The new buzz word for 2011 - Deglobalization

Deglobalization may be the new buzz word for 2011. With currency wars, trade wars, capital controls and more geopolitical risk, there is a greater likelihood that the world will become less connected. While there has been much talk at G20 meetings, little has been accomplished. Special interests between developed and emerging markets have actually increased and cooperation has declined. The chance of global climate cooperation also has diminished. There is also less leadership for what has been called the Washington Consensus of free trade and open capital markets. This has been the glue for globalization.

Nevertheless, deglobalization will be a particular buzz word for the developed world. Less cooperation between developed and emerging economies may be offset by more bilateral arrangements between emerging markets, so perhaps the operative phrase will be the New Globalization that by-passes the EU and drives growth on a different level.