The Information Technology and Innovation Foundation (ITIF) has released a report criticizing the longstanding model of globalization supported by U.S. policymakers, describing it as ineffective. The report proposes a new framework, termed "Globalization 2.0," which focuses on safeguarding U.S. interests in advanced-technology industries to prevent China from becoming the leading techno-economic power.
ITIF plans to hold an expert briefing open to the press on April 3 to discuss the report's findings and implications for future policy directions.
Robert D. Atkinson, ITIF President, commented on the situation: “For too long, many pundits, analysts, and policymakers have either defended Globalization 1.0 or reacted to its failures by simply rejecting it outright rather than considering how to reform our approach to it.” He emphasized the need for restructuring trade and economic policies that enhance American competitiveness while recognizing that Globalization 1.0 is beyond repair.
The report reviews the failures of Globalization 1.0 and critiques the shift toward protectionism and autarky as unsustainable alternatives. It suggests twelve principles for guiding "Globalization 2.0" and provides a detailed policy agenda for Congress and the Trump administration.
In analyzing past shortcomings, ITIF points out issues such as misplaced reliance on industrial policy rejection and overconfidence in international bodies like the World Trade Organization. The foundation argues that U.S. trade policies lack strategic direction necessary for competing globally with China.
The proposed framework advocates global integration only when beneficial to U.S. interests, prioritizing market expansion for key industries requiring global scale to thrive while treating allies differently from adversaries like China.
Stephen Ezell, ITIF’s vice president for global innovation policy, remarked: “Globalization 2.0 cannot be a rebranded version of Globalization 1.0 with token adjustments.” He calls for legislative reforms focusing on strategy organization, market opening, trade enforcement, and export promotion.
The report outlines a comprehensive policy agenda consisting of twenty-nine steps needed to implement "Globalization 2.0." Despite anticipating opposition, ITIF believes this strategic framework is necessary over emotional reactions against past failures.
Atkinson further noted: “The challenge is to persuade policymakers to reject both Globalization 1.0 and Autarky 1.0 in favor of a stronger, more strategic trade framework.”
Contact information was provided for Sydney Mack at [email protected]