Globalizing Good Government (RICHARD W. FISHER AND W. MICHAEL COX, 4/10/06, NY Times)

Nations can no longer sit within their borders and pursue policies incompatible with an increasingly integrated world economy. The types of services, manufacturing and entrepreneurship that generate national wealth are more mobile than ever, and they will forsake countries that shackle business and labor with unnecessary burdens.

With this in mind, the Federal Reserve Bank of Dallas set out to document the connection between globalization and public policy. We found that the more globalized nations tend to pursue policies that achieve faster economic growth, lower inflation, higher incomes and greater economic freedom. The least globalized countries are prone to policies that interfere with markets and lead to stagnation, inflation and diminished competitiveness. […]

[A]s nations become more integrated into the world economy, they tend to maintain fewer barriers to trade and the movement of money. They are less likely to impose punishing corporate taxes and onerous regulations. Their technology policies are more favorable to innovation. Nations more open to the world economy score above the less globalized countries in respect for the rule of law and protection of property rights. More globalized countries also offer greater political stability.

Not all policies fit neatly into this framework. We found that more globalized counties do no better in limiting the size of government, which we consider vital to economic prosperity. They are worse than the less globalized in containing public entitlements and subsidies, which must be paid for by higher individual income taxes. Perhaps it is because they are richer and have the means to spread those riches through their societies.

One of the points that’s stressed in the Bruno Behrend interview is that while conservatives generally oppose transnationalism, it is in everyone’s interest for us to push the ideological transnationalism of liberal democratic capitalist protestantism, and that means conservatives will sometimes use transnationalist means–trade treaties and organizations–to realize their ends.

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