Ch. 1, The Hidden Promise: Liberty Renewed

1. Ch. 1, The Hidden Promise: Liberty Renewed Micklethwait & Wooldridge (Excerpted from Micklethwait & Wooldridge, “The Hidden Promise…,” in A Future Perfect: The Essentials of Globalization, Heinemann, 2000)

2. *The benefits of GL are not only economic, but also political and cultural

3. Benefits of GL not only economic, but also political and cultural • Increases efficiency & prosperity • Puts limits on government power • Promotes freedom • “the most fundamental freedom of all – the freedom to define our identities”

4. “A measured defense of globalization” • Yes, GL increases inequality--but “the winners hugely outnumber the losers” • Yes, GL can make bad government worse--but focus should be on improving governance • Yes, GL weakens nation-states--but they remain the fundamental unit in modern politics

5. nation-state • a state that derives its political legitimacy from serving as a sovereign entity • state sovereignty is control/authority over a territory • the state is a political entity • the nation is a cultural entity • "nation-state" implies that the two geographically coincide, and this distinguishes the nation-state from the other types of state, which historically preceded it • the nation is the identity attached to a state • in everyday terms, we usually say “country” to refer to a nation-state

6. Economic benefits • GL makes us richer – or makes enough of us richer to make it worthwhile • GL is not a zero-sum game

7. zero-sum game • a situation in which a gain by one party must be matched by a loss by another party (a person or side) • GL is positive sum – there’s more wealth to go around

8. Political benefits • GL puts limits on the power of governments  lowers opportunities for corruption and crony capitalism • GL spreads political culture based on liberty to areas that have been longing to embrace it for years

9. crony capitalism • a pejorative term for an allegedly capitalist economy in which market success is determined by connections between business & government • e.g, favoritism in granting of gov’t contracts, special tax breaks, exemption from regulation, distribution of permits, etc. (Stiglitz 2002, Globalization and its Discontents)

10. Those who say GL just means a "change of master”-replacing corrupt gov’ts w/ ruthless TNCs-are wrong • Increased availability of capital and technology favors small companies • Of course, current business elites who benefit from status quo feel threatened by GL • GL gives them more competition • That’s why many elites try to restrict it

11. Cultural benefits • GL undermines the "tyranny of place" • Gives people freedom to define their own identities • This gives rise to battle between liberals and communitarians

12. LiberalsvsCommunitarians • For communitarians, the community/ group takes priority over the individual • worry that GL weakens communities, reduces local, face-to-face interaction, fostering anomie

13. anomie • briefly, a social condition characterized by weak social norms, or lack of moral regulation • e.g., the protagonist in the film, "Up in the Air"

14. GL worthwhile, on economic, political, and cultural grounds • GL may not be delivering the “liberal dream,” but it's delivering enough to make it worth pressing forward and worth defending on more than just narrow economic grounds • Giving birth to an economy closer to the classical theoretical model of capitalism (low government intervention, perfect information, etc.)