POLI 211 Introduction to Development Studies

Transcript:POLI 211 Introduction to Development Studies:
POLI 211 Introduction to Development Studies Session 11 CRITICAL ISSUES FOR THE 21ST CENTURY: GLOBALIZATION Lecturer: Dr. Maame Adwoa A. Gyekye-Jandoh Contact Information: mgyekyej@yahoo.com Session Overview Overview This session will examine certain critical issues for this century – particularly globalization. In particular, ways in which globalization has impacted developing countries, and how globalization’s effects may heighten the need for international financial reform will be examined and analyzed. A closer look at the UN MDGs will be taken in Session 12. Slide 2 Session Outline The key topics to be covered in this session are as follows: Topic One: Globalization and International Financial Reform Topic Two: Some Effects of Globalization on Developing Countries Slide 3 Reading List Todaro, Michael. 2000. Economic Development. England: Pearson Education Limited. Michael Todaro and Stephen Smith. 2012. Economic Development. (11th edition). England: Pearson Education Limited. http://digitalmedia.worldbank.org/projectsandops/strategy.htm; Ritzer, George. ed. 2007. The Blackwell Companion to Globalization. Slide 4 Globalization and international financial reform Topic One Slide 5 Globalization and International Financial Reform For the first time in recent history, developing countries’ economic development or progress has both a direct and an indirect impact on the economic performance of industrialized nations. Research suggests that this “reverse economic dependence” will increase in the coming decades. This is because we live in an increasingly interdependent world, where developing countries are used to economic dependence on the advanced countries. The developed advanced world, in an age of increasingly scarce natural and mineral resources, global environmental threats, accelerated international illegal migration, and burgeoning world trade, is becoming more economically dependent on the developing world than ever before. For example, developing countries are expected to absorb almost 70% of the growth in world imports over the next 25 years (Todaro 2000: 699). Slide 6 Globalization of the World Economy Since the 1960s, a remarkable globalization of the world economy has taken place. This means that there has been an increasing integration of the economies of many nations into global markets, and this promises to dramatically change the volume and character of international resource flows. Slide 7 Globalization and International Financial Markets Globalization and International Financial Markets The expansion of global trade is limited by the domestic and international banking sector (includes the IMF and World Bank), which provides financing for international transactions. The increasing competitiveness, size, and spread of international financial markets have the potential to bring low-income countries/economies into the economic mainstream.