Econ__ 222-F10Globalization_WhatisNext.pptVIP

Globalization What is it? Phases of globalization Globalization Econ Impacts on Growth Poverty Globalization Readings World Bank (2002) Globalization and Growth IADB (2003) Beyond Borders: the New Regionalism in Latin America, Chapter 2. ECLAC (2002) Globalization and Development What is Globalization? Globalization describes the increasing integration of the world economy. It reflects the influence exerted by worldwide economic, social, and cultural processes over national or regional ones. the growing links between people, communities, and economies around the world. These links are complex and they are the result of lower communications and transportation costs and greater flows of ideas and capital between high- and low-income countries. Globalization is Controversial Critics argue: globalization process has exploited people in developing countries, caused massive disruptions to their lives and produced few benefits in return. Supporters: globalization has resulted in significant reductions in poverty achieved by countries which have embraced integration with the world economy such as China, Vietnam, India and Uganda. Globalization Impacts Impacts: Economic: international trade financial liberalization (monetary policies), economic growth, investment, poverty, etc. Non-Economic: ethical, cultural and political. i) democratization, civil and political rights: by virtue of which more individuals are entitled to participate in public decision-making ii) social and cultural rights, which reflect the values of social equality, more egalitarian societies, solidarity and nondiscrimination. What do you think about the following statement? “The integration with the world economy could be a powerful drive to LAC’s growth and poverty reduction.” Measures of Globalization Economic measures of globalization: Increasing participation of international trade, investment and FDI flows in the world product. The strong presence of multinational cor