Working Paper No. 24 - The social dimension of globalization: a review of the literature

One of the worldwide goals is to make globalization a fairer and more suitable process for all. Therefore, this paper provides an analysis of the literature encompassing globalization so as to ultimately get a better understanding on how to attain this goal. The authors separate globalization in two categories: the first contains factors such as trade, investment, technology, cross-border production systems, information flows, and communication and is characterized as irreversible; and the second concerns the increased homogenization of policies and institutions across the world, which is the result of policy choices. Furthermore, the social dimension of globalization is described as the effect globalization can have on the life and work of people, their families, and their societies. Therefore the paper recommends a set of policies that can help make globalization fairer overall. Some of these suggestions include for national governments to invest in education and training, adopt core labour standards, provide and improve social protection, tackle national inequality, and discuss globalisation. On an international level, creating a development round of trade negotiations and new financial architecture is also recommended to start reforming the way the world has dealt with globalization so far.

This paper was written as an insight into the work of the World Commission on the Social Dimension of Globalization 2004 that aims to provide a fairer globalization for all.