Globalization and the Myths of Free Trade (Routledge Frontiers of Political Economy)

326 Pages·2007·1.84 MB·English

by  Shaikh Anwar

Globalization and the
Myths of Free Trade
Globalization and the Myths of Free Trade critically examines the Washington
Consensus,its history,theory,practice and its global outcomes. Two decades have
passed since neoliberal globalization began to be implemented, and its highly
uneven effects have given rise to a growing opposition. The present debate is not
about the need to utilize international resources in the effort to enhance global
development,but rather about the mannerin which resources should be brought to
bear on this project. Throughout the volume,contributors critically analyze whether
free trade is the optimal path to development in the current global climate.
The book is organized in four parts, each dedicated to one of the four major
issues that inform the debate. The first part focuses on the history and theory
of the relationship between international trade and economic development. The
second part is concerned with the linkages between globalization and economic
development. It examines the actual experiences of various parts of the world in
the neoliberal era, ranging from Asia and Latin America to Russia and Eastern
Europe. The third part analyzes the effects of globalization on gender inequality
and international poverty. And the final section looks at the impact of capital
account liberalization,both on the developing world and on the developed coun-
tries themselves.
Anwar Shaikh is Professor of Economics at the Graduate Faculty of Political and
Social Science of the New School University,USA.
Routledge Frontiers of Political Economy
1 Equilibrium Versus Understanding 8 Social Economy
Towards the rehumanization of The logic of capitalist development
economics within social theory Clark Everling
Mark Addleson
9 New Keynesian Economics/Post
2 Evolution,Order and Complexity Keynesian Alternatives
Edited by Elias L. Khalil and Edited by Roy J. Rotheim
Kenneth E. Boulding
10 The Representative Agent in
3 Interactions in Macroeconomics
Political Economy James E. Hartley
Malvern after ten years
Edited by Steven Pressman 11 Borderlands of Economics
Essays in honour of Daniel R. Fusfeld
4 The End of Economics Edited by Nahid Aslanbeigui and
Michael Perelman Young Back Choi
5 Probability in Economics 12 Value,Distribution and Capital
Omar F. Hamouda and Essays in honour of Pierangelo
Robin Rowley Garegnani
Edited by Gary Mongiovi and
6 Capital Controversy,Post Fabio Petri
Keynesian Economics and the
History of Economics 13 The Economics of Science
Essays in honour of Geoff Harcourt, Methodology and epistemology as if
volume 1 economics really mattered
Edited by Philip Arestis,Gabriel James R. Wible
Palma,and Malcolm Sawyer
14 Competitiveness,Localised Learning
7 Markets,Unemployment and Regional Development
and Economic Policy Specialisation and prosperity in small
Essays in honour of Geoff Harcourt, open economies
volume 2 Peter Maskell,Heikki Eskelinen,
Edited by Philip Arestis,Gabriel Ingjaldur Hannibalsson,Anders
Palma,and Malcolm Sawyer Malmberg,and Eirik Vatne
15 Labour Market Theory 25 The End of Finance
A Constructive reassessment Capital market inflation,financial
Ben J. Fine derivatives and pension fund capitalism
Jan Toporowski
16 Women and European
Employment
26 Political Economy and the New
Jill Rubery,Mark Smith,Colette
Capitalism
Fagan,and Damian Grimshaw
Edited by Jan Toporowski
17 Explorations in Economic
27 Growth Theory
Methodology
A philosophical perspective
From Lakatos to empirical
Patricia Northover
philosophy of science
Roger Backhouse
28 The Political Economy of
18 Subjectivity in Political Economy the Small Firm
Essays on wanting and choosing Edited by Charlie Dannreuther
David P. Levine
29 Hahn and Economic Methodology
19 The Political Economy of Edited by Thomas Boylan and
Middle East Peace Paschal F. O'Gorman
The impact of competing trade agendas
Edited by J. W. Wright,Jr 30 Gender,Growth and Trade
The miracle economies of
20 The Active Consumer the postwar years
Novelty and surprise in consumer David Kucera
choice
Edited by Marina Bianchi
31 Normative Political Economy
Subjective freedom,the market
21 Subjectivism and Economic
and the state
Analysis
David Levine
Essays in memory of Ludwig
Lachmann
32 Economist with a Public Purpose
Edited by Roger Koppl and
Essays in honour of John
Gary Mongiovi
Kenneth Galbraith
Edited by Michael Keaney
22 Themes in Post-Keynesian
Economics
33 Involuntary Unemployment
Essays in honour of Geoff Harcourt,
The elusive quest for a theory
volume 3
Michel De Vroey
Edited by Claudio Sardoni and
Peter Kriesler
34 The Fundamental Institutions of
Capitalism
23 The Dynamics of Technological
Ernesto Screpanti
Knowledge
Cristiano Antonelli
35 Transcending Transaction
24 The Political Economy of Diet, The search for self-generating
Health and Food Policy markets
Ben J. Fine Alan Shipman
36 Power in Business and the State 48 Cognitive Developments in Economics
An historical analysis of its Edited by Salvatore Rizzello
concentration
Frank Bealey 49 Social Foundations of Markets,
Money and Credit
37 Editing Economics Costas Lapavitsas
Essays in honour of Mark Perlman
Hank Lim,Ungsuh K. Park,and 50 Rethinking Capitalist Development
Geoff Harcourt Essays on the economics of Josef
Steindl
38 Money,Macroeconomics and Keynes
Edited by Tracy Mott and Nina Shapiro
Essays in honour of Victoria
Chick,volume 1
51 An Evolutionary Approach
Philip Arestis,Meghnad Desai,
to Social Welfare
and Sheila Dow
Christian Sartorius
39 Methodology,Microeconomics
and Keynes 52 Kalecki’s Economics Today
Essays in honour of Victoria Edited by Zdzislaw L. Sadowski
Chick,volume 2 and Adam Szeworski
Philip Arestis,Meghnad Desai,
and Sheila Dow 53 Fiscal Policy from Reagan to Blair
The left veers right
40 Market Drive & Governance Ravi K. Roy and Arthur T. Denzau
Reexamining the rules for economic
and commercial contest 54 Individualism and the Social Order
Ralf Boscheck The social element in liberal thought
Charles R. McCann Jr
41 The Value of Marx
Political economy for
55 Affirmative Action in the United
contemporary capitalism
States and India
Alfredo Saad-Filho
A comparative perspective
Thomas E. Weisskopf
42 Issues in Positive Political Economy
S. Mansoob Murshed
56 Global Political Economy and the
43 The Enigma of Globalisation Wealth of Nations
A journey to a new stage of capitalism Performance,institutions,
Robert Went problems and policies
Edited by Phillip Anthony O'Hara
44 The Market
Equilibrium,stability,mythology 57 Structural Economics
S. N. Afriat Thijs ten Raa
45 The Political Economy of Rule
58 Macroeconomic Theory and
Evasion and Policy Reform
Economic Policy
Jim Leitzel
Essays in honour of Jean-Paul Fitoussi
Edited by K. Vela Velupillai
46 Unpaid Work and the Economy
Edited by Antonella Picchio
59 The Struggle Over Work
47 Distributional Justice The “end of work”and employment
Theory and measurement alternatives in post-industrial societies
Hilde Bojer Shaun Wilson
60 The Political Economy of Global 72 Marx for the 21st Century
Sporting Organisations Edited by Hiroshi Uchida
John Forster and Nigel Pope
73 Growth and Development in the
61 The Flawed Foundations of Global Political Economy
General Equilibrium Theory Social structures of accumulation
Critical essays on economic theory and modes of regulation
Frank Ackerman and Alejandro Nadal Phillip Anthony O’Hara
62 Uncertainty in Economic Theory 74 The New Economy and
Essays in honor of David Macroeconomic Stability
Schmeidler’s 65th birthday A neo-modern perspective drawing
Edited by Itzhak Gilboa on the complexity approach and
Keynesian economics
63 The New Institutional Economics Teodoro Dario Togati
of Corruption
Edited by Johann Graf Lambsdorff, 75 The Future of Social Security
Markus Taube and Matthias Schramm Policy
Women,work and a citizen’s
64 The Price Index and basic income
its Extension Ailsa McKay
A chapter in economic measurement
S. N. Afriat 76 Clinton and Blair
The political economy of the third way
65 Reduction,Rationality and Game Flavio Romano
Theory in Marxian Economics
Bruce Philp 77 Marxian Reproduction Schema
Money and aggregate demand in
66 Culture and Politics in Economic a capitalist economy
Development A. B. Trigg
Volker Bornschier
78 The Core Theory in Economics
67 Modern Applications of Austrian Problems and solutions
Thought Lester G. Telser
Edited by Jürgen G. Backhaus
79 Economics,Ethics and the Market
68 Ordinary Choices Introduction and applications
Individuals,incommensurability, Johan J. Graafland
and democracy
Robert Urquhart 80 Social Costs and Public Action in
Modern Capitalism
69 Labour Theory of Value Essays inspired by Karl William
Peter C. Dooley Kapp’s theory of social costs
Edited by Wolfram Elsner,Pietro
70 Capitalism Frigato,and Paolo Ramazzotti
Victor D. Lippit
81 Globalization and the Myths
71 Macroeconomic foundations of of Free Trade
macroeconomics History,theory and empirical evidence
Alvaro Cencini Edited by Anwar Shaikh

