Download PDF by Dean Baker: Globalization and Progressive Economic Policy

By Dean Baker

ISBN-10: 0521643600

ISBN-13: 9780521643603

In Globalization and innovative fiscal coverage, thirty-six admired economists learn the effect of the rising international economic climate on our nationwide sovereignty and criteria of dwelling. Does globalization reason inequality? Instability? Unemployment? Environmenal degradation? Or is it an engine of prosperity and wealth for the majority of the world's voters? The authors research difficulties, associations and attainable executive responses, and finish that globalization could be a strength for sturdy or sick reckoning on the measure of rules that governments and electorate can workout over its trajectory.

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Otherwise, what we observe is a steady rise in the rates of global integration relative to the 1960s, but for the most part to levels of integration comparable to the early 20th century. How significant are these changes overall? To help address that question, these patterns should be placed in a broader historical context. The first contextual issue to consider is that, in the current period, global integration is occurring in a very different world than that of the early 1900s. The most important difference is that the role of government has changed dramatically since the end of World War II.

According to Harris and Michie, South African policy should be designed in ways that will most effectively integrate the country into these two regional blocs. However, this process need not bind South Africa to a strategy of seeking export competitiveness through lowering real wages. Rather, the authors argue that integration can be compatible with domestic objectives of accelerated growth with full employment and rising mass living standards. This is because, if growth is based on high value-added, high-productivity tradable products, competitive labor costs can be achieved with high real wages.

Hefindsthat, even with the increased immigration rates in the 1980s and 1990s, current levels of immigration have had little or no net impact on natives' wages or employment opportunities. What explains this finding? DeFreitas contends that, first, immigration does not just expand the supply of labor, it also increases demand, through immigrants' expenditures and the multiplier effects of these on the economy. Immigrants also average higher self-employment rates, creating their own business demand for related business services and materials.

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Globalization and Progressive Economic Policy by Dean Baker


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