27 Pages Posted: 5 Nov 2009
Date Written: June 30, 2006
The current construction of globalization allows capital to move freely but not labor. This builds in a bias toward lower wages. This cheap labor model threatens a crisis in buying power. Globalization needs to be reconfigured to build durable buying power as well as more widely distributed development. Human capital development is key to these goals. One means of spurring broader development and durable buying power would be for the international financial institutions to enhance their efforts to enforce economic human rights.
JEL Classification: A10, O15, F2, F4
Suggested Citation: Suggested Citation