Economic Nationalism Goes Global: Illiberal Governments Instrumentalizing Globalization in Eastern Europe

Abstract

What are the consequences of electing illiberal leaders for the liberal international order? Traditional responses suggest they either want to increase their influence or change it radically. By understanding the illiberal domestic agenda of economic nationalism and statism in a world of increased financialization, I argue that the economic concentration taking place domestically will result in illiberal leaders instrumentalizing globalization for their political survival. This means these leaders have learned to selectively pick those parts of globalization most likely to sustain their regime—for example, criticizing multilateral organizations such as the European Union while reaping the benefits of EU membership. In this article, I begin by examining the trend of illiberal governments adopting economic nationalism and statism. I then theorize the nuanced ways in which illiberal leaders still use the liberal order for their political survival—in spite of espousing an illiberal economic agenda. I examine this phenomenon with an emphasis on illiberal leaders in Hungary and Poland and provide evidence from the last two decades of economic and political developments in Eastern Europe, as well as explore the impact of the Covid-19 pandemic and the recent war in Ukraine on the future of illiberal leaders’ approach to globalization.