About Globalization

The defining agenda motivating the current policies governing economic globalization, known generally as the "Washington Consensus," is to integrate the world’s national economies into a single borderless global economy in which goods, services, and capital can flow freely in response to market forces with minimal governmental interference. Based on the premises of increased efficiency and the rule of law, the current policies seek the privatization of public services and assets, as well as strengthened safeguards for investors and private property. The processes of globalization are viewed as the result of inevitable and irreversible historical forces driving a powerful engine of technological innovation and economic growth.

This Washington Consensus is increasingly being challenged, most recently and dramatically in Genoa, Italy at the G8 Summit. These protests focused world attention on the fact that globalization is a deeply complex phenomenon, with both winners and losers.

The concerns rising to public attention and generating widespread debate cluster around the following basic issues:

Widening Gap Between Rich and Poor: while the market is an effective instrument for the generation of wealth, it is far less effective in equitably distributing that wealth, leading to a persistent and widening gap between the rich and the poor.

Exploitation of Labor: while goods, services, and capital in the global economy can move quickly, labor cannot, thus leading to acute social dislocation and critical concerns about worker safety, human rights, and the general definition of "decent" work.

Lack of Transparency and Democratic Accountability: while democratic institutions and processes exist at national levels, there seems to be a lack of commitment by democratic nations to institutionalize democratic principles and practices in institutions responsible for the management of the global system.

Erosion of Traditional Values and the Right of Local Self-Determination: the homogenization and commercialization of culture through the unregulated expansion of markets challenge the ability of societies to freely choose and protect their traditional cultures and the development of values and norms consistent with their history and religious ethic.

Environmental Degradation: the commitment of world governments to enhanced trade is not matched by a similar commitment to protect the environment, which has led to an unprecedented and potentially catastrophic degradation of the biosphere.

Rising Tide of Civil Strife and Violence: economic globalization has often exacerbated rather than ameliorated social disequilibrium, giving rise to civil wars, ethnic conflict, refugee migrations, and militarism in many parts of the world.

In essence, the critics of the current policies and trends of globalization assert that to be socially effective, market economics must operate within a democratic framework of rules and regulations. Creating real wealth, to the general benefit of the whole society, requires strong public policy frameworks that align the private interests of market players with the public need for equity, security, environmental sustainability, and the integrity of democratic institutions.

As the debate around globalization intensifies, the prevailing international institutions, most especially the World Trade Organization, the World Bank, and the International Monetary Fund, are facing increased scrutiny and calls for reform. There are also calls for the creation of new institutions at the global level. But while there is a growing consensus that reform and perhaps new mechanisms of governance are needed, there is extremely limited sustained engagement between the various sides of the debate and thus a paucity of constructive policy alternatives, realistic solutions, and collaborative actions.

HOME | BACK