Tuesday, September 16, 2014

A Question for Wolf

Leading up to Chapter 8, I had a general understanding of the direction in which Wolf was going. After defining his objectives and presenting the counter-arguments, Wolf touches on the fall of liberalism, specifically in the first half of the 19th century. While the later collapse of the Soviet Union may have discouraged an inward, planned economy, he emphasizes the role of Nationalism in the so-called "death of liberalism". In Chapter 7, as we discussed in class Tuesday, the question that emerges is: What drives economic liberalization? While technology, including the spread of, remains a common answer, Wolf mentions the role of policy and political institutions. In his view, governments must provide policies that allows their economies to reap the benefits of economic integration. In congruence to this he writes, "Opportunities do not create wealth. Only seizing them does." Putting this together, it seems that Wolf is implying that wealth, or economic growth, starts with the government's decision to institute policies that comply with liberalism (i.e. openness to trade, free market). He concludes Chapter 8 by saying, "high-income countries/ inflict substantial harm on developing countries. The high income-countries also operate tight controls on inflows of immigrants" (which he earlier associates with Nationalism, especially regarding social security advantages). So, my question for Wolf would be, if liberalization helps a country become high-income, but Nationalism is an ideology that has lead to the "death" of liberalism, then can this initial liberalization actually lead to a fall in globalization by cutting off the developing world?

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