 | Summaries and Customer Reviews are supplied by Amazon.com | In the passionate debate that currently rages over globalization, critics have been heard blaming it for a host of ills afflicting poorer nations, everything from child labor to environmental degradation and cultural homogenization. Now Jagdish Bhagwati, the internationally renowned economist, takes on the critics, revealing that globalization, when properly governed, is in fact the most powerful force for social good in the world today. Drawing on his unparalleled knowledge of international and development economics, Bhagwati explains why the "gotcha" examples of the critics are often not as compelling as they seem. With the wit and wisdom for which he is renowned, Bhagwati convincingly shows that globalization is part of the solution, not part of the problem.
This edition features a new afterword by the author, in which he counters recent writings by prominent journalist Thomas Friedman and the Nobel Laureate economist Paul Samuelson and argues that current anxieties about the economic implications of globalization are just as unfounded as were the concerns about its social effects. |
Average Customer Rating:   Every NGO Office should have a copy As an nonbusiness academic and liberal, I like how readable the book is; the author writes on a complex subject in ways that are friendly, inviting, and accessible. The book is arranged according to issue, so one might just read Chapter 6 Child Labor: Increased or Reduced? or Chapter 11 Environment in Peril? There are ingenuous ideas regarding how to create compensation infrastructures to encourage less pollution (that since the publication of this book have emerged as proposed policy) and more laissez-faire sort of corporate economic fairness. He points out the fallacy of NGOs not reading into the issues and how their good intentions sometimes backfire. I definitely don't agree with the author on his point about corporations having a history of developing responsibly because on the contrary, they often have not and continue to conspire not to, especially in the energy sectors. However he has a point that even remediation policies often do little more than provide surface treatments to altered ecosystems. Generally I found it very instructive even if it is biased in support of globalization because it represents both sides on issues. Every NGO office ought to have a copy of this book. a defense The noted economist that wrote this book needs hardly an introduction. Perhaps the name awarded to him by left wing sympathizers through out the world ought to summarize it all. He's been called `the world's foremost free trader' for many years now. Undoubtedly one of the strongest candidates to be knocking on the Nobel Prize's door for decades now, Bhagwati summarizes his perspective on globalization, a much talked about phenomenon especially in recent decades. Professor Bhagwati writes persuasively and has facts, common sense and historical evidence to back his points. Coupled with that is his uncanny witticism and sarcasm that reduces his opposing arguments to the stature of rodents.
The core of Bhagwati's argument revolves around the debate over the economic implication of globalization, especially in the developing world. Too much has been written about how bad is economic integration, how it has led to ruination in poor countries and how organizations like the WTO and IMF are really satanic in fervor. For Bhagwati, the question whether globalization is good or bad is fruitless. He devotes his time to arguing that not only globalization is good, but has a potential to do far more. This distinguished Columbia economist shows through empirical analysis and evidence that poor public policy outlook in regions such as East Asia and Latin America are the main causes of their financial meltdown and not free trade itself. Bhagwati consistently shows the fruits of open trade have brought to countries across the world, poor or rich, and how it could be pursued further. In essence, globalization does not need a `human face'- it already has one- more so than the opposers of free trade. Bhagwati identifies the evils often associated with globalization to poor governance, hegemonic tendencies of developed countries, hypocritical double standards in international organizations and pure ignorance. Thus he relieves free trade from these erstwhile shackles, arguing that it is the single most important phenomenon to material well being of the nations of the world. In all, the book moves forward at blistering pace, demolishing every pseudo edifice of mercantilism on the way, providing sizzling entertainment to the reader.
However, two arguments in the book which can be disputed:
A)his argument, the classical liberal one put forward by Adam Smith and David Ricardo, of `comparative advantage' is not convincing enough. It is true that most countries will indeed find their niche in the world market to develop their unique selling points, but at least in two circumstances this could not be the case- 1) the country concerned having no resources to base exports on and 2) a country's companies being wiped out at their infant stage by giant MNCs and thus it being dependent on MNCs for employment and imports for consumption which potentially has national security implications for that country. To resolve this, surely we need to return to the Smith and List's notion of `infant industry protection', whereby a potentially competitive industry needs some breathing space to realize its full competitiveness before being exposed to the cutthroat competition in the international market. Perhaps Bhagwati means so, but his argument is not always clear on this issue.
B) his arguments on multiculturalism being facilitated through globalization are rather idealistic. Indeed, certain aspects of Oriental cultures have made a great impact on the west(European countries and Americas), but surely the control of the channels through which these interactions can occur by the `west' undermines this whole process. As a result, in countries such as India, the youth have increasingly failed to distinguish anything native and western merely as `different' but have invariably placed them in a ladder of superiority-inferiority, with the Indian counterpart always occupying the latter rung. This ultimately deals a blow to the pride and confidence of the nation concerned.
These diputes aside, a work that is no doubt nothing short of outstanding from a scholar who we have now gotten used to receiving classics.
If this is the cure, I prefer the poison.
Economics at best is a soft science. Put fifty economists in a room and you will get fifty different opinions on economic theory, they seldom agree unless the conversation turns to free trade, it's only then they sing harmoniously the virtues of free trade.
