« London Again the Most Competitive Financial Center . . . | Main | Rule 144 and 145 Changes »
March 4, 2008
Globalization and Prosperity
Amid the discussions about the detrimental effects of NAFTA on Ohio (see Dale's post on "Ohio's Economy" below), a soon-to-be published study of globalization's effects on the European Union states that "the European Commission estimates that at least a fifth of Europe’s income gains since World War II can be attributed to globalization, and that every EU household would gain over €5,000 annually if Europe seized the opportunities offered by the present phase of globalization."
On the negative side, the report notes that, like Ohio, a number of workers have seen their jobs move out of the EU. However, on the whole, incomes, wages, and the employment rate are all higher. The report notes that semi-skilled, assembly jobs are moving to countries like China and India, while the EU has gained considerably in "knowledge economy" jobs.
The report also notes that a crucial determinant of whether a country will benefit from globalization is the sophistication of its "human capital"--EU countries with higher education levels and "strong innovation frameworks" are the big winners from globalization. As Dale suggested below, if we apply these lessons to Ohio (and "Rust Belt" states generally), smarter investment in education and incentives for local talent to stay in the state would seem a better solution than renegotiating NAFTA.
Posted by: Paul Rose
March 4, 2008 in International Business | Permalink
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/t/trackback/89778/26772826
Listed below are links to weblogs that reference Globalization and Prosperity:
Comments
There was a very good (linked) article in the WSJ detailing the difference between the Ohio and Texas economies, and why the Dem candidates seem to sing a different tune depending on where they are. The Texas economy is thriving, due in no small part to:
- "right to work," rather than "closed" union shop laws
- lower corporate taxes
- willingness to engage the global economy
Unfortunately for Ohio NAFTA-haters, we live in a federalist system. Nobody in the White House can displace the amount of garbage in our own State Capitol. Ohio's government is the real culprit here. NAFTA is a red herring. The real "foreigners" taking Ohio jobs live in Tennessee, Arkansas, Texas, and so forth.
Posted by: Vince Zuccaro | Mar 5, 2008 2:20:41 PM
There was a very good (linked) article in the WSJ detailing the difference between the Ohio and Texas economies, and why the Dem candidates seem to sing a different tune depending on where they are. The Texas economy is thriving, due in no small part to:
- "right to work," rather than "closed" union shop laws
- lower corporate taxes
- willingness to engage the global economy
Unfortunately for Ohio NAFTA-haters, we live in a federalist system. Nobody in the White House can displace the amount of garbage in our own State Capitol. Ohio's government is the real culprit here. NAFTA is a red herring. The real "foreigners" taking Ohio jobs live in Tennessee, Arkansas, Texas, and so forth.
Posted by: Vince Zuccaro | Mar 5, 2008 2:22:07 PM
there are good things if we embrace in globalization but some workers lost their jobs too...
________________
cutie_tech123
A team of successful entrepreneurs credited for www.SelectWealthSystem.com
A new home-based-business marketing system that provides the strategic high ground for internet marketing.
Pro Team Marketing uses an automated marketing system that is currently promoting a cutting-edge young company, entering the early growth stage, that targets the largest consumer base in the United States with their financial educational products.
http://www.SelectWealthSystem.com
Posted by: Kathy Smith | Apr 3, 2008 5:38:28 AM
