The role of the government

Martin Wolf has a strong opinion on why globalization under free market works. He believes in the effectiveness of the market to work its course. He does acknowledge the need for the state but he thinks the state has a little role as he writes "The role of government is to be a humble and honest servant." He mentions that the state should be there to ensure the basis of economy such as stability, transparency, infrastructure, education and environmental protection. But he thinks governments do too much. I don't necessary agree with him. As a developing country try to develop, their governments can and perhaps should protect baby industries in that country rather than completely opening itself up to free trade. I think some East-Asian countries have done that with success. When countries do develop, they need to have some industry if they have capable labor. For the countries that lack capable labor, they need the states to provide better education so that their people may gain the capability that is required for them to promote growth.

I do think a lot of what Wolf says makes sense. The state must provide education, adequate public health, infrastructure, right set of conditions for business. However for many of the developing countries, these are the things they don't have precisely because of their weak governments. For these countries, the government must to do more and must do better. Otherwise no business will find these countries worth investing in. I don't think wolf thinks much about developing countries.