Sharing the wealth; Two new books take on the critics of globalization.(In Defense of Globalization)(Why Globalization Works)(Book Review)

Byline: Robert J. Samuelson

Wham! bam! now come two intellectual heavyweights, armed with statistics and studies, determined to prove once and for all that globalization is not just an economic necessity but also a moral imperative--leading to greater social justice, freedom and democracy. Pick your champion: either Jagdish Bhagwati, a well-known trade economist at Columbia University who's written "In Defense of Globalization" (308 pages. Oxford University Press ), or Martin Wolf, the chief economic commentator of the Financial Times, who's provided "Why Globalization Works" (398 pages. Yale University Press ). Their relentless assault on globalization's critics succeeds, up to a point. Globalization can deliver great benefits only if it isn't constantly disrupted by crises, and--after the Asian financial meltdown and 9/11--there are legitimate doubts. Unfortunately, both Bhagwati and Wolf virtually ignore the dangers of crippling political or economic instability.

Otherwise, Bhagwati and Wolf are convincing. The harshest objections to globalization--that it's a corporate conspiracy to oppress the downtrodden--make sense only if poverty is virtuous. China and India show that greater trade and freer markets can sharply cut poverty. Since liberalizing, both countries have boomed. From 1980 to 2000, average incomes in China rose more than 400 percent. In some ways, Bangladesh's experience is more impressive. In 1975 its per capita income was half that of sub-Saharan Africa. The country's plight seemed "hopeless," says Wolf. Then in the 1990s it opened to trade. In the decade, exports rose 15 percent annually. By 2000 exports were 32 percent of gross domestic product, up from 18 percent in 1990. Now, per capita incomes equal those of sub-Saharan Africa.

Bhagwati and Wolf also find other criticisms of globalization overblown. Child labor predates globalization--and is preferable to child starvation. Wolf reports that about 250 million children between 5 and 14 work, 70 percent in traditional agriculture. Only about 10 million to 15 million work in export industries. As incomes rise, families are less likely to resort to child labor. ...