What connection does the Globalisation Trilemma (Golden Straitjacket) illustrate?

The Globalisation Trilemma, often referred to as the Golden Straitjacket, highlights the inherent tension between hyper-globalisation and national sovereignty. This concept articulates the challenges that countries face when they attempt to fully embrace global economic integration while maintaining autonomous control over their domestic affairs.

In this framework, hyper-globalisation refers to the extensive interconnectedness of economies through trade, capital flows, and globalization of production and services. However, as countries adopt policies to fit the demands of the global market, they often surrender certain aspects of their sovereignty, such as the ability to regulate their economies independently or to protect local industries and labor. This illustrates a trade-off: as nations become more integrated into the global economy, they may need to conform to international standards and practices, potentially undermining their own regulatory frameworks and decision-making autonomy.

The essence of this trilemma is that while countries seek to benefit from globalisation, they must navigate the complex relationship between embracing global markets and preserving their national interests and governance capabilities.