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Greenspan: Don't let terrorism hinder globalization

WASHINGTON (CNN) -- Terrorism poses a major challenge "to the remarkable record of globalization" and it is imperative for world leaders and economists not to allow the fear of such acts to paralyze global economic progress, Federal Reserve Chairman Alan Greenspan said Wednesday.

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"If we allow terrorism to undermine our freedom of action, we could reverse at least part of the palpable gains achieved by postwar globalization. It is incumbent upon us not to allow that to happen," Greenspan said during a dinner meeting of the Institute of International Economics.

In the wake of the Sept. 11 terrorist attacks, Greenspan said the anti-globalization movement -- which had waged intense and sometimes violent protests at World Trade Organization meetings in recent years -- has simmered down, but it will arise again.

He said the Bush administration must continue to forge ahead with opening world markets and not cower to terrorism.

"Terrorism poses a challenge to the remarkable record of globalization," Greenspan said. "I trust that we will go forward expeditiously with the pending new trade round. The differences to be resolved in such talks are small relative to the larger issue of maintaining our freedoms to travel and trade on a global scale."