Sault Blog

Hyper-globalization is a period of accelerated economic, cultural, and political globalization that began in the 1980s. It is characterized by a dramatic increase in the flow of goods, services, capital, labour, and people across borders. The end of hyper-globalization occurred during the 2008 financial crisis, 2016-2017 Trump 1, the pandemic, and undoubtedly 2025, Trump 2.

Hyper-globalization goes beyond globalization, where there is some degree of national or regional autonomy in decision-making and economic activities.

How entrenched is Canada (Sault) as a hyper-globalization economy? Measuring Canada’s (Sault’s) hyper-globalization level involves examining these indicators.

Trade-GDP Ratio: The ratio calculates the value of exports and imports against a country’s gross domestic product (GDP). Canada has an extremely high trade-GDP ratio of 67% compared to the United States’s 24%. Algoma Steel has recently indicated that its exports to the United States represent 50% of its production, thus leaving Algoma Steel very vulnerable to the new trade tariffs being imposed by President Trump.

Foreign Direct Investment (FDI): FDI measures the investment made by one country into another. There is no better example of the perils of FDI than the acquisition of Algoma Steel by a foreign investor, Essar Global. Algoma Steel was a successful employee-owned company with $400 million in the bank and a thriving, viable steel manufacturing business. Unfortunately, it was sold to Essar Global with the blessing of all levels of government and management, which espoused the unlimited benefits of hyper-globalization. The consequences were disastrous to the Steel Plant, Employees, and all the citizens of Sault Ste. Marie.

Global Value Chains (GVCs): GVCs represent the international production and distribution of goods, where different stages of production occur in other countries. Ontario Premier Doug Ford decries the new tariffs that are disastrous for Ontario car parts and assembly manufacturers as car parts can cross the Canadian and US border up to eight (8) times prior to installation. Also, does the repeated habit of continually crossing the United States border for basic goods and services such as gas, groceries, beer, liquor, clothing apparel, restaurants, tourism, and entertainment represent hyper-globalization as a border town habit? Continually relying on another country for goods and services is hyper-globalization.

Migration and Cross-Boarder Movement: The movement of people across a border for work, study, and other reasons can be a measure of hyper-globalization. Algoma University, Sault College, and their “bad actors” partners brought thousands of Foreign Students to Brampton and Sault, ON, without any control and oversight. Clearly, the support needed for these Foreign Students did not exist in immediate housing, food security, and, ultimately, employment opportunities. Bringing this overwhelming amount of students to Canada was an act of hyper-globalization based on financial greed.

Sault Ste. Marie, ON, has faced many challenges in the past forty years. I certainly hope we can now finally understand that the days of hyper-globalization are over. Whatever the cost, we have to drag Canada back from hyper-globalization and take back our industries and country.

Mark Menean, http://www.saultblog.com