Globalization: What's New?

Copyright Date: 2005
Pages: 296
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  • Book Info
    Book Description:

    From the streets of Seattle to corporate boardrooms to new factories in third-world nations, globalization is subject to very different and often explosively divergent interpretations. Where some see globalization as driving poor countries into further poverty, others see it as the path to economic salvation and democratic rule. With original contributions from ten eminent economists, Globalization: What's New cuts through the confusion and rhetoric to offer straightforward, incisive analysis of globalization and its future.

    Coming from some of globalization's most prominent supporters (David Dollar), its most vocal critics (Joseph Stiglitz), and those in-between, this collection presents diverse and original perspectives on globalization's immense reach that dig to the core of many debates. The contributors analyze recent trends in trade, immigration, and capital flows; why some poor countries have grown while others have stagnated during the past two decades; future opportunities for low-wage workers; globalization's impact on jobs and wages in poor countries and in the United States; the surprising environmental benefits of globalization; the degree to which foreign aid helps developing countries; the failures of international institutions in governing the global economy and supporting democracy; and how foreign loans and investments can wreak havoc on a nation's economy.

    eISBN: 978-0-231-50885-8
    Subjects: Political Science, Business

Table of Contents

  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-xii)
  3. 1 Introduction
    (pp. 1-18)

    Globalization is a slippery term that lends itself to abuse. Pundits argue about its consequences in part because they make up its meaning to suit their needs. For some, the spectacular economic growth of China and India proves that globalization works to cure poverty. For others, China and India have grown precisely because they’ve chosen policies that spit in the face of West-prescribed globalization. This volume’s primary mission is to create received wisdom—an agreed upon base of information.

    To achieve that goal, I asked the country’s leading authorities to answer the same question: What’s New? They take their best...

  4. 2 Trade and Globalization
    (pp. 19-35)

    The past quarter century has witnessed a rapid expansion of world trade, with international commerce now touching nearly every corner of the globe. This expansion of trade—along with increased capital flows, travel, migration, and other contacts between countries—is one of the most pronounced and significant features of the phenomenon known as globalization.

    The increasing importance of international trade is strikingly illustrated in the case of the United States. At one time, international trade was a relatively unimportant element of the U.S. economy, with its large domestic market and internal free trade. Today, the situation is dramatically different: the...

  5. 3 Capital Flows, Financial Crises, and Public Policy
    (pp. 36-76)

    In this chapter, I’ll lay out the principal facts and controversies surrounding international flows of capital and their attendant risks. I’ll review the perspectives of economic historians and economists on the implications of capital mobility, both during the first wave of globalization (prior to World War I) and during the recent wave (since 1980). I’ll emphasize changes over time—especially political changes—that have weakened the case for unfettered capital mobility and have made capital flows more controversial among economists today than in the past. Attention focuses on the role of foreign investment in emerging markets—developing economies whose governments...

  6. 4 Globalization and Immigration
    (pp. 77-95)

    Trade and immigration are two aspects of the globalization of the world economy that are frequently linked. There are many obvious similarities between the two. Like international trade, immigration transports resources across national boundaries, with many economic effects. Like trade, immigration has increased significantly in recent decades. In the United States, the share of immigrants in the population has risen dramatically over the past three decades, with an increasing proportion of immigrants coming from the less-developed countries. At the same time, the ratio of exports and imports to Gross Domestic Product (GDP) has risen just as rapidly, with an increasing...

  7. 5 Globalization, Poverty, and Inequality
    (pp. 96-128)

    There is an odd disconnect between debates about globalization in the North and the South. Among intellectuals in the North, one often hears the claim that global economic integration is leading to rising global inequality—that it benefits the rich more than the poor:

    …globalization has dramatically increased inequality between and within nations. (Jay Mazur, Foreign Affairs)

    …inequality is soaring through the globalization period, within countries and across countries. And that’s expected to continue. (Noam Chomsky)

    Some even claim that the poor are actually worse off in absolute terms:

    …all the main parties support nonstop expansion in world trade and...

  8. 6 The Environment and Economic Globalization
    (pp. 129-169)

    At the Ministerial meeting of the World Trade Organization in Seattle in November 1999, when anti-globalization protestors launched the first of their big demonstrations, some wore turtle costumes. These demonstrators were concerned that international trade in shrimp was harming sea turtles by ensnaring them in nets. They felt that a WTO panel had, in the name of free trade, negated the ability of the United States to protect the turtles, simultaneously undermining the international environment and national sovereignty. Subsequently, anti-globalization protests became common at meetings of multi-national organizations.

    Perhaps no aspect of globalization worries the critics more than its implications...

  9. 7 The Rich Have Markets, The Poor Have Bureaucrats
    (pp. 170-195)

    The tragedy of foreign aid is not that it doesn’t work, but that it has never really been tried. It’s not that funds haven’t been provided to encourage development and reduce poverty. The problem is that the donor nations have tolerated—make that demanded—an aid system that does little to relieve human suffering. Afraid to compete, developed countries coordinate their aid efforts, in effect creating a cartel. The cartel acts to protect many small, inefficient aid programs for poor countries, and a bureaucratic nightmare for recipients.

    Proof of the inefficiency of aid in reducing poverty emerges from the World...

  10. 8 Feasible Globalizations
    (pp. 196-213)

    We want economic integration to help boost living standards. We want democratic politics so that public policy decisions are made by those that are directly affected by them. And we want self-determination, which comes with the nation-state. This chapter explains why we cannot have all three things simultaneously. The political “trilemma” of the global economy is that the nation-state system, democratic politics, and full economic integration are mutually incompatible. We can have at most two out of the three. Because global policymakers have yet to face up to this trilemma, we are headed in an untenable direction: global markets without...

  11. 9 Globalization and Patterns of Economic Growth
    (pp. 214-227)

    This chapter explores cross-country patterns of growth in the era of globalization—specifically, during 1980–98, a period in which world trade and financial flows increased enormously, more rapidly than economic output. I’ll argue that the world economy is divided between a “core” that is characterized by self-driven (or endogenous) economic growth, and the rest of the world, whose long-term growth depends on the economic linkages with the core. These linkages are influenced not only by institutional characteristics that economists have long studied (such as openness of trade and protection of property rights) but also by physical endowments and geography....

  12. 10 The Overselling of Globalization
    (pp. 228-262)

    Globalization has been sold as bringing unprecedented prosperity to the billions of people who have remained mired in poverty for centuries. Yet, globalization faces enormous resistance especially in the Third World. Why so?

    I argue that globalization today has been oversold. I use the term to refer not only to closer integration of the countries and peoples of the world that has resulted from the lowering of transportation and communication costs and manmade barriers but also to the particular policies, the so-called “Washington Consensus,” that have been commonly associated with globalization and pushed on developing countries by the international economic...

    (pp. 263-268)
  14. INDEX
    (pp. 269-280)