1. ECONOMIC GLOBALIZATION
RELATED ISSUE #3
ECONOMIC GLOBALIZATION
To what extent did world events shape contemporary economic globalization?

2. Past Economic Development
Boom and Bust era (1880s – 1914)
Markets & monopolies ruled
The Great Depression ( )
Laissez-faire’s ‘invisible hand’ didn’t always work
Keynesian Economics (1930s – 1970s)
Governments should regulate their economies to minimize highs and lows of business cycle
*John Maynard Keynes

3. Contemporary Global Economics
United Nations:
Bretton Woods Conference (1944)
Economic Development Organizations
International Monetary Fund (IMF)
International Bank for Reconstruction and Development (a.k.a. World Bank)
Reduction of Trade Barriers
General Agreement on Tariffs and Trade (GATT)

4. Changing Foundations & Ideas
Cold War Economic Struggle ( )
Communism
Practiced total economic & political control
Predicted end of capitalism’s inequalities
Capitalism
Allowed regulated markets to discourage socialist alternatives
Believed economic freedom promoted democratic freedoms

5. Neo-Liberalism “Back to Pure Market Economics”
Failure of communist states
Triggered a renewal of pure market theory and a call to end Keynesian governmental intervention
‘Chicago School’ Economists:
Milton Friedman
Friederich Hayek

6. Global Trade World Trade Organization (WTO)*formerly GATT
Free trade now has enforceable rules and consequences
NAFTA (USA, Canada & Mexico)
Pros and Cons
Transnational Corporations
Power and influence on global economics and trade treaties

7. The Washington Consensus
USA promotion of economic ideology
Open markets to US products & investment
Economic policies for developing countries:
Privatization of state enterprises
Reduction of government spending on social programs
Deregulation
Trade liberalization
IMF & World Bank to promote its policies
Structural Adjusted Programs

8. Winners and Losers Who do you think these economic policies benefit?
Who or what do you think they harm?
Can the world economies continue to grow and consume at their current rate?