By Bilal Hafeez 18-07-2019
In: post | Geopolitics

What’s Driving Populism? (Project Syndicate, 4 min read)

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(You can read the article by clicking here)

Professor Dani Rodrik, one of the foremost authorities on globalisation and populism, argues that both economic and cultural rifts between traditionalists and younger generations are giving rise to mounting populism. Older generations are increasingly alienated in the community as younger generations adopt values, such as secularism, personal autonomy, and diversity. Yet although the older generation represent a smaller portion of the population, they tend to be more politically active. Meanwhile, economic shocks, such as greater foreign import penetration, have supported the rise of nationalist politics such as Brexit and Donald Trump’s election victory. Together these forces are breeding populism.

Why does this matter?  Many investors see populism as driven by economic forces, but there’s a large cultural component to it, too. This makes predicting the end of populism more difficult and suggests policy uncertainty could be with us much longer. 

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