1 in 2 unsure of benefits of globalization, says World Economic Forum

By Peter Kenny

GENEVA (AA) - Public perception of globalization has declined over the past two years, with almost half of those polled unsure of its benefits and more than one-third advocating for trade barriers in a 25-country survey, the World Economic Forum (WEF) said Thursday.

This is among the findings of the latest market survey by the research firm Ipsos on almost 20,000 people in 25 countries showing a mix of polarization and ambivalence about free trade, globalization, and protectionist policies.

The 25-country survey was conducted by Ipsos on its Global Advisor online platform that interviewed 19,017 adults aged 18-74 in the US, Canada, Malaysia, South Africa, and Turkey, and 16-74 in 20 other markets on March 26-April 9.

“International trade and investment can grow economies, reduce poverty, improve healthcare and empower people worldwide,” said Sean Doherty, the head of the International Trade and Investment at the WEF.

“However, changes caused by trade can be disruptive and painful, and can sometimes undermine local reforms.”

The report says that the decline in trust and ambivalence to globalization is likely a symptom worsened by the COVID-19 pandemic.

Doherty said the seeming contradiction in the survey results is understandable as people want more of the good and less of the bad of globalization.

To grow the gains and achieve fair outcomes for all, governments need to listen to local priorities and work together on policies related to the environment, jobs, tax, the digital economy, and other issues which reach across borders, the WEF official noted.

The survey found that on average, 31% agree and 28% disagree that globalization prevents their country’s government from implementing effective economic policies, while 42% are neutral, or have no opinion.

No country shows a majority agreeing or a majority disagreeing. Agreement is most prevalent in France (48%) and Italy (41%), and disagreement in South Korea (48%).

An average of 28% across all 25 countries agree that globalization prevents democracy in their country from functioning well while a larger proportion disagree (32%) and an even larger group of people are neutral or have no opinion (40%).

Agreement is highest in France (41%), Turkey (39%), Italy (38%), and Malaysia (38%), while South Korea is the only country with a majority disagreeing (56%).

An average of 63% globally agrees that investment by global companies in their country is essential for their growth and expansion while just 9% disagree and the rest are neutral or not sure.

Agreement is highest in Malaysia (87%) and South Africa (81%), and lowest in Germany (48%) and Japan (49%).

Disagreement does not exceed 15% in any country, the survey found.

The WEF said Ipsos is the world’s third-largest market research company, present in 90 markets and employing more than 18,000 people.