Cowen on globalization

In a new piece in the New York Times Tyler Cowen argues that This Global Show Must Go On. Cowen points out that

THE last 20 years have brought the world more trade, more globalization and more economic growth than in any previous such period in history. Few commentators had believed that such a rise in trade and living standards was possible so quickly.

More than 400 million Chinese climbed out of poverty between 1990 and 2004, according to the World Bank. India has become a rapidly growing economy, the middle class in Brazil and Mexico is flourishing, and recent successes of Ghana and Tanzania show that parts of Africa may be turning the corner as well.

These positives of globalization should not be forgotten. Cowen notes, however, that there is a backlash against globalization. That some people question the benefits of international trade and believe that globalization requires moderation. But Cowen responds by arguing that

... the facts on the ground show that the current climate of economic doom and gloom simply isn’t warranted. The classic economic recipes of trade, investment and good incentives have never been more successful in generating huge gains in human welfare.

He adds

For all the talk of a needed “timeout” from globalization, world trade is actually accelerating, and that is for the better. Big changes often come bunched together, so that when good things are happening it is important to maintain the trend.

There are a few politicians in New Zealand who would do well to read Professor Cowen's article.