Many prominent economists, financiers, politicians, and other apparent authorities regard globalization and, in particular, the international financial system as a potential danger to the world's poor. Even some of globalization's exponents speak of it warily. Partisans at both ends of the political spectrum have jumped on the anti-globalization bandwagon.
Instead of a danger, globalization is an opportunity. The globalization of trade and information of the past century has lifted vast numbers of the world's people out of extreme poverty. The next great globalization, that of the financial systems of emerging economies, can help transform the labors of disadvantaged people into greater wealth for them and create greater prosperity and stability for the world at large.
This book explains how the next great globalization can work. It differs from other books on globalization because it focuses on financial globalization, the opening up of a country's financial system to capital flows and financial firms from other countries. For emerging countries to reach the next stage of development and get rich, financial globalization must go much further than it already has. In particular, the financial systems in emerging economies must be more tightly integrated with those in the developed countries in order to partake in the benefits of financial investment, the lifeblood of the industrialized world.
Without successful financial globalization, poor countries will not be able to realize their potential, and their continued poverty will engender further instability and breakdowns in political relations with other nations. But while financial globalization is vital in promoting economic growth and reducing