In Defense of Globalization [Hardcover]

Jagdish Bhagwati (Author)

Book Description

ISBN-10: 0195170253 | ISBN-13: 978-0195170252 | Publication Date: March 1, 2004

The riot-torn meeting of the World Trade Organization in Seattle in 1999 was only the most dramatic sign of the intensely passionate debate now raging over globalization, which critics blame for everything from child labor to environmental degradation, cultural homogenization, and a host of other ills afflicting poorer nations.
Now Jagdish Bhagwati, the internationally renowned economist known equally for the clarity of his arguments and the sharpness of his pen, 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 economics, Bhagwati explains why the "gotcha" examples of the critics are often not as they seem, and that in fact globalization often alleviates many of the problems for which it has been blamed. For instance, when globalization leads to greater general prosperity in an underdeveloped nation, it quickly reduces child labor and increases literacy (when parents have sufficient income, they send their children to school, not work). The author describes how globalization helps the cause of women around the world and he shows how economic growth, when coupled with the appropriate environmental safeguards, does not necessarily increase pollution. And to counter the charge that globalization leads to cultural hegemony, to a bland "McWorld," Bhagwati points to the example of Salman Rushdie, a writer who blends Bombay slang and impeccable English in novels touched by magic realism borrowed from South American writers. Globalization leads not to cultural white bread but to a spicy hybrid of cultures.
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. Anyone who wants to understand what's at stake in the globalization wars must read In Defense of Globalization.

Editorial Reviews

From Publishers Weekly

In this elegant book, one of the world's preeminent economists distills his thinking about globalization for the lay reader. Bhagwati, a former adviser to the U.N. on globalization, sets out to show that "this process has a human face, but we need to make that face more agreeable." Armed with a wit uncharacteristic of most writing on economics and drawing on references from history, philosophy and literature as well as some "state of the art econometric analysis," he sets out to prove that the antiglobalization movement has exaggerated claims that globalization has done little good for poor countries. For example, supported by statistics from the Asian Development Bank, he argues, astonishingly, that in China the "aggressively outward economic policies" that characterize globalization reduced poverty from 28% of the population in 1978 to 9% in 1998. Nevertheless, Bhagwati does not advocate total laissez-faire economics and recommends that continued globalization should be "managed," prescribing policies he believes will "reinforce and ensure" its benign effects, such as taxing skilled workers who leave poor countries for jobs abroad, using nongovernmental organizations as corporate watchdogs, slowing financial liberalization and loosening intellectual property safeguards. This book might be seen as a companion piece to 2002's bestselling Globalization and Its Discontents by Joseph Stiglitz, Bhagwati's colleague at Columbia University; it should reach as broad an audience, if not broader. Don't be deceived by its relative brevity: this is a substantial study that is as about as enjoyable—and reassuring—a work of economics as may be possible to write in this uncertain age.
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Review

"An outstandingly effective book.... Until further notice In Defense of Globalization becomes the standard general-interest reference, the intelligent layman's handbook, on global economic integration."--The Economist

"An important contribution to an often incoherent debate. As we expect of Mr. Bhagwati, it is cogently argued and well written. It sets out a persuasive case in favor of globalization. And because of Mr. Bhagwati's impeccable credentials, there is a better chance his book will be given a fair hearing than might be the case with some other authors. Put simply, Mr. Bhagwati has 'street cred'."--Anne Krueger (Acting Director of the IMF), Financial Times

"One of the world's leading international trade theorists.... Bhagwati takes on many antiglobalist arguments, showing them to be overblown or groundless. The lot of women and children improves with the opening of markets, and the environment too, not to mention the chances for democracy.... Accessible and clearly argued. There is, one might say, a wealth of material on every page."--Bruce Bartlett, The Wall Street Journal

"Does the international market economy worsen poverty in developing countries? Does it erode democracy? Hurt the cause of women? Trash the environment? Exacerbate the exploitation of child labor? Bhagwati's answers to all these questions make for a supremely worthy read."--Business 2.0 Magazine

"A splendid and highly readable tour de force; arguably the best book yet on the great issue of our time." --Fred Pearce, New Scientist

"Mr. Bhagwati slams through fact after fact, statistic after statistic, demolishing those who claim the poor are worse off because of globalization. He warns that many problems of poor countries are self-inflicted, such as trade barriers against one another. If Mr. Bhagwhati doesn't get a much deserved Nobel Prize for economics, he should get one for literature. His writing sparkles with anecdotes and delightful verbal pictures."--Mike Moore, New York Sun

