... ... middle of paper ... ...id. The latter requires the recipient to buy goods and services from the donor country. The World bank and IMF (International Monetary Fund) provide loans to developing countries designed to improve their infrastructure, education and health services, restructure the economy and cope with aggregate supply and demand shocks. I feel that this policy can once again either greatly benefit a country if it is used wisely or it can create even more problems for the economy. To conclude I feel that it is very difficult for developing countries to compete globally with developed countries as they are at a disadvantage in many respects.
The IMF loan and bailout packages are hurting the international economy because they seem to be making the economic crises worse for one by trying to help another. Both organizations, the World Bank and the International Monetary Fund were formed with two goals in mind – to help underdeveloped countries and to eliminate poverty from the world. Though they are different, they have been working together to achieve their goals by helping the international world.
A state should have general free trade philosophy. The IMF three main tasks are to in the internationa... ... middle of paper ... ...fficulties to have economic or political power in the world. Moreover if that country is in the IMF, there is a system to check all the IMF member countries’ economics therefore if that country has the serious economic problems or its national economics does not work anymore, the IMF can help to solve that problem. Hence the idea of Economic National Perspective about trading and the globalization is not good in the recent world, because the globalization is the key in the world economics and politics. It is very important keep the balance between national industries and imports, because if there are too many imports in the country, there will be some problem in hiring because the national industries would be difficult to compete with cheap import products.
In order to mitigate these negative consequences of the profit making ideology, global governance and treaties that aim at helping developing countries advance without undermining their democratic principles are needed. Finally, as all three authors mention that politics and economics must be separated in such way as to not give corporations power over the government. In this paper, it was shown that globalization has the potential to raise living standards and to spread knowledge that allows for faster development of both the wealthy and the poor. However, the way in which it has been managed has resulted in the opposite, many people are worse off due to globalization because it has been attached to policies that undermine the very democratic principles they claim to uphold.
What Ferguson highlights is very relevant to the society today because politics and leadership of nations is really affecting the development of many nations. The way countries are being run directly reflects on the development progress in the countries. Study of leadership therefore becomes an interesting component for study so that we can be able to build up on the need for sober leadership for the development of nations. Of interest in Fergusons highlight is the fact that he highlights the negligence with which resources are being utilized without consideration for the future generations who are also heavily dependent on how well we preserve the resources for them. Compromise in terms of the implementation of regulations and policies as highlighted by Ferguson seems to be the core undoing of the leadership in place which leaves the nations vulnerable in terms of their economies and sustainability.
By employing economic methods of analysis, Collier demonstrates how current international development polices have exacerbated rather than diminished existing issues impeding reconstruction efforts in low-income states. In order to help remedy the harmful effects of these policies, Collier proposes several innovative solutions he believes would better support political and economic development in bottom billion countries. However, Wars, Guns, and Votes is not without its limitations. Although Collier offers a new economic perspective to topics previously dominated by other social sciences, he fails to define key concepts relevant to his argument. Furthermore, Collier’s writing style is extremely convoluted.
World Trade Organization is responsible for the policing of the world trade and the World Bank is set up to promote the economic development. The international institutions are created to restore the benefits of global integration. The role of the international monetary fund focuses on the functioning of the monetary system and on promoting sound macroeconomics policies as a precondition for sustained economic growth (Brenton woods institutions). The international institutions were created to create benefits for the developing countries but some scholars argued that these institutions have (a) minimal impact on the developing countries. (b) that they capture by the powerful developed countries(c) they capture by private producers and investors and (d) internal dysfunction and failure accountability.
Nowadays, almost all nations in the world are facing competition in international market. Some developing countries put non trade barriers through anti-dumping duties (AVD) and countervailing duties (CVD) on imports from developed nations. Primaria is one of the Developing nation whose members’ of the Parliament wants to introduce protectionist policies. These protectionist policies are not good for poor as well as developing countries because developing countries’ economy growth depends on trading with developed countries in a global market. As an Executive Director of the Global Development, I want to talk about The Importance of Trade in Stimulation the Economies of Developing Countries.
One of the main arguments against globalization is that large corporations take advantage of poorer nations. Opponents argue that corporations take advantage of the labor force by giving them unfair working conditions as well as having a disregard for the environment (“Economist” 2001). While this may have been the case in the past most multinational corporations are working to clean up their practices in developing countries. Regardless of the way that the standard of living is measured, there is clear evidence that economies that adopt free trade policies outperform their counterparts that maintain protective trade barriers. This economic performance has lead to clear increases in the standard of living in these countries, providing clear examples that free trade can be used to help underdeveloped economies catch up to more developed nations.
According to Stoudmann, G and Al-Rodhan, N. (2006) globalization can be defined as “a process that encompasses the causes, course, and consequences of transnational and trans-cultural integration of human and non-human activities”. Globalization has ultimately been on of the most powerful tools toward helping economic empowerment, development, however this is not always achieved in developing countries as their economies face many challenges during globalisation, therefore harnessing its full benefits is an on going predicament for developing nations. The ongoing trend that is Globalisation has brought various benefits to the developing nations that cannot be properly emphasized. That being said, there is indeed poor consensus in regards to developing nations economic growth that places the process of Globalisation into question on whether or not it is beneficial for all involved. Supporters of globalization, argue that it has the potential yield positive results in the long run more so for developing countries.