Economic imperialism structures inequality that sparks populist movements – turns case.

Today, the problems and contradictions involved in creating a truly global economy threaten to undermine the project in its entirety, as happened already in the 1930s. Inequality, both globally and within nations, is at levels not seen since the 1930s, when the first market-based globalization came to an end and led to the Great Depression, the Second World War and genocide (Milanovic 2016; Ruggie 1982). Financial crises have increased in number, severity, and geographical scope, with the 2008 financial crisis nearly threatening the survival of the global economy itself (Tooze 2018). Despite progress in terms of poverty reduction and other measures through the United Nations’ Millennium Goals, there is now evidence of backsliding, with extreme forms of poverty increasing again. The high or even increasing number of fragile and failing states has led to an increase in migration, especially refugee migration; and there are still about 800 million starving people worldwide. In the developed world, the increase in inequality has been accompanied by wage stagnation since the 1970s and a rise in household debt, leaving many people poor despite working full-time. Suicides among older white men and mental health problems are on the rise while life expectancy in the United States is declining—symptoms of inequality and its consequences (Wilkinson and Picket 2011). In addition, the climate emergency, the extinction crisis, and the job crisis created by the fourth industrial revolution which will also increase inequality, add several additional layers of complications (OECD 2014, p. 18). Global governance mechanisms have not developed to deal with these complex issues and at the national level, the political processes have been captured by the power elites and democratic processes are under threat (Shipman et al. 2018; Engelen et al. 2012; Moore 2011). Since the 1980s, these dysfunctions in the global economy have led to the creation of left- and right-wing populist movements. The left populists were first to protest against global economic restructuring; their protests culminated in the creation of the World Social Forum (WSF) in 2001 in a challenge to the Davos World Economic Forum (Ayres 2004). The latter is a meeting place of the global power elite (Carroll 2007). The creation of the WSF came after a decade of realization among activists that economic globalization creates problems for all new social movements and is an obstacle to women’s rights, the peace movement, the environmental movement, and the civil rights movement (Lynch 1998). These movements consequently demanded that the rules governing the economy be reformed with regard to trade, debt, investment, and the environment. Their protests led to the creation of debt forgiveness programs by the International Monetary Fund and the World Bank, but otherwise were largely ineffective. The 2008 financial crisis led to a revival of the progressive movement in the Occupy Wall Street protests, which pushed the idea of a wealth tax onto the larger agenda. In addition, the Green New Deal may be sign of things to come. Today, even defenders of the globalization project question whether it might have gone too far (Rodrik 2011; Soros 1997). Economists from the IMF have admitted that neoliberal policies contributed to financial instability and increasing inequality, which lowered growth (Ostry et al. 2016). Fractions of the ruling elite are now openly criticizing capitalism (Chapter 9). According to the latest power elite research, this means that one precondition for system transformation—intra-elite struggle—is now in place (Shipman et al. 2018).