NBER Working Paper No. 9129
The nation-state system, democratic politics, and full economic integration are mutually incompatible. Of the three, at most two can be had together. The Bretton Woods/GATT regime was successful because its architects subjugated international economic integration to the needs and demands of national economic management and democratic politics. A renewed 'Bretton-Woods compromise' would preserve some limits on integration, while crafting better global rules to handle the integration that can be achieved. Among 'feasible glablization,' the most promising is a multilaterally negotiated visa scheme that allows expanded (but temporary) entry into the advanced nations of a mix of skilled and unskilled workers from developing nations. Such a scheme would likely create income gains that are larger than all of the items on the WTO negotiating agenda taken together, even if it resulted in a relatively small increase in cross-border labor flows.
Document Object Identifier (DOI): 10.3386/w9129
Published: Della Giusta, Marina, Uma S. Kambhampati, and Robert Hunter Wade (eds.) Critical Perspectives on Globalization, Globalization of the World Economy series, vol. 17. An Elgar Reference Collection. Cheltenham, U.K. and Northampton, Mass.: Elgar, 2006.
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