While a tremendous degree of international economic growth came from globalization
over the past three or four decades, the inequality and corruption caused by this
globalization largely overshadows all of its financial successes. Only with stronger and
more democratic global economic governance (WTO/IMF prescriptions for national
policies, i.e. interest rates, farm subsidies, labor regulation, and social welfare) can free
trade lead to truly equitable, stable, and diverse international economic growth.
Proponents of Free Trade
Friedman “market fundamentalist” to the end
Centralized economic planning = bad; could lead to abuse and totalitarian regimes
For deregulation, limited government control; government should step back and
let the markets run themselves
Regan and Thatcher. Global liberalization, free trade,
free capital flow
Open markets would increase incomes and reduce poverty, eliminating inequality.
WTO, IMF, World Bank influenced by governments, counterproductive to free
trade. He blames these institutions, especially IMF for what happened in Mexico
and in East Asia.
Mexico: IMF claims it bailed out Mexico, but in reality it gave the money
to banks and financial institutions that loaned money to Mexico. This
created internal recession and the poor people were faced with higher
prices and reduced income
East Asia: The above caused EA Crises as banks believed that they could
invest into countries with higher interests (higher risk) but be bailed out by
Personal choice should reign supreme; would help society and economy.
Retirement savings/social security saving/prostitution/drug use/military service
should be left to the individual to decide, not the government.
present drug control = expensive , leads to corruption, fills prisons, racist
impact, destroys inner cities, wreaks havoc on misguided and vulnerable
individuals and brings death and destruction to foreign countries.
Norberg “regulation = room for corruption, free markets don’t”