The debate on globalization has reached a level of intensity that inhibits comprehension and obscures the issues. In this book a highly distinguished international economist scrupulously explains how globalization works as a concept and how it operates in reality. Martin Wolf confronts the charges against globalization, delivers a devastating critique of each, and offers a realistic scenario for economic internationalism in the future. Wolf begins by outlining the history of the global economy in the twentieth century and explaining the mechanics of world trade. He dissects the agenda of globalization’s critics, and rebuts the arguments that it undermines sovereignty, weakens democracy, intensifies inequality, privileges the multinational corporation, and devastates the environment. The author persuasively defends the principles of international economic integration, arguing that the biggest obstacle to global economic progress has been the failure not of the market but of politics and government, in rich countries as well as poor. He examines the threat that terrorism poses and maps the way to a global market economy that can work for everyone.

The European Union, by virtue of its size alone, is called upon to play a central role in establishing a prosperous and liberal world economy. But, says Martin Wolf, its historic approach--an uncomfortable compromise between liberalism and protectionism--raises serious doubts about whether it is capable of rising to the challenge. The Maastricht treaty has reinforced Europe's protectionist and centralizing tendencies, while the impact of new competitors upon the European economy may have also served to foster a "fortress" mentality. Such trends are very likely to encourgage similar developments elsewhere. Indeed, there is a very great danger that the "naive mercantilists" on both sides of the Atlantic will join hands to dance to the same protectionist tune, thereby putting at risk all that has been achieved by way of trade liberalization over half a century.