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Globalization is like migration, except nobody goes anywhere

This insightful article by my colleague Joseph Stiglitz is short and incredibly thought-provoking.  In it, he argues that globalization essentially pits the lower-skilled workers of the world against each other, having the same effect as though lower-paid workers migrated in mass numbers to wealthier countries.  The economic effect is to reduce wages of unskilled workers to a lowest-common-denominator.

It is eye opening, as for decades now we have been taught that globalization is both uni-directional and beneficial.  What we have not talked about enough is how to humanely deal with the human adjustment costs.  It is way overdue to start that conversation.

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1 Comment

  • 8/9/16 12:20 Ramkumar Rajagopal:

    Dear Professor Rita Gunther McGrath,

    Thanks for sharing the great article Globalization and its New Discontents from Honorable Professor Joseph Stiglitz.

    The effect of globalization is profound and as he has mentioned in his article it is an issue of management process in Globalization.

    For example IT outsourcing/offshoring activities to India have caused major income inequality, inflation and mass migration from one industrial sector to other in India.

    This effect has caused prime areas such as agriculture, agricultural lands, farm workers to go defunct as well as migration of workers within India.

    At the same time here in US many IT workers, Research scientists in Life Sciences lost their jobs, income and ended up more on part-time work than a stable full time jobs.

    This flux is due to de-regulation of those industries and the management process.

    Thanks

    Humbly,
    Ram
    Email: crrkumar@gmail.com

    Reply