The Role of an Economist in Globalization

Economists provide the analyses that shape globalization and global trading markets.

Economic globalization denotes the expansion of multinational corporations throughout the developing world with the assistance of intergovernmental agencies such as the International Monetary Fund and World Bank. Economists create the analyses that both justify and critique trends in economic globalization.

Architects

Economists create analyses that facilitate and expand globalization.

Economists are enthusiastic theorists of the IMF and World Bank. Their dominant analyses ignore such factors as the legacy of colonialism and the effects of inequality. Many suggest that, with the help of open markets, the developing world can anticipate progress much like that achieved by the West.

Proponents

Globalization is lauded by many global economists, who promote a system called structural adjustment, in which states receive loans in exchange for following the strict economic rules. Markets must quickly open to international trade. Small percentages of the loans fund infrastructure such as education; the majority goes to business development.

Structural Adjustment

Some economists speak out against the dominant position on globalization, believing that unprotected markets facilitate predatory trade relationships between the rich and poor. They say that structural adjustment displaces the growth of social services. Scholars such as Joseph Stiglitz promote a qualified form of globalization that protects developing markets and prioritizes infrastructure.

References

• Foreign Affairs: The Miracles of Globalization
• Bloomberg Business Week: Economists Rethink Free Trade
• Harvard University: What Do Economists Mean by Globalization?
• Globus: Globalization, Economists and the Real World
• Foreign Affairs: Samuel Huntington's Legacy
• The New York Times: Obama's Ersatz Capitalim

Resources

• Third World Traveler: Renowned U.S. Economists Denounce Corporate-Led Globalization
• Foreign Affairs: A False Alarm: Overcoming Globalization's Backlash
• The Boston Globe: Economists Miss the Boat in Ignoring Globalization's Impact
• The Washington Post: The Case Against Globalization
• Foreign Affairs: The Globalization Wars: An Economist Reports from the Front Lines
• Foreign Affairs: Globalization: What's New