Against the Dead Hand

In: Social Issues

Submitted By chriz94
Words 1004
Pages 5
Against The Dead Hand: The Uncertain Struggle for Global Capitalism Soviet-style Communism has fallen. The dream of centralized, top-down control over the course of economic development. That dream has now expired in universal failure. It died in the United States and Western Europe during the stagflation of the 1970s. It died in China when Deng Xiaoping declared that "it doesn't matter if the cat is black or white, so long as it catches mice." It died in Latin America during the debt crisis and lost decade of the 1980s. It died in the Soviet Empire with the collapse of the Berlin Wall. And it died in East Asia with the bursting of the Japanese bubble and the financial crisis of 1997-98.
The death of that misbegotten dream, more than any other single factor, has been responsible for the process conveniently summarized by the catchword "globalization. The liberalization of international transactions is only one aspect of a larger pattern of reform. As faith in government controls has dissipated, markets have been given wider play, not only in shaping economic relations be- tween nations, but in shaping them within nations as well. The willingness to subject domestic economic actors to foreign competition has gone hand in hand with the willingness to embrace competition at home. Trade and in- vestment liberalization are thus of a piece with a broad array of market- oriented policies: in particular, the privatization of state-owned industries; commitment to a monetary policy of price stability; elimination of price and entry controls that sustained domestic monopolies and oligopolies; the resurrection of labor markets; the reform of punitive tax systems; and the over- haul of financial institutions to make the allocation of capital more responsive to market returns.
Most popular accounts of globalization have focused on its…...

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