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Why Globalization Works
Martin Wolf
Yale University Press
New Haven, CT
2004
Keywords Martin Wolf, Globalization, Economics, Philosophy, Review
Review DOI 10.1108/01443580510611065
The onslaught of globalization
In his recent book, Martin Wolf, chief economic commentator for the Financial Times, attempts to prove that globalization is not only the most viable means towards economic prosperity, but is an inevitable outcome dictated by the course of history. The book does not really argue in defense of globalization, as much as it attempts to build a strong case for why increased global integration will and must occur. In this respect it differs from other books on the shelf, Bhagwati's In Defense of Globalization, for example, which tends to make their case for globalization by defending it against other economic paradigms. Starting from such a vantage point, Wolf quite naturally argues that the world needs to embrace globalization, not resist it.
People have always had a strong tendency to interact with each other, both as individuals, and as nations. History is rife with examples of exchange and spread of ideas, technology and goods through travel and trade. In effect, by virtue of being social creatures, we have always pursued globalization in one form or another. The "modern" market, Wolf believes, is just the fruition of this inherent drive. The belief is that the global market economy is just a more advanced form of integration. It is better than previous varieties of globalization, because it propels and sustains growth, and provides greater opportunities to strive for what we desire in life. Hence, for all intents and purposes the idea behind modern globalization is nothing new. The current wave of globalization only differs in its speed from previous examples of economic integration. Therefore, the claim is made that the movement towards globalization is irreversible, at least in the long run.
An attempt is made to settle the globalization-income inequality issue. Wolf claims that in all probability global inequality among individuals has decreased in recent decades, as has and the number of people living in extreme poverty. What is certain is that human welfare (as measured by indicators including life expectancy, infant mortality, literacy, hunger, fertility, incidence of child...