New Delhi, March 31 -- The conventional economic case for globalization and free trade has emphasized the aggregate gains that they bring, including enhanced productivity, faster technological change and wider consumer choice. However, a critical aspect often overlooked is that globalization inevitably creates both winners and losers in the short term, even though its long-term effects are broadly positive for society as a whole. The theoretical underpinning for these overall benefits is the assumption that losers can be compensated and moved over time to alternative productive sectors.

Yet, in practice, the benefits and costs of globalization have been unevenly distributed across worker demographics, industries and regions. This may poi...