Britain's technology industry stands to lose out in the aftermath of the financial crisis as countries reject globalisation to help get their economies back on their feet.
Economist Will Hutton told a meeting of Pitcom, the Parliamentary IT Committee, that Britain's IT industry has been a "major beneficiary" of globalisation and stands to lose out as countries look inwards to counter the recession.
Globalisation has been driven by technology, he said, with the financial markets a prime example of how IT has enabled continuous trading and greater complexity.
The collapse of some of these global banks could cause a "backlash against globalisation", Hutton said.
"I am worried that some of the assumptions we made in the lead-up to 2007, such as that globalisation is inevitable, are being eroded by the credit crunch. As we speak today, in 2009, it has been stopped in its tracks."
The economic bail-out packages offered by national governments have represented a reassertion of economic sovereignty, Hutton said.
"National governments are under pressure to give preference to their own people. World trade is forecast to decline this year for the first time since 1945, by 9%. People are talking about 'deglobalisation'."