In his 2011 book The Globalisation Paradox, Dani Rodrik, a professor at Harvard’s Kennedy School of Government, offered what he called the “fundamental political ‘trilemma’ of the world economy: we cannot simultaneously pursue democracy, national determination and economic globalisation”.
Today, Mr Rodrik argues his point is being made for him by volatile politics. And yet, he says, technocrats like Ms Lagarde still miss the bigger picture by continuing to push for trade agreements and ever more open economies despite the protests.
“The main constraint on the global economy right now is not that it is not sufficiently open. It’s very open. The main constraint is really that the system lacks legitimacy,” he says.
-Shawn Donnan ‘Free trade v populism: The fight for America’s economy‘ Financial Times