Cover image for Reviving the Invisible Hand The Case for Classical Liberalism in the Twenty-first Century
Reviving the Invisible Hand The Case for Classical Liberalism in the Twenty-first Century
Lal, Deepak.
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Princeton, N.J. : Princeton University Press, c2006. (Baltimore, Md. : Project MUSE, 2015)
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1 online resource (xii, 320 p. :) ill. ;
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Liberal international economic orders -- From laissez faire to the dirigiste dogma -- The changing fortunes of free trade -- Money and finance -- Poverty and inequality -- Morality and capitalism -- "Capitalism with a human face" -- The greens and global disorder.
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eBook ER190492 JC574 .L35 2006 Electronic Resources

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Reviving the Invisible Hand is an uncompromising call for a global return to a classical liberal economic order, free of interference from governments and international organizations. Arguing for a revival of the invisible hand of free international trade and global capital, eminent economist Deepak Lal vigorously defends the view that statist attempts to ameliorate the impact of markets threaten global economic progress and stability. And in an unusual move, he not only defends globalization economically, but also answers the cultural and moral objections of antiglobalizers.

Taking a broad cross-cultural and interdisciplinary approach, Lal argues that there are two groups opposed to globalization: cultural nationalists who oppose not capitalism but Westernization, and "new dirigistes" who oppose not Westernization but capitalism. In response, Lal contends that capitalism doesn't have to lead to Westernization, as the examples of Japan, China, and India show, and that "new dirigiste" complaints have more to do with the demoralization of their societies than with the capitalist instruments of prosperity.

Lal bases his case on a historical account of the rise of capitalism and globalization in the first two liberal international economic orders: the nineteenth-century British, and the post-World War II American.

Arguing that the "new dirigisme" is the thin edge of a wedge that could return the world to excessive economic intervention by states and international organizations, Lal does not shrink from controversial stands such as advocating the abolishment of these organizations and defending the existence of child labor in the Third World.

Table of Contents

Prefacep. ix
Introduction: The Origins of "Capitalism"p. 1
Globalizationp. 9
Chapter 1 Liberal International Economic Ordersp. 17
Mercantilismp. 20
The Nineteenth-Century LIEOp. 22
Pax Britannica and Economic Developmentp. 32
The End of the First LIEOp. 36
Recreating a New LIEOp. 40
Chapter 2 From Laissez Faire to the Dirigiste Dogmap. 48
Classical Liberalism and Laissez Fairep. 48
Poverty and Industrialization in Nineteenth-Century Britainp. 52
"Manna from Heaven" Distributivismp. 53
Competition and Monopolyp. 56
The Rise of "Embedded Liberalism" in the United Statesp. 59
Chapter 3 The Changing Fortunes of Free Tradep. 62
The Rise, Fall, and Rise of Free Tradep. 62
U.S. Economic Policyp. 65
The New Protectionismp. 68
The Rise of Preferential Trading Arrangementsp. 71
Another Globalization Backlash?p. 80
Adjustment Assistance?p. 85
Whither the WTO?p. 86
Appendix: Free Trade And Laissez Faire In Theoryp. 91
Chapter 4 Money and Financep. 95
International Monetary Regimesp. 97
International Capital Flowsp. 105
The Global Financial Infrastructurep. 122
Chapter 5 Poverty and Inequalityp. 127
Poverty Head Countsp. 128
Income Gapsp. 135
Foreign Aidp. 139
Chapter 6 Morality and Capitalismp. 150
Introductionp. 150
Analytical Frameworkp. 151
Changing Material and Cosmological Beliefsp. 154
Communalism versus Individualismp. 157
From Victorian Virtues to Modern Valuesp. 160
Modernization and Westernizationp. 165
Conclusionsp. 180
Chapter 7 "Capitalism with a Human Face"p. 182
Introductionp. 182
Justice and Freedomp. 183
Rightsp. 185
Social Paternalism and Dirigismep. 187
Moral Paternalism and the New Victoriansp. 189
Capitalism and Happinessp. 192
The Corporation under Attackp. 195
Conclusionsp. 203
Chapter 8 The Greens and Global Disorderp. 205
Introductionp. 205
The Rise of the NGOsp. 205
Sustainable Developmentp. 211
The Greens and Ecological Imperialismp. 214
Toward World Disorderp. 227
Chapter 9 Conclusionsp. 231
Notesp. 237
Bibliographyp. 279
Indexp. 307