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BOOK REVIEW
"In Defense of Global Capitalism" by Johan Norberg
By STEPHEN SPRUIELL
11.03.03 2:21PM CST
If you aren't convinced yet that the eradication of trade barriers between countries is the best way to empower the world's poor, In Defense of Global Capitalism by Johan Norberg might be the one book that could change your mind.
Those who favor free trade and know the issue can probably skip this book. It's a good read, but Norberg doesn't examine any overlooked areas of trade policy or unearth new statistics that change the debate. Rather, he recapitulates the argument for free trade from a young, idealistic point of view. Norberg realizes that many young idealists are drawn to anti-capitalist movements because these movements claim to be speaking for the world's poor. Norberg therefore focuses on debunking the claims of these movements and making the case that the spread of capitalism through globalization has been accompanied by great strides toward poverty eradication.
The 30-year-old Norberg introduces his book with a story about his younger days as an anarchist, rebelling against the establishmentarian right and the bureaucratic left. He tells us that, although his politics have changed from anarchism to something more like classical liberalism, his "fundamental urge for liberty" still drives him to rebel against those who want "to fence people in or to exclude them with tariffs and borders." He is drawn to globalization because he sees it for what it is: a force that expands spheres of opportunity, creating more political and economic freedom for everyone.
Norberg uses concise and transparent statistical analysis to take the reader step by step through the many ways in which the spread of global capitalism is making life better for people all over the world. He tackles poverty reduction, hunger, education, democratization, the oppression of women and global inequality… and that's just in the first chapter. Subsequent chapters are devoted to the links between improvements in these areas and the spread of capitalism, free trade and economic growth. He discusses the concerns of those who see globalization as a "race to the bottom," providing clear evidence that free trade has not led to a decrease in global labor and environmental standards. His analysis shows that instead, the opposite has occurred.
Norberg is scathing when discussing the shameful protectionism of the rich West. A Swede, Norberg heaps scorn on the EU and the U.S. for their agricultural subsidy and tariff regimes. These programs, Norberg argues in a section called "The White Man's Shame," are shutting off crucial lifelines to developing countries in areas where they are especially competitive, such as farming and textiles. Worse, they are hypocritical, as the EU and the U.S. pressure the developing countries to open their borders while asking them to keep one hand tied behind their backs.
Most importantly, the book is characterized throughout by the tone of a young, idealistic individual who has no stake in the spread of global capitalism other than he likes the idea that it is making people's lives so much better in so many impoverished parts of the world. Norberg is quick to add the caveat that capitalism is messy and trade liberalization is not always perfect. But in assessing the areas of the world like North Korea and Cuba, where poverty, oppression and human rights abuses are the worst, he makes the case that these places remain the most untouched by globalization.
Early in the book, Norberg quotes the UN Development Program's Human Development Report 1997, which said, "The great success in reducing poverty in the 20th century shows that eradicating severe poverty in the first decades of the 21st century is feasible." That is an incredibly optimistic statement, but Norberg fills the rest of his book with evidence that, if we commit ourselves to freedom from borders and controls and we continue to challenge isolationism, anything is possible. Near the end, he cites the statistic that 97 percent of the 2 billion people who will be born in the next 25 years will live in the developing world. "There are no automatic, predetermined processes deciding what sort of world they will experience and what their opportunities will be. Most will depend on what people like you and me believe, think and fight for."
This book is a call to action for those compassionate individuals who have so far misdirected their energies against the spread of capitalism. Reading this book and following its prescriptions might do these people and potentially millions of others a world of good.
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