Book in brief: The Globalization Paradox
The Globalization Paradox by Dani Rodrik
Why has globalisation in finance and trade occurred and is it always for the good? Economist Dani Rodrik argues that it is not always for the best, with the fundamental issue being the 'trilemma' he sees in globalisation. Here is a brief synopsis of his argument:
1. Financial globalisation has long been without constraints. Economists have followed the mantra 'Government intervention is ineffective'
2. The financial crisis proved this is misguided. We cannot simultaneously pursue democracy, national self-determination and economic globalisation.
3. For globalisation to bring economic benefits throughout society, democracies must be strengthened, regulations must be in place and enterprise must be encouraged, too.
4. One of the three prongs to this central paradox has to give, if the others are to be pursued.
5. If over-expanding markets impinge upon national wellbeing, they should be stopped.
6. A balance between markets and institutions, which takes into account fairness and sustainability as well as growth, is needed.