Rethinking Globalization in the Trump Era: US-China Relations

By Joseph Stiglitz |

Download

The global economic and political order that was created in the aftermath of World War II is under attack by President Trump. That order has been of enormous benefit to the entire world.

The international institutions and arrangements that have been created the last seventy years have, I believe, played an important role in these successes. These include the UN, the IMF, the World Bank, the regional development banks, and GATT and its successor institution, WTO. None of these are perfect. Indeed, in many of my books I have criticized them—as not democratic enough, too dominated by the US and other advanced countries, too influenced by special interests and particular ideologies. But I criticized them from the perspective not of walking away from globalization, but from that of making it work better, to the betterment of all individuals around the world.

Seemingly, President Trump is arguing for a new era of protectionism. I say seemingly, because there is a lack of consistency in his statements and some of those he has appointed.

In the following pages, after describing briefly the scope for action of the President, I suggest how countries, such as China could and should respond.

Joseph E. Stiglitz is Senior Fellow and Chief Economist at the Roosevelt Institute and a professor at Columbia University. A recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979), he is a former senior vice president and chief economist of the World Bank and a former member and chairman of the (US president’s) Council of Economic Advisers.