The Globalization Paradox: Democracy and the Future of the World Economy

by Dani Rodrik

Overview

"Cogent, well-written . . . critiques unalloyed globalization enthusiasts, taking aim at their desire to fully liberalize foreign trade ad capital movements." —Foreign Affairs

In this eloquent challenge to the reigning wisdom on globalization, Dani Rodrik reminds us of the importance of the nation-state, arguing forcefully that when the social arrangements of democracies inevitably clash with the international demands of globalization, national priorities should take precedence. Combining history with insight, humor with good-natured critique, Rodrik’s case for a customizable globalization supported by a light frame of international rules shows the way to a balanced prosperity as we confront today’s global challenges in trade, finance, and labor markets.

Product Details

ISBN-13:	9780393341287
Publisher:	Norton, W. W. & Company, Inc.
Publication date:	03/05/2012
Pages:	368
Product dimensions:	5.40(w) x 8.20(h) x 1.10(d)

About the Author

Dani Rodrik, a prize-winning economist, is the Ford Foundation Professor of International Political Economy at Harvard's John F. Kennedy School of Government. He is the author of The Globalization Paradox and Economics Rules.

Table of Contents

Introduction: Recasting Globalization's Narrative ix

1 Of Markets and States: Globalization in History's Mirror 3

2 The Rise and Fall of the First Great Globalization 24

3 Why Doesn't Everyone Get the Case for Free Trade? 47

4 Bretton Woods, GATT, and the WTO: Trade in a Politicized World 67

5 Financial Globalization Follies 89

6 The Foxes and hedgehogs of Finance 112

7 Poor Countries in a Rich World 135

8 Trade Fundamentalism in the Tropics 159

9 The Political Trilemma of the World Economy 184

10 Is Global Governance Feasible? Is It Desirable? 207

11 Designing Capitalism 3.0 233

12 A Sane Globalization 251

Afterword: A Bedtime Story for Grown-ups 281

Notes 285

Acknowledgments 319

Index 321

What People are Saying About This

Gordon Brown

Takes on the biggest issue of our time—globalization—and eloquently enlarges the debate about the extent and limits of global cooperation.

Editorial Reviews

"Simply the best recent treatment of the globalization dilemma that I’ve read, by an economist or anyone else. . . . He gives us nothing less than a general theory of globalization, development, democracy, and the state. The book provides the pleasure of following a thoughtful, critical mind working through a complex puzzle. Rodrik writes in highly friendly and nontechnical prose, blending a wide-ranging knowledge of economic history and politics and a gentle, occasionally incredulous, skepticism about the narrow and distorting lens of his fellow economists."

Robert Kuttnern Prospect

"Although [Rodrik’s] message is nuanced and rigorous, drawing on history, logic and the latest economic data, he manages to convey it in simple, powerful prose that any reader can follow. . . . A much-needed addendum to [Adam] Smith’s famous formulation."

Steven Pearlstein

"Required reading for those who seek to prevent the financial crises and unfair trade practices that feed the backlash against the open markets."

Nouriel Roubini

"Takes on the biggest issue of our time—globalization—and eloquently enlarges the debate about the extent and limits of global cooperation."

Gordon Brown

"In this cogent, well-written book, Rodrik, a Harvard economist, critiques unalloyed globalization enthusiasts, taking aim at their desire to fully liberalize foreign trade and capital movements."

Foreign Affairs - Richard N. Cooper

"Simply the best recent treatment of the globalization dilemma that I've read, by an economist or anyone else….He gives us nothing less than a general theory of globalization, development, democracy, and the state. The book provides the pleasure of following a thoughtful, critical mind working through a complex puzzle. Rodrik writes in highly friendly and nontechnical prose, blending a wide-ranging knowledge of economic history and politics and a gentle, occasionally incredulous, skepticism about the narrow and distorting lens of his fellow economists."

The American Prospect - Robert Kuttner

"Dani Rodrik may be globalization’s most prominent—and most thoughtful—gadfly. In The Globalization Paradox he wonders aloud whether extreme globalization undermines democracy—and vice versa. Read it and you’ll wonder too."

Alan S. Blinder

"Mr. Rodrik is exactly what the doctor ordered because economics over the past few years has become hyper-politicized (thank you, Paul Krugman) yet never more dismal. Well-written, witty, crafted by an author who doesn’t jump the "Freakonomics" shark, The Globalization Paradox reminds us that economists don’t exist without data, and data comes, ultimately, from the vision and labor of those in the marketplace."

New York Journal of Books - Robert Nersesian

"In this powerfully argued book, Dani Rodrik makes the case for country-specific paths to economic development and saner, more sustainable forms of growth. A provocative look at the excesses of hyperglobalization, The Globalization Paradox should be required reading for those who seek to prevent the financial crises and unfair trade practices that feed the backlash against the open markets."

Nouriel Roubini coauthor of Crisis Economics: A Crash Course in the Future of Finance

"A Big Book, one that may shape a new way of thinking about the global economy. . . . The style is conversational, but sweeping and authoritative—professorial in the positive sense. Rodrik is less of a polemicist . . . preferring to stay inside the tent, but he can pack a polite punch when necessary."

Duncan Green

An economist's idealistic proposal to take some of the global out of globalization.

In the wake of the subprime-mortgage crisis and worldwide economic downturn, most readers will agree with the author's premise that globalization, and in particular financial globalization, is not all it's cracked up to be. Rodrik (International Political Economy/Harvard Univ.; One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, 2007, etc.) submits that there's a better way of doing business, one that coalesces as he presents his theory that the world economy boils down to a triangular game of give-and-take. The author defines three key elements of the world economy—hyperglobalization (unfettered trade and financial exchange), democracy and the nation state—that he contends cannot all simultaneously coexist. However, he writes, we should aim for two out of three. Rodrik argues that the least important element in terms of the world's economic, social and political health is globalization itself, noting that economic models predict only minimal net gain from the continued lowering of international barriers. He suggests furthering worldwide democratization and strengthening, not weakening, governmental intervention to provide an effective framework that preserves local values and protects domestic economies while paving the way for relatively—but not completely—free economic and financial interaction. His arguments are often effective, if occasionally overly simplistic, though at times it's difficult to pinpoint his audience. He acknowledges that any economist worth his salt is fully cognizant of the perils of globalization, which often ignored in public forums, yet his economic arguments may sail over the heads of lay readers despite attempts to simplify the concepts. A trite closing parable, rather than reinforcing his salient points, simply underscores how messy and complicated reality is in comparison to even the most elegant proposed solutions.

Not an ideal blueprint, but Rodrik raises—and gamely tries to answer—some important questions.

Kirkus Reviews