1. Globalization, Security and Well-Being 1

2. Today, Wednesday, 05 May 2013 M Wolf, The market crosses borders RH Wade, Is globalization reducing poverty andinequality? P Dasgupta, Wealth and well-being 3. 1. M Wolf, The market crossesborders Globalization (economic integration) is good This is evident in three aspects of globalization: Trade flows Capital flows People flows 4. 1. M Wolf, The market crossesborders Trade flows Trade enables exploitation of economies of scale andcomparative advantage Trade promotes competition and productivity growth Trade brings intellectual and moral benefits:e.g., democracy, peace, stability, less dictatorships 5. 1. M Wolf, The market crossesborders Capital flows/mobility It brings personal freedom (peoples ability to exporttheir capital) Limits governments ability to steal peoples capital Enables people and companies to diversify risks andbenefits Enables capital to float to developing countries: e.g.developing countries benefit; they get access toknowledge via DFI. 6. 1. M Wolf, The market crossesborders Flows of people Free movement of people, free trade of labourservices, reduces poverty BUT.. 7. 2. RH Wade, Is globalization reducingpoverty and inequality? Questioning standard neoliberal arguments aboutglobalization namely, that: Distribution of income between the worlds people hasbecome more equal The number of people living in poverty declined Economic integration/globalization has made itpossible for countries to enjoy their comparativeadvantages Free trade has improve the living conditions indeveloping countries 8. 2. RH Wade, Is globalization reducingpoverty and inequality? Contrary to the neoliberal opinion, poverty has notdeclined: The growth rate of the world GDP declined WB statistics have too many errors (unreliable) Stats for China and India fraught with guesswork WB has changed methodologies and formulas, whichchanges the results Other measures of poverty show poverty increasingover time 9. 2. RH Wade, Is globalization reducingpoverty and inequality? Contrary to the neoliberal opinion, globalization isntreally that great: Countries can do more trade and still remain poor Liberalization does not increase trade and development Neoliberalism confuses trade and trade policy 10. 3. P Dasgupta, Wealth and well-being Current measures of well-being are not good enough:e.g., GDP, HDI, etc. Natural capital is not reflected in the measures of well-being: Commercial forests, oil and minerals, theatmosphere, water resources, forests as agents of carbonsequestration, fisheries, air and waterpollutants, soil, biodiversity. Cost of natural capital (human capital, too) not includedin the calculations of GDP or HDI 11. 3. P Dasgupta, Wealth and well-being Globalization discourse excludes the globalization ofenvironmental degradation: Ozone layer; erosion; rising sea levels; floods, faminesand storms; Chernobil; Japans Tsunami; etc. Maldives Island: Environmental refugees