Political and economic consequences

Political consequences: does globalisation make the state weaker or stronger? Both.

• Weaker: the old welfare state, which looked after people's jobs, health and education, is giving way to a minimalist state that keeps only core functions like law and order and defence. The market takes over the rest. Multinational companies (MNCs) become so big that governments find it harder to make decisions on their own.
• Stronger: the state is still the main basis of political life, and it still makes key decisions. Technology even gives it new power: governments can now collect much more information about their citizens and rule more effectively.

Economic consequences: economic globalisation means more trade between countries, more capital flowing across borders, more foreign investment, and faster flows of ideas through the internet. International institutions such as the IMF and the WTO play a big role in setting the rules.

But people have not gained the same freedom of movement. Rich countries guard their borders with visas, so jobs can move abroad more easily than workers can.

Economists disagree about economic globalisation:

• Critics say it benefits a small section of the population and hurts the poor, especially in poor countries. Some want safety nets to protect the weak; some want to halt it altogether. Some even call it 're-colonisation': rich countries controlling poor ones again, this time through markets.
• Advocates say it brings growth and more well-being for more people, through de-regulation and open markets. Competition makes goods cheaper and better.
• Moderates say globalisation is a fact: the question is how to respond to it intelligently, keeping its benefits and protecting those it harms.