Why the Globalization Fund is a Bad Idea

The European Commission plans a Globalization Adjustment Fund, hoping that money and a united front can prepare displaced workers for new and better jobs. But this author suggests that the fund sends the wrong signal, that globalization represents more danger than opportunity. By subsidizing jobs, the fund could offer short-term palliatives but not long-term economic reforms sorely needed in many European nations. Plus, the fund duplicates the hefty European Social Fund, designed to “combat unemployment and enhance social cohesion.” Arnaldo Abruzzini, general secretary of the Association of European Chambers of Commerce and Industry, urges increased attention to a few areas – entrepreneurship, R&D investment, flexible labor markets, and internal market enforcement – as the formula to controlling globalization. – YaleGlobal