Globalization

Between a Convoy Model and an Underconsumptionist Threat

By: Hartmut Elsenhans

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Paperback | 29 March 2006

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312 Pages

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21 x 14.4 x 1.8

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Today's globalization is characterized by the worldwide disempowerment of labor. This is not the result of low real wages in backward countries but of devaluation-driven exports from relatively prosperous catch-up countries. An alternative form of globalization, the convoy model, is possible if the causes of devaluation-driven exports are eliminated. This does not call for a worldwide alignment of labor costs, but worldwide full employment policies, requiring a strong state in labor-surplus economies of the underdeveloped areas and social and economic reforms in favor of the poor.

Hartmut Elsenhans is professor of International Relations at Leipzig University, Germany.

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