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Home | Wire | The Difference Between Good Globalism and Bad Globalism

The Difference Between Good Globalism and Bad Globalism

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Tags Protectionism and Free TradeWar and Foreign Policy

03/28/2018

"Globalism" and "globalization," are terms that suffer from a lack of any precise definition. The terms are used freely by a wide variety of commentators to mean both good and bad things — many of which are opposites of each other. Sometimes globalism means lowering trade barriers. Other times it means aggressive foreign policy through international organizations like NATO. Other times it means supporting a global bureaucracy like the United Nations. 

This lack of precision was recently featured in The New York Times with Bret Stephens's column "In Praise of Globalists." Stephens however, also fails to make any serious attempt at defining globalism. He feigns an attempt to define globalism, but in the end, it turns out the column is just a means of making fun of Trump voters and rubes who don't subscribe to Stephens's allegedly cosmopolitan views. 

Stephens tells us that globalists want to "make the world a better place," thus implying that non-globalists don't.  We're informed that globalists value military alliances and free trade. But given that Stephen's isn't willing to define these terms or tell us how these institutions are used to make the world "a better place," we're still left wondering if globalism is a good thing. When international alliances are used to justify the dropping of bombs on civilians or turning Iraq into a basket-case and safe haven for al Qaeda, is that making the world a better place? When the EU uses "free trade" agreements as a means to crush entrepreneurs under the weight of a thousand taxes and regulations, is that making the world a better place? 

Globalism: Conflating both Pro-Market and Anti-Market Forces

Unfortunately, this is nothing new. Globalism has long been a heavily abused term that includes everything from lowering taxes to waging elective wars. For critics on the right, globalism must be suspect because so many center-left politicians are regarded as "globalists."  Bill Clinton, Hillary Clinton, and Barack Obama are all regarded as dyed-in-the-wool globalists who also advocate for greater government control of markets. 

Simultaneously, "globalists" have also long been attacked by anti-capitalists. They see globalism as working hand-in-hand with "neoliberals" who are impoverishing the world by pushing for the spread of market forces, free trade, and support for less government intervention in daily life. 

These critics of so-called neoliberalism therefore attack organizations widely perceived to be "globalist" like the World Bank, the IMF, and the World Trade Organization. Unfortunately, though, the critics attack these organizations for the wrong reasons. These globalist organizations deserve to be criticized, but not because they push some aspects of economic liberalization that are actually good. They should be criticized because they primarily act as political organizations that enhance the ability of some powerful states to intimidate and politically manipulate other, less powerful states. 

This merging of free trade, military interventionism, and bureaucratic politicking under one umbrella of "globalism" ends up confusing the issue of globalism almost beyond repair. 

But there is still hope for the term. 

Historically, Globalism Is the Ideology of Peace and Freedom

Historically, it is important to remember that globalism is intimately connected to liberalism, the ideology of freedom and free trade. 

It is not a coincidence that one of the nineteenth century's most effective proponents of liberalism was Richard Cobden, who fought tirelessly against both trade barriers and against aggressive foreign policy. Cobden can be credited with waging an effective ideological war against the mercantilism of his day which was characterized by nationalist ideas in which both economic success and military security were zero sum games that required highly interventionist government institutions. 

Cobden's program, instead, was one of peace and free trade, which was then rightly regarded as a program of internationalism. Thomas Woords notes

Although Cobden's program would doubtless be stigmatized in our day as "isolationism," free economic intercourse and cultural exchange with the world can hardly be described as isolation. In his day, in fact, Cobden was appropriately dubbed the "International Man." And that, indeed, is what he was. Peace, free trade, and nonintervention — these ideas, Cobden believed, were not simply the ideological commitments of one particular party, but rather the necessary ingredients for the progress and flourishing of civilization.

We might say Richard Cobden was one of the first true European globalists. Cobden was further supported by the great French free-trader and anti-socialist Frédéric Bastiat who relentlessly called for the free flow of of goods while denouncing efforts by government institutions to "mold mankind" or impose regimentation on the population. 

Thus, the liberals of the nineteenth century who supported greater freedom of movement in both workers and goods, and non-interventionist foreign policy, might be perplexed were they to see what passes for "globalism" today. 

We are often told, even by pro-market globalists, that we need international organizations like the WTO to "ensure" that free trade prevails. This has always been a less-than-convincing claim. As Carmen Dorobăț has shown, there is not any actual evidence that the WTO really lowers trade barriers. Freedom in trade has grown more outside the WTO framework than within it.  All that is necessary to reap the benefits of free trade is to unilaterally remove barriers to trade. 

The European Commission meanwhile might facilitate trade within its trade bloc, but it acts as an enormous impediment to truly free and global trade. 

Even worse is the foreign policy of the new globalists who support an endless number of wars and military interventions on "humanitarian" grounds. Enormous military bureaucracies like NATO, amazingly, are considered to be "globalist" organizations as well. 

Political Globalism vs. Economic Globalism 

If we wish to end this confusion, though, we need to separate political globalism from economic globalism. 

When we do this, we find that economic globalism is a force for enormous good in the world, but political globalism is primarily a tool for increasing the power of states. 

As to economic globalism, we can see that again and again that the free flow of goods and services, unimpeded by states, improves international relations and increases standards of living.  Where governments have increasingly joined the "globalized" economy, extreme poverty declines while health and well being increases.  Latin American states that have embraced trade and freer economies, for example, have experienced growth. Those states that stick to the regimented economies of old continue to stagnate.  These benefits, however, can be — and have been — achieved by decentralized, unilateral moves toward free trade and deregulated economies. No international bureaucracy is necessary.

This is economic globalization: opening up the benefits of global trade, entrepreneurship, and investment to a larger and larger share of humanity. 

Meanwhile, political globalization is an impediment to these benefits: Political globalists at the World Health Organization, for example, spend their days releasing reports on how people shouldn't eat meat and how we might regulate such behavior in the future. Political globalists hatch new schemes to drive up the cost of living for poor people in the name of preventing climate change. Meanwhile, the World Bank issues edicts on how to "modernize" economies by increasing tax revenues — and thus state power — while imposing new regulations. 

It's essential to make these distinctions. Economic globalism brings wealth. Political globalism brings poverty. 

Economic globalism is about getting government out the way. It's about laissez-faire, being hands, off, and promoting the freedom to innovate, trade, and associate freely with others. 

Political globalism, on the other hand, is about control, rules, central planning, and coercion. 

Some careless observers may lump all this together and declare "globalism" to be a wonderful thing. But when we pay a little more attention to the details, things aren't quite so clear. 

Ryan McMaken (@ryanmcmaken) is the editor of Mises Wire and The Austrian. Send him your article submissions, but read article guidelines first. Ryan has degrees in economics and political science from the University of Colorado, and was the economist for the Colorado Division of Housing from 2009 to 2014. He is the author of Commie Cowboys: The Bourgeoisie and the Nation-State in the Western Genre.

Note: The views expressed on Mises.org are not necessarily those of the Mises Institute.
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