Dani Roderik: The Globalization Paradox December 2011 WRR

The fundamental problem of the worldeconomy Imbalance between reach of markets (global) and scopeof their governance (mostly national) What will a real capitalism 3.0 look like? Temptation: a global version of capitalism 2.0 Global governance: global regulation, global standards, globalsafety nets, etc. But impractical Places too much faith on the supply of global “leadership” andwillingness of countries to give up sovereignty And more importantly, undesirable Diversity in national preferences and needs E.g., corporate taxation, scope of welfare state, trade-off betweenfinancial innovation and financial stability, developing countrieses’need to promote structural transformation