Location of Repository

Globalization: is there anything to fear?

By Daniel Drache


Globalization in its many different forms is the last grand narrative of the 20th century. It evokes a universal vision of frictionless adjustment, endlessly innovative corporations, infinite progress and unlimited abundance for all through the power of the world market. What is particular about the latest tidal wave ‘where all are interrelated through the global market' is that it is not a popular force capable of mobilizing millions in the way working class internationalism once did. It is not a foregone conclusion that the global economy will come undone and crash but what is clear is that financial deregulation has gotten out of hand. Despite the triumphant nature of markets in Anglo-Saxon economies that have irreversibly altered the fundaments of economic and social policy management in many jurisdictions, there are still strong grounds for claiming that the world price system does not automatically build a level playing field across nations as its rhetoric claims. So far, the price mechanism has not produced the expected convergence between social market, laissez-faire, developing economics and Asia-Pacific. Governments ought to be highly vigilant in times of speculative booms, quick fixes that turn bad and too much easy money flowing across borders. Significantly, they have misunderstood the importance of the regulatory need to organize the market. The collapse of the miracle economies (once touted to last for decades) -- Mexico in the early 80s and more recently the Asian Tigers along with the former Eastern Bloc countries -- underlines the fragility of the existing order. What the paper demonstrates is that divergence at all levels is increasingly becoming more important as a feature of globalization despite the powerful authority of elite international institutions to move the global agenda towards the market end of the spectrum. The bottom line is that stability at any cost is simply the wrong target. The paper argues the political market for social protection -- jobs and a higher standard of living -- promises to be a more potent force than the most arduous tenants imposed by the dynamics of a laissez-faire globally-directed free trade regime. The question is, can governments and policy experts learn to think in a reasoned and critical way about the limits of global free trade? Or, will they continue to fear what they do not understand, engage in unnecessary risk-taking and be unable to react strategically to such complex changes in the international economy

Topics: JZ, JC
Publisher: University of Warwick. Centre for the Study of Globalisation and Regionalisation
Year: 1999
OAI identifier: oai:wrap.warwick.ac.uk:2102

Suggested articles



  1. (1995). A Precarious Balance: Economic Opportunity, Civil Society and Political Liberty.” The Responsive Community(Summer): doi
  2. (1996). Against the Tide An Intellectual History of Free Trade. doi
  3. (1936). and 1976). Canadian-American Industry: A Study doi
  4. (1997). Braudelian reflections on economic globalization: the historian as pioneer. Innovation and Transformation doi
  5. (1991). Capitalism Since doi
  6. (1991). Capitalisme Contre Capitalisme. doi
  7. Ed.(1994). Multinationals in North America. doi
  8. (1996). From Keynes to Kmart: Competitiveness in a Global Age”.
  9. (1994). Global Dreams Imperial Corporations and the New World Order. doi
  10. (1987). Global Reach: The Power of the Multinational Corporation. doi
  11. (1998). Globalization and the Nation-State: Erosion From Above. Timlin Lecture,
  12. (1998). Globalization and the Welfare State Four Hypothesis and Some Empircal Evidence.”
  13. (1996). Globalization in Question. London, doi
  14. (1998). Globalization Markes States: Perspectives of Local Governance in the Age of the World City.” Review of International Political Economy(Fall). doi
  15. (1996). Globalization Myths and Realities: One Century of External Trade and Foreign Investment. States Against Markets The Limits of Globalization. Robert Boyer and Daniel Drache.
  16. (1996). Globalizing Free Trade.” Foreign Affairs 75:3(May/June): doi
  17. (1997). Governance and Public Policy in a Global Economy. A Report on Jobs and Investments Strategies in Canada, Robarts Centre for Canadian Studies.
  18. (1997). Has Globalization Gone Too Far? doi
  19. (1995). How Trade Hurt Unskilled Workers.” doi
  20. (1996). La Globalisation: Mythes et Realities.” CEPREMAP/CNRS(juillet):
  21. (1996). La Mondialisation de l'economie: 1. doi
  22. (1996). Le bien commun Eloge de la solidarite.
  23. (1995). Limits to Competition. doi
  24. (1998). More Instruments and Broader Goals: Moving Toward the PostWashington Consensus. The United
  25. (1997). OECD Surveys United States. doi
  26. (1996). On Governing The Global Economy. doi
  27. (1980). On History. doi
  28. (1991). On the Institutional Conditions of Diversified Quality Production. Beyond Keynesianism. Egon Matzner and Wolfgang Streeck. Eds.Aldershot, doi
  29. (1996). One Hundred Years of Socialism The Western doi
  30. (1996). One World, Ready or Not The Manic Logic of Global Capitalism. doi
  31. (1981). original edition,
  32. (1998). Public Success, Private Failure. Market Limits to Health Care Reform.
  33. (1995). Staples, Markets and Cultural Change. Selected Essays. Montreal,
  34. (1996). States Against Markets: The Limits of Globalization. doi
  35. (1997). Sustainable Flexibility A Prospective Study on Work, Family and Society in an Information Age.
  36. (1996). Technology, Productivity and Job Creation Executive Summary. doi
  37. (1992). The Changing Workplace. doi
  38. (1998). The Commanding Heights the Battle Between Government and the Marketplace That is Remaking the World. doi
  39. (1995). The Diminished Nation-State: A Study in the Loss of
  40. (1996). The Dynamics of Globalization:Toward An Operational Formulation. Paper given at the International Studies Association, doi
  41. (1996). The End of the Nation State. doi
  42. (1996). The End of Work. The End of the Global Labor Force and the Dawn of the Post-Market Era. doi
  43. (1997). The Future of Continental Socio-Economic Models.
  44. (1995). The Logic of International Restructuring. doi
  45. (1974). The Modern World System vol.I. doi
  46. (1998). The Myth of the Powerless State. doi
  47. (1994). The OECD Jobs Study. doi
  48. (1989). The Political Power of Economic Ideas: Keynesianism across Nations. doi
  49. (1972). The Principles of World Politics.
  50. (1998). The Productive Edge. doi
  51. (1996). The Retreat of the State The Diffusion of Power in the World Economy. Cambridge, doi
  52. (1994). The Revolt of the Elites. Harper's Magazine:
  53. (1996). The Rise of the Virtual State”. Foreign Affairs Ruggie, doi
  54. (1997). The State Against the Market, Special Report
  55. (1997). The State in a Changing World. doi
  56. (1997). Unemployment and Labour Market Rigidities: Europe versus doi
  57. (1997). Who Elected the Bankers? Surveillance and Control in the World Economy. doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.