"Bhagwati combines the hard-nosed perspective of a liberal on trade and investment with the soft-hearted sensitivities of a social democrat on poverty and human welfare. He thus has an admirable ability to address patiently and sympathetically globalization's well-meaning but wrong-headed critics.... A cogent, erudite, and, indeed, enjoyable discussion of economic globalization and its discontents."--Foreign Affairs

"If Bhagwati can't convert the unbelievers into enthusiastic globalizers, probably no one can. . . . Bhagwati demonstrates admirable fairness toward his opponents. . . . [A]n amusing, charming and erudite debater."--Paul Gray, New Leader

"No one has crusaded more zealously on behalf of free trade than Jagdish Bhagwati. In Defense of Globalization sums up his case, and for free-trade advocates under siege, it arrives not a minute too soon. The book is certainly engaging."--Mark Levinson, American Prospect

"No other book on globalization covers as wide a range of issues as Bhagwati's. Indeed, his book is the best one-stop shopping for readers seeking a panoramic view of all the controversies that make up the globalization debate.... Perhaps the best reason to pick up this book is Bhagwati's inimitable writing style. The book is laced with amusing vignettes and turns of phrase.... All readers can profit from his provocative insights and lively style."--Douglas A. Irwin, Finance and Development

"His charming cosmopolitanism will allay the fears of critics convinced that economists are incapable of appreciating non-economic values. Literary references flow from the pages, from Lady Murasaki to King Lear to Woody Allen."--Daniel W. Drezner, New York Times Book Review

"A book brimming with engaging arguments and good sense. In Defense of Globalization will encourage the faithful who believe in economic freedom as a value worth pursuing in and of itself, but also those more pragmatic souls who see it as a necessary if less-than-lovable means to achieve poverty reduction and other worthy social goals. Of all the books defending globalization, Jagdish Bhagwati's may offer the best chance to reach those readers not fatally blinded by anti-market ideology."--Daniel Griswold, National Review

"This book will make history. It will also be a blockbuster, not only because of the depth of Bhagwati's powerful argument backed by extensive research, but also because it is immensely readable and surely the most humorous piece of economics ever written." --Hernando de Soto, author of The Other Path and The Mystery of Capital

"This work is of major importance, as it authoritatively tackles the main intellectual charges against globalization.... Hopefully, this book will convince at least some of those who gullibly joined the fashionable, but dangerous anti-globalization movement that in doing so they have actually abandoned themselves to the devices of intellectual manipulators, political demagogues, and economic reactionaries. The post-Cold War era's dominant economic trend finally gets its defense sheet." --Jerusalem Post

"Once again, Columbia University economist Jagdish Bhagwati has weighed into the increasingly partisan and ideological debate over trade, offshore outsourcing and globalization. And once again, it is worth listening to.... what's most important about this book is its caution about globalization --namely, that it has to be managed, both in terms of how quickly it proceeds and what policies are put in place to reduce its unpleasant economic and social side effects."--Washington Post

"In this elegant book, one of the world's preeminent economists distills his thinking about globalization for the lay reader.... Armed with a wit uncharacteristic of most writing on economics and drawing on references from history, philosophy and literature as well as some 'state of the art econometric analysis,' he sets out to prove that the antiglobalization movement has exaggerated claims that globalization has done little good for poor countries.... This is a substantial study that is as about as enjoyable and reassuring a work of economics as may be possible to write in this uncertain age."--Publishers Weekly (starred review)

"The new century's major economic issue is Globalization, Yes? or Globalization, No? Columbia University's Bhagwati, regarded as a master economist by all trade experts, has prepared for the intelligent public an even-handed analysis of the pros and cons. Read and ponder." --Paul A. Samuelson, M.I.T., Nobel laureate in Economics

"An engaging work.... Bhagwati convincingly refutes misconceptions about globalization and offers sound recommendations for governing it properly."--Library Journal

"Bhagwati delivers in this volume, both with erudition and wittiness, a precise rebuttal of the most common and pernicious fallacies about globalization. Hopefully, well intended but misguided opponents of economic interdependence should learn from this book that globalization does have a human face (and a heart) after all!" --Ernesto Zedillo, Director of the Yale Center for the Study of Globalization and former President of Mexico