Globalization and the Myths of
Free Trade
History, theory, and empirical evidence
Edited by
Anwar Shaikh
First published 2007
by Routledge
2 Park Square,Milton Park,Abingdon,Oxon OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
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Routledge is an imprint of the Taylor & Francis Group,an informa business
This edition published in the Taylor & Francis e-Library, 2007.
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© 2007 Selection and editorial matter Anwar Shaikh; individual chapters,
the contributors.
All rights reserved. No part of this book may be reprinted or reproduced
or utilized in any form or by any electronic,mechanical,or other
means,now known or hereafter invented,including photocopying and
recording,or in any information storage or retrieval system,without
permission in writing from the publishers.
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ISBN 0-203-96638-4 Master e-book ISBN
ISBN10:0-415-77047-5 (hbk)
ISBN10:0-203-96638-4 (ebk)
ISBN13:978-0-415-77047-7 (hbk)
ISBN13:978-0-203-96638-9 (ebk)
Contents
List of tables xi
List of figures xiii
List of contributors xv
List of abbreviations xvii
Acknowledgments xix
1 Introduction 1
ANWAR SHAIKH
PART I
Globalization and free trade 21
2 Kicking away the ladder:the “real”history of free trade 23
HA-JOON CHANG
3 Globalization and the myth of free trade 50
ANWAR SHAIKH
4 Globalization and free trade:theory,history,and reality 69
DEEPAK NAYYAR
PART II
Globalization and economic development 85
5 External liberalization in Asia,postsocialist Europe and Brazil 87
LANCE TAYLOR
6 Exports,foreign investment and growth in Latin America:
skepticism by way of simulation 116
JOHN WEEKS