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A first step for the global poor – shatter six myths

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Globalization is hurting the poor.

By what measure? Agricultural reform and liberalized trade and investment have lifted nearly half a billion people out of extreme poverty in China and India, supporting their survival.

No doubt global competition has caused major upheaval, which can hit the poor especially hard. That should lead to better efforts to buffer the last billion from globalization's shocks – but we shouldn't deprive them of its abundant benefits.

Trade invariably generates mutual gains. Unfortunately, given the win-lose quality of political brawls, many don't believe in mutual gains, assuming that one country's wealth must be explained by another's exploitation. This breeds cynicism about globalization.

For anyone on the edge of survival, the real risk isn't globalization. It's isolation. The most sustainable contribution that developing nations can bring to world markets is their labor. It produces far more widely felt economic benefits than extraction of natural resources such as oil. But with labor capacity in eastern and central Asia growing so dramatically, potential workers in the very poorest nations risk being shut out of world labor markets for another two centuries.

None of this is to suggest that globalization's negative effects should go unchecked. Trade protesters aptly call out Western hypocrisies, corruption, and exploitation. They help governments make rules to protect the weak. But developing nations that grow their economies through global trade are able to afford more mature regulatory regimes, enforcement of decent labor standards, and better environmental technology. Cutting off trade is a death sentence.

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