One of the problems with tackling globalization and its contents from the positive side is that there is a seemingly disproportionate lack of books that take up the cudgels for it. For some reason, to take the anti-globalization or anti-trade policy is the "sexier", more sensitive, and more "nationalistic" position to take. Thus, the seeming popularity of Joseph Stiglitz, Naomi Klein, Walden Bello, and - just recently - the Asian Catholic Bishops. However, there are some books that do take up the perhaps unfashionable view that globalization and trade is indeed a force for good and, if managed properly, can be a way out of poverty for a lot of developing countries.
Jagdish Bhagwati's "In Defence of Globalisation" is one such book. Mr. Bhagwati is an eminent scholar, author of numerous important works, some with Robert Hudec (one of the acknowledged fathers of international economic law). "In Defence of Globalisation" is one designed for the layman: free of statistics, quantitative economic analysis, and is of simple ambitions. It strives admirably merely to educate the layman on the issues surrounding globalization and trade, and answers some of the more specious arguments raised by its detractors.
Thus, far from worsening poverty, destroying cultures, abusing the environment, and weakening democracy, Mr. Bhagwati shows the beneficial effects of globalization and the misleading premises with which globalization's critics base their arguments.
For economics with a lighter touch and, more importantly, a coherent voice, Charles Wheelan's "Naked Economist" is a wonder. In simple, articulate, and sometimes folksy manner, Mr. Wheelan explains why the United States' Federal Reserve raises interest rates (which can help us understand, in turn, the workings of our own Bangko Sentral). It tackles the basics regarding inflation, outsourcing, and capital markets. Devoid of formality, the book is nevertheless thoughtful in its analysis and precise in its arguments. The book, like Mr. Bhagwati's, is free from charts and quantitative analysis, instead resorting to simple and articulate explanations that sometimes serve as a defense not only of the dismal science but also of globalization and trade. Along the way, Mr. Wheelan, a former correspondent for The Economist, may even make you want to start reading The Economist for fun.
From the other end of the spectrum is "The Wealth and Poverty of Nations" by David Landes. Obviously using Adam Smith's the "Wealth of Nations" as its inspiration, Mr. Landes seeks to tackle the question as to why certain countries or economies become rich and others poor. Mr. Landes's book places a lot of stress on geographical and cultural arguments as to why production, manufacturing, industrialization, etc. have resided so efficiently in some countries and not so in others. The book is quite eurocentric in tone, bluntly noting the great advantage that European civilizations have over others. Some of Mr. Landes's arguments seem to rest on simple differences in climate (shades of Rizal here), stating that due to the hardy conditions in less hospitable climes, resourcefulness and inventiveness was fostered, with the climate ironically later on encouraging higher standards of living for the residents therein. Though arguable in specific areas, the overall theme of the book: that hard work, inventiveness, and resourcefulness carry the day is something so basic and powerful that it should not be overlooked (and for which should give us hope).
And then finally there is "Open World".
Philippe Legrain was only 28 when he wrote the book and has turned out to be one of the more passionate and articulate defenders of globalization and liberalized trade. Mr. Legrain was formerly a writer for The Economist and an adviser to the WTO's former director-general Mike Moore.
Like Mr. Bhagwati, Mr. Legrain has as his intended audience the layman and addresses their concerns regarding globalization's effects on the poor, environment, culture, and developing countries. Rather than a world controlled by multinationals and a "dictatorial" WTO, Mr. Legrain paints a picture of a world where control is still in the hands of individuals. Thus, "the claims that companies are taking over the world, that global competition prevents governments from taxing, spending and regulating, that globalization harms the poor, and that our democracy is at risk are not only untrue, they are also dangerous. "
More importantly, Mr. Legrain drives home the point that should give heart to those uncertain of Philippine businesses' place in the global trading environment: "It is time to move the debate about globalization forward. The important question is what kind of globalization we want. This presupposes two things: first, that we are still free to determine our future - as individuals, as groups of like-minded people and through the power of our elected governments; and second, that we can to a large extent pick and choose between the bits of globalization we like and those we don't ... Our challenge is to grasp the opportunities that globalization offers while taking the sting out of its threats." For "once you make the crucial step and accept that we can still shape our destiny, globalization's opportunities are all the more apparent, its threats suddenly less menacing. The future of our open world is in our hands - we are free to make the best of it or to waste it."
As we previously pointed out, trade policy is merely a means to an end and what worked for the US, Korea, Malaysia, or Singapore may not necessarily work for us. Though reliance on the preponderance of evidence regarding the benefits of trade is good, one must be cautious that such reliance does not translate to ideological devotion (note that not even the WTO agreements require countries to engage in "free trade"). The opposing extreme, protectionism, has been proven to be no good either. What the Philippines needs is an open, transparent, and thoughtful discussion between and among the government and the private sector on what would be the right mix that would serve national interest. Hopefully, the above-mentioned books could give fuel to and provide further ideas and balance to such national debate.
(The author is an international trade and customs consultant within the Worldtrade Management Services Group of PricewaterhouseCoopers and a professorial lecturer on international trade law. Contact: jeremy.i.gatdula @ph.pwcglobal.com).BusinessWorld
