The Paradox of Globalization: The Trilemma and the Role of Institutions

This article provides an in-depth analysis of contemporary economic challenges through the lens of Dani Rodrik's theory. The author explores the concept of the trilemma, which posits a fundamental conflict between hyperglobalization, state sovereignty, and the democratic legitimacy of power. A key element of this discussion is the metaphor of the mosquito net, symbolizing institutional intelligence—the ability of states to reap the benefits of openness to the world while simultaneously maintaining protection from negative externalities. The text traces the evolution of systems from capitalism 1.0 to the postulated vision of capitalism 3.0, based on wise globalization and pluralism. The reader will learn why the 'golden straitjacket' limits political maneuvering space and how an anti-rentier regime can protect domestic markets. This is essential reading for those seeking to understand the mechanisms governing the contemporary economic order and the role played by strong, sovereign institutions within it.