Globalization panel sparks debate

With the debate over globalization taking the national and international spotlights, it is only natural that the topic was at the center of the inaugurating symposium of the Penn Urban Research Institute.

It is projected that the majority of the world will be living in urban centers in the relatively near future, and this is just one of the trends that links together urbanism with the expanding and globalizing economy.

"Globalization: Cities, Jobs and the National Economy" kicked off the Urban Research Institute's 21st Century Metropolis Project. The symposium brought together three scholars from different disciplines to discuss the relationship between urban centers across the world and globalization.

The symposium is the first step in promoting urbanism scholarship across the university. President Judith Rodin unveiled the institute in early March, and she hopes it will make Penn an international leader in urban studies research.

The event that brought together over 100 students and faculty was moderated by Chris Satullo, the editorial page editor of The Philadelphia Inquirer.

Each of the speakers dealt with a particular aspect of globalization. Wharton Finance professor Jeremy Siegel discussed outsourcing as a possible solution to the aging crisis that currently threatens the economic stability of many developed nations, including the United States.

Professor of Urbanism in the School of Design Witold Rybczynski discussed the development of the "Global City." Finally, Chief Economist of Economy.com Mark Zandi talked about the relationships between domestic political forces and globalization.

Siegel discussed the rapid rise of retired citizens in the developed world. The aging crisis, as it is being called throughout the United States, Western Europe and Japan, could have major negative macroeconomic repercussions if not addressed, according to Siegel.

"The Social Security crisis is nothing more than the public manifestation of the entire aging crisis," Siegel said.

Using financial models, Siegel rejected other proposed solutions to the problem -- increased savings, productivity or immigration -- but proposed outsourcing as the only possible remedy.

"The world isn't aging. It is only one section of the world," Siegel said. "The economy of the world can still continue under the same pattern where the old sell their assets to the young, who are working producing the goods. ... We now have to think beyond individual countries and think of the world."

Zandi discussed globalization from a broader perspective. He argued that globalization has an unquestionably positive long-term effect on the national economy, as seen in trade and foreign direct investments worldwide. But despite this, short-term hardships like the loss of manufacturing jobs in the United States could derail the process.

"There are times when globalization is not a net benefit or the net benefits are not nearly as obvious," Zandi said. "This concern has been crystallized today."

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