The Power of Globalization

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