Product Description

A bestseller in hardback, this book offers a powerful defence of the global market economy. Martin Wolf explains how globalization works, critiques the charges against it, argues that the biggest obstacle to global economic progress has been the failure not of the market but of governments, and offers a realistic scenario for economic internationalism in the post-9/11 age. For this paperback edition, Wolf provides a new introduction to update the debate.

Product Details

• Amazon Sales Rank: #17216 in Books
• Published on: 2005-02-04
• Number of items: 1
• Binding: Paperback
• 416 pages

Economist
"Splendid ... The definitive treatment of the subject, and an absorbing read."

Wall Street Journal
"A wealth of material on every page."

Bruce Bartlett, Wall Street Journal
"Accessible and clearly argued ... A wealth of material on every page."

Customer Reviews

the great power of arguments
Quite often I am sad when I see the "topics" being discussed by superficial czech politicians. No wonder that we still lack stable government - more than half the year after the election. I would like to fervently recommend this great book to all politicians, especially to self-proclaimed economic experts whose "insightful" opinions are widely spreaded. It's highest time to launch the serious discussion over serious matters. It's clear that not everyone would agree with the well-argumented conclusions present in this book, but it could and should serve as ideal guideline for subsequent battle of values. The book can be also read as perfect tool for removing of widely shared but absolutely not rightful myths concerning the globalization and free transparent economy. You can hardly find better defence of open market, so often being subjected to savage assaults led by people driven by pure populism, selfish self-interests or crazy hystery rather than worth thoughtful arguments.

Mr. President, tear down your wall.
I read this book a little after digesting Londonistan and almost as a coincidence we find both authors talking about the same thing but from differing perspectives. As one born in the baby boom years dominated by the cold war between two superpowers and living in a nanny socialist state of Great Britain, the last thirty years have been little short of revolutionary.

While Martin Wolf uses the term Globalisation to mean the breaking down of barriers around the world, to trade and the factors of production, what we are really seeing is the re-establishment of the liberal order which dominated the globe prior to the onset of the first world war. This liberal order in the traditional, classical liberal sense, is not the same as it once was but a more modern version, changed and adapted to the different political and economic realities of the present. It is an order which brings about change, usually for the better, but like any other change, has winners and losers though in general all of the world benefits.

Martin Wolf does an excellent job of making the case for globalisation, in a lucid and concise manner. Furthermore he not only makes the case for globalisation but dissects the arguements of globalisations opponents whether they be the French Attac movement or the neo-liberal turned socialist Professor John Gray or even his colleague Michael Prowse and shows them to be fallacious or based on false premises.

Mr. Wolf is no dewey eyed idealist however. He neither professes undying faith in an unfettered free market nor does he articulate the need for a strong regulatory state. He argues from a realist perspective that government with a light touch is needed in certain areas not merely to correct externalities or produce public goods but also where some degree of social welfare is required. He develops an overwhelming case of why globalisation is good for us and looks forward to the future and assesses the risks involved in it's further development.

In short this is an excellent non-technical treatment of a feature that is having an impact on all of our lives whether we notice it or not. I found in studying the text that it is of a very timely nature given the ressurgence of terror attacks throughout the world and the growing tendencies within the United States towards introversion and turning against external trading links. Combining this with the rise of a home based fundamental christianity, these developments suggest to me that the greatest threat to a resurgent international liberal order come from within the US rather than other nations. These have not been helped by the EU intransigence towards reduction of subsidies for the small minority of agricultural producers which causes so much hardship for thir world farmers.

I am not saying either that I am in wholehearted agreement with Martin Wolf's case. While I broadly agree with the thrust of his agruement I believe that the private sector and voluntary sectors could play a much greater role if the role of the organisations of the state could be more restricted and restrained.

There is a great deal to think about in this book and I think that thoughful readers will find it to be of excellent value.

Globalization endangered?

Martin Wolf is worried that the combination of anti-globalists and the ambiguous attitudes of governments towards globalisation in developed and developing countries can halt even reverse globalisation. Martin Wolf is convinced that globalisation so far has only delivered a fraction of the potential benefits and that globalisation is the only way to maintain prosperity and solve the poverty problem of the world. The book covers globalisation comprehensively. After reading the book one has a framework to be able to judge which criticisms are groundless and which ones are justified. The book concentrates on economic policies and the role of government, the impact of globalisation and the causes of that impact. The book also contains a large number of very interesting statistical tables and charts to illustrate conclusions and recommendations.
Globalization in the context of this book refers to increases in import and export and businesses that establish factories and offices in many countries.
The author points out the enormous diversity of anti-globalist organisations and why their ideas are wrong. An important category is the Non Government Organisations (NGOs). People at large have considerable more confidence that NGOs are genuinely interested in their well-being than global companies and governments. Many if not most large businesses like GE, Shell and Unilever look at NGOs as stakeholders and engage in dialogues with NGOs like OXFAM and Greenpeace leading to benefits for both sides. NGOs are a part of the reality that businesses; governments and also economists have to accept.
Martin Wolf refers to the globalisation as "'liberal capitalism". The words "liberal" and "liberty" mean different things to different people. To some it refers to libertarians promoting the simplified Washington consensus aiming for markets without restrictions, without capital controls, minimal taxes, and a minimalist government. The problem with the word "Capitalism" is that it leads people to think of capitalists which is misleading as the main providers of capital are pension funds and other institutional investors and not individual capitalists. To avoid misunderstandings one could also refer to the system as a "global free enterprise system".
Martin Wolf points out that the cause of poverty is the wrong government policies. He writes on the final page of the book that if we want to make our world a better place, "we must not look at the failures of the market economy, but at the hypocrisy and stupidity that so often mar our politics, in both developing and developed countries". In Buddhism this "stupidity" is referred to as "ignorance" in the sense of short sightedness and ego-centeredness and not understanding causes and effects. Ignorance is a huge obstacle to progress not only at the level of governments but also at the level of businesses and people at large. This book makes an important contribution to reduce ignorance.
Martin Wolf includes Joseph Stiglitz amongst the anti-globalists. Nevertheless the list of improvements in the globalisation process that Marin Wolf presents in the chapter "How to make the world a better place" on page 316, is very similar to the criticisms of Stiglitz. Martin Wolf is crusader for globalisation and Stiglitz is a crusader for globalisation from the perspective of the developing countries. The two books of Joseph Stiglitz, "Globalization and its discontents" and, "Fair Trade For All"- "How Trade Can Promote Development" are also very useful for understanding causes and effects in globalisation.
Martin Wolf writes: "Economists are very uncomfortable with the notion of morality". That is one reason why many economists that write or make recommendations about globalisation contribute to the negative reputation of globalisation. Martin Wolf as an economist recognises the essential role of morality. He writes, "Markets also require, reward and reinforce valuable moral qualities".
In summary "Why Globalization Works" should be read by all involved in or affected by globalisation, both by those in favour and those against.