We all now know that globalisation and free market capitalism are going through their toughest period in many decades. The excess committed by a few over-adventurous investment bankers in the West has triggered a fierce backlash against globalisation and the free market economy.

At one level this is understandable — everyone is hurting as growth has tumbled not only in the West but also in emerging economies like India. At another level, the backlash is dangerous because globalisation and free markets are about much more than complex finance. And any rolling back of the basics of the free market economy or the basics of globalisation — which seems to be beginning with mass nationalisations, protectionism and parochial nationalism— will see us all worse off than we are now.  

In many ways, the success of Slumdog Millionaire reminds us of all that is good about globalisation and free markets. Slumdog is a truly multinational film — a largely British-made film, based on an Indian story, with Indian actors, some Indian technicians, distributed by a major US production house and which swept box offices and award nights across many countries. Globalisation is ultimately about moving beyond national boundaries to tap resources, talent and markets across the world. That makes the best economic sense, and that’s how we get superior products for our consumption. Even films made in India are now hiring foreign talent, especially on the technical side to improve their product. That’s a good thing. Similar logic applies to firms and universities — they must bring in the best talent across borders. That’s why any restrictions on work visas, in any country, are a bad thing.

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