Embedded Liberalism in the Digital Era

• Published in: International organization Vol. 75; no. 2; pp. 558 - 585
• Main Authors: Mansfield, Edward D., Rudra, Nita
• Format: Journal Article
• Language: English
• Published: New York, USA Cambridge University Press 01-01-2021
• Subjects: 20th century; Anti-globalization movement; Capital; Developing countries; Fixed exchange rates; Foreign exchange rates; Global economy; Globalization; Industrialized nations; Internal Challenges to the Liberal International Order: Economic; International; International business enterprises; Interventionism; Labor unions; LDCs; Liberalism; Liberalization; Manufacturing; Multilateralism; Multinational corporations; Neoliberalism; Skilled labor; Supply chains; Technological change; Technology; Value chain; World War II; United States > US; digital revolution; global digital interdependence; multinational corporations; global value chains; Embedded liberalism
• ISSN: 0020-8183; 1531-5088
• DOI: 10.1017/S0020818320000569

In recent years, the volume and intensity of attacks on globalization have been steadily rising. It is frequently argued that the antiglobalization backlash stems from strains that have been placed on the compromise of embedded liberalism. We argue that existing research underemphasizes how technological change and the digital revolution have contributed to these strains. Global value chains facilitated by the digital revolution have linked technology in advanced industrial countries to low-cost labor in developing countries, precipitating distributional losses for low-skilled labor in the industrial world. Further, the digital revolution has led to regulatory challenges involving both capital and labor. We argue that, as a result, governments face both mounting opposition to globalization and heightened difficulty in supporting the programs and policies necessary to buffer the adverse domestic effects of globalization and maintain support for embedded liberalism.