What we think we know 1.Collapse of USSR and communism 2.East Asian strategy success 3.Info-Tech revolution 4.US -- not declining; US system -- not declining 5.Bottom Billion Thesis (Paul Collier) 6.Next Convergence (Michael Spence) a : 15%-85% b : 85% catching up 7.Regionalism 1.NAFTA - FTAA 2.EUEU 3.APECAPEC

Pro Spread of infrastructure Education opportunities Collaboration across borders Easier to maintain communication and contact Access to more goods Increases competition – more innovation More people working on new technologies and cures for diseases Living abroad Currency conversion Access to new resources Travel for health care

Pro Cultural exchange Immigration Better human rights Medical technology Democratization Developing world gets new markets More customers for resources Market corporate social responsibility Interdependence causes peace Everyone gets richer Labor migration Capital flow Crappy jobs better than no jobs

Con Opportunities for terrorism Weapons technology spreads Education inflation (need more to do less) Brain drain Job loss – outsourcing Dependence Transnational organization crime Corruption Illegal immigration Legal immigration takes jobs Cultural imperialism Spread of disease National instability

Con Developed world faces cheaper competition Environmental destruction Economic interdependence (Europe) Corporate race to the bottom Human trafficking Creates crappy jobs Sweatshops Rich get richer Poor get poorer Exploitation inequality

Growth Rates/Inequality Wealth upper income middle income poor Time

Questions Alternatives to globalization? How would you stop globalization, if you wanted to, without restricting people’s freedom? Is the answer this: building a better globalization? Smart vs. Dumb globalization –Environment –Labor rights –health