Jagdish Bhagwati, In Defense of Globalization shows us the human face of globalization. He dispels the myth that poor countries attract human rights violators. He presents objective data to support the argument that globalization benefits underdeveloped countries, improves standards of living, minimizes xenophobia, enhances peaceful relations, and advances civilizations toward the common goal of human prosperity
The attributes he extols are the inherent nature of free market capitalism. They are the desirable qualities of capitalistic economies. Mr. Bhagwati dissects the causality of multinational corporate influences on developing countries. He praises multinational corporations that preserve human rights while improving the standard of living in underdeveloped countries.
He addresses a constellation of false accusations from NGO's, human rights groups, environmental consortiums, and organized labor. The loudest opponents here are special interest groups with covert agendas hiding behind the familiar facade of altruism. He dispels these myths as misdirected nationalism, neo-imperialism, and protectionism. In spite of the opposition an overwhelming theme emerges; globalization enhances the standard of living in underdeveloped countries; capitalism advances civilization in the most constructive means possible: free trade.
It is Mr. Bahgwati's contention that the problem with globalization is a poor public relations image. Globalization, with all its apparent benefits and moral virtues needs a public relations face lift, so it becomes more socially acceptable to the NGOs and special interest consortiums. He postulates that to perform this make over, globalization needs to come under more international and governmental scrutiny, complete with controls -- safety nets if you will -- to prevent harmful market forces associated with fluctuating commodity prices and lost market share. He advocates adjustment assistance programs to appease labor unions for trade agreements. He contends these interventions are necessary to reduce the asymmetry between developing countries.
If this is the antidote, I prefer the poison. Anytime a governing body creates economic law or institutes a policy, a new special interest is born. Multinational corporations move to countries of asymmetry to enhance profits, avoid burdensome taxes and the demands of organized labor and special interest groups. There is no reason to move globally if the constraints of government and international bodies are there to shackle production and pray on the profits. The real tragedy here is underdeveloped countries lose opportunities to employ their people and raise their standards of living; unwarranted constraints on multinationals will bar developing countries from the global market place, denying them entry into the world economy.
With all due respect to Mr. Bhagwati, from a literary standpoint I found this book very easy to put down and walk away from. At times it reads like creative non-fiction, but those moments are few. Overall the writing stuck me as academic. I wouldn't recommend this book to a lay person who hasn't previously read Milton Friedman and Adam Smith.
Comprehensive I must say it took me a bit to get through the book - however here are a few pointers
1. This is a comprehensive overview of Globalization as we know and understand it.
2. The reasoning is coherent, and sometimes the facts are totally unexpected / surprising.
3. The book is chock-a-block with references - extremely well researched
4. This book is not for beginners - it is fact based, slightly dense at times but then again, much much easier to understand than a standard text book :)
5. It doesn't build up to a euphoric end - there is a steady pace of revelations, detailed cross referenced understanding of the concepts and all points are re-iterated at various stages, in different contexts. Think of it like wikipedia - almost :) You will see various facets of the same issue being discussed.
6. I would recommend reading 5-10 pages daily... i was not able to read it at one go - too much to digest :)
Overall, comprehensive text, good read - slightly dense for me, but I think I get it - this is really how much there is to globalization and Prof. Bhagwati explains it the best.
You can keep it and refer to it for a long time to come. A very good book and an important one indeed In rather readable style - I just love his sense of humour - Professor Bhagwati (JB) sets out his case in favour of globalisation.
Part One sets out the arguments of the anti-globalisation movement. It would appear that a whole load of other issues not connected to globalisation found a home in the anti-globalisation movement, anti-Americanism being one of them. JB also notes that students of economics tend to be in favour of globalisation and that those opposed to globalisation rarely know anything about economics. Perhaps that situation could be remedied by spreading more knowledge of economics amongst the "anti-globalisationists".
In Part Two, JB examines the effect of globalisation on a number of issues including poverty, child labour, women and their treatment of, democracy, culture, wages and labour standards, the environment and multi-national corporations. He finds that globalisation is not a threat but rather beneficial to any of these subjects and that multi-nationals are not thriving by playing economies against each other or exploiting countries by abusing their corporate might.
Part Three deals with legal and illegal movement of labour and the challenges arising from it and the perils arising from the move of international capital where he also looks at the 1998 Asian crisis. Whilst I agree with JB that the reason for the crisis was not an end of the economic miracle experienced in the 30-odd years before the crisis I think that these countries' economic mismanagement played a large part in it. But you are of course free to read JB's book and make up your own mind.
In Part Four, JB discusses ways in which globalisation could be managed in such a way that potential downsides in the course of economic development could be met in a better way than is available at present. You will notice that JB is terribly impressed with the efforts of the IMF and the World Bank in helping countries in need.
In his conclusions, JB mentions that his book was written against the background of the mass demonstrations accompanying the WTO meeting in Seattle in 1999.
Also in his conclusion, JB tells of an argument put forward by the anti-globalisation movement that globalisation kills jobs in the industrialised countries. This line of argument would suggest that investment and economic development to the non-industrialised world must be denied because these jobs must be retained in the industrialised countries in order to secure `our future'. Who is the selfish party here, I wonder.
Jagdish Bhagwati's book should be compulsory reading for everyone because he proves that the arguments put forward by the anti-globalisationists are simply not true, including the one about killing jobs outlined above. I look forward to these people demonstrating in favour of globalisation, soon, or at least after they have read JB's book.
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