The passion that surrounds the vague term ‘globalization’ is best seen as a proxy for the long-standing debate about free-market capitalism. The zero-sum mindset, the difference between Pareto superiority and common norms of fairness, and the belief that all outcomes are caused by an intentional agent often cause communication problems between non-economists and free-market economists, who themselves often exaggerate what ‘free-market reforms’ can accomplish and endorse overly ambitious programmes of change (‘shock therapy’), underestimating problems of transition and the second best. Economists could try to understand the protests against ‘globalization’ rather than dismissing them out of hand.
KeywordsAnti-capitalism Asian miracle Banking crises Business networks Calhoun, J. C. Carlyle, T. Contract enforcement Creative destruction Development economics Dismal science Economic growth Financial liberalization Financial regulation Gains from trade Globalization Inequality International trade Invisible hand Lenin, V. I. Outsourcing Poverty Poverty alleviation Reform consultants Second best Shock therapy Slavery Spontaneous order Structural adjustment Stylized facts Total factor productivity Washington Consensus
- Aisbett, E. 2005. Why are the critics so convinced that globalization is bad for the poor?, Working paper, no. 11066. Cambridge, MA: NBER.Google Scholar
- Barth, J.R., G. Caprio, and R. Levine. 2006. Rethinking bank regulation: Till angels govern. Cambridge: Cambridge University Press.Google Scholar
- Carlyle, T. 1850. The present time. In Latter-day pamphlets. London: Chapman & Hall.Google Scholar
- Dixit, A.K. 2004. Lawlessness and economics: Alternative modes of governance. Princeton: Princeton University Press.Google Scholar
- Dixit, A.K. 2006. Evaluating recipes for development success, Policy research working paper, no. 3859. Washington, DC: World Bank.Google Scholar
- Du Bois, W.E.B. 1903. Of the sons of master and man. Ch. 9. In The souls of Black folk. New York: Bartleby.com, 1999.Google Scholar
- Easterly, W. 2005. National policies and economic growth: A reappraisal. In Handbook of economic growth, ed. P. Aghion and S. Durlauf. Amsterdam: North Holland.Google Scholar
- Easterly, W. 2006. Globalization, poverty, and all that: Factor endowment versus productivity views. In Globalization and poverty, ed. A. Harrison. Chicago: University of Chicago Press.Google Scholar
- Global Policy Forum. 2006. Political struggle will determine better globalization. 15 March. Online. Available at http://www.globalpolicy.org/globaliz/define/2006/03scholte.htm. Accessed 2 Jan 2007.
- Global Policy Forum. 2007. International trade and development. Online. Available at http://www.globalpolicy.org/socecon/trade/index.htm. Accessed 2 Jan 2007.
- Herman, A. 1997. The idea of decline in Western history. New York: Free Press.Google Scholar
- IFG (International Forum on Globalization). 2002. Alternatives to economic globalization: A better world is possible. San Francisco: Berrett-Koehler Publishers.Google Scholar
- IMF (International Monetary Fund). 2000. Policies for faster growth and poverty reduction in sub-Saharan Africa and the role of the IMF, Issues brief. Washington, DC.Google Scholar
- Lenin, V.I. 1917. Imperialism, the highest stage of capitalism. Online. Available at http://www.marxists.org/archive/lenin/works/1916/imp-hsc/ch04.htm. Accessed 2 Jan 2007.
- Lindsey, B. 2001. Against the dead hand: The uncertain struggle for global capitalism. New York: Wiley.Google Scholar
- Lipsey, R.G., and K. Lancaster. 1956–1957. The general theory of second best. Review of Economic Studies 24(1): 11–32.Google Scholar
- Luttwak, E. 1999. Turbo-capitalism: Winners and losers in the global economy. New York: HarperCollins.Google Scholar
- McMillan, J. 2007. Avoid hubris. In Reinventing foreign aid, ed. W. Easterly. Boston: MIT Press.Google Scholar
- Micklethwait, J., and A. Wooldridge. 2000. A future perfect: The challenge and hidden promise of globalization. New York: Crown Business.Google Scholar
- Mishkin, F.S. 2006. The next great globalization: How disadvantaged nations can harness their financial systems to get rich. Princeton: Princeton University Press.Google Scholar
- Muller, J.Z. 2002. The mind and the market: Capitalism in modern European thought. New York: Alfred A. Knopf.Google Scholar
- Murrell, P. 1993. What is shock therapy? What did it do in Poland and Russia? Post-Soviet Affairs 9(2): 111–140.Google Scholar
- Oxfam, G.B. 2004. Play fair at the olympics. Oxford: Oxfam BG.Google Scholar
- Rodrik, D. 1997. Has globalization gone too far? Washington, DC: Institute for International Economics.Google Scholar
- Stiglitz, J. 2002. Globalization and its discontents. New York: Norton.Google Scholar
- Wolf, M. 2004. Why globalization works. New Haven: Yale University Press.Google Scholar
- World Social Forum. 2007. Charter. Online. Available at http://www.portoalegre2002.org/default.asp. Accessed 30 Jan 2007.