The pros and cons of globalization

Analysis suggests that future freer globalized trade will (1) likely benefit both rich and poor regions, (2) probably give measured percentage gains to poor places that exceed those to rich places, (3) possible exacerbate real income inequality between rich and poor, and more certainly (4) bring more lifetime uncertainty along with enlarged material gains. A backlash to freer trade, economic history suggests, will lead to weaker productivity advance, enhanced degree of monopoly, and to aggravated crony-capitalism and plutocratic lobbyist democracy. (C) 2005 Elsevier B.V. All rights reserved.