Globalization Requires Safety Net, UN Says

As globalization continues to connect distant places of the globe together, many citizens, even those in wealthy nations, face the consequences of “severe economic swings.” Disturbances in the economy resulting from intense competition come in many forms, including food shortages, rising income inequality or steadily increasing fuel prices. According to separate reports from the United Nations and the International Monetary Fund, governments should intervene to protect citizens from an economy that often leaves them feeling insecure. Wealthy governments can minimize the risks of globalization – and any potential conflict – by providing generous foreign-aid packages and supporting a minimum income level for citizens living in the poorest regions, the report suggests. Governments have no excuse for acting helpless, suggests the 2008 World Economic and Social Survey from the UN. “Global competition, which erodes the security of businesses, unstable capital flows, which crimp investment and growth, and food shortages are sometimes viewed as beyond the ability of governments to control,” write Michael Fletcher and Christopher Twarowski for the Washington Post. “But the report says that is the wrong response.” Without some government intervention, the markets could go into more disarray. – YaleGlobal