...HISTORY OF TRADE LIBARALIZATION The history of trade between nations has been a long and colorful one, interrupt by wars and dramatic changes in beliefs about trade. Because of the economic impact that trade has always had on civilizations, governments often become involved in trade with the goal of producing a particular economic outcome for their countries. Trade liberalization refers to the removal of government incentives and restrictions from trade between nations. It is a subject of much scholarly and political debate, given the impact that trade has on the livelihood of so many people, especially in developed countries. After independence in 1971, Bangladesh followed a of a highly restricted trade regime strategy. This was characterized by high tariffs and non-tariff barriers to trade and an overvalued exchange rate system that was supported by the import-substitution industrialization strategy of the Government. This policy was pursued with the objectives of improving the balance of payment position of the country and creating a protected domestic market for manufacturing industries (Bhuyan and Rashid, 1993). The trade regime registered a major shift in the mid-1980s, when a policy of moderate liberalization was initiated. However, in the early 1990s, large-scale liberalization of trade was implemented. Since then, successive Governments have reaffirmed their commitment to the development of a more liberal trade regime. Economists in particular have debated the advantages...
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...by Jerry Mander, Debi Baker and David Korten IFG Bulletin, 2001, Volume 1, Issue 3, International Forum on Globalization During the past few years, we have heard steady proclamations emanating from the advocates of economic globalization and leaders of the Bretton Woods institutions - the World Bank, the International Monetary Fund (IMF), the World Trade Organization (WTO), et. al. - that their deepest purpose in pushing economic globalization is to help the world's poor. More specifically, they contend that removing barriers to corporate trade and financial investments is the best path to growth, which they say offers the best chance to lift the poor from poverty. They also assert that the millions of people who have visibly opposed the economic globalization model are harming the interests of the poor. Everyone should please back off and leave it to corporations, bankers and global bureaucracies to do the planning and solve the world's problems. Such claims are routinely replayed in the media. One prominent national columnist, for example, says, "protesters are choking the only route out of poverty for the world's poor." In other words, if the protests would stop, the IMF, the World Bank, the WTO, Nike and Monsanto would save the day. Is this true? Are the interests of global corporations and bureaucracies really aimed at helping the poor? Or do these institutions have other primary motives? WHO BENEFITS? So far, almost all of the evidence from the past three decades (1970-2000)...
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...THE GLOBALIZATION RORSCHACH TEST: INTERNATIONAL ECONOMIC INTEGRATION, INEQUALITY AND THE ROLE OF GOVERNMENT NANCY BRUNE and GEOFFREY GARRETT* November 2004 Forthcoming in Annual Review of Political Science vol. 8, 2005 In this review essay, we address the three principal questions that have dominated the debate over the distributive effects of globalization. First, how has globalization affected inequality among countries? Second, how has globalization affected inequality within countries? Third, how has globalization affected the ability of national governments to redistribute wealth and risk within countries? We conclude that despite the proliferation of social science research on the consequences of globalization, there is no solid consensus in the relevant literatures on any of these questions. This is because scholars disagree about how to measure globalization and about how to draw causal inferences about its effects. Keywords: globalization, inequality, economic growth, government spending, privatization ___________________________________________________________ * Nancy Brune is a doctoral candidate at Yale University. She can be reached at nbrune@isop.ucla.edu. Geoffrey Garrett is Vice Provost and Dean of the International Institute, Director of the Ronald W. Burkle Center for International Relations, and Professor of Political Science at UCLA. He can be reached at ggarrett@international.ucla.edu. The authors Alexandra Guisinger, David Nickerson and Jason Sorens...
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...Globalization and Bangladesh According to Oxford Dictionary “Globalization is the fact that different cultures and economic systems around the world are becoming connected and similar to each other because, of the influence of large multinational companies and of improved communication”. According to Wikipedia (an web encyclopedia) Globalization refers to increasing global connectivity, integration and interdependence in the economic, social, technological, cultural, political, and ecological spheres. Shahzaman Mozumdar (IT Professional and Freedom Figher) says, "Globalization evokes different feelings to different people. Some look at globalization as "the panacea,"-the elixir that will eradicate all poverty, remove disparity, and enable the global citizens to enjoy a decent lifestyle-the lure of globalization. Others view globalization as "the evil" that will further enslave them to the rich” In the broadest sense, Globalization implies integration of economies and societies across the globe through flows of technology, trade and capital. Integration of production, accelerated cross-border investments and more trade are the logical outcomes of this process. It is a phenomenon of 21st century. When I think of globalization in the context of Bangladesh, I think of a person like Hosne Ara Begum, a 40-year-old garments worker at Dekko Apparels Ltd. Hosne Ara, living with her unemployed husband and two children, was driven out of her village in Comilla because...
