Taking Trade to the Streets: The Lost History of Public Efforts to Shape Globalization
The 1999 antiglobalization demonstrations in Seattle and others since seem to presage a new era of rising discontent. Not quite so, argues Aaronson. In the United States and around the industrialized world, individuals and nongovernmental groups have long attempted to shape foreign economic relationships and champion regulations to protect social values. She traces the actions of American trade-agreement critics to focus on the ratification battles over the North American Free Trade Agreement and the Tokyo and Uruguay rounds of multilateral trade pacts. Aaronson maintains that today's trade protests have their roots in the 1970s, when governments first successfully reduced tariffs to historic lows and then turned to address nontariff barriers such as health and safety regulations. Today's trade critics are not primarily traditional trade protectionists but activists who see such trade agreements as threats to social and environmental regulation. What is new in Seattle-era trade politics, however, is the global movement against greater deregulation. With a historical angle, Aaronson helps deepen the current debate.
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Robert Gilpin fears that globalization is at risk because the Cold War-era foundations of today's liberal capitalist order are eroding. In fact, they are stronger than ever.
The principal problem with which the world's economies must deal during the coming decade is the unsustainable imbalance of international trade. The United States cannot continue to have annual trade deficits of more than $100 billion, financed by an ever-increasing inflow of foreign capital. The U.S. trade deficit will therefore soon have to shrink and, as it does, the other countries of the world will experience a corresponding reduction in their trade surpluses. Indeed, within the next decade the United States will undoubtedly exchange its trade deficit for a trade surplus. The challenge is to achieve this rebalancing of world demand in a way that avoids both a decline in real economic activity and an increase in the rate of inflation.
Nixon was not the only one who went to China; Ronald McDonald is there now, too. McDonald's triumphed -- in a cultural zone where many adults think fried beef patties taste bizarre -- by catering to China's pampered only children, the so-called little emperors and empresses. The "Golden Arches" have become part of the landscape of Beijing and Hong Kong. But is McDonald's trampling local culture in the name of a bland, homogeneous world order? Not really. Global capitalism pushes one way, and local consumers push right back. Herewith, a parable of globalization.

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