A Turning Point for Globalisation? The Implications for the Global Economy of America's Campaign against Terrorism

Did September 11th herald a turning point for globalisation? Although America's campaign against terrorism could put at risk many of the gains globalisation has brought, the new environment likewise presents opportunities to smooth the rough edges of the globalisation associated with American policies of the past decade. Measures to tighten the security of cross-border flows of goods, people, information and capital may raise entry barriers still higher for poor countries seeking greater integration with the global economy. But September 11th also provided a wake-up call, alerting the wealthier nations and especially Americans to the direct link between their own well-being and ensuring that people around the world have a stake in the international system. Unfortunately, there is little evidence so far these lessons have been taken to heart in policies on trade, financial assistance, and advancing economic reform in the states of the Middle East.