RECESSION

Reverse Migration Underway

More bad news by way of the Washington Post this morning, which asks if the collapse of globalization might be at hand. Singapore has long been a hub for migrant labor to help power its manufacturing industry, but exports dropped 35 percent in January and a rebound may be a long time coming, prompting thousands of foreign workers to leave for home. By the end of 2010, economists from Credit Suisse predict an exodus of 200,000 foreigners will leave Singapore in response to the declining economy. Economist Jeffrey Sachs said that a weakening economy and increasingly protectionist actions from hard-hit countries could turn back the clock on globalization not just in Singapore but around the world. "It happened in the 20th century in the wake of World War I and the Great Depression, and could happen again," Sachs said. "Nationalism is rising and our political systems are inward looking, the more so in times of crisis."