Summary of Globalization Conference: Benefits & Drawbacks

The public conference on "Globalization: Benefits and Drawbacks" was organized by CQC and presented at Montgomery College in Rockville, Md. on the evening of November 14, 2001.

The moderator, Dr. Clarence Porter, Vice-Pres. of Montgomery College, introduced the four panelists, whose talks were followed by audience questions.

Robert Saloschin, President of CQC and former chairman of the Justice Department Freedom of Information Committee, spoke briefly about the relations between globalization, the September 11 terrorism, and the work of CQC.

Dr. James Weaver, a distinguished economist and author, set the scene by defining globalization and summarizing its historical background. Globalization is the " the increasing movement across national borders of products (trade), capital (loans and investments), information, and people." The conference focused on economic globalization, i.e., movement of trade and capital.

John Cavanagh, Director of the Institute for Policy Studies, described the downside of current globalization as outweighing its benefits, while stating that not all globalization is bad. He cited the growth of sweatshops in poor countries, global warming caused by fossil fuels, an increasing percentage of the world's wealth in the hands of a few hundred super-rich, and large corporations suing and squeezing the governments of poor countries to the detriment of their people. He said that the U. S. Office of Trade Representative, the IMF, and the World Bank are chiefly responsive to big corporations.

Prakash Loungani of the International Monetary Fund noted that on a trip to his native India he found a Baskin Robbins ice-cream shop in Bombay and that the majority of his friends and relatives didn't mind this example of globalization. He added that rich countries would make a mistake if they don't open their markets to the exports of poor countries. He said that under globalization the life expectancy in developing countries has increased from 40 years in 1950 to 65 years today. He cited a survey that under globalization 120 out of 192 nations were democratic in nature. He noted that China, India, Mexico, and Brazil were increasing their GDP by 5% a year thru globalization, as compared to 2% for countries that were not globalizing.

Among the audience questions were:

  • How valid a measure of human welfare is economic growth? (Dr. Weaver noted several important welfare factors made possible by national wealth.)
  • Isn't it possible to have too much of a good thing? ( A reference to ever bigger autos and houses in America recently as raising eyebrows in other countries was not disputed.)
  • Are the monetary organizations doing too much, too little, or just right?
  • Who should set policy in these matters?


CQC's Globalization Group is chaired by Susan Rao, former Foreign Service Officer.

Questions? Contact Globalization Policy Group Chair or CQC