From Adam Smith to Amartya Sen: Global Market as a Possible Instrument to Promote Socio-Economic Development

Abstract

The present paper analyzes the links that exist between Adam Smith’s thought and Amartya Sen’s one with the aim of presenting a definition of globalization which shows how global market could be a potential instrument to promote socio-economic development. The definition of globalization here presented is composed of three distinct but complementary parts. Globalization is here considered first as a global division of labour, second as a global market where the products generated by the division of labour are exchanged and third as a complex socio-economic phenomenon which generates positive outcomes under two conditions: on one hand, every agent has to respect the rules coming from a common ethic, and, on the other hand, countries and International Organizations have to guarantee that every agent respects national and international laws. Therefore, globalization is not negative or positive per se because its positive or negative effects depend on the way it is managed (Stiglitz 2005).

Keywords: Adam Smith, Amartya Sen, global market, socio-economic development

JEL Classification: A11, B12, B29, F42, F43, F59, O19