Globalization and Its Enemies
Daniel Cohen, The MIT Press, 2006,192 pages, £18.95.

Fascinating though this little book is, it is difficult to avoid the impression that it gives us only a partial view of globalisation. The key tenet of the book is that globalisation offers poor nations a tantalising prospect of what they might achieve but it fails to give them the means to realise their ambition. Instead, it serves only to raise expectations to a greater degree than can possibly be realised.

In contrast to other views on this topic, Cohen argues that they fail to achieve their ambitions due to neglect on the part of the industrialised world rather than exploitation. Whilst this makes a change from the industrialised-world-rips-off-emerging-nations polemicism, it is far from the whole story. Indeed it is difficult to do justice to the globalisation debate in such a slim volume, and it is often hard to keep track of where the author is trying to lead us as he weaves his ideas together. This leads to a number of apparent contradictions. For example, Cohen suggests that the first wave of globalisation can be traced back to the Conquistadors’ exploitation of the new world. Yet he also quotes work which suggests that “globalisation has always been a part of human history,” as those innovations which emerged from the Near East – including advancements such as the wheel and writing – changed the world.

One idea which does emerge is that the spread of capitalism is partly down to chance. Events such as land reform and greater access to education can trigger a number of positive externalities, and inability to free up the factors of production is a major reason why some countries are left behind in the global economy. Thus it is at least partly failure on the part of domestic governments, rather than the international agencies, which lies at the heart of the problem.

Not that the World Bank, IMF or WHO get off scot-free. Cohen suggests that they are “driven by an agenda that escapes all control” and lack the degree of policy co-ordination required to tackle those problems which hold back the laggards in the world economy. Nonetheless, the institutions escape the same degree of scathing criticism to which they have been subjected by the likes of Joseph Stiglitz.

Whether or not one agrees with the thrust of the argument, the real beauty of the book is the wealth of evidence used to illustrate the key themes. From the importance of the taming of the horse, to a discussion of how geographical differences in commodity prices were cut by advances in nineteenth century communications, readers will if nothing else be entertained and informed.

Ultimately, however, this book offers a bleak message. So long as countries are excluded from the globalisation process, whether by accident (Africa, which offers few profitable investment opportunities) or design (North Korea) there is little hope of a more ‘just’ world. The poor will thus continue to be poor and the rich will presumably grow richer.

Peter Dixon
Commerzbank Corporates and Markets