This document summarizes three articles on globalization, security, and well-being. The first article argues that globalization in the forms of trade, capital, and people flows is generally beneficial. However, it notes there may be issues with people flows. The second article questions arguments that globalization reduces poverty and inequality, arguing that poverty has not actually declined and liberalization does not necessarily increase trade or development. The third article critiques current measures of well-being like GDP and HDI for failing to account for natural capital, costs of environmental degradation, and issues like climate change refugees.

1. Globalization, Security and Well-
Being 1

2. Today, Wednesday, 05 May 2013
 M Wolf, “The market crosses borders”
 RH Wade, “Is globalization reducing poverty and
inequality?”
 P Dasgupta, “Wealth and well-being”

3. 1. M Wolf, “The market crosses
borders”
 Globalization (economic integration) is good
 This is evident in three aspects of globalization:
 Trade flows
 Capital flows
 People flows

4. 1. M Wolf, “The market crosses
borders”
 Trade flows
 Trade enables exploitation of economies of scale and
comparative advantage
 Trade promotes competition and productivity growth
 Trade brings intellectual and moral benefits:
e.g., democracy, peace, stability, less dictatorships…

5. 1. M Wolf, “The market crosses
borders”
 Capital flows/mobility
 It brings personal freedom (people’s ability to export
their capital)
 Limits government’s ability to steal people’s capital
 Enables people and companies to diversify risks and
benefits
 Enables capital to float to developing countries: e.g.
developing countries benefit; they get access to
knowledge via DFI.

6. 1. M Wolf, “The market crosses
borders”
 Flows of people
 Free movement of people, free trade of labour
services, reduces poverty
 BUT…..

7. 2. RH Wade, “Is globalization reducing
poverty and inequality?”
 Questioning standard neoliberal arguments about
globalization – namely, that:
 Distribution of income between the world’s people has
become more equal
 The number of people living in poverty declined
 Economic integration/globalization has made it
possible for countries to enjoy their comparative
advantages
 Free trade has improve the living conditions in
developing countries

8. 2. RH Wade, “Is globalization reducing
poverty and inequality?”
 Contrary to the neoliberal opinion, poverty has not
declined:
 The growth rate of the world GDP declined
 WB statistics have too many errors (unreliable)
 Stats for China and India fraught with guesswork
 WB has changed methodologies and formulas, which
changes the results
 Other measures of poverty show poverty increasing
over time

9. 2. RH Wade, “Is globalization reducing
poverty and inequality?”
 Contrary to the neoliberal opinion, globalization isn’t
really that great:
 Countries can do more trade and still remain poor
 Liberalization does not increase trade and development
 Neoliberalism confuses trade and trade policy

10. 3. P Dasgupta, “Wealth and well-being”
 Current measures of well-being are not good enough:
e.g., GDP, HDI, etc.
 Natural capital is not reflected in the measures of well-
being:
 Commercial forests, oil and minerals, the
atmosphere, water resources, forests as agents of carbon
sequestration, fisheries, air and water
pollutants, soil, biodiversity.
 Cost of natural capital (human capital, too) not included
in the calculations of GDP or HDI

11. 3. P Dasgupta, “Wealth and well-being”
 Globalization discourse excludes the globalization of
environmental degradation:
 Ozone layer; erosion; rising sea levels; floods, famines
and storms; Chernobil; Japan’s Tsunami; etc.
 Maldives Island: Environmental refugees