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The Crisis of Globalization as an Opportunity to Create a Fairer World

Abstract After having reviewed trends leading to greater international inequality, this article argues for a more stable international financial system allowing developing countries greater participation in international trade combined with full exploitation of their development potential. As emerging economies tap deeper into global supply chains, outsourcing of jobs will influence employment and there is need for a more transparent, coherent and balanced framework at the global level. Also a more balanced pattern of domestic demand will only be achieved with rising wages rather than through increased debt levels. Economies need continuously to increase their skill and knowledge base in order to successfully integrate themselves into the global production process. Active labour market policies (including skill development) should be strengthened to better prepare workers for the future job market. When temporary dislocation of workers cannot be avoided, appropriate social protection measures provide worker security. In all cases, the benefits that global production can bring should be properly weighted against the costs, and these costs can only be minimized through active involvement of all the major actors.