National and Regional Responses to Globalization

The aim of this article is to enquire about the relationship between globalization and national economic competitivity or efficiency as indicated by the rate of unemployment, the inflation rate and the level of budget deficit and national debt. In the era of globalization, the ‘Keynesian consensus’ of the after-war period, which prevented any trade-off between social security and economic growth, cannot resist the pressure from the globalization of the world economy. The decline in industrial employment created a situation in which – in the Nordic countries and in Sweden, especially – full employment could only be attained via services and the third economic sector. Conversely, globalization has benefited the small open economies in South-East Asia, which found themselves most in-sync with the demands of the global age.