Gobernando una globalización incompleta

Abstract

In the last thirty years we have witnessed a process of deepening economic integration or globalization, moving towards a world where production, trade and investment know no frontiers. If and when such a process will be completed, the world economy will operate as that of a single country, with totally unimpeded trade and production factor flows. At that point we should have fully fledged global institutions, such as: a world government; global (in addition to local) taxation and public expenditure re-distributing resources world-wide and catering for global public needs; a world central bank managing a single world currency and acting as lender of last resort; public agencies financing and promoting regional economic development, public authorities taking care of competition or the environment, and various other institutions of global governance. Today globalization is notable not only for its fast progress but – for better or worse – also for its incompleteness. There are still important barriers to trade and production factor flows, countless trade blocs, multiple currencies, unilateral aid; global governance institutions are missing or rudimentary and ineffective. This state of affairs reduces the net benefits actually obtained from globalization and fails to distribute fairly its gross costs and benefits across countries and groups, thus justifying some of the current widespread opposition to globalization. The development of new and stronger institutions of global governance may or may not be regarded as desirable but is necessary to the continuation and growth of global trends.