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...Enabling Business Strategy 1. How does IT impact the mission of the World Bank? Before we dive deeply into analyzing how IT influences the mission of the World Bank (WB), it is important to understand their missions as well as their core strategy and capabilities fostering these missions. We will first notice changes in the capabilities and business strategies before we see the final impacts; every reflection of these changes shines through the glass of IT-enabled business initiatives. Rarely in business cases, do we see top executives present such strong support for IT development due to heavy upfront investment, possible disruptive business operations, and uncertain return on its investment (Applegate 63). Nevertheless, with a business model that thrives over internationally geographical and cultural differences, it is impossible to succeed without a well-supported IT global network. The WB’s simplified mission in three phrases: fight poverty with passion and professionalism, help people and environment with resources and shared knowledge, and forge partnerships in both public and private sectors. Part one of their mission, the WB has financed 240 projects in 92 countries as assistance to both low-income and developing countries in 2003 (McFarland and Delacey, 3). How the WB achieves this exemplifies their key capability, global IT networks since 1977. This single key capability made it possible for the WB to enforce its first business strategy of decentralizing staff and...
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...(1999). "The death of the Washington consensus?" World Policy Journal 16(3): 79-88. Cleary, S. (1989). "Structural Adjustment in Africa." Trocaire Development Review 1989: 41-59. Dollar, D. and A. Kraay (2001). Trade, growth, and poverty, World Bank, Development Research Group, Macroeconomics and Growth. Escobar, A. (1992). "Culture, economics, and politics in Latin American social movements theory and research." The making of social movements in Latin America: Identity, strategy, and democracy: 65-82. Fine, B. (2002). "Economics imperialism and the new development economics as Kuhnian paradigm shift?" World Development 30(12): 2057-2070. Godard, P.-P. K. and J. H. Williamson (2003). After the Washington Consensus: restarting growth and reform in Latin America, Peterson Institute. Gore, C. (2000). "The rise and fall of the Washington Consensus as a paradigm for developing countries." World Development 28(5): 789-804. Hamilton, C. (1989). "The irrelevance of economic liberalization in the Third World." World Development 17(10): 1523-1530. Harriss, J., et al. (2003). The new institutional economics and Third World development, Routledge. Helleiner, G. K. (1992). "The IMF, the World Bank and Africa's adjustment and external debt problems: An unofficial view." World Development 20(6): 779-792. Husain, I. and R. Faruquee (1994). Adjustment in Africa: Lessons from country case studies, World Bank-free PDF. Lal, D. (2000). The poverty of development...
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...Position Paper for the Second Committee of the General Assembly Plenary The issue before the Second Committee of the General Assembly Plenary 2014 is: Increasing and coordinating efforts to fight international tax evasion. The World Bank is fully committed to the fight against international tax evasion as the profit made from either corporate or income tax can be used to support the affected countries in various ways, such as improved commitment to the UN or the World Bank committee. The WB is deeply concerned about tax evasion and its consequences concerning the world and its economy. By making use of non-standard tax havens or offshore banking accounts, companies and individuals exploit their country and therefore damage the country’s liability and economy. As that unjust advantage deceives the affected country, it is a major threat not only to that, but also to the world’s economy. The World is of the mind that, even if only a minority, not paying your tax imposes an unfair burden on the honest majority and prevents money from reaching the crucial public services that need it. One must stop people cheating the tax system and collect more of what is owed. The British tax gap in the 2010 to 2011 financial year was estimated to be £9 billion formed of tax evasion and avoidance. Losses caused by corruption and tax evasion are powerful examples of how criminal activities can potentially have tremendous negative effects on economic development. Also, ill-gotten money is not spent...
