globalization

In Defense of Globalization: With a New Afterword
$16.95
The noted economist that wrote this book needs hardly an introduction. Perhaps the name awarded to him by left wing sympathizers through out the world ought to summarize it all. He's been called `the world's foremost free trader' for many years now. Undoubtedly one of the strongest candidates to be knocking on the Nobel Prize's door for decades now, Bhagwati summarizes his perspective on globalization, a much talked about phenomenon especially in recent decades. Professor Bhagwati writes persuasively and has facts, common sense and historical evidence to back his points. Coupled with that is his uncanny witticism and sarcasm that reduces his opposing arguments to the stature of rodents.

The core of Bhagwati's argument revolves around the debate over the economic implication of globalization, especially in the developing world. Too much has been written about how bad is economic integration, how it has led to ruination in poor countries and how organizations like the WTO and IMF are really satanic in fervor. For Bhagwati, the question whether globalization is good or bad is fruitless. He devotes his time to arguing that not only globalization is good, but has a potential to do far more. This distinguished Columbia economist shows through empirical analysis and evidence that poor public policy outlook in regions such as East Asia and Latin America are the main causes of their financial meltdown and not free trade itself. Bhagwati consistently shows the fruits of open trade have brought to countries across the world, poor or rich, and how it could be pursued further. In essence, globalization does not need a `human face'- it already has one- more so than the opposers of free trade. Bhagwati identifies the evils often associated with globalization to poor governance, hegemonic tendencies of developed countries, hypocritical double standards in international organizations and pure ignorance. Thus he relieves free trade from these erstwhile shackles, arguing that it is the single most important phenomenon to material well being of the nations of the world. In all, the book moves forward at blistering pace, demolishing every pseudo edifice of mercantilism on the way, providing sizzling entertainment to the reader.

However, two arguments in the book which can be disputed:

A)his argument, the classical liberal one put forward by Adam Smith and David Ricardo, of `comparative advantage' is not convincing enough. It is true that most countries will indeed find their niche in the world market to develop their unique selling points, but at least in two circumstances this could not be the case- 1) the country concerned having no resources to base exports on and 2) a country's companies being wiped out at their infant stage by giant MNCs and thus it being dependent on MNCs for employment and imports for consumption which potentially has national security implications for that country. To resolve this, surely we need to return to the Smith and List's notion of `infant industry protection', whereby a potentially competitive industry needs some breathing space to realize its full competitiveness before being exposed to the cutthroat competition in the international market. Perhaps Bhagwati means so, but his argument is not always clear on this issue.

B) his arguments on multiculturalism being facilitated through globalization are rather idealistic. Indeed, certain aspects of Oriental cultures have made a great impact on the west(European countries and Americas), but surely the control of the channels through which these interactions can occur by the `west' undermines this whole process. As a result, in countries such as India, the youth have increasingly failed to distinguish anything native and western merely as `different' but have invariably placed them in a ladder of superiority-inferiority, with the Indian counterpart always occupying the latter rung. This ultimately deals a blow to the pride and confidence of the nation concerned.

These diputes aside, a work that is no doubt nothing short of outstanding from a scholar who we have now gotten used to receiving classics.

Why Globalization Works (Yale Nota Bene)
$18.00
Why Globalization Works (WGW) presents clear and concise arguments as to the benefits of globalization and the need for a more integrated global economy. "Globalization," says Wolf "is no fanatical ideology, but a name for the process of integration, across frontiers, of liberalizing market economies at a time of rapidly falling costs of transport and communication." Wolf is clearly aware of the pros and cons of both sides of the argument and while he is not shy to agree with criticism of current globalization methodologies, he is also not afraid to reject anti-globalization claims on the negative impact of economic integration.

Wolf's main thesis is that liberalization of the global economy has lifted more people out of poverty in the past few decades than ever before in history. To support these views Wolf relies strongly on evidence from South and East Asia (China and India) to support his claims that globalization works. He also draws a lot on South American economies when explaining failures in different economies. It would have been interesting to see some deeper analysis of economies in Eastern Europe and specifically Russia that, layman such as myself, understand to have purportedly had a market economy for nearly two decades now.

The most powerful chapters in WGW are those where Wolf defends globalization against the criticism of the myriad of interest groups that are opposed to an integrated economy. Some of these criticisms include claims that globalization has a negative impact on the environment (at the local level he shows it actually improves the environment) and that localization is better (which Wolf argues is actually more dangerous than globalization since being able to purchase food anywhere in the world provides states with more security than if they were relying their own crops at home).

For me his most eye opening defense was against critics of child labor and the so called sweatshops that transnational companies use in the developing world. Wolf argues that to prevent child labour in these countries would border on the criminal and suggests critics in rich countries compare the plight of the poor to the alternatives they have in their own countries rather than the alternatives in the countries where victims suffer extreme poverty. Wolf suggests that child labour in multi-national companies enhances the livelihoods of these countries and suggests that if they were not employed in these companies with comparatively high working standards (when compared to local companies) these children would work find work in more dangerous, local factories, starve or become child prostitutes.

The same is said of the working conditions in labor intensive industries where companies have been accused of employing people in sweatshops. Wolf argues that many of those employed are women and this provides them with status and independence in patriarchal societies and provides them with freedoms they never previously had. He also argues these types of practices are pulling these people out of the grip of extreme poverty.

Although Wolf clearly advocates globalization, he is not averse to challenging some of the assumptions, pitfalls and difficulties in the way globalization has been implemented. For example, even though he argues that liberalization of capital accounts is probably a good thing, he acknowledges that done incorrectly and without proper consideration, the system can tank and lead to both economic and fiscal crisis. Wolf also finds it disgraceful that rich countries levy disproportionate costs on poor countries who wish to export goods and services into developed markets. He argues that rich countries do not impose such high costs on each other and argues these actions inhibit economic growth in the poorest nations on earth.

Why Globalization Works is a great introductory book on the topic. It is well structured, well argued, covers all the bases and answers many of the critics' questions. Wolf has compiled an impressive array of data to support his views and the critics would need to counter with equally compelling evidence. Added to this the book is well written and fairly accessible. WGW just may be, to quote the Economist, "the definitive treatment of the subject."

Globalization (Greenwood Guides to Business and Economics)
$55.00
I've read several recent books on globalization while planning an economic geography course, and this is the best-written, by far. In particular, Boudreaux presents exactly the right amount of detail for beginning students (and for anyone else who wants to understand the subject without taking a year of economics beforehand). A course on globalization would require additional readings -- I'd supplement it with chapters from Global Shift, by Peter Dicken, among other things -- but this book is the best core text on the subject.

globalization: n. the irrational fear that someone in China will take your job
$29.95
New ways to look at a subject are always interesting and this book certainly dug deeper for more insights.