andersen-2011-globalisation-for-dummies-99219cca1af7548d.pdf

The author argues that while globalisation drives unprecedented economic growth through comparative advantage and market efficiency, it creates a 'race to the bottom' where nations compete for volatile capital by slashing corporate taxes and deregulation. This process potentially erodes public funding for welfare, labour protections, and environmental standards. While the author finds evidence of a downward trend in global corporate tax rates, they note that reputational risks and NGO watchdogs may moderate the degradation of labour and environmental standards. The document concludes that managing these negative effects requires stronger, more democratic global governance, including the potential creation of a World Tax Authority and an International Financial Stability and Harmonisation Authority.

• Globalisation is driven by market demand for better goods and services and is characterized by 'interconnectedness', including cultural uniformisation, borderless communication, and a global labour market.
• The 'race to the bottom' theory posits that because capital is volatile, governments are incentivized to reduce corporate taxes and deregulation to remain competitive and attract foreign investment, leading to a global downsizing of public sector revenue.
• Empirical data from the OECD indicates a significant decline in average corporate tax rates, falling from approximately 45% to less than 30% over 20 years, with 24 out of 30 OECD countries lowering rates between 2000 and 2005.
• While tax competition drives down direct corporate taxes, indirect taxes (such as VAT) have remained relatively stable or broadened, which the author suggests is socioeconomically suboptimal as consumption taxes distort market demand more than corporate profit taxes.
• The degradation of labour and environmental standards is partially mitigated by the risk of reputational damage to multinational corporations and the watchdog role of NGOs and media.
• Existing global institutions like the UN, IMF, and World Bank suffer from a 'democratic deficit' and are accused of prioritizing the interests of wealthy nations and market liberalization over the needs of the poor.
• The author proposes the creation of a global income tax collection authority to prevent tax avoidance on cross-border electronic labour services, which currently causes 'brain-drain' and underfunding in poor countries.
• An International Financial Stability and Harmonisation Authority is suggested to monitor global financial health, identify systemic risks (like the 2008 US real estate bubble), and standardize reporting (preferring IFRS over GAAP).

APA

Peace Research Institute Oslo (n.d.). andersen-2011-globalisation-for-dummies-99219cca1af7548d.pdf. https://cdn.cloud.prio.org/files/af08fddb-4b1b-4e0b-ba34-aa70dc93cb4b/Andersen 2011 Globalisation for Dummies.pdf?inline=true

Chicago

Peace Research Institute Oslo. andersen-2011-globalisation-for-dummies-99219cca1af7548d.pdf. n.d. https://cdn.cloud.prio.org/files/af08fddb-4b1b-4e0b-ba34-aa70dc93cb4b/Andersen 2011 Globalisation for Dummies.pdf?inline=true.

Wikipedia

{{cite report |author=Peace Research Institute Oslo |title=andersen-2011-globalisation-for-dummies-99219cca1af7548d.pdf |url=https://cdn.cloud.prio.org/files/af08fddb-4b1b-4e0b-ba34-aa70dc93cb4b/Andersen 2011 Globalisation for Dummies.pdf?inline=true |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{peaceresearchinstituteoslondandersen2011globalisationfordummies99219cca1af7548dpdf, author = {{Peace Research Institute Oslo}}, title = {{andersen-2011-globalisation-for-dummies-99219cca1af7548d.pdf}}, institution = {Peace Research Institute Oslo}, url = {https://cdn.cloud.prio.org/files/af08fddb-4b1b-4e0b-ba34-aa70dc93cb4b/Andersen 2011 Globalisation for Dummies.pdf?inline=true}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }