In Defense of Globalization
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One of the most pressing topics in the globalization debate is whether social issues have been negatively affected as a result of increasing international trade. While this subject has been considered for some time in the social sciences, economists have more recently set out their positions as opponents or supporters of globalization (Stiglitz 2002; Wolf 2004). As is indicated by the title, Jagdish Bhagwati’s book promulgates the argument that globalization processes are a positive force for social and economic development. In the first chapter, Bhagwati asserts that his definition of economic globalization will be ‘the integration of national economies into the international economy through trade’ (p. 3). However, his volume is a noteworthy contribution to the literature on the globalization debate because he places this definition within the cultural and communications aspects of globalization, and examines how they have been affected by economic globalization (pp. 3–4). These aspects are mainly discussed in Section 2 of the book where he deals with the most contentious issues of globalization including its effects on poverty, child labour, women, democracy, culture, wages and labour standards, the environment, and multinational corporations (pp. 51–195). The treatment of all of these issues together from an objective (albeit an economist’s) viewpoint is the book’s greatest strength. For example, as a true classical liberal economist Bhagwati begins by stating that it has been governmental policies that have had the greatest positive or negative effect on poverty levels in the developing countries. As a positive example, he cites the strategies used by India’s newly independent government under Nehru to focus on policies to increase growth such as building infrastructure and plans for poverty reduction (pp. 53–54). As an example of the effects of poor governmental policies, he points to ‘misdirected’ concerns about the effects of the International Monetary Fund’s stabilization programmes on women (p. 88). He explains that, while it is often the case and unfortunate that social expenditures including health and education are
Journal of International Relations and Development, 2006, 9, (422–424) r 2006 Palgrave Macmillan Ltd 1408-6980/06 $30.00
www.palgrave-journals.com/jird
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reduced when countries agree to stabilization programmes, decisions involving which areas of the budget to reduce are made by the governments themselves. Bhagwati is also suspicious of the belief that there is a ‘race to the bottom’ by multinationals towards developing countries for the latter’s lax labour and environmental standards and argues that, in fact, multinationals ‘do not go streaking to where labour rights are ignored or flouted’ (p. 130). First, he points out that while some firms may move due to ‘lower wages’ the issue of firms moving for specific reasons of lower standards in labour and environmental regulation has not been found to be a significant reason for firms to move. This issue is also treated in more
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