The Globalization Paradox, by Dani Rodrik Essay

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The Globalization Paradox: Democracy and the Future of the World Economy
Welcome to college! You can only afford to maintain two of the next three options: adequate sleep, a social life, and good grades. In Dani Rodrik’s new book- The Globalization Paradox, a similar triangle is evinced. The author presents us with a “trilemma” consisting of Hyperglobalization, Democratic politics, and the Nation-State. You can efficiently balance two of these three triangle “corners”– but no more than two. Rodrik claims our current worldview on globalization is that the more of it- the merrier. Yet this is flawed thinking in the fact that bigger globalization isn’t necessarily better globalization, instead we need to strive for “smart” globalization over
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Rodrik claims markets are dependent on the structure and regulation of non-market institutions, such as governments and fiscal institutions such as the WTO. The more global and long distance the market is, the more structure and backbone support it will need from these non-market institutions. This support is crucial because global markets are not self-stabilizing. For example, the state government regulates trade within Virginia, the federal government regulates trade within the United States, NATO and involved governments regulate trade within North America, and the WTO and a plethora of other institutions regulate global trade. In each and every territorial boundary that exists, an institution is there to regulate and govern the order of trade within that boundary. Furthermore, the institution works with others like it in order to promote the efficiency, and quality of that trade or market. It seems that if there’s going to be a hyperglobalization, there ought to be a “hyper-regulation” to go along with it. Rodrik would probably agree considering he mentions that the most well functioning domestic markets always operate amidst strong regulatory institutions. Rodrik repeatedly makes the point that strong institutional structure and regulation is the key in booming open markets. Many free-trade fundamentalists

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