enefits aimed at improving competitiveness and balancing the budget. Some developing countries in Latin America have been competing in opening up to trade, deregulating their economies, and privatizing public enterprises. Ask either government officials or business executives why these changes are necessary, and most will say "We need to remain (or become) competitive in a global economy."
             The process that has come to be known as globalization is creating a deep fault line between the groups who have the skills and mobility to compete in global markets, and those who either do not have the advantages or choose not to expand into global markets. The result of this is tension between the market and social groups such as workers, pensioners, environmentalists, with governments stuck right in the middle.
             Rodrik argues that the biggest challenge for the global economy is to make globalization compatible with social and political stability. More directly, to ensure that international integration does not cause domestic social disintegration. "In an increasingly interdependent world we must all recognize that we have an interest in spreading the benefits of economic growth as widely as possible, and in diminishing the risk either of excluding certain countries or regions from the benefits of globalization." Rodrik states that most economists choose to downplay the problem. They choose to emphasize the benefits of globalization, and ignore the social tensions that follow.
            
             The first major source of tension is the transformation of the employment
             relationship. Since the mid 1970's, the United States and Western Europe labor markets
             have performed very badly as far as lower skilled groups are concerned. Distinguished economists say "An economic disaster has befallen lo
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