Jeffrey SachsBack to OpinionJeffrey Sachs

Globalization’s government

NEW YORK – We live in an era in which the most important forces affecting every economy are global, not local. What happens “abroad” – in China, India, and elsewhere – powerfully affects even an economy as large as the United States.

Economic globalization has, of course, produced some large benefits for the world, including the rapid spread of advanced technologies such as the Internet and mobile telephony. It has also reduced poverty sharply in many emerging economies – indeed, for this reason alone, the world economy needs to remain open and interconnected.

Yet globalization has also created major problems that need to be addressed. First, it has increased the scope for tax evasion, owing to a rapid proliferation of tax havens around the world. Multinational companies have many more opportunities than before to dodge their fair and efficient share of taxation.

Moreover, globalization has created losers as well as winners. In high-income countries, notably the US, Europe, and Japan, the biggest losers are workers who lack the education to compete effectively with low-paid workers in developing countries. Hardest hit are workers in rich countries who lack a college education. Such workers have lost jobs by the millions. Those who have kept their jobs have seen their wages stagnate or decline.

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Comments

  • http://twitter.com/WORLDDEBT GlobalDebt

    Because it is global, the problem of debt should be handled globally.  One way only:  Global Debt Realignment.  Google it if you are unaware of it.

  • http://twitter.com/WORLDDEBT GlobalDebt

    http://www.debtrealignment.com   Realign globally the debt (debits) as assets to the lender’s accounts.  While at it, realign all currencies globally, and nationally all mortgages.  The world then progresses.  Millions are put back to work.  

  • AdamSmith

    “Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power”.
    - Benito Mussolini

    Now, Mr. Sachs, consider this:

     41 of 46 Chinese Fortune 500 companies are State Owned Enterprises (CNN); contrary to reports of divestiture, they are actually consolidating control of key industries: rare earth minerals mining, solar power manufacturing; automobiles; in short REAL WEALTH PRODUCTION. How? The unelected WTO allows (prefers) every global corporation wishing to SELL to China to also divulge technology and MAKE in China. Van Jones remarked recently that while the U.S. government has spent $2.5 billion on solar power production, China has spent $41 billion

    Consider the waste involved with petroleum fueled shipping half way around the world just to avoid Democratic laws. You can find a silver lining in our current economy, hell, historians can find a silver lining in The Bubonic Plague. I can’t.

    I guess I’m just not a “big picture” person.

  • AdamSmith

    The London Telegraph-China admits organs removed from prisoners for transplants

    China has admitted that two-thirds of all organs used in transplants in the country are taken from executed prisoners.

    By Peter Foster in Beijing

    3:30PM BST 26 Aug 2009 (Google it)I guess you could call these prisoners some of the “losers” in this economy, along with countless dissidents, journalists, labor organizers, etc 

  • Bruce Watson

    What we dont need is globalisation wg=hich has as its goal a single world government. Such a happening would usher in a dictatorship unequalled in history.     What we do need is a gathering of nations under a Forum concept where no nation has power of veto and from which attendee nations retain their sovereignty and by choice legislate in their own countries the solution to issues that countries parliaments agree upon.  The last thing this planet needs is an overarching level of governmental hierarchy issuing directives from more expensive burocracies.  When nations can’t work together whilst maintaining their sovereignty they best stay in their own back yard.

  • harold

    i got a telephone call yesterday from the NRA.  apparently  obama and his cast of socialists want to abolish the US Const 2nd Amend, and give the un control to choose which US citizens can own guns, otherwise all private ownership and use of firearms will be banned in the US and all countries except as permitted by the UN’s approval.  gee Obama is setting the link in place for us to be under WG.

  • harold

    http://home.nra.org/#/nranews  see the video entitled the fast and furious

  • AfterForever

    Big money has been packing its bags and sending them overseas for years now (jobs, investments, etc.) and it will soon be gone. There are greener pastures in China, India and Brazil.

    America needs big money – but big money no longer needs America.

    Globalization can not be stopped. It is much too late for that.

  • AfterForever

    It is not government that you should be worried about but that which runs the government (all governments) from the shadows.

    The real enemy is not governments. Nor is it a country or person. It is an entity. A vast and powerful entity. More powerful than all the countries of the world combined.

    An entity that controls everything from the shadows and impacts every corner of the globe. And it does so without military might.

    It is a multi-headed beast with many identities and facades. It has one goal – to make money.

    Big money.

  • http://pulse.yahoo.com/_Z2Q25IBLI5K6FSO6HLSKOGHZKE Plunger

    I just turned 58 and when I was a young man in the early 80′s Americans STILL RETIRED from WHEREVER it was they worked ie Dunkin’ Donuts, Sears, Western Auto, GM, etc. There was NO 401K because it hadn’t been “invented” yet AND because there was NO NEED as you retired and the CORPORATION PAID your retirement. But then came the reign of Uncle Ronnie who said “Mommy, we’ll throw BILLIONS at the RICH of America using basically BAD CHECKS drawn on the US Taxpayers and if something happens to fall out of their STUFFED pockets will shall call it Trickle Down Economics!” Shortly thereafter the 401K was born to remove CORPORATE responsibility for THEIR workers’ retirement, AND Uncle Ronnie began a campaign to DEREGULATE the US banks AND to REMOVE ALL DUTIES and TARIFFS on goods made outside the US, what would be called NAFTA and what would later be signed into law by Clinton.

  • Anonymous

    Shouldn’t you be barricaded inside your trailer with a shotgun?

  • Jim59

    You can not blame Regan.
    GE invented the 401k for it’s empolyees and now Obama wants to take that money from you and let the goverment hand you money.
    We need less Goverment and less regulations.
    And I work for a living I am not rich.
    But I don’t want to be a Communist nor under a Dictator

  • Anonymous

    We need to take this one step farther.

    READ THIS

    http://www.thedebtrealignmentinitiative.com/

    It make so much sense and is a very simple premise.