A Global World Essay Research Paper The — страница 2

brought time for debt repayment it also had a few negative effects. The result included a drastic reduction in public spending currency devaluation privatization of state enterprises, and reduction of wages to attract foreign investors and reduce export prices (Laurier Course Package 82). Global Managerialism Global managerialism refers to the relocation of the power of economic management from nation-states to global institutions (Laurier Course Package 84). The new management style encompasses many things, such as exportation, privatization, and new global policies (the debt regime was a good example of one such policy). National units are becoming increasingly weak as many global institutions, enterprises, and policies become stronger and more powerful in the world market.

With this new trend towards feeding the global economy it is not surprising that the development project had to be restructured and reformed, for the focus was no longer on national economic growth, but rather on the growth of the world market. Global Governance A major governing power, although not an absolute one, is the World Trade Organization (WTO) that was formed in 1995. Its rulings are binding to all members and its powers stretch into the trade industry in many forms, such as services, investment, manufacturing, and agriculture. [G]lobal managers assume extraordinary powers to manage the web of global economic relations lying across the states, at the expense of those state organizations, including their democratic achievements (Laurier Course Package 101). Another

source of global governance is the uplift in power that is reached by way of debt. Debt became a powerful form of political leverage under the debt regime when the multilateral financial agencies strengthened their control over national policy making by assuming the lending role (Laurier Course Package 96-7). The development project has not been completely forgotten in the awake of the globalization project, there are still thousands of local agencies and institutions that work towards and are interested in linking human development with local and national economic growth. A central idea of the globalization project is the belief in market liberalization that took hold under the debt regime (Laurier Course Package 92). The idea of liberalizing the market was thought to be a much

more efficient way to foster economic growth. Along with this liberalization though, came less national economic control. Countries had to find goods and services that they had a comparative advantage in, in order to compete in the world market. Growth strategies where less focused on social welfare and more centered on economic welfare. Currencies were unstable and subject to great fluctuations over the course of a very short time. But even with its few negative aspects the globalization project has still been the most powerful operation of its kind. It is an alternative form of organizing and governing the world market and the global economy as a singular entity . At the very least, it can certainly be said that the globalization project opened up many opportunities for the

future to unravel. Below is a brief summary of the major elements of the Globalization Project: 1. An emerging consensus among policy makers favoring market-based rather than state-managed development strategies; 2. Centralized management of global market rules by the G-7 states; 3. Implementation of these rules by the multilateral agencies: the World Bank, the IMF, and the WTO; 4. Concentration of market power in the hands of transnational banks; 5. Subordination of former Second and Third World states to these global institutional forces; and 6. Subordination of First World states to these global institutional forces a subordination as yet by no means as severe as in the former two Worlds. (Laurier Course Package 105) Bibliography Laurier Course Package. DI 100: Introduction to

Development & International Studies. Winter Term 2001. Instructor: Joe Hodge, p. 1-37, 53-105. Lecture Notes. Lecturing Professor: Joe Hodge. Jan. 3rd Feb. 14th, 2001. Lewellen, Ted C. Dependency & Development: An Introduction to the Third World. Bergin & Garvey. Westport, Conncticut, 1995, p. 1-123 324