The New Landscape of Globalization

In this paper, Dr. Robert Shapiro, NDN’s Globalization Initiative Director, presents a new analysis of the fundamental dynamics of globalization and how they affect U.S. growth, productivity, wages and job creation. He notes, “We live in a new period in our economic development, shaped by the demands of globalization and new technologies. So far, American businesses and workers have adapted quickly and well to these forces, and as a result, the United States has experienced stronger growth and productivity gains than any other large, advanced nation. These same factors also have serious adverse effects for millions of Americans. Even as growth and productivity have surged, new job creation and wage increases both have slowed sharply. We can address these adverse effects without sacrificing the benefits of globalization and technological advance, principally by expanding public investments in critical areas and reforming health care and energy policies.”

Dr. Shapiro makes three principal recommendations to policymakers looking to restore broad-based prosperity in America.

• Modernize our Health Care and Energy Policies – Reduce pressures on workers' wages and jobs through health care reforms that reduce the rate of increase in employers' and workers' medical insurance costs, and energy reforms that reduce upward pressures on energy prices and U.S. dependence on foreign energy.
• Invest in our Workers and Kids – Enact a comprehensive new strategy to better ensure the life success of every worker and child in the 21st century; focus significant new investment on giving all Americans the skills and knowledge needed to work productively in the emerging idea-based economy; initiate a new national commitment to provide all Americans deep training in information technologies and ubiquitous and inexpensive access to the evolving global communications network itself.
• Foster and Accelerate Innovation – Foster technological and business innovation and their spread throughout the economy by promoting the formation of new businesses, increasing support for basic research and development, upgrading our infrastructure and aggressively protecting American intellectual property rights in foreign markets.