Hyperglobalization is rapid trade integration. Growth in population and advanced technology is shrinking the world leading to what we call hyperglobalization. Dani Rodrik defines hyperglobalization as a type of globalization aimed at the elimination of all transaction costs associated with the movement between the natural borders of nation states of goods, services, capital and finance. Mega-traders like China and the proliferation of regional and preferential trade agreements have led to Hyperglobalization. There is an argument for the need to curb hyperglobalization to protect liberal democracy.
According to "hyperglobalization" school, social and economic processes function at a global level, and states are not decision makers, states are decision takers. The term hyperglobalisation has been used to describe the dramatic increase in international trade witnessed from the early 1990s up to the global financial crisis of 2008. What we see is an increasing connectedness among nations leading to a virtuous cycle of economic expansion.
Hyperglobalization Thesis argues that the emergence of a single global market and global competition imposes neo-liberal policies on all governments. The paradox of peer-to-peer interconnection is that we’re moving towards hyperlocalization and hyperglobalization simultaneously.
Rodrik, a professor of international political economy at Harvard University, is one of the most powerful critics of what he calls the "hyperglobalization agenda" favored by the corporate community and academic economists. At the analytical core of The Globalization Paradox, Rodrik identifies irreconcilable tensions among national sovereignty, democracy, and hyperglobalization.
It is dogma among economists and right-thinking members of the political and business elite that globalization is good and more globalization is better. They view anyone who dissents from this orthodoxy as either ignorant of the logic of comparative advantage or selfishly protectionist. But what if it turns out that globalization is more of a boon to the members of the global elite than it is to the average person?
In "The Globalization Paradox," Dani Rodrik demonstrates that such questions are more than hypothetical, that they describe the world as it really is, rather than as it exists in economic theory or in the imagination of free-trade fundamentalists. Rodrik has now reframed the debate as one between "smart globalization" and "maximum globalization." His message is nuanced and rigorous, drawing on history, logic and the latest economic data. Takashi Inoue extended the concept of Hyperglobalization beyond the economics into the realms of culture and politics in his 2018 book Public Relations in Hyper-Globalization; He argues that the world is being transformed by three forces of hyper-globalization: economic, social media, and new disruptive technologies that together are accelerating the pace of change in all spheres. Inoue argues that this is the new reality in which leaders must now operate in. - Inoue, Takashi (2018). Public Relations in Hyper-Globalization: Essential Relationship Management – A Japan Perspective. London: Routledge.
In 2013, economists at the Peterson Institute for International Economics, Arvind Subramanian and Martin Kessler invoked the concept of Hyperglobalization to describe the dramatic increase in world trade that has occurred since the founding of the World Trade Organization (WTO) in 1995. - Martin Kessler; Arvind Subramanian. "The Hyperglobalization of Trade and Its Future". PIIE.Com. Peterson Institute of International Economics. Subramanian and Kessler argue that the world is now in an era of "hyper-globalization, where world trade has soared much more rapidly than world GDP". They note that in the period since the late 1990s, there was a surge in economic activity in the developing world. Prior to the late 1990s, only 30 percent of the developing world or 21 countries out of 72 were catching up to the United States as the economic frontier, but since the late 1990s that number jumped nearly 75 percent or 75 out of 103 countries.
Hyper Globalization: Powering a global
Today it’s not just data that’s freely flowing between countries — it’s capital, products, services, and people. For example, how and where we design, sell and manufacture products will become both hyper-global and hyper-local thanks to us now living in a globally connected world with a diverse set of local requirements.