A more equitable globalisation would pay more attention to the distributive impact of globalisation than in the past. As in the case of new technology and competition, economic efficiency gains stemming from free trade often have distributional consequences.
As we learn at university, free trade is Paretoimproving only if it comes with lump-sum transfers or other redistributive tools.26 But lump-sum transfers are enforceable only if governments keep control of their tax and benefit systems, which financial globalisation has called into question. In particular, it has become more difficult to tax multinational companies.