The Positive Case For Globalisation

An excellent article in the Times on the positive benefits of Globalisation and why it is important to defend it against a rising tide of criticsm. And the Author? Mr Gordon Brown. If he keeps this up I might even vote for him!

The whole article is worth reading but I wanted to pull out these quotes:

'“Economic patriotism” across Europe, with country after country blocking cross-border acquisitions, is antithetical to both the spirit and the rules of an open single market. Protectionist calls from parts of the United States, which would seek to halt necessary change, also send out the wrong message, implying that globalisation is a threat, not the opportunity it should be.

The rising tide of populism in Latin America and continuing protectionism in Asia are direct assaults on the very idea of globalisation itself. Everywhere, instead of barriers coming down, they appear to be going up.'

'Ironically, even globalisation’s beneficiaries — the millions who are seeing cuts in consumer goods prices, lower inflation and lower interest rates, and higher economic growth and employment — are acting as if they are victims. With even winners thinking like losers — and the popular focus on lost manufacturing, lost service jobs off-shored, lost jobs to newcomers moving into their communities — the argument is being run by the hardest hit producers, forgetting the benefits to consumers.

But it is not the side-effects or the inevitable strains of globalisation that they have put under attack. Under assault are the very foundations of globalisation — the free movement of capital, goods and services, and labour — that would be destroyed by this three-pronged attack from protectionism, economic patriotism and anti-immigrant sentiment.

The world is being given a wake-up call about the dangers of retreating back into the kind of beggar-thy-neighbour, heads-in-the-sand protectionism that set nation against nation in the 1930s.

So our first task, indeed our responsibility as economic leaders, is to demonstrate to an insecure and uncertain public that either defending a status quo that cannot endure, or retreating into protectionism is a false prospectus.'