Globalization & good policy

Posted By Jai Singh Monday, April 10, 2006 - 8:36 AM Share

In today's NYT, the president and the chief economist at the Fed Bank of Dallas use Foreign Policy's Globalization Index to determine if there's a correlation between how globalized a country is and how good its governance is. The conclusion:

Globalization's critics argue that a more open world economy sets off a race to the bottom by encouraging countries to jettison protections for consumers, workers and the environment. In reality, the opposite is true. If our data demonstrate anything, it is that globalization prompts a race to the top by pushing countries to abandon policies that burden their economies in favor of those that fuel growth and economic opportunity.

There's a chart that sums up their findings really well.

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