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...“The World Bank and IMF exploit and oppress the "developing" countries for the benefit of the rich. In this scheme, their partners in crime are the big Western banks and financial institutions. Simply abolishing the IMF and World Bank is not enough. We need to break the power of the big banks that carry out the same exploitative policies as the IMF and World Bank do in relation to the less developed world.”- CWI, socialistworld.net Introduction Marginalization can be defined as the process in which groups of people are excluded (marginalized) by the wider society. Marginalization is often used in an economic or political sense to refer to the rendering of an individual, an ethnic or national group, or a nation-state powerless by a more powerful individual (ask.com, 2014). The process whereby something or someone is pushed to the edge of a group and accorded lesser importance. This is predominantly a social phenomenon by which a minority or sub-group is excluded, and their needs or desires ignored (Businessdictionary.com, 2014). As per UNLDC report, a number of countries are being marginalized on the basis of economic exploitation (Table 1). Why World Bank programs fail? According to Johnson & Sheehy, a majority of World Bank loan and grant recipients do not ave significant level of economic freedom (Table 2) and such nature prevents countries to utilize the loan or grant. • Of the 60 long-term recipients of World Bank aid, 37 have economies that are “mostly not free”...
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...Role and Importance of BRICS Bank Sudhakar Singh PGPSM 2015 National Institute of Securities Market The ‘BRICs’ acronym, in its most common usage, derives from a report to investors by Goldman Sachs’ analyst Jim O’Neill, signaling the new dynamic that four large countries; Brazil, Russia, India and China, were bringing to the global economy at the beginning of the new millennium. A conclusion advanced in the Goldman Sachs report was that the BRICs should be included in the G7 as their macroeconomic significance increased in the decade to come. From a global investment angle, the world has moved on from there to a wider set of dynamic emerging countries, including a number of fast-growing African nations, as more developing countries find their own way to catch up on growth, resisting world recessionary tendencies (O’Neill 2001 2011). The investor’s world of emerging markets has thus expanded beyond the BRICs, even as questions are raised about the sustainability of growth in the BRICs themselves, with their structural and political challenges and their vulnerability to the uncertainties of global monetary developments. (http://mobile.opendocs.ids.ac.uk/opendocs/handle/123456789/3599#.VemUOn2MgQ0) The grouping was originally known as "BRIC" before the inclusion of South Africa in 2010. The BRICS members are all developing or newly industrialised countries, but they are distinguished by their large, fast-growing economies and significant influence on regional and...
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...INTRODUCTION In the modern world, microfinance has been recognized as one of the most innovative tools for a sustainable economic development. In the last decade, the discussions on microfinance at the international have been multiplied because this type of financial services does not simply arouse interests about the financial world, but also about numerous political and social matters. Many times, diverse scholars expressed different innovative techniques for alleviating poverty, but the microloan idea provided by professor Dr. Muhammad Yunus, seemed to work better in driving the people away from the poverty traps. Hence, microfinance institutions are alternative financial service providers that usually offer financial services to the low-income...
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...World Bank: Roles and Responsibilities in Developing Countries Mathew Vettukallel Liberty University Business 606-B01 LUO Professor Dr. Joan Koonce October 11, 2013 Abstract This research paper will focus on how the World Bank has helped many third world counties to transition into developing nations. The mission of the World Bank is total elimination of poverty from the face of the earth by the year 2030 (www.worldbank.org). The World Bank has been helping many developing countries to fight against diseases such as AIDS, Tuberculosis, and Malaria in many parts of the world (Clark, 2011). The World Bank is offering financial help for several programs to help with agriculture, transportation, infrastructure, and irrigation in many South Asian countries to reduce poverty. There has been so much controversy about the activities of the World Bank. Even though the main mission of the World Bank is to alleviate poverty from the face of the earth, there has been severe criticism that the World Bank is changing its focus to financial policy reforms and structural adjustments. The World Bank as an international financial institution has done so much to help numerous developing countries when they are in financial crisis or needed help to undertake a major development project. Regardless of the criticism and corruption accusations, this author believes that the World Bank is in the right direction by providing basic reforms and structural adjustments in order to alleviate...