"Jagdish Bhagwati has written a brilliant book about the conflict between freedom and justice. The book is beautifully written: provoking without sermonizing. You may not always agree with him--I don't--but In Defense of Globalization is bound to become a classic."--Richard Sennett, London School of Economics

"This is the book that everyone has been waiting for. Jagdish Bhagwati thoughtfully considers the arguments of the anti-Globalization movement and shows the peril they pose to world development." --George Akerlof, University of California at Berkeley, Nobel laureate in Economics

See all Editorial Reviews

Product Details

• Hardcover: 320 pages
• Publisher: Oxford University Press, USA (March 1, 2004)
• Language: English
• ISBN-10: 0195170253
• ISBN-13: 978-0195170252
• Product Dimensions: 9.3 x 6.4 x 1.1 inches
• Shipping Weight: 1.3 pounds
• Average Customer Review: 3.7 out of 5 stars  See all reviews (50 customer reviews)
• Amazon Best Sellers Rank: #467,716 in Books (See Top 100 in Books)

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51 of 55 people found the following review helpful:

4.0 out of 5 stars In defense of this book, May 5, 2004

By 

Eric J. Lyman (Roma, Lazio Italy) - See all my reviews
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This review is from: In Defense of Globalization (Hardcover)

Aside from a small handful of real Luddites, I don't think there are many people left who are against all forms of globalization, nor can there be many who are completely in favor of it, warts and all. But you'd never know that based on most of what's written on the subject: most literature on the subject tends to treat discussions of the global economy in black-and-white terms. Authors, essayists, and columnists too often rely on gimmicky strategies that pull on the heartstrings but do little to examine the real pros and cons of an increasingly global world, focusing more on what's wrong than on what can be done. And discussion I've seen too often takes too narrow a view -- life in a particular village, the impact on a specific industry -- for a well-rounded debate to take shape.

In Defense of Globalization is the first effort I've seen in a long time that manages to avoid most of those pitfalls, relying on objective and unemotional discussions of evidence rather than anecdotes, and presenting its arguments in a straightforward and gimmick-free way. It is full of important information and still eminently readable.

Opponents of globalization usually base their arguments against the international market economy on a few strong points: that it encourages child labor, that it erodes democracy, that it weakens the plight of women in the developing world, that it kills local cultures, and that it harms the environment. In this book, scholar and author Jagdish Bhagwati addresses each of those issues in a series of chapters that make up the heart of the book.

But globalization proponents will not find in In Defense of Globalization a blind defense of their views. Mr. Bhagwati takes the anti-globalization points seriously. He goes so far as to show that he shares many of the anti-globalists' views and values (especially regarding poverty), and he points out many areas where unchecked global capitalism has the potential to do more harm than good. This makes the book much more effective than it would have been otherwise.

But despite all that, Mr. Bhagwati still sees free trade as the best was to raise incomes and speed up the long-term development of the world's poorest economies, and he compellingly illustrates why any kind of trade protection -- no matter how noble its intent -- in the end leaves the protected and the protected against worse off. And unlike many efforts of this kind, it doesn't simply stop at pointing out what's wrong -- it offers many options for improving the current situation.

In the end, In Defense of Globalization is not aimed at partisans on either side of the globalization debate if what they are looking for is information to back up what they already believe. This is a book will make anyone who thinks much about globalization think again ... and perhaps realize they share more than they thought with the opposite side.

42 of 47 people found the following review helpful:

5.0 out of 5 stars The new benchmark for books on globalization, June 6, 2004

By 

N. Tsafos (Washington, DC) - See all my reviews
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This review is from: In Defense of Globalization (Hardcover)

How can one resist a book that begins with the phrase, "does the world need yet another book on globalization?" To this saturated topic, Jagdish Bhagwati does not try to force a radical new outlook; rather, he surveys the evidence against each accusation levied by the critics of globalization and ends up producing one of the most elegant, eloquent, and persuasive books in favor of globalization.

One problem that any such book faces is that the anti-globalization movement is rather amorphous, bringing together all sorts of groups that make all sorts of accusations; to get around this, Mr. Bhagwati divides his book into the major themes (the link of economic growth to poverty, of trade to the environment or labor rights, etc), and looks at what the various NGOs are saying against globalization. To his credit, Mr. Bhagwati has considered most of the subtleties, nuances and variations of the NGO arguments.

