There are processes in the international order--driven by revolutions in communication and information technology--that exhibit seemingly inexorable globalising tendencies while, at the same time, there are a range of actions, adopted by states and non state actors alike, that attempt to resist these often ill defined phenomena captured by the all embracing notion of 'globalisation'. For example, the long term tendency towards freer trade, electronic commerce and the seemingly uncontrollable power of deregulated capital markets do much to enhance the power of markets and create a sense of the economic irrelevance of national borders. By contrast new innovations in information technology, especially the Internet, in theory make possible the empowerment of minorities and foster the development of sites of resistance to globalisation. In short, mixed messages originate from observing globalisation and we need to ask whether it is a source of explanation of contemporary global events--or whether it is something that itself needs to be explained?

But this question is prior to that posed by this Asia Pacific Roundtable; that is, what are the benefits and costs stemming from gl

(i) Globalisation does generate rapid economic growth, but it does not do so uniformly and it does not do so without creating categories of loser or dispossessed. While statistical data suggests that in terms of aggregate quality of life indicators (declining infant mortality, longevity and income for example) there is aggregate global improvement, the political will and institutions to alleviate problems endemic to global economic advance and provide for a more just world order are not presently apparent.

Perhaps more important in the longer term, even economic theory is beginning to accept that early capital account liberalisation has been a mistake. As Charles Wyplosz has demonstrated 'financial market liberalisation is the best predictor of currency crisis.'19 Barry Eichengreen has demonstrated how crisis prevention requires the minimisation of short term lending to poorer countries. And taxes that make it more difficult for private investors to borrow abroad, of the kind pioneered by Chile he argues, are an important way to achieve this.20 Moreover, other post crisis theoretical work, from within the IMF, demonstrates the manner in which short term capital controls are not only effective in reducing the vulnerability of emerging markets to financial crises but also may even increase capital inflows.21

Some topics in this essay:
Bretton Woods, Southeast Asia, World Bank, Latin America, List Hamilton, Social Movements--increasingly, Pacific Roundtable, Third World, Ohmae's McKinseyesque, Consensus Furthermore, social bond, neo liberal, economic theory, latin america, global economic, economic liberalisation, twentieth century, political life, international relations, currency crises, asia latin america, free market fundamentalism, embedded liberal compromise, global financial markets, modern political life,