Grappling with Globalization

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Grappling with globalization

Laura Wallace ow can the United States successfully Summers said, “I don’t see how anyone could Editor-in-Chief manage the challenges of globalization? think that you can add several hundred million Sheila Meehan HA new paper by Peter Orszag (Brookings people to the world labor market and substan- Managing Editor Institution) and Michael Deich (The Hamilton tially broaden the range and number of tradable Elisa Diehl Project), “Meeting the Challenge of a Global goods without having pervasive effects that will Production Manager Economy: Trade, Economic Security and Effec- be felt throughout the spectrum.” Christine Ebrahim-zadeh tive Government,” recommends a Rubin regretted that the U.S. political system Senior Editor philosophy of “embracing inter- has been silent on these issues. Ina Kota national competition while “The conditions for such Assistant Editor investing in workers and market- a debate,” he said, “don’t Maureen Burke friendly insurance.” even exist.” When asked Lijun Li Senior Editorial Assistants The paper, which provided the whether ecological issues Kelley McCollum basis for a July 25 seminar should be a topic for dis- Senior Production Assistant at the Brookings Institution cussion, Rubin said that Julio Prego in Washington, D.C., calls for “concerns about global Graphic Artist boosting overall produc- warming and climate ______

tivity in the United States change are growing and Graham Hacche through a broader sharing are likely to become an Senior Advisor of the benefits and costs of important part of public The IMF Survey (ISSN 0047-083X) trade, which can be achieved policy debates.” Massoud Etemadi/IMF is published in English, French, and through investment in education, However, Altman cautioned against Spanish by the IMF 22 times a year, plus IMF in Focus. Opinions and research, and social safety nets. excessive pessimism about the impact of the materials in the IMF Survey do not seismic shift. China and India are becoming the necessarily reflect official views of the IMF. Any maps used are for the A new social compact world’s biggest markets for goods and services, convenience of readers, based on In separate panels, Gene Sperling (Center and this, he said, will have a positive impact on National Geographic’s Atlas of the for American Progress) and Larry Mishel the United States by increasing the wealth of its World, Sixth Edition; the denomi- nations used and the boundaries (Economic Policy Institute), who were skepti- economy. The idea that China’s economic prog- shown do not imply any judgment cal about free trade and globalization, parted ress will be smooth is fallacious, he added. As by the IMF on the legal status of any territory or any endorsement company with Robert Rubin (Citigroup, Inc.), with other countries in the past, it will not occur or acceptance of such boundaries. Lawrence H. Summers (Harvard University), without interruptions or hiccups. Text from the IMF Survey may be reprinted, with due credit given, and Robert Altman (Evercore Partners), who but photographs and illustrations expressed staunch optimism. Moving costs cannot be reproduced in any form. Address editorial correspondence Sperling voiced concern over the stagnation Altman also warned against too much focus on to Current Publications Division, of median wages and the job insecurity faced international wage differentials, because mov- Room 7-106, IMF, Washington, DC by white-collar workers. He called for a “new ing jobs around the world has costs. The press 20431 U.S.A. Tel.: (202) 623-8585; or social compact on globalization” that takes into continually fails to mention the additional costs e-mail any comments to account the implications of free trade for the involved, for example, supervisory manage- [email protected]. average U.S. worker, social safety nets, and labor ment costs, which make net cost differentials To request an IMF Survey subscription and environmental standards. Mishel noted that significantly smaller, he argued. There are plenty ($120.00 annually for private firms “trade between consenting adults is fine” but of opportunities for the United States to go on and individuals) or IMF publications, please contact IMF Publication also argued that safety nets and universal health the offensive, Altman pointed out, because the Services, Box X2006, IMF, Washington, care were essential, too. United States “has not been as diligent,” particu- DC 20431 U.S.A. Tel.: (202) 623-7430; larly in enforcing existing trade agreements and fax: (202) 623- 7201; A seismic shift in economic history encouraging freely floating exchange rates, espe- e-mail: [email protected]. n The IMF Survey is mailed first class Rubin, Summers, and Altman were in agree- cially in Asia. in Canada, Mexico, and the United ment that the current wave of globalization Ina Kota States, and by airspeed elsewhere. represented a seismic shift in economic history. IMF External Relations Department

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