George Soros on Globalization

Citation

(2003), "George Soros on Globalization", Work Study, Vol. 52 No. 7. https://doi.org/10.1108/ws.2003.07952gae.003

George Soros on Globalization

George Soros on Globalization

George Soros PublicAffairs LtdISBN: 1903985242£12.99

When George Soros talks on globalisation, you really ought to listen. He is in there at the "sharp end" with his (and others') money. He suggests that globalisation is "the free movement of capital and the increasing domination of national economies by global financial markets and multinational corporations". In this book, he attempts to address the issue of making global capitalism "more stable and equitable". He has to acknowledge that anti-globalisation protesters have a case – they are challenging the consensus that the market works well, arguing that it depends on who defines "well".

Soros admits that there is a need for change – but suggests that this is evolutionary, not revolutionary. Soros suggests reform. The market fundamentalists, he says, are unwilling to modify existing institutions to create a level playing field for the newer players on the global stage; moreover, many of them are also reluctant to create institutions to foster social goals like reducing poverty. However, the need for reform is not uni-directional. Soros points out that the protestors make little noise about the need to reform governmental and public practices in poorer countries. Soros's solution is to provide aid that will "enable, encourage, and reinforce" voluntary compliance with international standards relating to environment, education and labour.

He proposes that the richer countries in the IMF should issue special drawing rights (SDRs) for international assistance, i.e.’international reserve assets – a process that shares the burden equitably, with the USA paying its fair share. A board of "eminent persons" would then choose who is eligible for assistance, and a separate audit commission would evaluate those so chosen. After 11 September, Soros notes in conclusion, Americans must recognize the world's precarious interdependence. Soros has an admirable track record and the virtue of hindsight (his foundations have done innovative work and his take on what could have been done in Russia over the past decade is compelling). This record suggests he has plenty to offer – he "puts his money where his mouth is" and can claim to have "made a difference". This book suggests that if the rest of the world were to follow his lead, we might see a form of enlightened capitalism that could avoid the negative consequences of globalisation while retaining the benefits.