Worse, populist nationalists could turn more dangerously against the international system, presenting their supporters with a continuous parade of external villains to blame for their plight.
This is a path that leads nowhere good.
To be sure, there are numerous other types of nationalism. But as growth slows and their populations age, developed countries will need both export markets and some immigration.
Balkanising the world by erecting barriers is a sure way to convert unequal prosperity today into collective poverty tomorrow.
What declining local communities desperately need is new economic activity, while their members have to become more adaptable to globalisation and technological change.
Rebuilding a strong sense of positive community identity is likely to make adversarial nationalism less appealing.
At the very least, when people are more able to shape their own futures, they are less likely to be convinced that others are to blame for their plight.
To the extent that it weakens support for virulent nationalism, devolution may make the world a little more prosperous — and a lot safer.
Adapted from Raghuram G Rajan's essay "Truly taking back control". Raghuram is professor of finance at the University of Chicago Booth School of Business. He was the governor of the Reserve Bank of India from 2013 to 2016, To read the full essay which appears in Issue 875, April 1 of The Edge Singapore, login here or subscribe here
