The World Economic Forum is about to begin again in Davos, Switzerland but Davos Man, that quintessential pan-national, pro-market, global leader of finance and business is all but dead. First created by that great political analyst Samuel P. Huntington, Davos Man may be walking and talking in Davos next week, but he is stricken with a terminal irrelevance that infects both him and the conference that once celebrated his masterly success.
The Great Recession of the past two years is revealing that globalization, the economic ideology of Davos Man, was never more than a gloss over nascent nationalism. In the end, it is the nation-state and the local taxpayer that is saving the banks and businesses run by Davos Man from total destruction. The Great Recession is also showing that Chicago-School efficient market theory is as false an economic belief system for the global economy as it is for national policy. While globalization has clearly improved the lives of millions of Chinese, we can now see that it has also led to the immiseration of millions of middle class and poor Americans. The theory that efficient markets within a free trade system would benefit ALL participants is now proven wrong.