CCOP Working Paper #1999-02
Economic globalization refers to three related processes:
1) the growth in the world economy, 2) the change in the relations
between first and third world countries that has resulted from the
use of information technologies to reorganize production nationally
and globally, and 3) the integration of world financial markets.
These processes are often held responsible for deindustrialization
in advanced industrial societies, increases in income inequality,
and pressures on welfare states to transform worker protection and
benefits. I demonstrate that the changes in the world economy are
much smaller, more gradual, and unevenly spread across societies
than the globalization thesis suggests. More importantly, the links
between globalization and its alleged negative outcomes are tenuous
at best. The Paper then explores what is generating the crises,
particularly in Europe.