Ethics & International Affairs Volume 13 (1999): Articles: The Global Gamble on Financial Liberalization: Reflections on Capital Mobility National Autonomy and Social Justice [Abstract]

Dec 4, 1999

This essay provides an overview of the connections between financial globalization, domestic autonomy, and social justice. It starts by identifying reasons why capital mobility and social justice may be at odds. It then distinguishes four arguments: that capital mobility is incompatible with the maintenance of distinctive national social systems and, specifically, social safety nets; that capital mobility undermines the ability of governments to use Keynesian monetary and fiscal policies to stabilize their economies; that capital mobility is in fact a hindrance to economic growth and development; and that the negative effects of capital mobility are felt disproportionately by developing countries. Review of the evidence shows that these arguments must in fact be more strongly qualified than at least some critics of capital mobility suggest. The essay then turns to the Asian crisis, which has encouraged a more skeptical view of the benefits of international financial liberalization, and asks what lessons the crisis contains for this debate. The Asian crisis, while confirming that high capital mobility creates pressure for institutional convergence, does not suggest that convergence must be instantaneous and complete. In addition, the crisis raises pressing questions about the advice given developing countries by the IMF and the advanced-industrial countries about the management of international capital flows, which are considered as well. Finally, the essay examines reforms designed to better reconcile the globalization of finance with social justice, distinguishing reform at the national level from reform of the IMF and reform of the broader international system.

To read or purchase the full text of this article, click here.

You may also like

AUG 2, 2022 Journal

Ethics & International Affairs Volume 36.2 (Summer 2022)

The editors of Ethics & International Affairs are pleased to present the Summer 2022 issue of the journal! The highlight of this issue is a roundtable organized ...

MAR 15, 2022 Journal

Ethics & International Affairs Volume 36.1 (Spring 2022)

The highlight of this issue is a roundtable organized by Jesse Kirkpatrick on moral injury, trauma, and war, featuring contributions by Jesse Kirkpatrick, Daniel Rothenberg, ...

JAN 4, 2022 Journal

Ethics & International Affairs Volume 35.4 (Winter 2021)

The issue features a book symposium organized by Michael Blake on Anna Stilz's "Territorial Sovereignty," with contributions from Adom Getachew; Christopher Heath Wellman; and Michael ...

Not translated

This content has not yet been translated into your language. You can request a translation by clicking the button below.

Request Translation