Transcript 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.

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
 Education populations are more likely to
demand more democratic governments

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

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

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.
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.

Discontents (continued)

The international organizations (WB, IMF,
WTO, etc.) managing the globalization
process are run by appointed (nonelected) 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.
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.
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

Poverty and Inequality
Broken 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
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