The correlation of globalization and localization of economic processes in the context of growing global risks

Abstract

The article analyses changes in the correlation between globalization and localization of economic processes in the context of increasing global instability, growing geopolitical rivalry and the emergence and spread of new global risks of technological, ecological and biological origin. The study proves that the growth of global risks leads to a modification of Maslow's hierarchy of needs towards a relative accentuation of security needs - with diverse consequences in terms of the territorial organization of economic activity and mobility. It substantiates that the expansion of global processes can lead to excessive levels of concentration and homogenization of economic processes, suppression of forms of self-organization at the local level, and creating risks of disrupting the stability of local socio-economic structures. An important consequence is the transformation of the globalization process due to a significant intensification of regional and local factors. This trend determines the formation of glocalization as a two-dimensional process in which globalization and localization trends are combined. The author postulates that the balance between the processes of globalization and localization can shift in favor of the latter due to: the exacerbation of the global competition for resources and markets in the context of cardinal technological and structural shifts in the world economy; increasing international instability amid geopolitical confrontation between old and new centers of global power; insufficient effectiveness of global responses to climate change and pandemics; risks of the digital virtual environment leading to increased national and regional regulation and fragmentation of the global digital environment; and the impact of technologies of the Fourth Industrial Revolution in the direction of strengthening localization trends in relation to global value chains.