ProgressiveGlobalisation

Embed Doc
Copy Link
Readcast
Collections

CommentGo Back

Download

Progressive Governance and Globalisation: The AgendaRevisitedA paper by Jean Pisani-FerryExecutive summary

The Progressive Governance agenda on globalisation and theresponses to it was formulated in the late 1990’s. Ithighlighted opportunities offered by globalisation, andtherefore the need to embrace it. But at the same time itperceived that accelerated transformations in the worldeconomy were bound to give rise to adjustments of unprecedented magnitude. In a kind of two-handed strategy,it advocated a combination of bold domestic reforms and astrengthening of global governance to make the most of economic globalisation.Developments over the last decade have broughtconfirmations and surprises. Key facts presented in thispaper are:

•

Unprecedented integration through trade and foreigndirect investment

•

A worldwide propagation of macroeconomic stability

•

Uneven and lopsided financial globalisation

•

Stable global inequality and a rise of within-countriesinequality

•

An increasing tendency of opinion in rich countries toblame globalisation for economic insecurity

1

Against this background, the underlying philosophy of Progressive Governance is in no need for revision. Most of itskey choices continue to be valid. However the speed andmagnitude of the transformation affecting the worldeconomy are larger than initially envisaged, while domesticpolicy reforms and redistribution have often been insufficientto cope with this adjustment challenge. Some of the featuresof globalisation are also disturbing, especially as regards thepattern of capital flows, and international institutions havebeen facing both a crisis of legitimacy and a crisis of effectiveness. In other words, the two-handed globalisationstrategy has not been invalidated by events, but has notbeen fully implemented.Furthermore, the years ahead risk being less auspicious. Thereturn of scarcity and mounting concerns over economicsecurity; the re-emergence of state capitalism and the riseof Sovereign Wealth Funds; and financial instabilityrepresent new challenges to address. The continuingdevelopment of an open, multilateral world economy is lessable to be taken for granted today than it could a decadeago.Against this background, the definition of a renewed agendathat builds on the success of the initial one should be apriority for progressive governments.

2

March 2008

Progressive Governance and Globalisation: The AgendaRevisited

A contribution to the Progressive Governance SummitConference, London, 5 April 2008

Jean Pisani-Ferry (Bruegel, Brussels, and Université Paris-Dauphine)

1

Progressive Governance emerged in the 1990’s from acritical assessment of the policy failures of economicstrategies pursued in the 1970’s and the 1980’s bygovernments of the centre-left and the left. Drawing lessonsfrom these failures as well as building on a largely commonreading of the changes under way in the world economy, aseries of quasi-simultaneous policy experiments in advancedand developing economies introduced major innovations tothe agenda and the policy toolkit. A key dimension of thisreassessment concerned attitudes towards globalisation andeconomic openness.A decade has passed since this agenda was first formulated.It has been rich in surprises and lessons for policymakers,and the objective of this note is to discuss what has beenlearned that could help in reassessing the ProgressiveGovernance approach to globalisation. To this end, section 1outlines the initial agenda. Section 2 introduces selectedstylised facts that summarise some important lessons of the

1

I

am

grateful

to

Jérémie

Cohen

‐

Setton

for

his

assistance

in

the

preparation

of

this

paper.

3

of 00

Leave a Comment