Russian-Ukraine War Could Bring The World Economy Back To 1914

The ongoing Russian-Ukraine war and the unprecedented sanctions the United States and its allies have imposed on Russia could bring the world economy back to 1914, which signaled the end of early globalization and the revival of national and regional conflicts. "History doesn't repeat itself, but it often rhymes," Mark Twain is rightly or wrongly quoted as saying, which is as timely today as it was in his time. At the turn of the 20th century, capitalism was on track to conquer the global economy, creating a global market without borders, a trade regime where commodities and resources could flow freely within and across borders. But unfortunately for the world community, it didn't happen. By the beginning of the second decade, this trend of early globalization stalled and, in some cases, forestalled by the rise of nationalism and trade protectionism, not to mention the destruction of the two World Wars. For instance, increased trade protectionism limited the flow of resources and commodities across national borders.