Winners and Losers in Globalization

Seeking reason in the impassioned globalization debate, de la Dehesa examines who stands to win and who stands to lose from the process of globalization, in a style accessible to readers unfamiliar with economic theory.

• Objectively and dispassionately illuminates the emotionally charged globalization debate;
• Acknowledges that the costs and benefits of globalization will not be distributed evenly;
• Details the economic effects of globalization on individuals, governments, nation-states and business;

Assesses the impact of globalization on both labor markets and financial markets, on global economic growth and on income distribution and real convergence between different national economies.

Foreword vi
Paul Krugman

Introduction viii

1 What Is Globalization? 1

2 Globalization and Economic Growth 10

3 Globalization, Real Convergence, and Income Distribution 28

4 Globalization, Employment, and Labor Markets 50

5 Globalization and the Size of Firms: Multinationals 72

6 Globalization, State, and Government 86

7 Globalization and Economic Policy 98

8 Globalization and Exchange Rates 109

9 Globalization and Financial Crises 119

10 Globalization and Culture 166

11 Who Wins and Who Loses in Globalization? 177

Bibliography 190

Index 218

"I don’t expect this book to settle the debates over globalization: there is too much real uncertainty about the issue, and anyway there are too many people firmly committed to their views to be shaken by any argument or evidence. But perhaps Mr. De la Dehesa’s excellent book can lower the temperature and give us all a better sense of what this new global economy is really all about." Paul Krugman, from the Foreword to Winners and Losers in Globalization

"Guillermo Dehesa has written a splendid book that provides fresh and important perspectives. Read and enjoy.” Jagdish Bhagwati, author of In Defense of Globalization

“Globalization is a subject that stirs uncommonly strong emotions [and] those who try to make sense of it are often challenged on their credentials. But once in a while you get someone like Guillermo de la Dehesa – that is, someone whose knowledge and experience crosses the usual boundaries, who cannot be impeached on the usual grounds. In other words, he is someone whose motives you can trust, and whose breadth of knowledge and experience are rare in this or any other area.” Paul Krugman, from the Foreword to Winners and Losers in Globalization

Guillermo de la Dehesa is the Chairman of the Centre for Economic Policy Research in London. He spent twenty years in various Spanish governmental positions from the late 1960s through the late 1980s. Since leaving the public sector he has held a number of Chairman and Chief Executive positions in the private sector; he is currently Vice Chairman of Goldman Sachs Europe, Independent Director of the Santander Banking Group and Aviva PLC, among others. He is a member of the "Group of Thirty", a nonprofit, independent consultative group which counts luminaries such as Mervyn King (Governor at the Bank of England), Lawrence Summers (President of Harvard), Paul Krugman and Stanley Fischer among its ranks. Is globalization a limitless source of benefit to humanity? Or is it responsible for the increasing gap between wealthy and poor nations, job flight and a host of other ills? How can the positive results of globalization be shared more broadly and any negative effects be minimized?

Guillermo de la Dehesa, current Chairman of the Centre for Economic Policy Research, offers an objective and dispassionate analysis of the emotionally charged globalization debate, detailing the economic effects of globalization on individuals, governments, nation states and businesses.

Seeking reason in this impassioned debate, de la Dehesa examines who stands to win and who stands to lose from the process of globalization, in a style accessible to readers unfamiliar with economic theory.