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The Globalization Paradox Paperback – 17 May 2012

4.5 out of 5 stars 11 customer reviews

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Product details

  • Paperback: 368 pages
  • Publisher: Oxford University Press (17 May 2012)
  • Language: English
  • ISBN-10: 019965252X
  • ISBN-13: 978-0199652525
  • Product Dimensions: 15.2 x 2.1 x 23.4 cm
  • Average Customer Review: 4.5 out of 5 stars  See all reviews (11 customer reviews)
  • Amazon Bestsellers Rank: 67,591 in Books (See Top 100 in Books)
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Review

Review from previous edition This book takes on the biggest issue of our time - globalization - and eloquently enlarges the debate about the extent and limits of global cooperation (Gordon Brown, MP)

In this powerfully argued book, Dani Rodrik makes the case for country-specific paths to economic development and saner, more sustainable forms of growth. A provocative look at the excesses of hyper-globalization, The Globalization Paradox should be required reading for those who seek to prevent the financial crises and unfair trade practices that feed the backlash against open markets (Nouriel Roubini, co-author of Crisis Economics: A Crash Course in the Future of Finance)

Dani Rodrik may be globalization's most prominent - and most thoughtful - gadfly. In The Globalization Paradox, he wonders aloud whether extreme globalization undermines democracy - and vice-versa. Read it and you'll wonder, too (Alan S. Blinder, former Vice Chairman of the Board of Governors of the U.S. Federal Reserve)

His excellent new book is a sequel to an earlier book about the often disruptive impact of international trade on national labor markets and social policies. The new book develops and extends this theme to include financial globalization... Rodrik concludes by considering how the world economy might be reformed (Robert Rowthorn, Finance and Development)

His message is nuanced and rigorous, drawing on history, logic and the latest economic data, he manages to convey it in simple, powerful prose tht any reader can follow (Steven Pearlstein, The Washington Post)

Simply the best recent treatment of the globalization dilemma. . . he gives us nothing less than a general theory of globalization, development, democracy, and the state. The book provides the pleasure of following a thoughtful, critical mind working through a complex puzzle. Rodrik writes in highly friendly and nontechnical prose, blending a wide-ranging knowledge of economic history and politics and a gentle, occasionally incredulous, skepticism about the narrow and distorting lens of his fellow economists (Robert Kuttner, The American Prospect)

About the Author

Dani Rodrik is one of the world's top economists, well known for his original and prescient analyses of globalization and economic development. His ideas on improving national and global economic policies-in the fields of trade, industry, finance, and growth-have been highly influential among economists and policy makers alike. His 1997 book Has Globalization Gone Too Far? was called one of the decade's best economics books in Business Week. Rodrik's syndicated monthly columns for the Project Syndicate network are published in scores of newspapers around the world. His blog, "Unconventional thoughts on economic development and globalization" is widely read and frequently cited in newspapers and magazines such as The New York Times and The Economist. In 2007, he was recognized as the first recipient of the prestigious Albert O. Hirschman award of the Social Science Research Council (New York).



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Format: Hardcover Verified Purchase
Dani Rodriks's new book is a very interesting - and rather alarming - look at the current state of globalization. His basic proposition is that we are currently experiencing the:

'fundamental political trilemma of the world economy: we cannot simultaneously pursue democracy, national determination, and economic globalization. If we want to push globalization further, we have to give up either the nation state or democratic politics. If we want to maintain and deepen democracy, we have to choose between the nation state and international economic integration. And if we want to keep the nation state and self-determination, we have to choose between deepening democracy and deepening globalization. Our troubles have their roots in our reluctance to face up to these ineluctable choices.' (Introduction P XVII-XIX)

Over the course of the following twelve chapters, Rodrik gives us a history of globalization and free trade (pre- and post-World War 1), a consideration of the economic theories and policies that have affected the responses to them (Keynes, Bretton Woods, GATT, WTO, the 'Washington Consensus' etc.) and a look at specific national responses to globalization (South Korea, China, Argentina, South Africa amongst others), before returning to and expanding on his theme of the 'Political Trilemma' (Chapter 9). Finally, he makes a number of proposals for the design of 'Capitalism 3.0' (Chapter 11) before looking forward to 'A Sane Globalization' (Chapter 12).

