Politics and the shortsightedness on the part of some

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Politics, and the shortsightedness on the part of some of the national politicians, and the corporate and financial elites with whom they work that stop us from achieving win-win globalization, from rewriting the rule of the global economy An alternative world is possible Not the New Protectionism being pushed by Trump nor the managed globalization (managed for various vested interests in advanced countries) But rather social protection without protectionism helping protect individuals, especially the most vulnerable, without cutting ourselves off, partially or fully, from the rest of the world
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Principles of a reformed globalization 1. Globalization is a means to an end, not an end in itself The end is improving the living standards of people in all the countries of the world Too often, ends and means are confused: citizens are asked to lower their wages and accept cutbacks in job protections and government services in order to compete in the global economy
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2. Global rules are needed where there are cross-border externalities When what one country does affects others in a significant way, we need rules and referees, to prevent countries from harming others, and to encourage countries to take actions that benefit others Too little attention has been paid to tax competition the infamous race to the bottom fiscal paradises, and short-term capital flows where there are significant adverse externalities Too much attention on areas like regulatory harmonization where cross-border externalities are not as significant
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3. Governance matters Who makes the rules and enforces them that is, who makes the decisions concerning globalization matters Good governance is based on a few simple principles of representativeness, legitimacy, transparency, and accountability “Rule of law” should not written by and for corporations
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4. Government and civil society will both have to be part of the system regulating, and tempering, globalization Private sector can’t solve all the problems There has been excessive faith in markets and the private sector. The private sector created many of the central problems facing national economies and global society: inequality, environmental degradation, and instability
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5. There are social dimensions of globalization Example: provisions of international trade agreements that have denied access to life-saving generic medicines to the poor have in effect put drug company profits above the value of life
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6. One-size-fits- all policies don’t work One must be especially careful in applying the same policies and rules to both developed and developing countries Developing countries are different from developed countries. They are poorer, and they need to close the resource and knowledge gap that separates them from more advanced countries Example: Excessive harmonization of intellectual property regimes. The IPR regimes appropriate for developing countries may differ from those appropriate for a developed country
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