Globalization and Progressive Economic Policy Review

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Globalization and Progressive Economic Policy ReviewIn this excellent collection, 37 contributors from around the world study the World Bank, the IMF, the multinational corporations, movements of capital, goods and labour, and the possibilities of national economic renewal. David Felix points out that the financial liberalisation of recent decades has led to slower growth of output, investment and productivity. Mehrene Larudee observes that Mexico, for instance, grew 6% a year with the industrialisation and protectionist policies of 1951-81; when it joined NAFTA, the economy, jobs and wages all shrank. Ha-joon Chang suggests that workers in multinational corporations have a far stronger bargaining position than employers make out. These firms often threaten to move, but rarely do. They have high sunk costs in physical plant, infrastructure, subcontracted production networks and services, skilled workers, local knowledge. Workers can take control of our workplaces, industries and countries. We can impose capital controls and reinvest the wealth we create in productive industry. `Globalisation', like the idea of God, is a ghost to frighten us. Eban Goodstein proves that protecting the environment does not destroy jobs, contrary to employer propaganda. Gregory DeFreitas argues against an open borders policy, while also opposing racial biases in immigration policy. He notes, "emigration represents a subsidy to the receiving country from the nation that trained them, as well as a loss of valuable talents to their homeland."
Arthur McEwan sums up the book's findings: "The neo-liberal regime that is being imposed on the world economy by the Bretton Woods institutions, the US government and other powerful public and private actors is doing a great deal of damage. It is a regime that harms people in all sorts of ways in the name of economic growth, but it does not even do very well at providing economic growth. The reign of neo-liberalism has not come about as some inevitable historical process, but has been actively constructed by the powerful actors that gain from its establishment. Alternatives exist, and the alternatives tend to work better."Globalization and Progressive Economic Policy Overview

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