GLOBALIZATION and The Globalization Paradox: Why Global Markets, States, and Democracy Can’t Coexist.

is the process of interaction and integration among people, companies, and governments worldwide (en.m.Wikipedia.org). The authors of the articles discussed that;
Impacts of Globalization on developing and developed countries
Faire economic distribution and employment opportunities
National government demands to frame their policy aligned with international environmental laws and regulations

1. ADDIS ABABA UNIVESITY PHILOSOPHY OF INTERNATIONAL BUSINESS AND STARATEGY INTERNATIONAL BUSINESS ENVIRONMENT COURESE Article review- Individual Assignment On GLOBALIZATION Populism and economics of globalization, Globalization paradox, Globalization and its discontents, civilization the west and the rest and straight talk on trade (less globalization more growth) Tesfamaryam

2. GLOBALIZATION is the process of interaction and integration among people, companies and governments world wide (en.m.Wikipedia.org)

3. 1. Populism And The Economics Of Globalization an anti-establishment orientation, a claim to speak for the people against the elites, opposition to liberal economics and globalization advanced stages of globalization are prone to populist backlash The author tray to address two questions: what are the economic roots of populism? what are the factors that affect the emergence of right- versus left-wing populism? Dani Rodrik , 2018

4. Populism And The Economics Of Globalization It is easier for populist politicians to mobilize along ethno-national/ cultural cleavages when the globalization shock becomes salient in the form of immigration and refuge I t is easier to mobilize along income/social class lines when the globalization shock takes the form mainly of trade, finance, and foreign investment. The economic anxiety and distributional struggles exacerbated by globalization generate a base for populism,

5. TRADE AND REDISTRIBUTION (trade Liberalization) The low-skilled workers worse of their life The effect of trade liberalization is to raise the domestic price of exportable relative to importable. local labor-market effects of specific trade shocks . There is also the question of trade’s effect on the overall levels of earnings and employment.

6. COMPENSATION AND SAFETY NETS the gains from trade can be redistributed to compensate the losers and ensure no identifiable group is left behind TRADE,REDISTRIBUTION, AND FAIRNESS Finally, it is worth noting that the nature of trade agreements has changed over time, rendering them more divisive in terms of value and fairness considerations. Trade deals increasingly reach behind the border to harmonize domestic regulations . This is a form of economic integration that is called deep integration

7. populism Hence there are two cleavages/division: an ethnonational/ cultural cleavage and an income/social class cleavage. populist politicians mobilize support by exploiting one or the other of these two cleavages. The ‘‘enemies of the people’’ are different in each case. 1. Populist who emphasize the identity cleavage target foreigners or minorities , and this produces right-wing populism. 2. Those who emphasize the income cleavage target the wealthy and large corporations , producing leftwing populism . Left wing/ socialist and right wing

8. CONCLUSION Most failures in the world economy are rooted in failures of domestic governance . The appropriate role for global institutions is to enhance key democratic norms of representation , participation , deliberation, rule of law , and transparency without prejudging policy outcomes or requiring harmonization. globalization must focus on areas where the net gains are large. The rules that need to be developed are those that emphasize fairness , address concerns of social dumping, and enhance policy space in both developed and developing nations.

9. 2. The Globalization Paradox: Why Global Markets, States, and Democracy Can’t Coexist. believes in the power of globalization to lift millions out of poverty and create widespread good but only if it is done more thoughtfully . The paradox is essentially that in order for globalization to bring proper economic benefits that are broadly distributed throughout society, national democracies need to be strengthened and international rules need to be in place, that protect all players, whilst still allowing for maneuverability and enterprise. This is in contrast to the oft-cited doctrine that the true powers of globalization can only be connected. when there is a complete free flow of capital with minimal regulation . Dani Rodrik . Oxford University Press. March 2011.

10. … Rodrik sets out that the rights of democracies to protect their own social arrangements should out-trump the requirements of the global economy . new narrative, one that looks at fairness and sustainability as well as growth, and has a truly global outlook that allows for individual countries to make their own financial arrangements and models , but within a multinational framework of governance and regulation . He believes that achieving such lofty goals is possible and can avert future crises.

11. 3. Joseph E. Stiglitz (2002), Globalization and Its Discontents book The bulk of JES’ accusations is that globalization is a boon/advantage only if it is properly governed , but the International Economic Institutions (IEIs) and, primarily, the International Monetary Fund (IMF) that should ensure such a governance have failed the task . IMF for its failure in three main areas: ( i ) crisis management (e.g., the East Asian crisis ); (ii) development of poorer countries (a problem that JES doesn’t see in the IMF agenda ); (iii) transition from planned to market economies (e.g., the problems with Russia). Giovanni Ferri , 2018

12. …continued The conclusion is that the IMF and the other IEIs (i.e., the World Bank and the World Trade Organization) have to be reformed to deliver policies that will make globalization more equitable and, thus, avoid that it is perceived by many around the world more as a problem than as an opportunity . Lacking such reform, JES admonishes, discontents might grow: Globalization might be checked and its great potential benefits might go lost. The international organizations are failed due to one size fits all policies to all global business problems.

13. 4 . Niall Ferguson, Civilization: The West and the Rest, Allen Lane, Penguin Books, London, 2011 T he mainsprings of global power – were six identifiably novel complexes of institutions and associated ideas and behaviors 1) competition – a decentralization of both political and economic life, which created the launch-pad for both nation-states and capitalism; 2 ) science – a way of studying, understanding and ultimately changing the natural world, which gave the West (among other things) a major military advantage over the Rest; 3 ) property rights – the rule of law as a means of protecting private owners and peacefully resolving disputes between them, which formed the basis for the most stable form of representative government. Andrei Josan 2012

14. ; 4) medicine – a branch of science that allowed a major improvement in health and life expectancy, beginning in Western societies , but also in their colonies ; 5 ) the consumer society – a mode of material living in which the production and purchase of clothing and other consumer goods play a central economic role, and without which the Industrial Revolution would have been unsustainable ; 6) the work ethic – a moral framework and mode of activity derivable from (among other sources) Protestant Christianity, which provides the glue for the dynamics and potentially unstable society

15. 5. Straight talk on trade. Princeton University Press. Theory implies that unskilled labor will lose from open trade policies in advanced economies. But when economists talk publicly about trade, it is always the aggregate gains they emphasize less globalization and more growth are needed. He proposes green industrial policies and public investment to spur growth. The most novel idea is an “innovation fund,” a public venture fund for new technologies whose profits would be returned to citizens as an income supplement Rodrik , does not endorse protectionism or embrace deeper economic integration. Instead, he thinks domestic policy space is need to manage existing globalization. acknowledge Carefully designed institutions would be needed to ensure that industrial policy and state managed investment Rodrik , D. (2017).

16. Conclusions The authors of the articles discussed that; Impacts of Globalization in developing and developed countries F aire economic distribution and employment opportunities National government demand to framing their policy aligned with international environment laws and regulations

17. Lessons learned D eveloping countries need to develop their own internal policy on their competitive advantage C ultural reform –Political, social and economical(Institutionalization) Specialization…professional, product and cultural