Where economics too often goes wrong
20 years ago, Dani Rodrik predicted that too much globalization could lead to social disintegration and weakened democracies. Now, his theories seem all too real.
Professor Dani Rodrik has never been shy about bucking conventional wisdom, and many of his insights, often deemed unorthodox at their inception, now seem prescient. Nowhere is that more clear than in his warning, twenty years ago, that unrestricted globalization could have a backlash effect, straining the social fabric upon which democratic governance relies.
My fear, looking at what was happening in economic trends and political trends, was that as the world economy became more integrated, somewhat paradoxically, democracies would become domestically disintegrated.
If that sounds eerily similar to the motivating factors behind Brexit, Donald Trump’s election, and Marine Le Pen’s unprecedented success, it’s probably not a coincidence.
In this episode of PolicyCast, Rodrik explains how his distaste for conventional wisdom allowed him to reach his conclusions despite the fact that the principal of comparative advantage was considered sacrosanct by most economists at the time.
Rodrik also discusses his new book Economics Rules: The Rights and Wrongs of the Dismal Science, which takes aim at both economists and their detractors, seeking a middle ground where academic rigor can be effectively applied in the real world.
You can read more about Rodrik in the Winter 2017 issue of HKS Magazine, or follow him on his blog.
HKS PolicyCast is the official podcast of Harvard Kennedy School, featuring weekly interviews with scholars and leading practitioners in public policy, leadership, and international affairs. It is hosted by filmmaker, writer, and policy wonk Matt Cadwallader.
