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120 Executive Summary This essay is a call for globalization’s supporters to seize the initiative from globalization’s opponents, communicate more effectively to the public the substantial benefits of globalization and free trade, and push both for progress in the Doha round and for requisite domestic reforms. Main Argument: Criticisms of globalization notwithstanding, free markets and trade have benefited mankind by promoting faster economic growth, which in turn has helped alleviate poverty, encourage democracy, and create more and better-paying jobs. Indeed, there is not enough globalization . For example, one valid criticism of the current international trading system is that unfair agricultural subsidies maintained by the developed world punish agriculture in the developing world. Policy Recommendations: There are six main ways for supporters to promote globalization and free trade: • press policymakers to continue reducing trade barriers and support new leaders who will stand up to protectionist pressures—for instance, by garnering greater support for the current “Doha Round” negotiations • collaborate to publicize the benefits of globalization to the media, political leaders, and other influential persons • promote training and health care for those who lose their jobs in the creative process of global growth • encourage large companies, when they outsource globally to remain competitive, to respond directly to the needs of their employees who are negatively impacted • push for improvement in education at all levels in order to train people for the jobs of the 21st century • re-double efforts to defend the WTO, which—along with other modern institutions of trade negotiations and liberalization—has been the prime engine over the past 60 years for the spread of globalization and the explosion in world trade 121 Globalization and free trade are prime drivers of economic growth, prosperity, and job creation in better-paying sectors of the economy. The increasing globalization of the world economy during the second half of the twentieth century led to the most rapid worldwide reduction in poverty and rise in living standards in the history of mankind. How was this possible? The answer is simple: the global expansion of trade and free markets accelerated broad-based economic growth, which is the most powerful weapon to reduce poverty. Thus, in order to reduce global poverty at the fastest pace possible, we need to speed up the process of globalization in this new century. In order to understand the connections between globalization, growth, and poverty reduction, one only needs to consider the East Asian economic miracle of the past 60 years. The single most profound example is China, where in 1979 Deng Xiaoping introduced market forces and opened his country to global trade. Due to Deng’s reforms , more than 400 million people lifted themselves out of poverty in 25 years. The prosperity of contemporary China would have been unimaginable to Chinese in 1979.1 Similarly, the post-war economic “miracles” of Japan and the “four tigers” (i.e., Hong Kong, Singapore, South Korea, and Taiwan), which were built on growing trade and en1 For a recent analysis of China’s opening to the outside world, see David Zweig, Internationalizing China: Domestic Interests and Global Linkages (Ithaca: Cornell University Press, 2002). George F. Russell, Jr. The Power of Globalization George F. Russell, Jr. is Chairman Emeritus of Russell Investment Group (formerly known as Frank Russell Company), one of the world’s leading investment management and advisory firms. He is also Chairman of the Board of Directors of The National Bureau of Asian Research. nbr analysis 122 gagement with the international economy, also demonstrate the ability of globalization to create economic prosperity and reduce poverty and deprivation.2 In the current, highly-charged U.S. debate over globalization, however, such positive examples of the connection between trade and prosperity are often overlooked. Despite voicing criticism that is often incorrect, opponents of globalization have managed to seize and define the globalization debate in the United States. These critics have succeeded because of their activism, organization, coalition building, and creative use of the mainstream media. Their movement is strong and focused. In stark contrast, the business and trade community and other supporters of globalization have stood idly by, talking only among ourselves and communicating only with our “coalition of the convinced.” The message regarding the great benefits that trade brings to both business and society is being ineffectively delivered. As a result the opponents of globalization are winning the battle for the “hearts and minds” of the U.S. public, and are making an increasing impact on policy. The last...

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Additional Information

ISBN
9781939131225
MARC Record
OCLC
868219407
Pages
230
Launched on MUSE
2014-01-01
Language
English
Open Access
No
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