Globalization and Its Discontents.

Formal writing assignments:

One of the debates we examine in this course is: Does globalization increase inequalities across countries? Below are two scatter plots we discussed in class. The charts are based on “ HYPERLINK “http://www.iie.com/fischer/pdf/fischer011903.pdf” t “_blank” Globalisation and Its Challenges”. By Stanley Fischer. AEA Papers and Proceedings. American Economic Review, volume 93, number 2, May 2003.

These plots present data supporting different conclusions in this debate. Prepare a 5-7 page, double spaced paper discussing the charts, their interpretation, significance, and what conclusions we can draw from the charts. Your paper should contain the following sections:

Introduction: What is the central question in the debate on inequality and globalization? From the course readings, outline two contrasting theses on the expansion of globalization and the expected effect on global income inequalities. Refer to the Ideologies of Political Economy readings. What are the principal concepts employed by the approaches? How do these approaches explain wealth accumulation and distribution? How do these approaches differ on the processes and consequences of flows in goods, labor, and capital? How is the exchange process defined and with what consequences? How and where does the accumulation of wealth take place in the global economy?

Evidence and Interpreting the Charts: What information is presented in the charts? What are the x and y axis? What are the variables? What do the points (crosses or circles) indicate on the charts?

Chart One: Is there a pattern of the points in the chart? What does the pattern of points in the chart suggest to you? Why does Fischer include a sloped line in the chart? What do we call this and what does it indicate? Which thesis would these data support?

Chart Two: Is there a pattern of the points in the chart? What does the pattern of points in the chart suggest to you? Which thesis would these data support? Why is chart one different than chart two? What additional information has Fischer introduced in chart two? Why does he do this? He does not include a slope in chart two. If the slope were indicated, what would it look like? Does this suggest a different conclusion than chart one? Why?

In both charts, why does Fischer indicate Sub-Saharan countries? What is his purpose in doing this? Does it change the interpretation of the pattern of circles? In chart two, Fischer labels some circles, why does he do this? What point is he making and why is it important? How does Fisher account for these differences? Do the Sub-Saharan African countries form a distinct pattern in the charts? Do these patterns differ from chart one to chart two? What explanations should we consider to explain why the Sub-Saharan African countries form a distinct group in the charts?

Conclusion: Discuss how the evidence in the charts relates to the debates on inequality and globalization. Does the evidence support one interpretation more than another? Why? How would you revise the interpretations to better explain the evidence in the charts? In other words, what additional explanations and evidence would you want to examine in an assessment of the interpretations?