Friday, October 23, 2009

Amartya Sen on globalization and how the market could be just

From How to Judge Globalism (2002):

“The use of the market economy is consistent with many different ownership patterns, resources availabilities, social opportunities, and rules of operation (such as patent laws and antitrust regulations). And depending on these conditions, the market economy would generate different prices, terms of trade, income distribution, and, more generally, diverse overall outcomes. The arrangements for social security and other public interventions can make further modifications to the outcomes of the market processes, and together they can yield varying levels of inequality and poverty.”

“It is not only the case that a marketinclusive system can generate very distinct results depending on various enabling conditions (such as how physical resources are distributed, how human resources are developed, what rules of business relations prevail, what social-security arrangements are in place, and so on)...”

“As has been amply established in empirical studies, market outcomes are massively influenced by public policies in education, epidemiology, land reform, microcredit facilities, appropriate legal protections, et cetera; and in each of these fields, there is work to be done through public action that can radically alter the outcome of local and global economic relations.”

“The distribution of benefits in the global economy depends, among other things, on a variety of global institutional arrangements, including those for fair trade, medical initiatives, educational exchanges, facilities for technological dissemination, ecological and environmental restraints, and fair treatment of accumulated debts that were often incurred by irresponsible rulers of the past.”

No comments: