Globaliation: a Path to Growth, but Not Without Obstacles

Globalization, defined as the movement of countries and economies towards an integrated global market , is an inevitable force in today’s increasingly connected world.   International policy-making organizations, such as the IMF and the World Bank, support this new globalized economy.   Economic theory shows that open economies encourage trade, creating jobs, increasing the standard of living worldwide.   Others are quick to point out that what works best in theory is not always achieved in practice, citing continued poverty and inequality in the face of this global free market philosophy.   Globalization itself is not to blame for these problems, as there are many other obstacles that can disrupt a country’s ascent to prosperity.   Once these obstacles are eliminated, growth will most certainly take place.
The IMF and the World Bank have not arbitrarily chosen their growth policies. There are common denominators found in almost every country that has achieved, prosperity: foreign direct investment, an educated workforce, proliferation of technology, strong government institutions, sound macroeconomic policies, an existing market economy, and integration of that market with the global economy.   It is important to emphasize that these are but generalities.   Every country takes a different route to growth, and these policies can only point them in a general direction, not provide them with a road map.   Once that future is mapped out, however, its citizens can expect to see a wider variety of available goods and services, lower prices, more higher-paying jobs, improved health and overall improved living standards.
From 1980 to 2007, the volume of trade of goods and services as a percentage of world GDP increased from 42.1 percent to 62.1 percent.   China, once an isolated mystery to the west, is now an economic powerhouse, with real incomes per person having risen well over 400 percent.   Ernesto Zedillo, the former president of Mexico has stated, “In every case where a... [continues]

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