Having done this, Mr. Bhagwati explains whether and why the NGOs are wrong. Predictably, the NGO fears usually prove exaggerated or simply untrue. To their polemic rhetoric, Mr. Bhagwati answers with anecdotes, news reports and econometric studies. Whether one agrees or disagrees with him, no one can accuse Mr. Bhagwati of brushing aside the critics.

Refreshingly, the book is not an unconditional acceptance of globalization. "In Defense of Globalization" is a defense, but it is not blind to what is wrong about globalization; Mr. Bhagwati is cautious, for example, about uninhibited capital flows; he is also critical about the invasion of intellectual property rights into trade agreements; he is also suspicious of businesses that bribe politicians to alter trade agreements to their favor. And so on.

Yet, his verdict is staunchly pro-globalization. He urges against using trade-curtailing answers to economic problems; he also alerts us that many of the ills identified by NGOs have little to do with globalization ("What has globalization got to do with that?" he writes more than once). More importantly, he offers ideas about how to make globalization better, from managing immigration, to rethinking the trade sanctions, to the role that NGOs ought to play, and many more. Nothing here is new; but he assembles the various ideas that he has pronounced over the years in books, op-ed pieces and academic journals.

There is no doubt that "In defense of globalization" will be the book to beat from now on. No anti-globalization treatise should be published without being able to refute Mr. Bhagwati's arguments. For having elucidated this debate even further, Mr. Bhagwati deserves to be read and to be thanked.

79 of 95 people found the following review helpful:

5.0 out of 5 stars This is a readable masterpiece in international economics, March 15, 2004

By 

Gaetan Lion - See all my reviews
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This review is from: In Defense of Globalization (Hardcover)

This is an excellent book that takes a subject [Globalization] that has become increasingly emotionally loaded and politically intense. As the U.S. experiences a rising Current Account Deficit, there is a strong perception that Globalization is like a scorpion who has turned its own deadly sting on itself. Everyday, one sees articles in the press mentioning how the U.S. is loosing its manufacturing jobs to China and its programming jobs to India.

Bhagwati, as any classical economists, views Globalization as the manifestation of the competitive advantage of international trade. In other words, whatever we can obtain from overseas at a lower cost than we can obtain locally will boost the demand for our own products (due to lower costs). With higher demand comes higher economic growth, higher productivity, and rising living standards. On the other hand, ill fated protectionist policies, contrary to their humanistic intent, completely annihilate this economic virtuous cycle.

However, Bhagwati is not your usual unrestrained free trader. He feels that governments have to better address the dislocation in labor that is directly affected by international competition. He states the U.S. should spend more resources on research and on education. This is so our labor force remains most productive in being engaged in cutting edge industries that have not yet become commoditized.

Bhagwati, an Indian, focuses much energy on the benefit of Globalization for all emerging markets. Contrary to all the anti Globalists demonstrators in Seattle, Cancun, and elsewhere, Bhagwati makes a forceful and well documented case that Globalization is a very positive force that lifts countries out of poverty. It causes a virtuous economic cycle associated with faster economic growth. He dismantles the concerns and myths perpetrated by anti-Globalists chapter by chapter. Thus, chapters are titled: "Culture: Imperiled or Enriched?," "Corporations: Predatory or Beneficial?," and "Environment in Peril?" In each cases, Bhagwati armed with irrefutable historical data comes on strongly on the side of Globalization and breaks one anti Globalist myth after another.

Bhagwati states that in many cases, Globalization is blamed for whatever goes wrong within a country. But, that this is a politic of deflection used by corrupt and ineffective political leaders. Instead of implementing more effective domestic policies and international policies, many government leaders prefer to blame all ills on Globalization, which indirectly means on the U.S.

Bhagwati makes an eloquent case that any economic ills in emerging markets is not all the U.S. fault just as U.S. job losses are not all China and India's faults.

During this Presidential election year with the loss of U.S. jobs as one of the main Democratic themes, this is a very important book to read. It would be crucial for Kerry to read it too, otherwise he may fight a loosing campaign pinned on protectionist policies. By now, even though Globalization and international economics are complex matters, too many voters intuitively understand these subjects to vote in a President on a campaign of protectionism and international economic isolation. Bhagwati rules!