Governance should shape globalisation: Bhagwati

Countries would have to be more cautious and mindful of economic and political difficulties in pushing for reforms, Jagdish Bhagwati, professor, Columbia University, said while delivering the 12th CD Deshmukh Memorial Lecture here today.

Speaking on 'In defence of globalisation: It has a human face but we can do better,' Bhagwati said the maximal speed of reform was not usually the optimal speed.

The professor touched upon three major issues -- poverty, child labour and gender issues -- during his lecture.

He said countries should do better in designing 'appropriate governance' to have the maximum effect of globalisation. According to him, countries should put in place an institutional mechanism to address and rectify any wrong outcome in specific areas.

Bhagwati said despite the criticism in the media by anti-globalisers, a recent international poll had revealed that the majority supported globalisation. The majority was stronger in developing countries than in developed countries, he added.

Financial liberalisation that created serious problems like the Southeast Asian financial crisis was used to condemn trade liberalisation, Bhagwati said.

Anti-globalisers were also more concerned about social implications of economic globalisation than its conventional economic efficacy, he said.

Bhagwati said the policy intervention and design would vary in each country depending on their beliefs.

For instance, if one believed that globalisation lacked a human face, one would want to restrain, challenge or handicap it, but if one believed that globalisation had a human face, one would complement, supplement and enhance the human face and policy interventions, he said.