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...markets and free trade... (2007, pg 2) Through this approach, economic and social barriers and constraints are sought to be eliminated to prompt the market towards becoming self-sufficient. Therefore, it is very easy for neoliberalism to hinder the development of economies and society, as imbalances in wealth and living conditions are emphasised and expanded over time. In particular, these imbalances become quite prominent in developing countries, for example, Brazil, where they may begin to take importance over the conditions of the population. Despite this, we are still observing the existence of neoliberalism in the 21st century on an international scale as the globalisation era lingers and development continues to evolve. In the modern world, neoliberalism offers ‘the supporting ideology of globalisation’ and depends on market forces, free trade and laissez-faire government roles to become efficient. (Heron, T. 2008. Pg. 1;Kelleher, A and Klein, L. 2011. Pg. 95) It was in the late eighteenth century when Adam Smith originally formulated the idea that in an economy, priority must be given to privitsation and it is necessary for trade and finance to be fully liberalized in order to achieve high economic growth. (Research Methodology, 2013) However, it is Friedrich von Hayek, an Austrian born economist, who is known as one of the founding fathers of neoliberalism for his fairly conservative yet predominant theories of the minimalist state as a solution to the...
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...Emerging Markets and Future Emerging Markets - NGOs Term paper for “International Trade and Emerging Markets” Winter Semester 2015/2016 Lecturer: Prof. Herrmann Leon Hankamp MA 14 IB / International Trade and Emerging Markets Student-No. 114550000 Table of contents 1. Introduction 3 2. Non-governmental organizations 3 2.1. What is a NGO? 3 2.2. Different types of NGO’s 4 2.3. Strengths and Weaknesses 5 2.4. Renowned NGO’s in emerging markets 5 3. NGO’s in emerging markets 7 3.1. The role of NGO’s in emerging markets 7 3.1.1. Poverty 7 3.1.2. Human rights 9 3.1.3. Corruption 10 3.1.4. Environment 12 4. NGO’s collaborations with other entities 12 4.1. Companies 12 4.2. World Bank 14 5. Conclusion 15 Bibliography 17 1. Introduction The purpose of this term paper is to analyze and demonstrate the role of NGOs (Non-Governmental Organizations) in the emerging markets and future emerging markets. First at all, what is a NGO? The first part of the paper focuses on the theoretical framework of the NGOs, although there is no real definition of what a NGO is. There are different definitions from different companies or entities; however all NGOs have the same goal, to help the poor, stand for human dignity and protect the environment. In the main part I am going to handle the subject which is the actual role of NGOs in emerging economies. There are different areas in which NGOs are involved with, such...
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...absolute convergence formerly predicted by growth economists does not hold. That is, not all countries do automatically converge to the same steady state position. As a result, depending on a number of factors, countries would tend to cluster on certain "conditional convergent equilibria". These will depend on essentially the investment rate, human capital endowment, the R&D intensity and integration into world markets. Further, empirical results strongly support the hypothesis that only countries with sufficient abilities to innovate or acquire new technologies are able to converge in terms of their productivity levels and income. Keywords: Globalization, Economic Growth, Innovation Globalization (Cheal, 1997) defines economic globalization as, A process of increasing economic integration between two countries, bringing about the emergence of a global marketplace, or a single world market (p 647). Despite the fact that globalization has been in the making for the past couple of decades. Ever since the emergence of the trans-national trade, the real impacts have come to increase exponentially over the period dating back two or three decades. Osland, (2003) notes that, this boom is attributable to the integration of developed economies with the less developed ones. This occurs by means of foreign direct investments, which entails a reduction of trade barriers, as well as the...
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...However unlike microfinance firms that have issues with people repay, Endeavor has created a system where they truly ensure their loans will be repaid. Endeavor created a system where they choose members who they know will not only repay them back, but also bring in profit as well. By being very selective and taking their time with the panels, they will ensure that they get the right people who have both the motivation to work, as well as a great idea. Additionally, Endeavor wants these people to become self sustainable and have these companies be long term solutions for real issues or creative ideas they know will sell in their countries and potentially internationally. While microfinance firms can have both social and financial impact on its borrowers, there can be a huge disconnect when people give them...
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