globalization of money

After reading a review on a book entitled "Making globalization work," authored by Nobel Prize winning economist Joseph E. Stiglitz, I brought to mind what has been and continues to represent for the economy, so born and brought globalization.

Having been so close to the global economic affairs, put it in a privileged position that allowed him to observe the macroeconomic policies over the past decade have been applied to development of some countries, which allegedly were aimed at seeking the welfare of their populations. However, the reality that these policies, what they have accomplished is the growing gap between the richest and the poorest.

What makes us understand in their various writings and published works, is that market imperfections are produced by the fact that they are in constant asymmetry due to differences between the information available to the worker and the employer or the lender and the borrower, or the insurer and the insured. This is explained from a different perspective to the "natural balance" of the market, the reason for the existence of unemployment or because they need credits are often those least get them.

In our country, for example, governments in one way or another have focused their development policies under the rules of international institutions like IMF, World Bank, the Inter-American Development Bank, the Organization for Economic Cooperation Development, the World Trade Organization, which really has been obtained is an improvement in the macroeconomy, responding precisely to these postulates, which can be seen in controlled inflation, devaluation within acceptable limits, interest rates down, but unfortunately low growth, unemployment at high rate.

In fact, globalization came to our country from the entry into the GATT (now WTO), deepened with the signing of a Free Trade Agreement for North America (and all other treaties have been signed in the last three presidential terms).

Therefore, Professor Stiglitz says that globalization is that all national economies are in constant interaction, which should promote economic growth in less developed countries, but to make this possible, not just the institutions supra-national economic, applied to provide recipes for growth, but they must respect the sequences and rhythms that require some economies with a weak level of development.

It also becomes critical to a frontal attack, the neoliberal ideology that requires the abandonment of ideas about the role of states in the development of national economies, as proposed from the end of World War II, This meant that these economies should act under the laws of free market, according to which the profit motive is the force that drives the economy to efficient outcomes.

Why globalization for some, a force that has produced so much good, has become so controversial?

Among the advantages that could be considered for the decrease of isolation experienced by many developing countries, the real possibility of an exchange between these and other developments in a global market, globalization has enabled many countries to grow much faster than at other times, has also that a larger number of people now enjoy a higher purchasing power, and a standard of living much higher than they had ever enjoyed, and has provided a greater number of people access to a degree of knowledge that only a century ago was not attainable, nor the richest in the world.

This is because the facility now has access to information, as with the Internet.

With these views very short, I want planted concern about what globalization has been for our country. Do you really feel that we have and enjoy its benefits?

Dr. Luis Nunez Alvarez.


source: economia.com.mx