In Defense of Global Capitalism

by Johan Norberg and Institute of Economic Affairs

Book Overview

Marshalling facts and the research findings, this book refutes the adversaries of globalization, markets, and progress. This book intends to change the debate on globalization in this country and make believers of skeptics.

• Format: Hardcover
• Language: English
• ISBN: 1930865465
• ISBN13: 9781930865464
• Release Date: August 2003
• Publisher: Cato Institute
• Length: 330 Pages
• Weight: 0.75 lbs.
• Dimensions: 1.0" x 4.4" x 7.6"

Customer Reviews

Good News

In this informative and accessible book, Norberg offers a systematic, detailed and complete rebuttal of the claims of the enemies of capitalism and globalization. Backed up by verifiable facts from a huge variety of reputable sources, he demolishes every lie of the leftists and environmentalists. He also investigates the other side of certain half-truths and gives an optimistic assessment of how capitalism, freedom and globalization are improving lives around the globe. Norberg looks at certain deceptive ideas, for example the one that claims the rich are getting richer and the poor poorer, giving us the good news of rapidly diminishing poverty and pointing out that the measure should be how well one is doing, not how well situated one is in relation to others. He investigates the facts on issues like hunger, education, freedom and equality. Improvements have been particularly spectacular in China and India since these countries started reforming their economic systems. He shows how the walls against ideas, people and goods are collapsing with dictatorships and how women benefit from the spread of capitalism. The best cure for poverty is growth; prices and profits serve as a signalling system in the market economy whereby the worker, the entrepreneur and the investor all benefit. The importance of property rights are pointed out, with reference to the work of De Soto, and the author compares the success of the Asian Tigers with the sorry state of Africa, although even here the open societies like South Africa, Mauritius and Botswana are doing well. Norberg dismisses the hoary old argument that western countries are rich because they stole the resources of Third World countries in colonial times. The affluent world has grown faster since shedding its colonies, many rich countries (like Sweden and Switzerland) never had any colonies, whilst some of the world's least developed countries (Nepal, Liberia) have never been colonies. Nor have countries with natural resources as a rule grown as fast as those without, for example Singapore. A brilliant example of free trade success is Estonia, which soon after independence in 1992 abolished all tariffs. The 20 economically most liberal countries have a per capita GDP of approximately 29 times that of the economically least liberal. The uneven distribution of wealth in the world is due to the uneven distribution of capitalism and the losers of the world are those that have been left out of globalisation. The author attacks agricultural subsidies in the affluent countries, showing that this ridiculous practice harms those countries themselves and the developing world. He demonstrates the absurdity of Europe's Common Agricultural Policy, a bureaucratic nightmare that channels nearly 40% of the entire EU budget to less than 1% of the population. Latin America still suffers from decades of privilege and protectionism, but Chile is a good example of how quickly a country can transform itself with the

Steam for Global Capitalism

"When I say that I mean to defend capitalism," proclaims Norberg, "what I have in mind is the capitalistic freedom to proceed by trial and error, without having to ask rulers and border officials for permission first."He erects a barrage of facts and figures to make the case that trade is good. For example, real incomes among the top quintile of income earners have risen 75% over the past three decades and real incomes among the bottom quintile have increased 106%. Life expectancy in developing economies has increased, infant fatalities have fallen, and people living in developing economies are eating better and obtaining more education. Read the book to learn why the widening "gap" between rich and poor is a falsehood. Although most of the world is still poor compared to the West, their hardship is not because of the West. According to Norberg, "The uneven distribution of wealth in the world is due to the uneven distribution of capitalism."Protectionists predict that capitalists will locate plants in countries where wages or environmental standards are lowest. Capitalists are not only intent on paying lower wages. "If they were," points out Norberg, "the world's aggregate production would be concentrated in Nigeria." Multinational corporations also seek "social and political stability, the rule of law, secure property rights, free markets, good infrastructure, and skilled manpower." There is evidence that the quality of the environment worsens in the early stages of development. However prosperous people can afford cleaner air and water. Norberg reports that "the turning point generally comes before a country's per capita GDP has reached $8,000." When people earn more than that, their governments adopt environmental regulations. The point is that trade and growth are the means to a cleaner environment.In addition to trade issues and capitalism, one may also learn a lot about developmental economics and international finance. Norberg observes that people fail to appreciate global capitalism during the good times and then blame the process when the going gets tough. "Globalization will not keep moving under its own steam if no one stands up for it," he asserts. In Defense of Global Capitalism is perhaps worth a ton of coal in the engine of global capitalism.

