It is increasingly evident that the West, along with the broader framework of global capitalism, is entering a period of semi-isolationism, gradually retreating from the high-water mark of globalisation.
This shift is driven by several converging factors. Chief among them is the declining economic viability of globalisation as a model centred on the exploitation of cheap foreign labour. What was once a cornerstone of corporate profitability is now being rendered obsolete by technological advancements.
The accelerating development of artificial intelligence, robotics, and automation has fundamentally altered the calculus of production. As the need for human labour diminishes, the geographic location of manufacturing facilities becomes less relevant. Labour arbitrage — the pursuit of the lowest possible wages — is being supplanted by automation, which requires no wages at all.
Consequently, we are witnessing a restructuring of capitalist production. Manufacturing is likely to be reshored to Western nations, albeit in the form of largely automated, unmanned facilities. This transformation marks not only a new phase in industrial strategy but also signals the end of globalisation’s exploitative model.
The fallout will be significant. Many developing nations, having built their economic strategies around providing low-cost labour to global supply chains, may find themselves abandoned — left with weakened economies and deepening inequality as capital flows and production networks reorient toward the West.
Joe Matthews – IRSP Belfast
