Taking a Closer Look at Globalization and its Complexities

Yesterday CSIS hosted a fascinating discussion between Robert Shapiro, former Undersecretary of Commerce and author of the recently released book, Futurecast, and David Rothkopf, former Deputy Undersecretary of Commerce for international trade policy and author of Superclass: The Global Power Elite and the World They Are Making.  Mr. Shapiro gave an illuminating explanation of the US economic situation. He sees the rise of China as an economic power as the indirect cause of some of our current economic difficulties. With its huge advantage in labor, China has captured a large portion of the global manufacturing market, forcing other developing nations to focus their production higher up the value chain in order to compete. This in turn puts pressure on US manufacturing, which has little room to move higher up the value chain. The result is more intense competition, job loss, and lower wages.  Mr. Rothkopf discussed the “superclass,” the small group of global movers and shakers who are the focus of his recent book. He takes a nuanced view of this group, seeing them as neither a wholly negative or positive force. But as the elite, he believes they have a responsibility to address some of the negative consequences of globalization, particularly inequality.

To listen to or watch this event, click here.