Review on the Global Economic Situation and How It May Impact Tokenized Assets part 3 — Nationalism

In our previous post, we discussed economic warfare and how it may impact tokenized assets. We argued that adopting tokenized assets, in particular #ExoticAssets and #ProductFutures, en masse, has the potential of alleviating the impact of economic wars on regional economy when global resource allocation is disrupted by economic wars between major economies.

In this post, we discuss the third problem in the global economy — #nationalism.

The impact of nationalism on the economy may be less direct than #debt and economic war; however, it represents more fundamental issues that, together with #inequality, which we will discuss in the next post, complete the feedback loop. Said differently, economic war feeds on nationalism.

Today, nationalism has taken on a new lease of life, thanks to a number of technological, social, and political developments: (i) Internet and social media in particular have given voice to opinions that have been deemed improper for the “big picture”. Among these are nationalistic sentiments that had difficulty reaching their audience. (ii) Telecommunications tools make it easier for like-minded people to stay connected and exchange their thoughts — individuals with nascent nationalist views can fuel on each other’s instincts. (iii) Since the end of the Cold War, many societies have difficulty finding an “evil” enemy. It is no longer the East versus the West. As domestic problems mount, politicians have to scapegoat the “others”. Identity politics have reached new heights. (iv) As our standard of living improves, resource consumption per capita increases correspondingly. At the same time, population growth has been consistently high for decades. The notion that there’s “not enough to go around” has taken hold. (v) Freedom of travel and migration has exposed many parts of the society that had rarely encountered the “others” before to individuals of foreign origins. The majority who had been indifferent have now formed their opinions, and some of them are nationalistic.

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This post was originally published on our Medium channel.