- How to Save Globalization from its Cheerleaders
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- by Rodrik, Dani
- When future economic historians write their textbooks, they will no
doubt marvel at the miraculous turn the world economy took after 1950.
Over the long stretch of history, neither the Industrial Revolution nor the
subsequent economic catch-up of the United States and other “western
offshoots” looks as impressive (Figure 1). The period since 1950 has
witnessed more rapid economic growth than any other period before,
with only the classical gold standard era between 1870 and 1913 coming
close. Even more striking, there has been a quantum jump in the growth
rate of the most rapidly growing countries since 1950. Prior to 1950,
growth superstars experienced growth rates that barely surpassed 2
percent per annum (in per capita terms) over long stretches. Compare
this with the post-1950 growth champions: Japan, South Korea, and
China; each grew at 6-8 percent per annum during 1950-73, 1973-90,
and 1990-2005, respectively. Even allowing for the shorter time slices,
this indicates that the world economy became a much more enabling
environment for economic growth after 1950. Clearly, the architects of
this new world economic system got something right.
- Publication Type: Published Paper
- Published Date: September 2007
- Field of Interest: International Economics
- Rodrik, Dani. "How to Save Globalization from its Cheerleaders," Journal of International Trade and Diplomacy, vol. 1 no. 2, Fall 2007.