Initially, Rodrik examines the relationship between states and markets. He suggests that '...markets are not self-creating, self-regulating, self-stabilizing, or self-legitimizing.
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Format: Hardcover Verified Purchase
This is an extroardinarily interesting book. Dani Rodrik is not the world's greatest writer, but all the same usefully carries you into areas of economics which aren't well treated in the standard texts (or in the standard post-crisis rants). Despite the use of a perfectly conventional economic-tool box his positions seem better grounded in the real world of globalization than most. The themes of the various chapters are well-bunched.

However I do have a complaint. Pages began falling out of my copy on the first day I began reading it. Oxford University Press books aren't perfect bound, i.e., pages aren't held together by a threaded binding but weakly attached by glue. Over time OUP book bindings crack as the glue stiffens and ages, as has happened to a second-hand copy of Leslek Kolakowski I've just had delivered.

Also, the index doesn't refer to the original reference pages, making references hard to follow up.

Also, there's no bibliography.

Sloppy work by Oxford University Press.

I've given it 5 stars. It seems unfair to penalize authors for the sins of their publishers. But really, it would be best if writers didn't accept offers from OUP.
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Format: Hardcover
Dani Rodrik, Professor of International Political Economy at Harvard University, argues against financial globalisation and for countries to put their people first through industrial policy. He points out that the Bretton Woods system was built on the belief that countries' domestic needs would and should trump the global economy's demands.

Countries that rely on international finance do poorly. He writes, "The benefits of globalisation come to those who invest in domestic social capabilities. These investments in turn require some degree of support for domestic firms - protective tariffs, subsidies, undervalued currencies, cheap funding, and other kinds of government assistance ... The deep integration model of globalisation overlooks this imperative. By restricting in the name of freer trade the scope for industrial policies needed to restructure and diversify national economies, it undercuts globalisation as a positive force for development."

As Rodrik notes, "National democracy and deep globalisation are incompatible." Governments cannot meet both the demands of foreign creditors and the needs of their own people.

He argues against trade fundamentalism, as expressed in World Trade Organization rules and in World Bank and IMF practice. Fixed exchange rates and capital mobility both enslave countries to other countries' monetary policies. Opening up to foreign economic intervention means facing greater risks, and less growth. More capital inflows do not mean more growth.

In 1991, Argentina's Convertibility Law tied the peso to the dollar, strangling the economy, just as the euro is doing to Greece, Portugal, Cyprus, Italy and Spain.
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Format: Hardcover Verified Purchase
In this excellent book, Dani Rodrik, professor of International Political Economy at Harvard, argues that the "World Isn't Flat", and that it is in fact rather lumpy, and he goes on to show that this is its natural state, rather the bland homogenized version favoured in neo-liberalist arguments.

He further links the "lumpiness" to the essential characteristics of individual nations derived from their history, their stage of economic development, their sociological background etc.

A key point of the book is that this "lumpiness" is in no way bad, it is only the unique starting point of each county as it moves towards the future and chooses policies that best suit its individual needs. He uses the well known Hedgehog and Fox metaphor, advocating the flexibility of the Fox rather than the single one size fits all action of the Hedgehog (unquestioning liberal free market in all things), showing that the remarkable development of Asia has been the result of a "Fox" strategy in which governments have used the global market to gain technology, skills and happily used trade subsidies and protection to aid developing industries. This would apply to Japan, Korea, Taiwan and China with Rodik clearly making the point that the unprecedented escape from poverty of these countries was necessarily based on an "a la carte" approach to globalization and the liberal free market.

If Asian governments had adopted in their development stage the complete liberal free market package with its intellectual property rules, floating exchange rates, lack of tariff barriers and blocking of technology transfer they could have expected to remain offshore sources of cheap labour, which may after all have been the intent of the original globalization project.
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