The document discusses the rise of anti-globalization sentiments in response to economic challenges and inequality stemming from globalization, highlighting figures like Donald Trump and Marine Le Pen. It outlines arguments for and against globalization, examines specific cases like Greece's economic struggles, and emphasizes the need for more equitable policies to address the benefits and harms of globalization. Ultimately, it calls for a return to macroeconomic policies supporting full employment and social investment to combat growing inequality.

1. ANTI-GLOBALIZATION
GOES GLOBAL
Amlan Mishra : 1310110048
Dinesh Kumar : 1310110128

2. Introduction
• FromAmerica to Europe and beyond, populists like DonaldTrump, Marine
Le Pen, and Britain’s “Brexiteers” have been lifted by a wave of resentment
against free-trade deals, immigration, and remote, supposedly out-of-touch
elites.
• It seems a mystery: people in the growing economies had been told that
globalization would increase overall wellbeing. So why have so many people
become hostile to it?

4. What is Globalization?
• The process by which the whole world
becomes a single market. This means that
goods and services, capital, and labour are
traded on a worldwide basis, and
information and the results of research
flow readily between countries – Oxford
Dictionary of Economics.
• First believed to be used in the 1930s.

5. Arguments For Globalization
• Ethical, Political and Cultural Benefits as well as Economic Ones
• Increased opportunity and flexibility for countries to specialise and operate
according to comparative advantage
• Countries with more free trade historically have been shown to be more
developed.
• Increased Competition
• Attraction of greater foreign investment and its benefits
• Free movement of labour – is it an advantage?

6. Arguments Against Globalization
• Costs of FreeTrade – Infant Industry and arguments forTariff Protection
• The Primary Good ProductionArgument
• Less Cultural Diversity - uniformity of products worldwide
• The MNC Advantage
• Standards of Labour and Environmental Regulation –Tax competition and
avoidance
• Free movement of labour – is it a drawback?

7. Greece
• The country's largest earners, tourism and shipping were badly affected by the
recession with revenues falling 15% in 2009.
• Increase in trade deficit due to increased labour costs; a direct result of the
introduction of the Euro.
• Greece was shut out from borrowing in the financial markets due to its loss of
credibility.
• Greece was forced to reduce its budget deficit substantially due to the sudden
decline of foreign aid.
• Countries facing such a sudden reversal in capital flows typically devalue their
currencies to resume the inflow of capital; however, Greece was unable to do this
to its usage of the Euro.
Sources –The NewYorkTimes and the Washington Post.

8. Expectations
• People, in the beginning, supported Globalization because they were
promised better returns, that they will be better off in the long run.
• But as time passed, people started asking for the promised benefits and the
answers they got were not satisfactory; neoliberal economists who
advocated for Globalization said that people are better off.They just don’t
know it.Their discontent is a matter for psychiatrists, not economists.

9. Reality : Falling Incomes
http://www.mckinsey.com/global-themes/employment-and-growth/poorer-than-their-parents-
a-new-perspective-on-income-inequality

10. Reality : Falling Incomes
www.mckinsey.com/global-themes/employment-and-growth/poorer-than-their-parents-a-
new-perspective-on-income-inequality

11. Decline in Employment

12. Rising Inequality
OXFAM-bp-working-for-few-political-capture-economic-inequality-200114-en

13. Opposition toTrade
http://www.democracycorps.com/attachments/article/1021/Dcorps_RTR%20Jan%20Web%20Sur
vey_1.25.16_v7.pdf

14. A Socio-Economic and Political Agenda?
• Economists proposing ideal models without factoring in cultural and political
realities
• Highlighting of certain statistics while ignoring the bigger picture
• Increasing nationalistic and isolationist slogans within the developed countries
of the world
• Economic Hardship and Inequality hand-in-hand with political instability
• Vicious cycle as the opposition politicians seek to build on this resentment and
further flare up such sentiments

15. Recent Opposition to Globalisation
• Largely due to the Economic
Depression of 2008.
• The inability of the economy to
recover quickly leading to
increased opposition.
• Further exacerbated by recent
political turmoil.
• Brexit and possible Scottish
Independence Referendum
• Syrian Refugee Crisis
• The Pacific RimTrade Pact

16. Challenges
• Ensuring that the benefits of
globalization extend to all countries.
That will certainly not happen
automatically due to the problem of
production distortion.
• Dominance of the Developed
Countries in the Global Forums –
United Nations andWTO

17. • Fear that increased global competition
will lead inexorably to a race to the
bottom in wages, labour rights,
employment practices, and the
environment in the industrial world.
• Globalization and all of the complicated
problems related to it must not be used
as excuses to avoid searching for new
ways to cooperate in the overall interest
of countries and people.
Challenges

18. Getting Back onTrack
• “True social equity requires not equal treatment for all, but rather unequal
treatment in favour of the poor and most disadvantaged.” - Amartya Sen, in his
magisterial ‘The Idea of Justice’.
• It is time to return to the macroeconomic policies of the 1950s and 1960s, which
recognized the benefits of full employment in fostering social stability and
sustainable growth. As the Nordic model shows, high employment is good for
the economy because it ensures adequate tax revenues to finance high levels of
social investment, which creates a virtuous cycle.

19. Getting Back onTrack
• Support progressive taxation on wealth and income; use their tax revenue
to provide universal healthcare, education and social protection for citizens.
• The sooner, the better: the labour-market transformation now occurring as
a result of progress in robotics and artificial intelligence will only make
inequality more difficult to address in the future.

20. References
• http://www.nytimes.com/interactive/2016/business/international/greece-debt-crisis-euro.html
• https://www.washingtonpost.com/news/wonk/wp/2015/07/05/as-greece-votes-heres-everything-you-need-to-know-about-the-nations-crisis/
• http://econ.economicshelp.org/2007/05/discuss-whether-globalisation-benefits.html
• http://econ.economicshelp.org/2008/07/free-trade-policy-and-paradox.html
• http://www.cato.org/publications/commentary/blessings-challenges-globalization
• http://www3.weforum.org/docs/WEF_Geo-economics_7_Challenges_Globalization_2015_report.pdf
• https://www.carnegiecouncil.org/publications/archive/dialogue/1_11/relevance_social/588.html
• http://www.mckinsey.com/global-themes/employment-and-growth/poorer-than-their-parents-a-new-perspective-on-income-inequality
• OXFAM-bp-working-for-few-political-capture-economic-inequality-200114-en
• http://www.democracycorps.com/attachments/article/1021/Dcorps_RTR%20Jan%20Web%20Survey_1.25.16_v7.pdf
• https://uk.pinterest.com/pin/474848354438339955/
• https://s3.amazonaws.com/lowres.cartoonstock.com/business-commerce-china-economy-global_market-pay-oustsource-forn672_low.jpg
• http://i23.photobucket.com/albums/b377/punkneverdies/globalization-manga1.jpg
• http://www.interest.co.nz/sites/default/files/embedded_images/image/kal-sep-3.jpg
• https://ohgoshmygrades.files.wordpress.com/2014/11/globalisation_290555.jpg

21. On a Lighter Note…