'Significant' Risk of Protectionism: Globalization Backlash as Markets Crumble

'Significant' Risk of Protectionism: Globalization Backlash as Markets Crumble

The failure of Wall Street to police itself has put capitalism on trial and prompted a "huge shift" in the debate over globalization, says Leo Tilman, president of strategic advisory firm L.M. Tilman & Co. and author of Financial Darwinism.
Indeed, although the debate over immigration seems to have died down in the U.S, a backlash against globalization is growing; notable examples include:

* The anti-U.S., anti-capitalism rhetoric of the Davos summit, most notably from Chinese Premier Wen Jiabao.
* Protectionist measures being discussed as part of the U.S. stimulus bill.
* Protests in the U.K. against legal immigrants and Spain's "voluntary return plan," whereby legal immigrants are paid to return to their home countries.

Against this backdrop, and with politicians worldwide scoring points with anti-globalization comments, Tilman says there is "significant probability" of overzealous regulation and/or protectionist policies that exacerbate the current economic malaise.