- Andrew Jackson discusses how the rise of right-wing, prejudiced populism can be traced to the failures of global corporate governance. And Dani Rodrik argues that it's time to develop an international political system to facilitate - rather than overriding - democratic action:
- William Lazonick and Matt Hopkins note that already-appalling estimates of the gap between CEOs and other workers may be severely underestimating the problem. And Iglika Ivanova laments British Columbia's woefully insufficient changes to its minimum wage which will keep large numbers of workers in poverty.Some simple principles would reorient us in the right direction. First, there is no single way to prosperity. Countries make their own choices about the institutions that suit them best. Some, like Britain, may tolerate, say, greater inequality and financial instability in return for higher growth and more financial innovation. They will opt for lower taxes on capital and more freewheeling financial systems. Others, like Continental European nations, will go for greater equity and financial conservatism. International firms will complain that differences in rules and regulations raise the costs of doing business across borders, but their claims must be traded off against the benefits of diversity.Second, countries have the right to protect their institutional arrangements and safeguard the integrity of their regulations. Financial regulations or labor protections can be circumvented and undermined by moving operations to foreign countries with considerably lower standards. Countries should be able to prevent such “regulatory arbitrage” by placing restrictions on cross-border transactions — just as they can keep out toys or agricultural products that do not meet domestic health standards....Third, the purpose of international economic negotiations should be to increase domestic policy autonomy, while being mindful of the possible harm to trade partners. The world’s trade regime is driven by a mercantilist logic: You lower your barriers in return for my lowering mine. But lack of openness is no longer the binding constraint on the world economy; lack of democratic legitimacy is.
It is time to embrace a different logic, emphasizing the value of policy autonomy. Poor and rich countries alike need greater space for pursuing their objectives. The former need to restructure their economies and promote new industries, and the latter must address domestic concerns over inequality and distributive justice.
- In one positive development for corporate accountability, Telesur reports that the International Criminal Court is now willing to take jurisdiction over land grabbing, environmental destruction and other corporate crime.
- Harry Stein writes that there are significant economic and social gains to be achieved by better funding social infrastructure.
- Finally, Jeremy Nuttall interviews Robert Fox, the NDP's new national director, on the plan to building a more activist party - both in the sense of better engaging with existing activists, and developing a culture of ongoing action. And Robin Sears offers a long-term path for the NDP to once again lead Canada toward progressive policies.