Globalization

There are those who believe Russia’s attack on Ukraine has ended globalization. They focus on economic sanctions placed on Russia, Putin and his oligarch pals as witness to closing down international markets. I think these critics have gotten this all wrong.

Globalization is the result of interdependence of nations. They – we – rely on each other to make the world function more smoothly. Last time I checked the need for smooth remains great. A lot of work to do.

We are interdependent for clean air, clean water and unspoiled soil. We are interdependent to build and maintain peace. But most of all, we are interdependent economically.

No country knows this better than Russia. It needs many things from other nations in order to thrive. Rare minerals, food stuffs, and technology are a few of those things. At one time Russia needed oil for energy. Now it has its own ample supply, in fact, so much, they export it to nations in need of it. And that is the other lesson of globalization. Russia earns currency credits (money) to buy goods and services from other nations with that to sell. Buy and sell. Trade. International trade. That is what makes globalization work, the economic flow of goods, services and currency.

If a trading partner steps out of line, economic sanctions can be used to restore balance. If an outlaw nation threatens peace, economic sanctions are quick to employ. Russia threatened peace, then broke the peace. Sanctions were threatened to thwart the early threat to peace, and then delivered when peace was broken. The effects have been swift and onerous. Russia feels the global community’s disapproval.

Step out of line with pricing, supply reliability and quality, expect changes in trading partner behavior.

That is the face of globalization. The Russia/Ukraine War is proof the global village exists and works.

Russia knows what needs to be done to restore its place in the social order. The global village has more power than Putin realizes. More of that power remains.

March 28, 2022