In Defense of Globalization: With a New Afterword

345 Pages·2007·6.11 MB·English

by  Bhagwati

Praise for Jagdish Bhagwati's In Defense of Globalization
"Until further notice In Defense o f Globalization becomes the standard
general-interest reference, the intelligent layman's handbook, on global
economic integration."
—The Economist
"Bhagwati combines the hard-nosed perspective of a liberal on trade
and investment with the soft-hearted sensitivities of a social democrat
on poverty and human welfare. He thus has an admirable ability to ad-
dress patiently and sympathetically globalization's well-meaning but
wrong-headed critics."
—Richard Cooper, Foreign Affairs
"What's most important about this book is its caution about globalization—
namely, that it has to be managed, both in terms of how quickly it pro-
ceeds and what policies are put in place to reduce its unpleasant economic
and social side effects."
—Washington Post
"Critics of globalization will find a few things to admire in Bhagwati's
outlook. He limits his defense of globalization to trade, direct invest-
ment, and migration. The book's short chapter on capital markets ech-
oes many of the concerns of globalization's critics. Bhagwati forcefully
denounces 'the Wall Street-Treasury Complex' that cajoled developing
countries into eliminating capital controls. Literary references flow from
the pages, from Lady Murasaki to King Lear to Woody Allen."
—Daniel W. Drezner, New York Times Book Review
"A book brimming with engaging arguments and good sense. In Defense
of Globalization will encourage the faithful who believe in economic free-
dom as a value worth pursuing in and of itself, but also those more
pragmatic souls who see it as a necessary if less-than-lovable means to
achieve poverty reduction and other worthy social goals. Of all the books
defending globalization, Jagdish Bhagwati's may offer the best chance to
reach those readers not fatally blinded by anti-market ideology."
—Daniel Griswold, National Review
"An important contribution to an often incoherent debate. As we ex-
pect of Mr. Bhagwati, it is cogently argued and well-written. It sets out
a persuasive case in favor o f globalization. And because of Mr.
Bhagwati's impeccable credentials, there is a better chance his book
will be given a fair hearing than might be the case with some other
authors. Put simply, Mr. Bhagwati has 'street cred'."
—Anne Krueger (Acting Director of the IMF), Financial Times
"Mr. Bhagwati slams through fact after fact, statistic after statistic, de-
molishing those who claim the poor are worse off because of globaliza-
tion. If Mr. Bhagwhati doesn't get a much deserved Nobel Prize for
economics, he should get one for literature. His writing sparkles with
anecdotes and delightful verbal pictures."
—Mike Moore, New York Sun
"Does the international market economy worsen poverty in developing
countries? Does it erode democracy? Hurt the cause of women? Trash
the environment? Exacerbate the exploitation of child labor? Bhagwati's
answers to all these questions make for a supremely worthy read."
—Business 2.0 Magazine
"If Bhagwati can't convert the unbelievers into enthusiastic globalizers,
probably no one can.. . . Bhagwati demonstrates admirable fairness
toward his opponents [A]n amusing, charming, and erudite debater."
—Paul Gray, New Leader
"This work is of major importance, as it authoritatively tackles the main
intellectual charges against globalization. . .. Hopefully, this book will
convince at least some of those who gullibly joined the fashionable, but
dangerous anti-globalization movement that in doing so they have ac-
tually abandoned themselves to the devices of intellectual manipula-
tors, political demagogues, and economic reactionaries. The post-Cold
War era's dominant economic trend finally gets its defense sheet."
—Jerusalem Post
"Passionate and well-reasoned In Defense of Globalization probably
won't dissuade ardent trade opponents from their protests. But if they
expect to have a reasoned debate—or even to know what it is they're
protesting against—they'll need to read it."
—Bill Day, San Antonio Express-News
"A splendid and highly readable tour de force; arguably the best book
yet on the great issue of our time."
—Fred Pearce, New Scientist
"No one has crusaded more zealously on behalf of free trade than Jagdish
Bhagwati. In Defense o f Globalization sums up his case, and for free-
trade advocates under siege, it arrives not a minute too soon. The book
is certainly engaging."
—Mark Levinson, American Prospect
"No other book on globalization covers as wide a range of issues as
Bhagwati's. Indeed, his book is the best one-stop shopping for readers
seeking a panoramic view of all the controversies that make up the glo-
balization debate. . . . Perhaps the best reason to pick up this book is
Bhagwati's inimitable writing style. The book is laced with amusing vi-
gnettes and turns of phrase— All readers can profit from his provoca-
tive insights and lively style."
—Douglas A. Irwin, Finance and Development
"In this elegant book, one of the world's preeminent economists distills
his thinking about globalization for the lay reader.... Armed with a wit
uncharacteristic of most writing on economics and drawing on refer-
ences from history, philosophy, and literature as well as some "state of
the art econometric analysis,' he sets out to prove that the anti-global-
ization movement has exaggerated claims that globalization has done
little good for poor countries.... This is a substantial study that is as
about as enjoyable and reassuring a work of economics as may be pos-
