schroders globalization paradox, Dani Rodrik

Question 1

how to respond to globalization challenges

Answer 1

globalization works best when not pushed too far; allows political leaders to maintain adequate policymaking space
-hyperglobalization means that things citizens expect from their states (like finance and product safety regulations, redistribution, and a fair tax regime) will be undermined

Question 2

history of attempts to work w globalization

Answer 2

“golden straitjacket” method, first, before WW2. Tried to make transnational set of rules for free market flow, but limited ability of gov’ts to control their countries (ill suited for demands of democracy)
bretton-woods system: more successful at maximizing democratic legitimacy; allowed for development of welfare states and for states to make counter measures when necessary. But it was an incomplete version. But china is an example showing that the most successful countries in globalization are ones that stuck more to bretton-woods style rather than 100% open
he offers 3rd possibility: system of transnational governance that could bypass national laws

Question 3

eurozone

Answer 3

problem is that there’s now economic and political differences; same currency but diff governing causes problems. IE germany having to deal w greece

Question 4

keys for success in global economy

Answer 4

1) low debt; high debt leads to policymaking hostage to financial markets, crowds out investment, eventually requires higher taxation
2) countries with larger internal markets better off, bc external trade can be unstable
3) robust democracy, provides stable platform for conflict resolution
4) sound relations between businesses and governments

Question 5

good outcome, according to rodrik

Answer 5

for the trade-offs between globalization, national sovereignty and democratic legitimacy to be recognized explicitly; allows for development of managed form of globalization

Question 6

bad outcome, according to rodrik

Answer 6

if policymakers continue to avoid confronting the ‘trilemma’ and tried to maintain business as usual, relying on inadequate improvements to global governance and coordination

Question 7

ugly outcome

Answer 7

abrupt end to globalization and a return instead to the protectionism of the 1930s

Question 8

overemphasizing cooperation of govts in globalization

Answer 8

done too much- most of the things we need for it to work well are things countries need for their own good, like canada and sweden- you can maintain your own independent fiscal policies, you still have to have your shock absorbers