Globalization and Its Enemies Book - MIT Press Publication | Political Science & International Relations | Academic Study & Research Resource

I have liked Daniel Cohen's work since 1996 when I first read his paper "Tests of the `convergence hypothesis': some further results" published in the Journal of Economic Growth (September). So, I came to the current book with a positive preconception - and I am glad to say I was not disappointed.The provocative title of the book is misleading to the extent it conveys a black and white message: globalization on one side; its enemies on the other. Not so. The central point is an argument against the false notion that the wealth and income disparities between the West and the Third World resulted from either religious differences or exploiter-exploited relationships between the two regions. The book points out that what some have interpreted as the result of evildoing on the part of the West are simply impacts of unintended consequences of technology. The book uses an example from Algeria where a technology like DDT intended for mosquito eradication and therefore malaria and typhoid elimination had the indirect effect of allowing a population growth which needed more food, which needed more land and other resources to grow the food, and in the end resulted in inequalities and reduced happiness. The example makes clear that the consequences of globalization "transcend the simple categories of Good and Evil" (pp. 2-3).Globalization is not a monolithic and one-time phenomenon; instead it is a sequential and systematic Westernization of the globe that began with the "discovery" of America in the 15th century, was expanded by the English merchants in the 18th century, and has picked up pace to-date. During its early phases globalization brought to non-Western regions both cures (e.g., medicine) and infections (e.g. smallpox), but it is not so clear that all that was intentional. What is clear is that globalization dashed expectations in that many ended up disappointed that after voluntarily abandoning their cultures for Western civilization, they soon discovered, for example, that "far from delivering the free entry and transparency dreamed of by economists, the socalled information society creates its own barriers, replacing those that technology breaks down. [Thus], the enemies of globalization are arrayed in two opposed camps. One camp ... is that of the Mullahs who denounce the Westernization of the world. The other camp is that of [those] who fight the exploitation of workers by capital." (p. 5). However, the two arrays are simplifications because "to understand the current act of globalization within the confines of religion or exploitation is to miss globalization's singularity" (p. 6). The [] added.Following Jared Diamond's Guns, Germs, and Steel, among others, Chapter 1 debunks explanations of world disparities in terms of pre-destinies such as genetics and geographies. I detect some hedging here, but the book finally settles on the importance of "initial conditions". For example, countries with large amounts of land can accommodate many people who invent more products and services, which makes endogenous growth both possible and sustainable.Chapter 2 and 3 sketch the phases of globalization and conclude that globalization has become increasingly "immobile". It is no longer just a function of the international division of labor. The international division of labor can lead to unequal terms of trade in which, technically speaking, the Northern working class exploits the Southern class but blame ends up on the feet of international capital. The current globalization act has additional aspects like global equality of tastes and preferences along with disappearing distance and corresponding costs. Hence, winners in this phase are those at or closest to the center of the economic activity in terms of both production and consumption.How did the observed differences arise? The answer is not clear here. It is clear, however, that it is not because of the "clash of civilizations". The clash of civilization is a myth based on the fact that there has always been active cross-fertilization and learning among world cultures. Civilizations that crashed are those that closed themselves off from others and withdrew into self-imposed isolation in either proud contentment or loathing of foreigners. China is one good example that appears now to have learned its lesson. Another example is the "indigenous growth" model that African and Latin American countries adopted upon their independence. The new republics invested heavily in "white elephants" for which the rate of returns remain negative. I like the distinction Cohen makes between "indigenous growth" and "endogenous growth". The latter is driven by economic "levers" such as human capital, physical capital, "global efficiency", and international trade. The emphasis is appropriate because, in praising the strengths of the Japanese model many seem to ignore that endogenous aspects have dominated Japan's indigenous growth.What are the sources of the enmity toward globalization? There are many and Chapters 6 and 7 outline two. One source is that some (mostly Eroupean countries) equate globalization with empire building - American empire (Chapter 6). In some way their perspective has basis in history; after all Portugal, Spain, and England have been there and done all that. Their lesson was that empires are doomed and their longevity finite. A second and final source of enmity toward is that the benefits of globalization are tilted towards the North, while the South is under pressure from AIDS and Debt (Chapter 7). These two sources illustrate that " the problem of globalization up to now is it has altered people's expectations more than it has increased their ability to act" (p. 166). Without the ability to meet expectations, " for the majority of the poor inhabitants of our planet, globalization remains an inaccessible idea" (p. 166), and "the world will never be `just' as long as people do not have the conviction that they all contribute to discovering and molding a shared destiny" (` p169). Great job!H. V. Amavilah, AuthorModeling Income Determinants in Embedded Economies : Cross-section Applications to US Native American EconomiesISBN: 1600210465