Globalization is not particularly well-written. Bhagwati's "defense" is neither focused nor is it presented in as compelling or eloquent a manner as we have come to expect from his writing. Interspersed among the arguments are petty and almost vindictive observations that do not reflect well on Bhagwati. At times, the book reads less like a grand summation of Bhagwati's philosophy, and more like the wanderings of a cynical old professor. Maybe this is what De Soto had in mind when he inconceivably described this book as "surely the most humorous piece of economics ever written" - whatever else it is, Globalization is not funny.
Oddly enough, the book is further diminished by an excess serving of Bhagwati's ideology. As the book progresses, Bhagwati makes it more and more clear that he doesn't particularly hold America, "Wall Street", the west, and political conservatives in high regard. These allusions become tedious because they are utterly irrelevant to a defense of free trade.
The core arguments are all here, but they are not as crisply presented as in many, if not most, other works on the subject. In addition, Bhagwati is too solicitous of activist NGO's - withholding the cynicism that he applies liberally to other institutions and parties. This may be in the interest of establishing a more productive engagement with long-standing opponents of free trade, but having repeatedly offended the sensibilities of long-standing proponents of free trade, this doesn't sit well.
What is most unsettling about Bhagwati's vision is his dependence on unaccountable players. A world in which cross-border economic activity is "governed" by bureaucrats and so-called experts (such as himself) in supranational bureaucracies, self-appointed activists in NGO's (such as Ralph Nader), and judges (such as his brother) is not a world of free trade. In fact, that is a world not worth an intellectual defense.
In addition, Bhagwati's thesis that free trade in goods and services does not require the free movement of capital, and that the latter can be restricted without hindering the former, is not convincing. A cynic might perceive this to be a way to assign blame for an inherent and recently obvious risk of globalization onto the villainy of the Washington-Wall Street cabal.
In summary, the effect of In Defense of Globalization in the eyes of this reader is that I am less convinced that Bhagwati - despite his moniker - is genuinely interested in the cause for globalization and free trade.
De Soto -- who, having written a few, should know about such books -- claims that this book will make history. For the sake of Bhagwati's legacy, let's hope not.
Bhagwati, as any classical economists, views Globalization as the manifestation of the competitive advantage of international trade. In other words, whatever we can obtain from overseas at a lower cost than we can obtain locally will boost the demand for our own products (due to lower costs). With higher demand comes higher economic growth, higher productivity, and rising living standards. On the other hand, ill fated protectionist policies, contrary to their humanistic intent, completely annihilate this economic virtuous cycle.
However, Bhagwati is not your usual unrestrained free trader. He feels that governments have to better address the dislocation in labor that is directly affected by international competition. He states the U.S. should spend more resources on research and on education. This is so our labor force remains most productive in being engaged in cutting edge industries that have not yet become commoditized.
Bhagwati, an Indian, focuses much energy on the benefit of Globalization for all emerging markets. Contrary to all the anti Globalists demonstrators in Seattle, Cancun, and elsewhere, Bhagwati makes a forceful and well documented case that Globalization is a very positive force that lifts countries out of poverty. It causes a virtuous economic cycle associated with faster economic growth. He dismantles the concerns and myths perpetrated by anti-Globalists chapter by chapter. Thus, chapters are titled: "Culture: Imperiled or Enriched?," "Corporations: Predatory or Beneficial?," and "Environment in Peril?" In each cases, Bhagwati armed with irrefutable historical data comes on strongly on the side of Globalization and breaks one anti Globalist myth after another.
Bhagwati states that in many cases, Globalization is blamed for whatever goes wrong within a country. But, that this is a politic of deflection used by corrupt and ineffective political leaders. Instead of implementing more effective domestic policies and international policies, many government leaders prefer to blame all ills on Globalization, which indirectly means on the U.S.
Bhagwati makes an eloquent case that any economic ills in emerging markets is not all the U.S. fault just as U.S. job losses are not all China and India's faults.
During this Presidential election year with the loss of U.S. jobs as one of the main Democratic themes, this is a very important book to read. It would be crucial for Kerry to read it too, otherwise he may fight a loosing campaign pinned on protectionist policies. By now, even though Globalization and international economics are complex matters, too many voters intuitively understand these subjects to vote in a President on a campaign of protectionism and international economic isolation. Bhagwati rules!
What I like about this book is that it uses fairly complex economics in an accessible fashion. I also like that Bhagwati seems to be arguing not to win points but because he genuinely cares about the lives of people in developing countries. He is essentially offering a challenge to those on the left whose goals he shares to defend their positions.
If I have one complaint, it's that the humor is occasionally a little corny. Bhagwati is too quick to tell jokes at times when we want him to be serious. But I suspect that this may in part be a matter of taste. Judge for yourself. In the end this is an extremely entertaining and very important book.