Globalization: Article Summay-Analysis Essay Example
Summary Analysis Project: Globalization
The Economic Dimension of Globalization, Manfred B. Steger In his article, Steger traces contemporary economic globalization back to the Bretton Woods system which birthed the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO). After the collapse of Bretton Woods, we see the emergence of a new neoliberal economic order which linked globalization to the liberation of world economies. From neoliberal economics, we see what Steger regards as the most significant developments related to economic globalization. First, he says that internationalization of trade and financial the liberalization of financial transactions go hand and in hand, and that globalization of financial trading allows for increased mobility with fewer restrictions and greater investment opportunities (42) but later demonstrates how this can have its downside. Secondly, he takes a look at the control and influence of transnational corporations on the world’s investment capital, technology and access to international markets (48). Because they account for 70% of world trade, TNCs have become major determinants of trade flows, the locations of industries and other world economic activities and are thus able to greatly influence the economic, political and social welfare of many nations (51). Thirdly, he addresses how the bargaining of the international economic institutions gives them the upper hand in regulation global economies. In return for financial bailouts to aid in economic crises, the IMF and World Bank are able to demand that states implement certain structural policies and programs. The IMF and World Bank often face criticism for trying to force countries to adopt economic policies which mirror those of the United States, who according to Steger, has been the dominant power in the IMF and the World Bank from their beginnings (53). Steger’s article does not necessarily offer an argument for or
The Economic Dimension of Globalization, Manfred B. Steger In his article, Steger traces contemporary economic globalization back to the Bretton Woods system which birthed the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO). After the collapse of Bretton Woods, we see the emergence of a new neoliberal economic order which linked globalization to the liberation of world economies. From neoliberal economics, we see what Steger regards as the most significant developments related to economic globalization. First, he says that internationalization of trade and financial the liberalization of financial transactions go hand and in hand, and that globalization of financial trading allows for increased mobility with fewer restrictions and greater investment opportunities (42) but later demonstrates how this can have its downside. Secondly, he takes a look at the control and influence of transnational corporations on the world’s investment capital, technology and access to international markets (48). Because they account for 70% of world trade, TNCs have become major determinants of trade flows, the locations of industries and other world economic activities and are thus able to greatly influence the economic, political and social welfare of many nations (51). Thirdly, he addresses how the bargaining of the international economic institutions gives them the upper hand in regulation global economies. In return for financial bailouts to aid in economic crises, the IMF and World Bank are able to demand that states implement certain structural policies and programs. The IMF and World Bank often face criticism for trying to force countries to adopt economic policies which mirror those of the United States, who according to Steger, has been the dominant power in the IMF and the World Bank from their beginnings (53). Steger’s article does not necessarily offer an argument for or