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Globalization and Development

Globalization and Development . Some Observations . Economic Growth . Economic growth helps the growth of middle-class populations in developing countries The middle class and desire for more participatory governments Income growth leads to improved education

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Globalization and Development

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  1. Globalization and Development Some Observations

  2. Economic Growth • Economic growth helps the growth of middle-class populations in developing countries • The middle class and desire for more participatory governments • Income growth leads to improved education • Education populations are more likely to demand more democratic governments

  3. Economic Liberalization: A Mixed Bag • The need for economic institutions supporting the market system • The role of international organizations: WB, IMF, WTO, and UN • The role of multinational corporations • The effects of free movements of capital

  4. Communication Technology and the Internet • Freer and faster transfer information • The role of the media • Easier access to information and knowledge • Increased mobility of people • Enhanced role of NGOs, aided by modern communication technology • Easier people to people communication

  5. The Discontents with Globalization • While benefiting many in different parts of the world the globalization process has led to the disfranchisement of the poorest of the poor in many developing countries as well as some developed countries resulting in a widening gap between the poor and the rich. • In their efforts to adhere to the prescribed economic and financial liberalization (promoted and managed by the West) many governments in the developing world have curtailed or abandoned numerous social programs essential to their economic development. (Education, healthcare, etc.) • Insufficient concern for regional and global environment has put many populations as well as the world as a whole at risk while at the same time national governments find themselves weakened, by a combination of economic and political pressures from within and without, in dealing with environmental consequences of globalization.

  6. Discontents (continued) • The interaction between political and economic forces in managing the globalization process seems to have been directed more by politics than by economics. • The unfair (excessive) influence of the powerful interest groups, particularly the ones in the West, in setting the rules of the game and shaping the global economy; these rules have in some cases made the poorest countries worse off. • The conflicts (and competition) between small local businesses and large multinationals often have led to the disappearance of the former. • The economic system (American style capitalism) forced upon developing countries is not appropriate for many of them and has in fact harmed large segments of their populations.

  7. Discontents (continued) • The international organizations (WB, IMF, WTO, etc.) managing the globalization process are run by appointed (non-elected) officials mostly from rich countries whose sensitivity to the problems and needs of developing countries is at best limited. Policies and decisions undertaken by these organizations tend to favor the political and economic interests of the rich countries and their corporate citizens.

  8. Discontents (continued) • The globalization process is being run in a very undemocratic ways. The rules and policies are made by non-elected officials mostly from western countries who are not accountable to even those countries’ electorates. Developing countries that are most affected by the actions and decisions of the managing international organizations have little or no say in the policy making process.

  9. Reforming Globalization • Poverty elimination and prevention • The need for more foreign aids and debt relief • Fair trade ! • Controlled and slower liberalization • Greater attention to environment • More democracy in global governance

  10. Poverty and InequalityBroken Promises • Why has the gap between the rich and poor been widening? • Within countries • Between nations states • Is capitalism an answer to all economic ills? • Socialism • Pure Capitalism • Guided capitalism: A matter of degrees • Different models for different situations • The Asian experience

  11. Development Goals • How can balanced and sustainable development be realized? The complexities of the real world Poor governance Poor infrastructure (economic, social, political) Lack or inadequacy of resources • The market needs a good government. • To support it • To correct it • To supplement it where market solutions fail to producing the desired results • Development tradeoffs • The efficiency-equity dilemma • The right mix of private and public sectors

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