Project Syndicate: Why We Need Globalization

Open economies with active trade, immigration and foreign investment have historically enjoyed prosperity, and “globalization does not deserve voters’ ire,” argues Koichi Hamada for Project Syndicate. Competition does harm some communities and individuals, but governments can target policies that encourage economic security, job training and adaptation. “Yet such countervailing policies are rarely taken, allowing frustration to mount among the groups that are losing out,” he writes. “Politicians then emerge to seize on that frustration, pursuing policies that are precisely the opposite of what is needed.” Prohibiting trade deficits invites retaliation, slows trade and eliminates competitive advantages that reduce costs for all. Trade data does not account for the many jobs created through foreign direct investment. In 2015, British firms created 1.1 million jobs and Japanese multinationals created 865,000 in the United States. – YaleGlobal