Globalization Controversy

The topic of globalization often hashes out polarizing views from different individuals alike. To its opponents globalization has led to corruption, manipulation and greed. To its advocates globalization represents opportunity, economic progress and higher standards of living. Jagdish Bhagwati is a fervent believer that free trade benefits all nations, while realizing that sensible policies are necessary in order to reduce the possibility of such downsides from occurring (Bhagwati P. 32). Bhagwati explains to the reader however that there is an anti-globalization movement. Whose antipathy towards globalization is misplaced due to many, particularly the youth, who believe it cannot solve the world’s injustices and who cannot intellectually cope

with the outcries across the world (Bhagwati P. 15). The anti-globalization movement claims that globalization has increased poverty, deteriorated the environment, and caused more child labor and harms labor practices. Bhagwati argues that globalization actually improves the issues listed above.

In the case of poverty Bhagwati argues that trade boosts economic growth, which in turn lowers poverty. Bhagwati explains to the reader however that the strategy to raise incomes and standards of living cannot all be tied to growth altogether (Bhagwati P. 54). Bhagwati makes the case that the government must step in to invest in infrastructure and attract foreign funds in order to increase capital formation and employment. Bhagwati also makes the case that globalization is easing child labor, not expanding it. Bhagwati cites evidence from Vietnam when the country liberalized its exports in 1989. Statistics from Vietnam indicate that a third of the children work and the households that benefited from extra income on rice substituted these extra earnings from their children’s work (Bhagwati P. 71). In fact according to Bhagwati laws such when the U.S. Child Labor Deterrence Act, caused many children to fall into prostitution in Bangledesh when garment workers feared that the law would hurt business.