economies will be important players in different areas and there's going to be forced cooperation.

--- Dambisa Moyo

Moyo warns of increasing polarization and food insecurity in the US, predicting a rise in these issues over the next few years 3.

   

Deglobalization Effects

Dambisa Moyo explores the effects of deglobalization, noting its impact on trade, capital, and global institutions. She criticizes the lack of global coordination during the pandemic, viewing it as a failure emblematic of deglobalization trends 4. Moyo argues for the benefits of globalization, advocating for economies to produce what they are best equipped to produce, yet acknowledges the political barriers that hinder this ideal.

I wish we'd been a much more coordinated global world. But it's a far cry.

--- Dambisa Moyo

She points out that protectionist policies in agriculture prevent regions like Africa from realizing their potential in global markets 4.