NPQ | What set of policies in the advanced countries can make globalization work?

Stiglitz | The prescription for making globalization work is what is generally called “the Scandinavian model.” That means high levels of investment in education, research and technology plus a strong safety net. That, of course, also entails, as in the Scandinavian countries, a highly progressive income tax.

Far from making these countries less competitive, it has made them more so. Though it may seem a contradiction to conservative ideologues who think cutting taxes is the answer to everything, the fact is that people are more willing to take entrepreneurial risks if they can count on a safety net and if they have the training to be innovative.

From "Making Globalization Work" NPQ Winter 2007