In Defense of Globalization (Hardcover)

~ Jagdish Bhagwati (Author) "Globalization first became a buzzword..." (more)
Key Phrases: immiserizing growth, parallel politics, appropriate governance, United States, World Bank, New York (more...)

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

"Bhagwati's charming cosmopolitanism will allay fears of critics convinced that economists are incapable of appreciating non-economic values." -- -Daniel W. Drezner, New York Times Book Review

"John Kerry should consult the new book In Defense of Globalization" -- -George F. Will, Newsweek

"Of all books defending globalization, Bhagwati's may offer the best chance to reach readers not fatally blinded by anti-market ideology." -- -Daniel Griswold, National Review

"Thought-provoking...Bhagwati convincingly refutes misconceptions about globalization and offers sound recommendations for governing it properly." -- -Library Journal

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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 (47 customer reviews)
• Amazon.com Sales Rank: #500,305 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

39 of 41 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 (TOP 1000 REVIEWER)    (REAL NAME)

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 46 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 (REAL NAME)

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 94 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 (TOP 500 REVIEWER)    (REAL NAME)

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!