The Debate On Globalization

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The Debate On Globalization Trade
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• Summary
• The major arguments of Thomas Friedman on
  Globalization (Deterministic Approach)
• Pat Buchanans anti foreign trade argument
  (Economic Nationalism)
• Cohens Analysis of Globalization as a (Policy
  Choice)

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• A. Thomas Friedman
• The role of Information technology
• The end of ideologies
• All countries need to put on the Golden
  Straitjacket
• Rules for fitting into the Golden Straitjacket
• Making the private sector the primary engine of
  its economic growth
• maintaining a low rate of inflation and price
  stability

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• shrinking the size of its state bureaucracy
• maintaining as close to a balanced budget as
  possible
• eliminating and lowering tariffs on imported
  goods
• removing restriction on foreign investment
• getting rid of quotas and domestic monopolies
• increasing exports
• privatizing state-owned industries and utilities

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• opening its industries, stock, and bond markets
  to direct foreign ownership and investment
• eliminating government corruption, subsidies and
  kickbacks as much as possible,
• opening its banking and telecommunications
  systems to private ownership and competition

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• All countries are not alike in the way they put
  on their Golden Straitjacket
• The Golden Straitjacket will help countries to
  have their
• economy grows
• politics shrink
• Countries also need to join the Electronic Herd.
• What produces the Electronic Herd? The
  democratizations of finance, technology and
  information
• What is the Electronic Herd all about?

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• The Electronic Herd describes the "millions
  of faceless stock, bond and currency traders
  sitting behind computer screens all over the
  globe, moving their money around with the click
  of a mouse from mutual funds to pension funds to
  emerging market funds, or trading from their
  basements on the Internet. And it consists of the
  big multinational corporations who now spread
  their factories around the world, constantly
  shifting them to the most efficient, low-cost
  producers." (109)

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• B. Pat Buchanan
• Economic nationalist The country always comes
  first
• There is no global economy but national economies
• Why American leaders sacrifice the interests of
  their own country for the sake of the global
  economy.
• Economic nationalism was there since the very
  existence of the US

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• Under economic nationalism, there was no
  income tax in the United States, except during
  the Civil War and Reconstruction. Tariffs
  produced fifty to ninety percent of federal
  revenue. And how did America prosper? From 1865
  to 1913, U.S. growth averaged 4 a year. We began
  the era with half Britain's production, but ended
  with twice Britain's production
• It is economic nationalism that helps to put
  America as a powerful country in modern history

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• Why free trade is not good for America?
• free trade will widen the gap between those who
  will benefit from it and those who will suffer.
  Free trade creates economic insecurity
• Free trade divides American society. Quoting
  Marx the Free Trade system works destructively.
  It breaks up old nationalities and carries
  antagonism of proletariat and bourgeoisie to the
  uttermost pointthe Free trade system hastens the
  Social Revolution. In this revolutionary sense
  alone...I am in favor of Free Trade

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• Free trade will cause Americans to lose the
  independence of their sovereignty
• America becomes too vulnerable to financial
  crises happened in other countries
• De-industrialization of America and the
  de-Americanization of American industries.