Critics of globalisation take a gloomier . They predict that increased competition from developing countries will destroy jobs and down wages in today's rich economies. will be a "race to the " as countries reduce wages, taxes, welfare and environmental controls to make themselves "competitive". Pressure to compete will erode ability of governments to set their economic policies. The critics also worry the increased power of financial markets cause economic havoc, as in the currency crises of 1992 and 1993, in 1994-95 and South-East Asia in .
Despite much loose talk about "new" global economy, today's international economic is not unprecedented. The 50 years the first world war saw large flows of goods, capital and people. period of globalisation, like the present , was driven by reductions in trade and by sharp falls in transport , thanks to the development of railways steamships. The present surge of globalisation in a way a resumption of previous trend.