Globalization's Other Side: The Negative Impacts On Poverty And The Environment
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Essay Preview: Globalization's Other Side: The Negative Impacts On Poverty And The Environment
Critiquing Jagdish Bhagwati's Interpretation of the Social Impact of
Economic Globalization
Date Submitted: November 19, 2004
There have been countless numbers of books and papers written on the
controversial topic that is globalization, and it seems every author or
activist has their own arguments against or in support of the
liberalization of trade and the social impact of economic globalization.
However, in regards to the novel In Defense of Globalization, there is no
doubt on which side its author Jagdish Bhagwati stands on the issue. Being
one of the leading authorities on globalization and a professor at Columbia
University, Bhagwati not only argues his case in support for globalization,
but also instinctively leaps to its defense, hence the title. It is worth
noting that this book addresses the issue of economic globalization and not
globalization as a whole. The main thesis and reoccurring central idea in
this book argues: Although globalization, in respect to the liberalization
of trade and global economic integration inherently contains flaws, overall
it is beneficial.
Throughout the book, Bhagwati systematically addresses each claim and
argument, separated by chapters, raised by the many critics of
globalization. The first relevant issue brought forth is the sudden upsurge
and rise in non-governmental organizations (NGOs), in which Bhagwati
claims, "globalization today owe their salience, shape and content" to this
trend. In response to the portion of NGOs that are anti-globalization, he
defends globalization by attacking the critics and attempting to undermine
their credibility by singling out the weak organizations and picking at
their flaws.
Bhagwati argues many more issues in his book regarding the social
impact of economic globalization as he tackles each chapter one after
another including: the reduction of poverty and the abuse of child labor,
the promotion of women's rights, the enrichment of culture, and even deals
with the false accusations regarding exploitation of workers and the
environment. In this last claim regarding exploitation of workers, Bhagwati
introduces a new perspective in which he reveals that the workers in most
cases are being paid more than domestic jobs.
Bhagwati claims that the multinational corporations are not creating
inequality globally by lowering wages and labor standards through foreign
direct investments. He notes that the isolated examples of social harm done
by globalization are exceptions and globalization, as a whole should not be
blamed, ultimately making these arguments flawed and not representing of
the whole. Moreover, Bhagwati argues that foreign competition forces the
wage gender gap to close resulting in higher wages, higher education, and
ultimately benefiting women and women's rights.
Bhagwati firmly believes that the liberalization of trade and opening
up of world markets would create growth, and growth would reduce poverty.
He justifies his claim with evidence surrounding the advances of China and
India and ignoring the rest of the developing countries, which makes the
supporting data misleading. Bhagwati then alleges that if poverty
decreases, parents with more money must then send their children to school
and thus reduce child labor. Lastly, Bhagwati argues that the environment
is at no risk from globalization, but ultimately only providing unrealistic
theories on the reduction of pollution in relation to capital incomes.
After addressing the claims made against globalization by critics,
Bhagwati utilizes the final chapters in his book to offer various
suggestions and policy implications that may help globalization and the
perhaps unite the NGOs in a common goal. However, this last chapter is
wholly unrealistic and speculative in its approach.[i]
After carefully reviewing In Defense of Globalization, it is clear
that in some instances, Jagdish Bhagwati fails to offer both sides of the
argument, often times making his claims less creditable. Therefore, in this
essay, key points will be presented which will refute Bhagwati's stance and
prove he is not entirely correct through the following arguments:
globalization does not decrease poverty and inequality through freer trade
in developing countries; and globalization does cause an increase in the
pollution of the environment globally.
Firstly, Bhagwati's claim that globalization actually reduces poverty
is deceptive and misleading. To tackle this argument, it must first be
understood
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