James Kenneth Galbraith debunks the Economist on globalization.
Confronting the problems of the stricken Third World will require a balanced approach. What the poorest countries need perhaps most of all is sustainable finance, permitting them to build their infrastructure, their human resources, their public health systems and their industries — both for domestic consumption and foreign trade. This is an old formula. But it is one with a track record: It worked in Europe after World War II, and then in Japan, Korea and in China, each of which saw decade after decade of sustained growth and industrial transformation. Here's the rub: Pursuing these goals will require placing the world's private financiers under a degree of regulation and control — such as we used to have in the real golden age of development, from 1945 to 1970. That, of course, is not on the Economist's agenda. But it should be on ours.