Book Review: War for Wealth by Gabor Steingart

True Story of Globalisation or Why the Flat World is Broken

Dec 23, 2008 Roger Lever

Steingart challenges globalisation and the flat world view, offering an alternative interpretation of global economic trends and elements like free trade and outsourcing.

Gabor Steingart portrays the current state of globalisation as a question of survival for the current major economic powers: US and Europe. The economic rise of Asia generally and China and India in particular is shown as a significant threat to the current status quo and that timely action is needed to avoid gloomy outcomes.

Globalisation

Steingart identifies the seven fallacies of the globalisation debate as:

  1. The natural progression for a developed economy is to move from an industry-based to a service-based economy
  2. Economics and morals have nothing in common
  3. The new world is flat
  4. The tide of globalisation automatically lifts all boats
  5. Globalisation is a great work of peace
  6. The nation can no longer do anything for the people in its care
  7. Globalisation is a hot issue

And says “The challenge is to figure out how to ensure that globalisation serves the people”.

European History

The economic history of Europe from the imperialists in the 18th century to the World Wars is shown as offering a parallel to modern day. Industrialisation and the introduction of new technology combined with imperialist ambitions changed the economic landscape with first the rise of Europe and then its fall, losing out to the US.

American Century

Before the World Wars the US was a minor player on the world stage, after the World Wars the US was the dominant superpower. Despite the 20th century being the American century the seeds were being sown for imbalances and inequality. Liberal economics, free trade and outsourcing led to significant growth but also to budget and trade imbalances and highlighted the inequality of workers in a global workforce.

Asian Challenge

The flat world view is primarily associated with global supply chains and a global workforce. Asia has become the latest and most significant entrants to the world stage with its huge population. The experience of China and India moving to a capitalist model is described but with a notable difference – the strong guidance of the State. This guidance is an important contrast and difference to the more laissez-faire approach of the US and European powers.

United States of the West

The author having called on economic history and analysing global trends then projects a possible future. That future is described as one of three possible scenarios:

  1. The Shock Scenario: A Design for Disaster
  2. The Asia-Above-All Scenario: When the American Dream Turns to Dust
  3. The American Renaissance Scenario: How to Remake History

Steingart then offers suggestions for the renaissance by rethinking globalisation, creating world rules and regulations rather than national ones and levelling the playing field, especially as it relates to a global workforce. Perhaps the most radical suggestion is moving towards a “United States of the West” and making the case for it.

In short, a very interesting read.

About the Author

Gabor Steingart is an international bestselling author and an award winning journalist.

The War for Wealth: The True Story of Globalization, Or Why the Flat World is Broken by Gabor Steingart. McGraw Hill 2008. ISBN: 978-0-07-154596-9

The copyright of the article Book Review: War for Wealth by Gabor Steingart in Reference Books is owned by Roger Lever. Permission to republish Book Review: War for Wealth by Gabor Steingart in print or online must be granted by the author in writing.
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Comments

Jan 3, 2009 2:34 PM
Guest :
Interesting and timely... but I was surprised that he never mentioned Buffett's involvement with Chinese business. And, he never mentioned the possibility, or the existing plans, for a North American Union with Canada and Mexico. If "uniting" with Europe is a good idea, what's wrong with some industrial development and cooperation closer to home?
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