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The Great Convergence
344 pages, 2019
Between 1820 and 1990, the share of world income going to today's wealthy nations soared from twenty percent to almost seventy. Since then, that share has plummeted to where it was in 1900. As Richard Baldwin explains, this reversal of fortune reflects a new age of globalization that is drastically different from the old. In the 1800s, globalization leaped forward when steam power and international peace lowered the costs of moving goods across borders. This triggered a self-fueling cycle of industrial agglomeration and growth that propelled today's rich nations to dominance. That was the Great Divergence. The new globalization is driven by information technology, which has radically reduced the cost of moving ideas across borders. This has made it practical for multinational firms to move labor-intensive work to developing nations.
In The Great Convergence, Richard Baldwin explores the concept of globalization. He explains how it's not just about goods and services crossing borders, but also about information and technology. This new perspective can help us understand the world economy better.
Baldwin breaks down globalization into three stages. The first is about moving goods, the second is about moving ideas, and the third is about moving people. Each stage has its own challenges and opportunities. It's a great way to see how globalization has evolved over time.
One of the key points in the book is the role of technology in globalization. Baldwin shows how technology has made it easier for ideas and information to cross borders. This has led to a new kind of globalization, where it's not just about trading goods but also sharing knowledge.
Baldwin doesn't just look at the past and present of globalization, he also looks into the future. He predicts that technology will continue to change how we work and live, leading to even more convergence. It's a fascinating glimpse into what the world might look like in the future.
The Great Convergence isn't just a theoretical book. Baldwin also discusses the policy implications of his research. He suggests that governments need to adapt to this new kind of globalization, focusing not just on trade but also on education and innovation.
