Human desire to trade, exchange ideas and meet other people is not something new in Human History but the costs of moving these around the World has been high for Centuries. When these costs were lowered Global economic integration happened. History, however, has indicated that Globalization is not a linear process but goes through troughs and peaks (cyclical); It is an endless process of “creative destruction**”.

In 19th Century a series of technological innovations transformed forever the way goods were manufactured. The invention of the "assembly line” by Henry Ford and the scientific management of factor of productions to improve efficiency (Taylorism) increased industrial productivity. When the cost of moving goods across borders lowered too global trade exploded. European Countries enjoyed a long period of global economic expansion selling their trade surplus abroad. Britain in particular enjoyed the fruits of its Empire. Economic liberalism ideas and Capital crossed borders causing huge economic and social inequalities between people and Nations. However an international monetary system based on Gold (“Global Gold Standard System”) guaranteed a period of relative stability (low inflation) until the begin of WW1.

WW1 ended old political structures (Monarchies) but the following peace was poorly managed (Treaty of Versailles) destabilizing Europe further. Too much debt in Europe caused Capital (Gold) to move to US which enjoyed a decade of unprecedented economic growth ending with “The 1929 Wall Street crash” and the Great Depression that followed. That’s what happens when too much debt funds future promises. Deflationary forces appeared and Protectionism was the Government’s solution (“Smoot-Hawley Tariff Act”)

After the end of WW2 US emerged as the global superpower. They financed Europe to reconstruct its production infrastructure (“Marshall Plan”), created a free trade area between member States (“GATT”) and integrated their economies into a global monetary system with the Dollar as the only currency convertible in Gold (“Bretton Woods System”). This was a period dominated by Democratic Sovereign States that wanted to protect their economies behind borders. This period ended too because US was now accumulating budget and trade deficit to continue financing Europe. With the end of Bretton Woods exchange rates started to float and a cost inflation spiral (“OIL crisis”) created a period of Stagflation. Money became ‘Fiat’ and a Debt without intrinsic value and the limits depended only by the proper management of its supply.

The end of Cold War ended the political/ideological divide and market the beginning of a new form of global integration. The engine of this Globalization wave was the fall of the costs of communication and transportation thanks to the ICT revolution. Neoliberal ideas spread around the World again. The economic reasoning prevailed over the political. Goods, Capital and People were once again free to cross borders and the process accelerated when in 2001 China joined the WTO. The internationalization and fragmentation of production processes caused the progressive industrialization of Emerging Countries (thanks to technology and cheap cost of labour) while many advanced Countries were deindustrialized. Competitive advantages were denationalized. Distance did not matter and the World was an inter-connectedness place. A new “Debt crisis in 2008” almost crashed the entire System.

Economic Globalization is a cyclical and asymmetrical process. In the 19th Century the lowered costs of moving goods across borders caused a “Great Divergence” between developed Nations and undeveloped Nations. The additional fall in communication costs brings “The Great Convergence** of this Century. US economic dominance is now being challenged by China precisely when an Anti-globalization sentiment is spreading in advanced Countries with a growing “Wealth inequality” problem**. Here is the “Globalization Trilemma**” of our times: Democracy, National Sovereignty and economic integration are mutually incompatible. The role of the Market as the only player able to allocate and redistribute efficiently the natural resources and wealth is being questioned again. New protectionist measures are now being implemented. A new Cold War period to the horizon with digital technologies playing the role of the disruptors?

The experiences of the past signal that if convergent technologies (digital,robotic, automation) evolve quicker than our managerial capacity to supervise them systemic global risk could become unmanageable and grow pandemic. Also, will Technology make Human Beings look like more a machine? Automation and digital production technologies (es. 3D printing) are reducing cost differentials with Humans( produce more output with less cost); The economical, political and social consequences are huge in particular for small firms, middle class citizens and emerging economies because high up front cost are needed to create economies of scale. The competitive (cost) advantage that emergent economies (like China) have acquired over the more mature economies (USA) which have lost manufacturing output (and Jobs) could vanish when these machines start to win the race. This scenario could revert the historical trend bringing production closer to consumer(from Global to local). This would mean a shorter supply chain and a more restricted form of globalization. Trump and the "America First" slogan might  be the early sign of this new trend (re- industrialization of G7) .

**Capitalism, Socialism and Democracy. Book by Joseph Schumpeter

**The Great Convergence. Book by Richard Baldwin

**Wealth inequality in America M1 L02 ,LSE &GetSmarter https://www.youtube.com/watch?v=QPKKQnijns

**The Globalization Paradox. Book by Dani Rodrick