Benefits Of Deglobalisation Versus Globalisation

The claim by Donald McKay of XA Global Trade Advisors that “deglobalization is more expensive and less innovative” (Business Report, February 19) is grossly at odds with reality.

In the first place, the socialist-motivated state owned enterprises in South Africa, which are inherently sluggish, expensive monopolies, have nothing to do with “deglobalization.” Inefficiency and waste are the hallmarks of governments worldwide.

Where McKay’s argument in favour of globalisation goes off the rails is his assertion that it “means everyone who produces a product is potentially in competition with the world, and competition is what drives innovation.”

That is emphatically not the case. Although Ronald Reagan was hailed for deregulating the US economy, the unintended aspect of his policy was the tremendous surge in mergers and takeovers that followed in the wake of deregulation. That was particularly evident in printing and publishing, which has resulted in four or five publishing companies owning over 90% of the book trade. In South Africa, Caxton and Naspers account for the majority of magazines, newspapers, and suburban freebies.

 Nestle and Mondelez are the global giants of confectionary. The first hurdle in trying to compete with them is sourcing raw products. They either own or control the suppliers. Then there is the hurdle of distribution, marketing, and display. They have monopoly control over all those bases and, of course, price control.

Globalisation confronts everyone on the shop shelves. The American giant, Pepsico, bought Pioneer Foods, which owns Bokomo cereals, Spekko rice, Liquifruit, Sasco, and Simba. Walmart owns Game, Makro, Builders Express, and Cambridge Foods. Heineken owns SAB. Again, the muscle to source products at the cheapest rate in the greatest volume and to regulate and saturate the market ensures that serious competition for these giants is non-existent.

Globalisation is also a tool of population control. That dark reality  was demonstrated by Big Pharma during the so-called COVID pandemic. Through its financial leverage, it prevailed on bought politicians to impose improperly tested vaccine mandates on populations, which have resulted in unprecedented increases in mortality rates and illness, while Big Pharma has posted record profits.

The sad corollary of globalisation is that it outsources employment to China, India, Thailand, Bangladesh, and Indonesia, where low production costs facilitate greater profit margins. Globalisation has diminished the producer capacity of many countries, thereby increasing unemployment and dependence on social grants.

As President, Trump brought jobs back to the US from China and Mexico. As a result, unemployment was the lowest in 50 years. Employment of minorities exceeded all previous records. Dependence on food stamps declined by seven million. Trump demonstrated the benefit of deglobalization by reinstating pride in the phrase ‘Made in the USA.’

Deglobalization promotes local employment, ensures better beneficiation of national resources through local control, and stymies the Orwellian designs of the WEF.

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