As late as the beginning of the 20th century, the world was divided into eastern and western ideologies on economic and political issues. The Eastern ideologies of Russia and its allies believed in a centrally planned economy and strong state political control.. This transformed into the communist philosophy. These countries were closed economies and only traded among themselves. There was nothing like the global trade we now have. The countries of the West including USA, Canada, Japan, France Spain and other allies believed in the market system and political democracy. They were termed capitalists countries where wealth was in the hands of private individuals rather than the state. This led to an intense cold war as each side tried to gain more influence over developing countries who had just gained independence and needed a structure, economically and politically, to achieve sustainable development.
The western world continued to grow in leaps and bounds economically. They were able to achieve this through increased productivity and efficiency. It was a period characterized by large expenditure on research and development of new products and services driven by the advances of technology. The 1973 world oil crises impacted significantly on both the eastern and western countries; economic recession, high inflation reduced welfare expenditure and rising unemployment. The western world was able to survive, however the eastern world fared much worse. It was unable to sustain its extravagant welfare programmes and much less technology and innovation resulted in economic collapse among communists and socialists countries. The major economy of the communist ideology, Russia, had several problems with its grain industry- there was growing food shortages and discontent among its people. The west led by the USA was asked for aid, but this help was not forthcoming unless Russia adopted the western liberalize economic model and improved institutions of democracy and respect for human rights. Russia accepted the terms of the IMF programme and embraced the western liberal and democratic culture; that effectively ended the ‘Cold war’. Technology played a significant role in that internet facilitated open, unrestricted opportunities and channels for trade between and among countries. Technology had hence changed the world to a ‘global village’.
This is a revolutionary macro concept about radical liberalization of world cultural, economic, financial and all other forms of trade and interaction across national borders with minimal restriction. (Ruel Reid).
The process by which ‘flows of trade, finance and information between countries are broadened and deepened so that they function as one global market.’ (Mohammad) Globalisation has serious implications for Caribbean Countries The expansion of free trade /trade liberalization requires that countries reduce or remove the tariffs they have placed on imports to protect their own industries. This is problematic as larger developed countries that can produce goods cheaply will flood Caribbean markets , this means they will not be able to sell their goods .They however have to submit to this economic model as they would find it impossible to have a viable export trade. Removal of preferential trade agreement- Since all countries are expected to be on a ‘level playing field’, the preferential trade agreement once enjoyed by the ACP (African, Caribbean and Pacific) Countries who were once colonies of the Europeans was removed. This agreement is called the LOME agreement. Erasure and hybridization of Culture- As countries interact more easily via internet, cable etc many national cultural practices are eroded and a more global culture emerges. Even where there is not full adoption there is creolisation and hybridization of culture esp. in dress, language, technology entertainment etc. Flows of capital-...