The global liberal order is holding up better than many feared a year ago.<\/p>\n
In Europe, right-wing populists lost elections to the establishment in the Netherlands, Austria and France. U.S. President Donald Trump has prioritized traditional conservative causes like tax cuts over protectionism.<\/p>\n
But globalists should not breathe easy. The nationalist insurgency is both growing and metamorphosing. It is not just eating away at relations between countries on issues such as free trade; it is also eroding the institutions and norms that prevail within countries.<\/p>\n
This is not a problem for the global economy yet, as a synchronized upswing drives growth and stock prices higher. But it\u2019s a shadow over the future. Populists sustained by legitimate grievances at the cultural and economic upheaval caused by globalization often govern by authoritarian or divisive means, undermining the stable, rules-based environment that businesses crave.<\/p>\n