Columnist for the Wall Street Journal said about the “new globalization”

Ludger Schuknecht

The rejection of globalization — error, and the world needs a clear, transparent and strictly adhere to the rules. The chief economist of the German Ministry of finances Ludger Schuknecht wrote in his column in The Wall Street Journal.

“To more effectively manage globalization, we need increased political activity, and the development of rules and the recognition of their importance,” said Schuknecht. According to him, contemporary globalization has had some negative effects: low interest rates have inflated stock prices, which led to the enrichment of the already wealthy. Illegal immigrants got the opportunity to legalize their status, which aroused the anger of law-abiding citizens, and the global rule of law has weakened in terms of fiscal rules, and security and trafficking issues.

Repayment arose the discontent of the people increased social benefits Schuknecht also considers erroneous: according to him, people need opportunities, not handouts from the budget. From this he concludes that the modern world needs a policy based on strict observance of the accepted rules within countries and at the international level.

Separately, he stops on world politics: “the G20 is coordinating international rules in the sphere of finances, taxes and investments. These rules are not perfect and cannot prevent all conflicts, but the main reason is not in the rules themselves, and their weak implementation and weak policies at the national level.” He gives an example: some EU countries are contrary to the budget rules go into debt, and then begin to dramatically reduce social spending to repay them.

“For managing globalization and creating convenient opportunities for all we need more, not less rules-based policy. In Germany we call it Ordnungspolitik, a policy of order,” — concluded the German economist.