Fairness in Practice: A Social Contract for a Global Economy

Abstract

This book argues that the global economy generates significant egalitarian requirements of fairness, independently of humanitarian, human rights, or other justice concerns. Answering both economic and political forms of skepticism about fairness, the book argues that the global economy as we know it is organized by an international social practice in which countries mutually rely upon common markets. This practice of mutual reliance generates shared responsibilities of "structural equity" for how the benefits and burdens of the global economy are distributed across different societies and their respective social classes. These basic responsibilities are characterized by three basic principles. The principles require compensation of people harmed by their exposure to global economic forces through robust social insurance schemes, and equal division of the "gains of trade," across and within societies, unless still greater gains flow to developing countries. Fairness so calls for strong social insurance schemes, international capital controls, policy flexibility for developing countries, and more, as the "fair price" of free trade.