In June 2019, Michael O'Sullivan was interviewed by The Economist, in which it was stated that globalisation is dead and a new world order needs to be established.
In The Economist article, O'Sullivan stated that globalisation is already over and we are approaching a very different world:
"Globalisation is already behind us. We should say goodbye to it and set our minds on the emerging multipolar world."
"This will be dominated by at least three large regions: America, the European Union and a China-centric Asia. They will increasingly take very different approaches to economic policy, liberty, warfare, technology and society."
"Mid-sized countries like Russia, Britain, Australia and Japan will struggle to find their place in the world, while new coalitions will emerge, such as a “Hanseatic League 2.0” of small, advanced states like those of Scandinavia and the Baltics. Institutions of the 20th century—the World Bank, the International Monetary Fund and the World Trade Organisation—will appear increasingly defunct."
Later in the article, O'Sullivan discussed his perspective on how globalization has been 'killed'. These comments should light up the eyes of asset managers trying to understand the world for them in 2020:
"At least two things have put paid to globalisation."
"First, global economic growth has slowed, and as a result, the growth has become more “financialised”: debt has increased and there has been more “monetary activism”—that is, central banks pumping money into the economy by buying assets, such as bonds and in some cases even equities—to sustain the international expansion."
"Second, the side effects, or rather the perceived side-effects, of globalisation are more apparent: wealth inequality, the dominance of multinationals and the dispersion of global supply chains, which have all become hot political issues."
At FundForum International earlier this year in Copenhagen, we spoke exclusively to O'Sullivan on the similar theme of globalization's 'demise'.
Watch the exclusive interview below and decide for yourself: will 2020 be the start of a very different world for asset management?