sible to write in this uncertain age."
—Publishers Weekly (starred review)
"An engaging work... . Bhagwati convincingly refutes misconceptions
about globalization and offers sound recommendations for governing it
properly."
—Library Journal
"The new century's major economic issue is Globalization, Yes? or
Globalization, No? Columbia University's Bhagwati, regarded as a mas-
ter economist by all trade experts, has prepared for the intelligent public
an even-handed analysis of the pros and cons. Read and ponder."
—Paul A. Samuelson, M.I.T., Nobel laureate in Economics.
"Jagdish Bhagwati has written a brilliant book about the conflict be-
tween freedom and justice. The book is beautifully written: provoking
without sermonizing. You may not always agree with him—I don't—
but In Defense o f Globalization is bound to become a classic."
—Richard Sennett, London School of Economics
"This book will make history. It will also be a blockbuster, not only be-
cause of the depth of Bhagwati's powerful argument backed by exten-
sive research, but also because it is immensely readable and surely the
most humorous piece of economics ever written."
—Hernando de Soto, author of
The Other Path and The Mystery o f Capital
"In a profession that prizes elegance of algebra more than prose, Jagdish
Bhagwati is a sparkling exception. He is a brilliant academic economist
... who also happens to be a gifted, mischievous and passionate writer.
... [He offers] a smorgasbord of elegant prose, superb economics and
impish opinions."
Zanny Minton-Beddoes, Times Literary Supplement
"Mr. Bhagwati has long been a Nobel Prize contender for his contribu-
tions to the theory of international trade—contributions leavened by
apt metaphors, clear examples and even poetry."
Sylvia Nasar (Author of A Beautiful Mind), The New York Times
"Jagdish Bhagwati is a leading economist of international trade—many
think the world's leader in the field and also a public intellectual He
writes with panache."
Charles P. Kindleberger, The International Economy
"One of the world's most eminent economists "
Jeffrey Frankel, Foreign Affairs
"Of the scholars who have engaged in the public debate on trade, none
matches Jagdish Bhagwati"
Martin Wolf, The Financial Times
"In Bhagwati's hands, economics, the dismal science, is transformed into
a delightful art. Without sacrificing rigor, and skillfully blending his-
tory, politics, economic analysis, and wit, he makes reading [him] a treat."
Paul Streeten, Former Fellow, Balliol College, Oxford
In Defense o f
Globalization
With a New Afterword
JAGDISH BHAGWATI
A Council on Foreign Relations Book
OXFORD
UNIVERSITY PRESS
OXTORD
UNIVERSITY PRESS
Oxford University Press, Inc., publishes works that
further Oxford University's objective of excellence
in research, scholarship, and education.
Oxford Ne w York
Auckland Cap e Town Da r es Salaam Hon g Kong Karachi
Kuala Lumpur Madri d Melbourn e Mexic o City Nairob i
New Delhi Shangha i Taipe i Toront o
With offices in
Argentina Austri a Brazi l Chil e Czec h Republic Franc e Greec e
Guatemala Hungar y Ital y Japa n Polan d Portuga l Singapor e
South Korea Switzerlan d Thailan d Turke y Ukrain e Vietna m
Copyright © 2004,2007 by Jagdish Bhagwati
First published in 2004 by Oxford University Press, Inc.
198 Madison Avenue, New York, NY 10016
www.oup.com
Oxford is a registered trademark of Oxford University Press
All rights reserved. No part of this publication maybe reproduced,
stored in a retrieval system, or transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise,
without the prior permission of Oxford University Press.
Library of Congress Cataloging-in-Publication Data:
Bhagwati, Jagdish N., 1934-
In defense of globalization / Jagdish Bhagwati.
p. cm.
"A Council on Foreign Relations Book."
Includes index.
ISBN-13: 978-0-19-533093-9 (pbk.)
ISBN-10: 0-19-533093-5 (pbk.)
1. Globalization—Economic aspects. 2. Globalization—Social aspects.
3. Anti-globalization movement. I. Title.
HF1359 .B499 2004 337—dc2 2 2003023641
The Council on Foreign Relations is dedicated to increasing America's understanding of the
world and contributing ideas to U.S. foreign policy. The Council accomplishes this mainly by
promoting constructive debates and discussions, clarifying world issues, and publishing Foreign
Affairs, th e leading journal on global issues. The Council is host to the widest possible range of
views, but an advocate of none, though its research fellows and Independent Task Forces do
take policy positions. From time to time, books and reports written by members of the
Council's research staff or others are published as a "Council on Foreign Relations Book."
THE COUNCIL TAKES NO INSTITUTIONAL POSITION ON POLICY ISSUES AND HAS NO AFFILIATION WITH
THE U.S. GOVERNMENT. ALL STATEMENTS OF FACT AND EXPRESSIONS OF OPINION CONTAINED
IN ALL ITS PUBLICATIONS ARE THE SOLE RESPONSIBILITY OF THE AUTHOR OR AUTHORS.
135798642
Printed in the United States of America
on acid-free paper
For
Padma
&
Anumdha
for affection and indulgence
This page intentionally left blank
Contents
Preface i x
I Copin g with Anti-Globalization
1 Anti-Globalization : Why? 3
2 Globalization : Socially, Not Just Economically, Benign 2 8
3 Globalizatio n Is Good but Not Good Enough 3 2
4 Non-Governmenta l Organizations 3 6
II Globalization' s Human Face:
Trade and Corporations
5 Poverty : Enhanced or Diminished? 5 1
6 Chil d Labor: Increased or Reduced? 6 8
7 Women : Harmed or Helped? 7 3
8 Democrac y at Bay? 9 2
9 Cultur e Imperiled or Enriched? 10 6
10 Wage s and Labor Standards at Stake? 12 2
ix