Globalization and Its Enemies , by Daniel Cohen.
Published by The MIT Press, 2006, 256 pp. Translated by Jessica B. Baker.

Author Daniel Cohen argues through the historical lens using the past eras of globalization to illustrate where we are today.

They say books should not be judged by their cover. They also should not be judged by their size. Globalization and Its Enemies, by French economist Daniel Cohen, may be tiny but it packs a punch, testing our assumptions of globalization at every turn of the page.

Globalization

Economist Daniel Cohen challenges the notion that globalization is imposed and exploitative and offers an innovative idea to make globalization work for the poor. The author writes, "to understand today's globalization requires that one renounce the idea that the poor are stunted or exploited by globalization." Certainly, rich countries' protectionist practices and unfair trade terms negatively affect poor countries, but these countries stay poor because they have little or nothing that the richer nations desire or need, or so he contends. Cohen likens the situation of the poor countries to that of "individuals lost in the French welfare system."

It is Cohen's belief that developments in communication and technology do nothing more than show people the prosperity of the developed nations - "a vivid world of promises that have yet to be fulfilled." The irony of today's globalization is that economic forces continue to lag behind expectations of better life. What is yet to occur, not what has already happened, makes globalization the hot-button issue it is today in the twenty-first century.

Cohen argues through the historical lens using the past eras of globalization to illustrate where we are today. Relative to the past, today's globalization is "immobile," and in the case of wealthy nations, largely "invisible." While material goods are physically traded around the world, it is only through television, other media and international tourism that societies truly mix today.

It is Cohen's belief that developments in communication and technology do nothing more than show people the prosperity of the developed nations - "a vivid world of promises that have yet to be fulfilled."

He also calls this current phase of globalization "weak in statistics." Again relying on history for comparison, he points out that one hundred years ago, immigrants accounted for 10 percent of the world's population. Today, despite increased populations and ease of mobility, immigrants make up only 3 percent of the world's population. In terms of commerce, while trade has increased dramatically in the last century, most is contained within the rich nations. In the case of the European Union, which represents 40 percent of global commerce, roughly two-thirds of its exports and imports are traded within Europe. This is a far cry from the days when the colonial powers traded heavily with distant and dissimilar countries in the early 1900s.

Its Enemies

Cohen divides globalization's "enemies" into two general camps - one cultural and the other economic. There are those that decry the "Westernization" of the world and blame the problems of the world on a "clash of civilizations." Others vilify capitalism and spearhead the global class struggle.

Cohen disputes both camps as they share the idea that globalization imposes a model that people do not want. Addressing the "clash of civilizations" camp, he criticizes Samuel Huntington and Max Weber in their conclusions that religion and culture directly affect development. He claims their theories on globalization are simplistic. To counter he provides interesting analyses of the economic growth and historical evolutions of Muslim nations and China and Taiwan to back his argument.

Using the European Union as a case study, Cohen argues that economic integration does not have to come at the cost of cultural diversity.

Cohen also argues that economic integration does not have to come at the cost of cultural diversity, using the European Union as a case study. He writes, "it is possible to say that Europe sharpens these distinctions more than eliminates them." For example, Catalans and Corsicans have been able to demand greater autonomy because they are now more protected economically. Cohen asserts that this ability to integrate economically and diversify culturally is the foundation of EU success. It comes, however, at the price of political integration, a topic he fails to address.

Looking through an alternate lens Cohen addresses the anti-capitalism camp. Instead of demonizing capitalism for its imposition of progress, he marvels at its poor capacity to diffuse progress, especially given the ease of communication and travel. Cohen implies that if globalization were really as global as people seem to think, progress would be evident in more parts of the world, so capitalism may not be as much to blame as previously assumed.

The "Theory of Levers" - A Solution?

One of the most interesting concepts presented in the book is what Cohen calls the "theory of levers." He describes three key factors, or levers, that combine to determine the wealth or poverty of a nation. Education and professional experience contribute to human capital. A person who is literate is more capable than someone who is illiterate. Machines and technology determine physical capital that a worker can operate. A farmer with a tractor is more productive than one with an ox. Finally, a more ambiguous "global efficiency" comes from technology and organizational efficiencies produced by machines. For example, computers, and the organizations that depend on them, are only as good as their anti-virus protection software.

These three levers - human capital, physical capital and global efficiency - are interdependent, and their success depends on available resources. Cohen outlines a paper he co-wrote with economist Marcelo Soto about how resources (or lack thereof) determine the capacity of levers in poor countries compared to those in rich countries. Essentially, rich nations have all three levers working at 100 percent capacity and see the resultant growth. Poor nations, with inadequate resources, have these levers operating at a fraction of their full capacity and therefore remain poor.

These three levers - human capital, physical capital and global efficiency - are interdependent, and their success depends on available resources.

Cohen contends that poverty will, in theory, be reduced if each of the levers are addressed in poor countries. While offering no specific recommendations as to how these levers should be dealt with, he maintains that ideally, each lever should be addressed individually, as confronting them all at once is daunting, if not impossible.

The Real Problem of Globalization

The core issue, according to Cohen, is that "Globalization does not keep its promises". Cohen repeats this phrase throughout the book and in doing so removes class, culture and religion from the debate. This disconnect is something that some "enemies" of globalization may find difficult to understand or accept.

Not unlike a French film, the few conclusions Cohen draws are vague and theoretical. He does not outline a plan for encouraging microlending in Kenya or curbing the population growth in China. However, he makes some interesting and powerful points. And regardless if one agrees with his ideas or conclusions, what is important is that Daniel Cohen makes the reader think, and he contributes a new and unique perspective to the globalization debate.




Contributed by Sarah A. Hah, a former Rotary World Peace Fellow who currently works for the Africa Grantmakers' Affinity Group in New York City. She is a frequent contributor to Global Envision.

To read another Global Envision article about globalization, see As Globalization's Benefits Grow, So Do Its Skeptics.



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