Crisis jolts globalization process

Crisis jolts globalization process

Economic and financial globalization and the expansion of world trade have brought substantial benefits to countries around the world. But the current financial crisis has put globalization on hold, with capital flows reversing and global trade shrinking.

Some analysts see the drivers of the recent globalization wave getting undermined, with protectionism on the rise.

Even supporters of globalization agree that the benefits of globalization are not without risks—such as those arising from volatile capital movements. The IMF works to help economies manage or reduce these risks, through economic analysis and policy advice and through technical assistance in areas such as macroeconomic policy, financial sector sustainability, and the exchange-rate system.