Why Globalization Works [Hardcover]

Mr. Martin Wolf (Author)

Book Description

Publication Date: July 11, 2004

The debate on globalization has reached a level of intensity that inhibits comprehension and obscures the issues. In this book a highly distinguished international economist scrupulously explains how globalization works as a concept and how it operates in reality. Martin Wolf confronts the charges against globalization, delivers a devastating critique of each, and offers a realistic scenario for economic internationalism in the future. Wolf begins by outlining the history of the global economy in the twentieth century and explaining the mechanics of world trade. He dissects the agenda of globalization's critics, and rebuts the arguments that it undermines sovereignty, weakens democracy, intensifies inequality, privileges the multi-national corporation, and devastates the environment. The author persuasively defends the principles of international economic integration, arguing that the biggest obstacle to global economic progress has been the failure not of the market, but of politics and government, in rich countries as well as poor. He examines the threat that terrorism poses and maps the way to a global market economy that can work for everyone.

Editorial Reviews

From Publishers Weekly

The author, a Financial Times editor, makes a conventional economist's argument for globalization that is not likely to convince many skeptics. His faith is that growth and everything else good comes from "the market," while any problems with globalization must be the fault of governments. Wolf doesn't consider that economic processes redistribute power and therefore transform politics and the possibilities of government action. Like so many economists, he analyzes primarily aggregate statistics: gray averages. For example, using aggregate figures he argues that workers in rich countries are paid more because they are much more productive than workers in poor countries are. Thus high-paid workers need not fear that competition from low-paid workers will undermine their economic security. The reason, he explains, is that workers in developed countries work, on average, with far less capital per worker. While this is true in aggregate, for a particular transnational firm deciding whether to locate a new factory in Shanghai or Chicago, the difference in productivity will rarely be as great as the wage differential. Therefore, as long as other costs and risks do not overwhelm the benefit of cheaper labor, there is a long-term tendency for investment and jobs to flow toward low-wage countries. Wolf neglects the profound consequences of relative labor immobility (because of immigration restrictions and cultural barriers) compared with the mobility of products, many services and capital, one of the characteristic features of contemporary globalization.
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Review

A distinguished international economist here offers a powerful defense of global market economy. Martin Wolf explains how globalization works, critiques the charges against it, argues that the biggest obstacle to global economic progress has been the failure not of the market but of governments, and offers a realistic scenario for economic internationalism in the post 9/11 age.-->

“No one has summarized more coherently the recent, voluminous research. . . . Elegantly and persuasively, Wolf marshals the facts.”—Niall Ferguson, Sunday Telegraph

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Product Details

• Hardcover: 416 pages
• Publisher: Yale University Press; First Edition edition (July 11, 2004)
• Language: English
• ISBN-10: 0300102526
• ISBN-13: 978-0300102529
• Product Dimensions: 9.2 x 6.4 x 1.2 inches
• Shipping Weight: 1.6 pounds
• Average Customer Review: 4.3 out of 5 stars  See all reviews (43 customer reviews)
• Amazon Best Sellers Rank: #798,810 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

21 of 27 people found the following review helpful:

5.0 out of 5 stars Good questions, August 16, 2004

By 

EStahl2 (London UK) - See all my reviews

This review is from: Why Globalization Works (Hardcover)

As a distinguished columnist (the most sophisticated in the stable at the most sophisticated Financial Times), Martin Wolf can be expected to write clearly and persuasively. He does. Any reader of his columns (I am a loyal one) would expect mountains of carefully considered statistics. They are there in abundance.

These virtues, however, are not the best reason to read this book. The greater interest is in Wolf's emphasis on the importance of government probity and policy in economic development. Indeed, his commitment to free trade -- while deep and wide -- seems almost secondary to his belief in sound government. That is partly the luxury of success. Tariffs and barriers in most countries and industries have fallen so low that they are only occasionally important impediments to prosperity. Still, it is remarkable to see Wolf cautiously endorsing the protection of infant industries. The emphasis on government in the longer second portion of the book seems rather at odds with the market-centred reading of history in the first.

Wolf is far from the anti-globalisation caricature of the economist as theory-driven and uncaring about human suffering. On the contrary, he is entirely focussed on the economic good, particularly of the poor. The moral tone of much of the book is especially appealing. The reader can hardly not share his dismay at the corruption of the poor and the indifference and selfishness of the rich.

I would have liked more political analysis, considering Wolf's enthusiasm for the government role in economic health. In particular, while Wolf is very enthusiastic about democracy, he is very sceptical about the institutional strength of democracies in the rich countries. There is a possibly dangerous paradox there. Wolf's analysis would be very interesting.

13 of 16 people found the following review helpful:

3.0 out of 5 stars offensive and interesting, January 5, 2007

By 

J. Hanon (Illinois) - See all my reviews
(REAL NAME)   

This review is from: Why Globalization Works (Yale Nota Bene) (Paperback)

In regards to globalization, the book made some valid and often frustrating points. The author didn't leave much room for disagreement. As someone that is skeptical of globalization, it was good to hear about the positive elements. It challenged my points of view. I am still deciding what to think on the subject and the book has encouraged me to think more deeply.

28 of 38 people found the following review helpful:

5.0 out of 5 stars Packed With Knowledge!, November 4, 2004

By 

Rolf Dobelli "getAbstract" (Switzerland) - See all my reviews
(HALL OF FAME REVIEWER)    (TOP 500 REVIEWER)    (REAL NAME)   

This review is from: Why Globalization Works (Hardcover)

In this purpose-driven book, author Martin Wolf stakes out his intellectual turf clearly and defends it. Wolf begins with the concept that the value of the individual and the importance of that individual's right to pursue economic advancement are the foundation of the world's great democracies. From there, he levels a devastating critique against the anti-globalists and the diverse interests that oppose the global integration of markets. He presents strong evidence that the power of international corporations has been exaggerated, and concludes that the issue isn't too much globalization, but rather too little. This clear-eyed, well-researched defense of globalization should become a mainstay in any library of economic rationalism. We recommend it most highly.