Martin Wolf, Why Globalization Works ?

Résumé du document

Analysis of Why Globalization Works ? by Martin Wolf. What does Why Globalization Works tell us about the historical and current impacts of globalization on the United States ? What should the United States do regarding globalization ?

Extraits

[...] Wolf dedicates half of his book to refuting the arguments of opponents to globalization. One of the arguments he refutes is particularly relevant for the United States: the fear of pauper labor and the “myth of de- industrialization” (175). In an interesting way, Wolf did not deny the phenomenon of de-industrialization in America but he shows that trade with developing countries is not its main cause. Moreover, he demystifies de- industrialization and presents it as a good thing for the United States. [...]

[...] First of all, globalization is nothing new. Human societies have always interacted through trade, cultural and technological exchanges, and even war. The difference for modern globalization is just one of degree. Wolf sees the trend toward economic integration as an irreversible process in the very long-run. He supports his argument with historical evidence of the intensification of human interactions across the globe over the past few thousand years. But Wolf also wants to point out how quickly the pendulum can swing away from globalization for a certain amount time. [...]

[...] Globalization would therefore be seen as a novelty in the United States. Although the country's high tariffs prevented intensive trade, the US was nevertheless part of the global economic market through immigration. Mass immigration was a “formidable mechanism for worldwide convergence of wages and living standards” (116). According to Wolf, obstacles to migration are the biggest single difference between today's globalization and that of the late 19th century and partially explain the steep rise of inequalities in living standards in the 20th century. [...]

[...] Wolf also concedes that market driven globalization is far from perfect in practice. He argues that like democracy - globalization is nevertheless the best practical alternative by far despite its many downsides. Defender of economic liberalism but not of laissez-faire, he points out the necessary role of governments and the necessary reforms of international organizations to enable better and deeper global economic integration. Unlike Martin Wolf's book, this review essay is focused on globalization with a US perspective and a historical approach. [...]

[...] Indeed, the US remaining protectionist measures in particular agricultural subsidies to US cotton farmers– are one of the main obstacles to deep integration of many developing countries into the world market. Thus, for Wolf, the United States should definitively embrace globalization and remove all protectionist measures. To conclude, Why Globalization works is a thorough response to main objections to globalization and a demontration of its superiority over all practical alternatives. Wolf supports his thesis with historical, theoretical and empirical pieces of evidence. [...]