In 1873, Jules Verne’s “Around the World in 80 Days” refers to the unification of the world – the borders fell due to technological progress and global English hegemony. This is the first globalization. But the world began to fragment again: World War I and ethnocratic fragmentation, economic crisis and the rise of protectionism, dichotomous divisions during World War II and, above all, the Cold War. Over the past four decades, the trend has reversed again. The reunification of mankind: the second globalization, “super-globalization”. Progress, freedom of movement, economic growth and the reduction of global poverty create the illusion of a sustainable and irreversible trajectory.

Over the years, various signs have been discernible. World exchanges are not increasing, on the contrary, trade restrictions are multiplying. The idea of ​​the inevitability of “deglobalization” is circulating timidly. The rise of China and the resulting threat to the international status quo, the health crisis and, finally, the Russian invasion of Ukraine have added to the related fears. President Biden’s decision to shore up the US manufacturing base with $738 billion through the Inflation Reduction Act intervenes decisively in this volatile environment.

In our time, the great upheavals have always come from the United States. This decision is thus interpreted as a turning point, as a “paradigm one”. The European Union is already working on the answer, concerned about the degradation of the European production base by “unfair” American competition. The protectionism of some leads to the protectionism of others. Undoubtedly, other major economic powers will follow.

What prompted the once leading force of globalization to send a message so contrary to its post-Cold War policies? To understand American and, by extension, international dilemmas, we need to go beyond a narrow economic perspective. The assault on Capitol Hill by the rogue followers of outgoing President Trump has revealed a previously unimaginable threat: Democracy and institutions are at risk in power, even for a cult leader. This challenge cannot be ignored. In addition to catastrophic consequences for Americans themselves, the eventual decline or even decline of American democracy will cause tectonic changes in the world system. From the American starting point, the destabilization would have reached the ends of the earth.

By passing the Inflation Control Act, President Biden has brought geography back to the fore after three decades of economic hegemony.

Along with the undeniable common good, globalization has undermined the foundations of democracy in many areas and in many ways. He created armies of discontented populists in Western societies as he quickly changed economic and social hierarchies. In addition, the opening of borders and the growth of international networks have reduced the economic role of the nation-state and undermined the symbolic value of the national territory. However, the modern political community, the background of democracy, is defined and filled with this context. The Inflation Reduction Act masks this vital geopolitical consideration behind its technocratic name. How far can the unification of the world go without provoking internal political restructuring and, as a result, violent reactions of xenophobia and isolationism? Which is worse: softly managed protectionism or an obsession with open borders with the inevitable consequence of violent internal upheaval? The dystopia of today’s xenophobic, introverted, conservative, authoritarian and aggressive Russia paints a threatening scenario for democracies.

Beyond its immediate, tangible aspects, the Inflation Reduction Act relentlessly poses the forgotten central question of geopolitics. Looking for the most convenient way to organize the geo-economic space in order to increase economic benefits without compromising security: By states? By geo-economic regions? Strengthening; Mixed system?

In the past decades, globalization has been the undisputed answer. Today, all possible forms of organization of movement in geographic space are again considered. By passing the Inflation Reduction Act, the American president brought geography back to the fore after three decades of economic hegemony.

Mr. Giorgos Prevelakis is Professor Emeritus of Geopolitics at the Sorbonne (Paris 1), Permanent Representative of Greece to the OECD.