The Good News

In this illuminating and accessible book, Norberg offers a systematic, detailed and complete rebuttal of the claims of the enemies of capitalism and globalization. Backed up by verifiable facts from a huge variety of reputable sources, he demolishes every lie of the leftists and environmentalists. He also investigates the other side of certain half-truths and gives an optimistic assessment of how capitalism, freedom and globalization are improving human lives around the globe. Norberg looks at certain deceptive ideas, for example the one that claims the rich are getting richer and the poor poorer, giving us the good news of rapidly diminishing poverty and pointing out that the measure should be how well one is doing, not how well situated one is in relation to others. He explores the facts concerning issues like hunger, education, freedom and equality. Improvements have been particularly spectacular in China and India since these countries started reforming their economic systems. He shows how the walls against ideas, people and goods are collapsing with dictatorships and how women benefit from the spread of capitalism. The best cure for poverty is growth; prices and profits serve as a signalling system in the market economy whereby the worker, the entrepreneur and the investor all benefit. The importance of property rights are pointed out, with reference to the work of De Soto, and the author compares the success of the Asian Tigers with the sorry state of Africa, although even here the open societies like South Africa, Mauritius and Botswana are doing well. Norberg dismisses the hoary old argument that western countries are rich because they stole the resources of Third World countries in colonial times. The affluent world has grown faster since shedding its colonies, many rich countries (like Sweden and Switzerland) never had any colonies, whilst some of the world's least developed countries (Nepal, Liberia) have never been colonies. Nor have countries with natural resources as a rule grown as fast as those without, for example Singapore. A brilliant example of free trade success is Estonia, which soon after independence in 1992 abolished all tariffs. The 20 economically most liberal countries have a per capita GDP of approximately 29 times that of the economically least liberal. The uneven distribution of wealth in the world is due to the uneven distribution of capitalism and the losers of the world are those that have been left out of globalisation. Norberg attacks agricultural subsidies in the affluent countries, showing that this ridiculous practice harms those countries themselves and the developing world. He demonstrates the absurdity of Europe's Common Agricultural Policy, a bureaucratic nightmare that channels nearly 40% of the entire EU budget to less than 1% of the population. Latin America still suffers from decades of privilege and protectionism, but Chile is a good example of how quickly a country can transform itself with th

Globalization as capitalism without borders

Having lived and come over from the left, Norberg makes a compelling case for globalization as a model for success. Contrary to the negative review from the Swedish "assassin", globalization works. The assassin's list of dysfunctional democracies is, even at its worst, a list of democracies and, contrary to his opinion, examples of good progress towards economic and political freedom.Globalization has become capitalism without borders. Capitalism means the right to own and the right to trade -- freely. The problems have more to do with what can and can not cross borders in a world economy where geopolitics and terrorism limit the rights or possibilities of people to move freely. There is still a strong urge to maintain national integrity and the natural defense of one's borders and culture. And, given the choice, people head for countries with greater economic and political freedom, not just where the natural wealth and resources exist. People are now the world's greatest resource and they are more mobile than ever.Norberg pulls together multiple, massive statistical studies of real progress in the world resulting from greater political and economic freedom. They go hand in hand. They serve the liberation not only of countries and cultures, but also women who, one hundred years ago left any country short on its claim of true democracy by prohibiting them the ballot and/or the right to economic freedom and ownership.David Landes' "Wealth and poverty of nations" made this case from an historic perspective. Countries and their people and institutions need to be able to produce things of value, educate their young, innovate in their methods, emulate success, discriminate based on merit, and allow people the right to retain (some or much of) the fruit of their labor. Globalization and capitalism, like democracy, are the worst of all possible forms of economics, except, as Churchill advised, for all other forms of economics that have been tried from time to time.All these data and global views can be a bit dry at times and it should be safe to assume that English is not Norberg's first language (although he writes better than most American university students with English as their first language!) yet it is well worth the detail. He questions conventional (i.e., casual) wisdom. Anecdotes are illustrative and global.

Summary of In Defence of Global Capitalism

The first book to rebut - systematically and thoroughly - the world picture and tenets of the anti-globalisation movement has been written by a 27-year-old Swede - and former anarchist. It quickly became a bestseller in Sweden after its publication in May 2001, and now there is this English version.For some time, opponents of globalisation have been able to spread myths about capitalism. They say that free trade and free markets make the world a more unequal place, that capitalism holds people in poverty, that economic growth harms the environment, that multinational corporations keep wages and labour standards on a low level, and that free financial markets cause crises.This is not correct. In Defence of Global Capitalism is the book that systematically challenges and refutes the anti-capitalist assumptions. With hard facts, statistics and simple graphs, Johan Norberg explains why capitalism is in the process of creating a better world. But the book is also personally written, with an emphasis on values, and the fact that globalisation gives opportunities and freedom to the world's poor. The book illustrates this with concrete examples of people and countries that have prospered thanks to globalisation, and those that have suffered because of isolation.Johan Norberg shows that the diffusion of capitalism in the last decades has lowered poverty rates and created opportunities for individuals all over the world. Living standards and life expectancy has risen fast in most places. World hunger, infant mortality and inequality have diminished. This is because of an economic and technological development that is the result of free market policies. The poor countries that have liberalized their economies have shown impressive results, while those that have not are stuck in deep misery. Therefore, we need more capitalism and globalisation if we want a better world, not less.The Swedish writer, Johan Norberg, has an MA in history of ideas. He is the author of books on human rights, the history of liberalism and the Swedish author Vilhelm Moberg. Johan Norberg is devoted to globalisation and individual liberty. ...