The Great Convergence: Information Technology and the New Globalization

Richard Baldwin is Professor of International Economics at the Graduate Institute, Geneva, and President of the Centre for Economic Policy Research (CEPR), London.

The new globalization is driven by information technology, which has radically reduced the cost of moving ideas across borders. The new possibility of combining high tech with low wages propelled the rapid industrialization of a handful of developing nations, the simultaneous deindustrialization of developed nations, and a commodity supercycle that is only now petering out. This has made it practical for multinational firms to move labor-intensive work to developing nations. As The Great Convergence shows, the new globalization presents rich and developing nations alike with unprecedented policy challenges in their efforts to maintain reliable growth and social cohesion.. Since then, that share has plummeted to where it was in 1900. This triggered a self-fueling cycle of industrial agglomeration and growth that propelled today’s rich nations to dominance. That was the Great Divergence. But to keep the whole manufacturing process in sync, the firms also shipped their marketing, managerial, and technical know-how abroad along with the offshored jobs

He takes us on a journey from the ancient world to the 21st century, and from the global North to the developing South, in order to set the scene for the past 25 years of globalization. Baldwin delivers these answers, and argues them convincingly. There have been two big globalization booms over the past two centuries. (Diane Coyle Enlightened Economist 2016-11-01)In this meaty treatise, Baldwin argues that we’re in the process of a major shift in world economics and economic policy needs to be adjusted accordingly…Baldwin has put together an intriguing and compelling case. (Jane Humphries Times Literary Supplement 2017-04-21) . (G. (The Bookbag 2016-11-01)If the corrosive events of the presidential election in America are anything to go by, economist Richard Baldwin is absolutely, stunningly (yet unfortunately) correct. Baldwin disaggregates the monolithic, undifferentiated approach th

Stimulating and informative A serious application of current macro economic theory to modern realities of international trade and economic development. This is an update and amplification of Ricardo's thoughts on comparative advantage. Maybe not a perfect explanation for everything going in world wide economic developments but a very logical and comprehensive presentation.. Topical overview of the process of globalization and the difficulty of reversing it. A. Menon Globalization is very topical these days and has become extremely politically charged. The great convergence details the evolution of globalization through human history and in particular the differences between different eras of globalization. The author gives a narrative on the order of human history of how the step from production to consumption has evolved and how. "Thought provoking read, well researched data driven, covering the drivers of GDP changes across the globe." according to Swiss Quality. The industrial revolution drove a divergence between the wealth of G7 countries and the rest of the world - offshoring manufacturing has driven a convergence with key countries in Asia. The consequences have been felt by low skilled people employed in manufacturing. - it is likely that this will continue and that higher skilled jobs will be next on the list.