In Defense of Globalization [Englisch] [Gebundene Ausgabe]

In Defense of Globalization is the first effort I've seen in a long time that manages to avoid most of those pitfalls, relying on objective and unemotional discussions of evidence rather than anecdotes, and presenting its arguments in a straightforward and gimmick-free way. It is full of important information and still eminently readable.

Opponents of globalization usually base their arguments against the international market economy on a few strong points: that it encourages child labor, that it erodes democracy, that it weakens the plight of women in the developing world, that it kills local cultures, and that it harms the environment. In this book, scholar and author Jagdish Bhagwati addresses each of those issues in a series of chapters that make up the heart of the book.

But globalization proponents will not find in In Defense of Globalization a blind defense of their views. Mr. Bhagwati takes the anti-globalization points seriously. He goes so far as to show that he shares many of the anti-globalists' views and values (especially regarding poverty), and he points out many areas where unchecked global capitalism has the potential to do more harm than good. This makes the book much more effective than it would have been otherwise.

But despite all that, Mr. Bhagwati still sees free trade as the best was to raise incomes and speed up the long-term development of the world's poorest economies, and he compellingly illustrates why any kind of trade protection -- no matter how noble its intent -- in the end leaves the protected and the protected against worse off. And unlike many efforts of this kind, it doesn't simply stop at pointing out what's wrong -- it offers many options for improving the current situation.

In the end, In Defense of Globalization is not aimed at partisans on either side of the globalization debate if what they are looking for is information to back up what they already believe. This is a book will make anyone who thinks much about globalization think again ... and perhaps realize they share more than they thought with the opposite side.

One problem that any such book faces is that the anti-globalization movement is rather amorphous, bringing together all sorts of groups that make all sorts of accusations; to get around this, Mr. Bhagwati divides his book into the major themes (the link of economic growth to poverty, of trade to the environment or labor rights, etc), and looks at what the various NGOs are saying against globalization. To his credit, Mr. Bhagwati has considered most of the subtleties, nuances and variations of the NGO arguments.

Having done this, Mr. Bhagwati explains whether and why the NGOs are wrong. Predictably, the NGO fears usually prove exaggerated or simply untrue. To their polemic rhetoric, Mr. Bhagwati answers with anecdotes, news reports and econometric studies. Whether one agrees or disagrees with him, no one can accuse Mr. Bhagwati of brushing aside the critics.

Refreshingly, the book is not an unconditional acceptance of globalization. "In Defense of Globalization" is a defense, but it is not blind to what is wrong about globalization; Mr. Bhagwati is cautious, for example, about uninhibited capital flows; he is also critical about the invasion of intellectual property rights into trade agreements; he is also suspicious of businesses that bribe politicians to alter trade agreements to their favor. And so on.

Yet, his verdict is staunchly pro-globalization. He urges against using trade-curtailing answers to economic problems; he also alerts us that many of the ills identified by NGOs have little to do with globalization ("What has globalization got to do with that?" he writes more than once). More importantly, he offers ideas about how to make globalization better, from managing immigration, to rethinking the trade sanctions, to the role that NGOs ought to play, and many more. Nothing here is new; but he assembles the various ideas that he has pronounced over the years in books, op-ed pieces and academic journals.

There is no doubt that "In defense of globalization" will be the book to beat from now on. No anti-globalization treatise should be published without being able to refute Mr. Bhagwati's arguments. For having elucidated this debate even further, Mr. Bhagwati deserves to be read and to be thanked.

Bhagwati, as any classical economists, views Globalization as the manifestation of the competitive advantage of international trade. In other words, whatever we can obtain from overseas at a lower cost than we can obtain locally will boost the demand for our own products (due to lower costs). With higher demand comes higher economic growth, higher productivity, and rising living standards. On the other hand, ill fated protectionist policies, contrary to their humanistic intent, completely annihilate this economic virtuous cycle.

However, Bhagwati is not your usual unrestrained free trader. He feels that governments have to better address the dislocation in labor that is directly affected by international competition. He states the U.S. should spend more resources on research and on education. This is so our labor force remains most productive in being engaged in cutting edge industries that have not yet become commoditized.

Bhagwati, an Indian, focuses much energy on the benefit of Globalization for all emerging markets. Contrary to all the anti Globalists demonstrators in Seattle, Cancun, and elsewhere, Bhagwati makes a forceful and well documented case that Globalization is a very positive force that lifts countries out of poverty. It causes a virtuous economic cycle associated with faster economic growth. He dismantles the concerns and myths perpetrated by anti-Globalists chapter by chapter. Thus, chapters are titled: "Culture: Imperiled or Enriched?," "Corporations: Predatory or Beneficial?," and "Environment in Peril?" In each cases, Bhagwati armed with irrefutable historical data comes on strongly on the side of Globalization and breaks one anti Globalist myth after another.

Bhagwati states that in many cases, Globalization is blamed for whatever goes wrong within a country. But, that this is a politic of deflection used by corrupt and ineffective political leaders. Instead of implementing more effective domestic policies and international policies, many government leaders prefer to blame all ills on Globalization, which indirectly means on the U.S.

Bhagwati makes an eloquent case that any economic ills in emerging markets is not all the U.S. fault just as U.S. job losses are not all China and India's faults.

During this Presidential election year with the loss of U.S. jobs as one of the main Democratic themes, this is a very important book to read. It would be crucial for Kerry to read it too, otherwise he may fight a loosing campaign pinned on protectionist policies. By now, even though Globalization and international economics are complex matters, too many voters intuitively understand these subjects to vote in a President on a campaign of protectionism and international economic isolation. Bhagwati rules!