Globalization Weakens World's Economy

I think it's pretty well acknowledged that globalisation means more interconnectedness and, as a result, more synchronised growth (and slowdowns) across countries. But that's very different from saying trade or globalisation is bad for global growth. The huge gains in living standards we've saw in the past couple of decades in South East Asian, Eastern Europe and China have all been trade based.

I am sorry, but that is only partially true. China grew because it learned how to exploit the international system for its own gain. And, as one living in an Eastern European nation, I must say that free trade and markets are destroying my country's economy.

Without subsidies for local farmers (which are forbidden in the EU), our products cannot compete with cheaper ones from the EU. This is forcing everybody out of work.

And please, if you reply, don't bother mentioning the long-term, "positive" effects that this will have, because nothing of the sort ever happened anywhere in the world.

Also, search Softpedia with "globalization," and read the article i wrote about free trade and African hunger a while back.

Thanks

You'll have to supply a link to your article, as it didn't come up on the search. I agree that there can be losers from globalisation, not least low skilled workers on the OECD who are seeing jobs off-shored. But saying that some groups lose if not that same as saying the whole countries or the world lose. In fact, embracing trade has helped lift many country out of poverty.

On China, the government may be manipulating it's exchange rate. But it's wrong to imply that China wins and the rest of the world loses. US consumers have benefited enormously from the flow of low cost goods from China in recent years, and standards of living have risen in the US as a result (think of all the consumer electronic products which are mainstream now but were unafordable ten years ago).

On Eastern Europe, most countries there have an income per capital (GDP per head at PPP) at least twice as high now as in 1990, in large part because of trade integration with Western Europe. Of course, if your country's agricultural sector is being hurt by the EU Common Agriculture Policy (CAP), that's dreadful. But that damage is happening because trade in agriculture isn't globalised enough, not because it's too globalised. The CAP is a clear trade restriction - almost anti-globalisation. Most advocates of trade and globalisation would like to see it abolished. Progress in the Doha round of trade negotiations (which most would argue is a pro-globalisation process) would actually help by forcing liberalisation on the EU.