Globalization and the poor -- a look at the evidence | Krisztina Kis-Katos | TEDxStuttgart

Summary

This TEDx talk delves into the impact of international trade on global poverty, challenging preconceived notions with statistical evidence. The speaker explores diverse perspectives on globalization, highlighting the emotional responses it evokes. Emphasizing the importance of data, the talk presents case studies from Vietnam, India, and Indonesia, revealing how trade liberalization affects the poor. The speaker argues for a balanced view, acknowledging both the benefits and the challenges of globalization, and stresses the need for empirical research to understand its true impact.

Takeaways

• 🌐 The speaker emphasizes the importance of considering statistical evidence when discussing globalization and its effects on emotions and opinions.
• 📈 The speaker argues that international trade, a major element of globalization, can have different impacts on people, and that statistical analysis is crucial to understanding these effects.
• 🤔 The speaker suggests that while some people may have strong views on globalization, others may not, and that opinions can vary widely within a population.
• 📊 Economic theories predict that those who own resources that are more valuable globally than locally will benefit most from international trade.
• 📈 The speaker presents data from the Pew Research Center showing that people's support for globalization is linked to their beliefs about the wage effects of trade.
• 🌟 Case studies from Vietnam, India, and Indonesia illustrate the varying impacts of trade liberalization on poverty and wages in different countries.
• 📉 In Vietnam, trade liberalization and access to the U.S. market led to a decrease in poverty rates, particularly in regions producing goods in high demand in the U.S.
• 📚 The speaker highlights the need for more empirical research to understand under what conditions the poor benefit from globalization, as seen in Vietnam and Indonesia, or lose out, as in India.
• 💡 The speaker concludes by urging the audience to consider both the powerful narratives of the negative impacts of globalization and the positive effects that have benefited millions of poor people.
• 📋 The importance of not relying solely on individual narratives or emotions when assessing the impact of globalization, but to also consider the broader statistical evidence.

Q & A

What is the main focus of the speaker's discussion on globalization?

The speaker's main focus is on the element of international trade within globalization and its effects on people worldwide, particularly on the poor in developing countries.

Why does the speaker emphasize the importance of statistical evidence in discussions about globalization?

The speaker emphasizes statistical evidence to ensure that discussions about globalization are grounded in empirical data, which allows for meaningful conclusions and helps to balance strong emotional responses that can cloud judgment.

What does the speaker suggest about the general public's opinion on international trade?

The speaker suggests that the general public, especially in high-income countries, tends to be more skeptical about the wage effects of international trade, while people in developing countries are more optimistic about the benefits of trade.

How does the speaker use opinion poll data from the Pew Research Center to support their points?

The speaker uses opinion poll data to show the correlation between people's support for globalization and their beliefs about the wage effects of trade, highlighting variations in opinions across different countries and their economic conditions.

What is the economic theory that predicts who benefits from globalization?

The economic theory suggests that those who own something more precious globally than locally will benefit from globalization, which typically includes capitalists and high-skilled workers in high-income countries, and low-skilled workers in low-income countries.

What are the three case studies presented by the speaker to illustrate the effects of international trade on the poor?

The speaker presents case studies from Vietnam, India, and Indonesia, each illustrating different outcomes for the poor when countries open up their markets and liberalize their trade regimes.

What was the impact of trade liberalization on poverty rates in Vietnam according to the speaker?

According to the speaker, trade liberalization in Vietnam led to a considerable decrease in poverty rates, especially in regions where the demand for their goods increased in the U.S. market due to a bilateral trade agreement.

Why did the speaker mention the South Asian financial crisis in the context of Indonesia's trade liberalization?

The speaker mentioned the South Asian financial crisis to highlight the challenges in disentangling the effects of trade from other aspects of globalization, such as financial globalization, and to note that the crisis affected the poor very badly in Indonesia.

What does the speaker suggest about the importance of considering both positive and negative narratives when discussing globalization?

The speaker suggests that while negative narratives like sweatshops and poor working conditions are important to focus on, it's also crucial to consider the positive impacts of globalization, such as the benefits to millions of poor people, to form a balanced view.

What is the speaker's final message about the role of statistics in discussions on globalization?

The speaker's final message is that when discussing issues that evoke strong emotions, it is extremely important to consider statistical evidence and overall data to form a comprehensive understanding of the effects of globalization.