Globalization Still Works for Companies and the Rich, No Longer for Ordinary Individuals
The Changing Face of Globalization: From Bonus to Malus
Globalization is a broad concept, but it can be distilled into a few essential characteristics: high levels of geographical mobility, wealth creation, career advancement, open options, and the ability to leverage "arbitrage." Arbitrage is the process where you take something ordinary in one environment and generate enormous value in another (such as opening a factory in China, teaching English in Japan, or escaping a massacre with a second passport). Globalization has historically been a feature of the rich and powerful, both as a lifestyle (travel and cosmopolitanism) and as a vehicle for enrichment. Post-World War II, globalization trickled down to the upper middle and even middle classes. However, the era of accessible globalization for smart but non-elite individuals is ending. It is becoming a high-cost lifestyle affordable only to the wealthy or the childless, with shrinking arbitrage opportunities.
The "Bonus" of Globalization: A Personal History
To illustrate the "bonus" of globalization, I will use examples from my father's life. Globalization began gradually after World War II, alongside a general relaxation of cultural norms. My father, from a non-university-educated family, made it to Oxford University via the meritocratic “grammar school” system rather than the posh public schools. Going to grammar school helped, but what really propelled him was globalization, or initially “Europeanization.”
After joining an influential propaganda department of the Foreign Office, he faced the common issue of grammar school boys in a system rigged for public school boys. Tired of poorly paid government jobs, he boldly applied to the OECD in Paris. Thanks to his excellent language skills (Russian, French, and German) learned during his Royal Navy stint, he secured a job at double his UK salary. This move marked the start of a better life, with superior public services, excellent hospitals, better food, and easy continental travel.
My father sent his children to the German international school in Paris and later to its sister school in Geneva. These schools, funded by the German government, were virtually free and intended for the children of German elites but were also open to locals. Growing up trilingual made admission to British universities a formality. UK universities were free, and most students received grants. My subsequent Master's at the London School of Economics in 1992/3 cost just £2000.
The "Malus" of Globalization: A Modern Perspective
Today's globalization looks different. Governments no longer provide free schooling for their citizens abroad, leaving expensive and often mediocre private international schools to fill the gap. Boarding schools in the UK, once an alternative, now cost £40,000 per year, which is unaffordable for most international civil servants. UK universities now charge Brits living abroad the same as foreigners, a significant change from the zero tuition fees of my father's time.
I am more skeptical of globalization, a sentiment shared by many parents who believed "more globalization is better." My parents shared a common language and culture, fostering free-flowing and educational communication at home. In contrast, many modern globalists marry local partners, leading to challenges with long-term compatibility, travel costs, and language issues.
The children often become fluent in the mother's language but not the father's, and families may struggle to afford top-tier international schools. Post-COVID flight costs have soared, and non-Japanese partners may struggle with language acquisition as they age. Returning to the mother country is difficult due to xenophobic policies, rigorous passport applications, and slashed budgets for police, education, and healthcare.
Psychologically, globalized kids often struggle to commit to any environment. Many do not thrive under the freedom of speaking multiple languages and being geographically mobile. Historically mobile communities have support mechanisms, such as strong family ties, religious institutions, education, and loyalty to relatives, which help deal with dislocation. However, many ordinary kids end up speaking no language perfectly and feeling alienated from one half of their extended family, missing out on grandparents due to distance, language, and late marriages.
Foreign languages seem less useful and prestigious today. There is a sense that speaking foreign languages reflects a failure to integrate into the anglophone elite. Non-anglo media often copies anglo media stories, neglecting regional issues. Excellent research from foreign universities goes unnoticed in the anglophone world.
In short, globalization has reverted to being a feature of powerful entities like governments, the armed forces, multilateral organizations, and global corporations, or the rich. For the rest of us, it has become a much harder arbitrage. Globalization now resembles emigration, with all the painful tradeoffs it entails.
