A Better Approach to Globalization

Consumers in Hungary examine motorcycles; and abandonedauto plant in Detroit

Research repeatedly demonstrates that globalization delivers prosperity through trade and jobs, new technologies and ideas, cooperation and peace. But many individuals fear open societies, change and competition. Innovative technologies, especially robotics and artificial intelligence, compound the worries and some politicians heighten the anxieties even though resisting globalization actually hampers the competitiveness of their constituents. Koichi Hamada, professor emeritus of economics at Yale University, explains the dilemma: “If political leaders advance globalization, it may worsen the income-distribution problem that in turn triggers public dissatisfaction. The government may react to the dissatisfaction by restricting trade, not only impairing growth but endangering democracy as a result. On the other hand, political leaders that slow globalization in order to avoid political consequences may sacrifice long-term objectives such as human rights and worldwide liberty.” He urges world leaders to address inequality and failure to enforce laws ranging from immigration to taxation as well as encourage foreign investments that expose communities to diversity, innovation and new comforts. – YaleGlobal