Globalization and Inequality

2008 ◽  
Vol 7 (4) ◽  
pp. 415-433 ◽  
Author(s):  
Erich Weede

AbstractGlobalization may be defined by a worldwide division of labor and increasing trade between nations. This is inconceivable without expanding economic freedom across the world. Free trade and globalization increase competition, productivity, and economic growth rates. In spite of increasing inequality within many large economies – including the US, China, and Russia – inequality between human beings and households has been reduced. Since catch-up growth in big Asian economies contributes to Schumpeterian “creative destruction,” it necessitates rich economies to adapt, to become ever more entrepreneurial and innovative. This generates resentment and strengthens protectionist excesses which might serve some special interests. But protectionism harms the global economy, the prospects of the poor to grow out of poverty and, worse still, likely increases the risk of war.

2009 ◽  
Vol 2 (3) ◽  
pp. 1-17 ◽  
Author(s):  
Sandro Sideri

The first section of the paper identifies the immediate causes of a crisis that is both severe and global. The second section examines the unsustainable imbalance that feeds the current crisis: more than two billion people under-consume and save, while a few hundred million borrow and live beyond their means. This imbalance rests on, and at the same time strengthens, the huge and often widening income gaps between, and within, countries, including the redistribution in favor of capital and highly skilled labor caused by globalization and technological change. The third section explores the effects of the crisis and the problems that it is creating, including those generated by the way in which it is being handled and the “exit strategy” that will eventually be used. The crisis is accelerating the shift of power toward Asia, because the US is increasingly perceived as the destabilizer of the world economy, but until the imbalance is eliminated, the financialization of the global economy is brought under control and productive investment replaces the speculative activity of financial capitals, other crises are bound to follow. Which means that any future international order that emerges from the current mess must abandon the present economic growth model, while integrating globalization with regionalism. These two processes are already underway and may perhaps result in a more balanced and multipolar world system.


2018 ◽  
Vol 74 (4) ◽  
pp. 402-419
Author(s):  
Krishnakumar S.

With Donald Trump as President of United States, multilateralism in the world economy is facing an unprecedented challenge. The international economic institutions that have evolved since the fifties are increasingly under the risk of being undermined. With the growing assertion of the emerging and developing economies in the international fora, United States is increasingly sceptical of its ability to maneuvre such institutions to suit its own purpose. This is particularly true with respect to WTO, based on “one country one vote” system. The tariff rate hikes initiated by the leader country in the recent past pose a serious challenge to the multilateral trading system. The paper tries to undertake a critical overview of the US pre-occupation of targeting economies on the basis of the bilateral merchandise trade surpluses of countries, through the trade legislations like Omnibus Act and Trade Facilitation Act. These legislations not only ignore the growing share of the United States in the growing invisibles trade in the world economy, but also read too much into the bilateral trade surpluses of economies with United States and the intervention done by them in the foreign exchange market.


2019 ◽  
Vol 5 (1) ◽  
pp. 1-26 ◽  
Author(s):  
Valeriy V. Mironov ◽  
Liudmila D. Konovalova

The article considers the problem of the relationship of structural changes and economic growth in the global economy and Russia in the framework of different methodological approaches. At the same time, the paper provides the analysis of complementarity of economic policy types, which, on the one hand, are aimed at developing the fundamentals of GDP growth (institutions, human capital and macroeconomic stabilization), and on the other hand, at initiating growth (with stable fundamentals) with the help of structural policy measures. In the study of structural changes in the global economy, new forms of policies of this kind have been revealed, in particular aimed at identifying sectors — drivers of economic growth based on a portfolio approach. In a given paper a preliminary version of the model of the Russian economy is provided, using a multisector version of the Thirlwall’s Law. Besides, the authors highlight a number of target parameters of indicators of competitiveness of the sectors of the Russian economy that allow us to expect its growth rate to accelerate above the exogenously given growth rate of the world economy.


2009 ◽  
Vol 2 (2) ◽  
pp. 158-166 ◽  
Author(s):  
Juan Carlos Jaramillo Estrada

Born in the late nineteenth century, within the positivist paradigm, psychology has made important developments that have allowed its recognition in academia and labor. However, contextual issues have transformed the way we conceptualize reality, the world and man, perhaps in response to the poor capacity of the inherited paradigm to ensure quality of life and welfare of human beings. This has led to the birth and recognition of new paradigms, including complex epistemology, in various fields of the sphere of knowledge, which include the subjectivity, uncertainty, relativity of knowledge, conflict, the inclusion of "the observed" as an active part of the interventions and the relativity of a single knowable reality to move to co-constructed realities. It is proposed an approach to the identity consequences for a psychology based on complex epistemology, and the possible differences and relations with psychology, traditionally considered.


Author(s):  
Thomas Borstelmann

This chapter tracks the economy of the 1970s as it began to decline after the prosperity of previous decades. Economic growth had defined human history for two hundred years, reaching a peak in the generation after 1945 when world economic growth averaged an extraordinary 5–7 percent per year. Americans rode that growth to a higher standard of living than anyone else. But in the 1970s it all seemed to be flowing away. Unemployment, oil shortages, a plunging stock market, recession, and, above all, inflation were apparently ending these golden years of unparalleled prosperity. Inflation hit everyone, and it hit the poor hardest of all. Persistent inflation undercut dreams and hopes for the future. The economic trauma of the 1970s threatened to destabilize Americans' understanding of how the world worked.


Author(s):  
Gazala Yasmin Ashraf

India has experienced one of the fastest economic growth rates in the world which has been a dramatic driver in the nature and scale of impact on the country’s environment and natural resources. Environmental risks and problems are widening. The issues of managing environment impacts are capturing public attention. Modernization and technology up-gradation is a continuous process for any growing industry and is equally true for the cement industry. With increasing awareness of environmental protection worldwide, the green trend of conserving the Earth’s resources and protecting the environment is overwhelming, thereby exerting pressure on corporations in India. The pressure and drive accompanying globalization has prompted enterprises to improve their environmental performance (Zhu and Sarkis, 2006). Consequently, corporations have shown growing concern for the environment over the past ten years (Sheu, et al., 2005). The pressure on corporations to improve their environmental performances comes from globalization rather than localization (Sarkis and Tamarkin, 2005). Increasing environmental concern has gradually become part of the overall corporation culture and, in turn, has helped to reengineer the strategies of corporations (Madu, et al., 2002).


2020 ◽  
Vol 12 (4) ◽  
pp. 1444
Author(s):  
Jungran Cho ◽  
Emma Kyoungseo Hong ◽  
Jeongho Yoo ◽  
Inkyo Cheong

Various risks and uncertainties are strengthening the downside of the global economy. This paper aims to estimate the impact of the US–China conflict and the World Trade Organization (WTO) Appellate Body’s shutdown on global logistics demand and to show the seriousness of the situation. Existing literature studies on protectionism or the US–China trade conflict were considered, with a focus on the effects of specific issues or impact on bilateral relations. No research has quantitatively considered the adverse effects of the Appellate Body’s shutdown. In this situation, questions can be raised whether the current global shipping logistics system can be sustainable or not. This paper attempts to estimate the shrinking demand for shipping logistics due to global protectionism. Using a dynamic general equilibrium model and trade-cargo-container conversion methodology, which differentiates this paper from previous studies, the paper suggests that the combination of tariffs and NTBs can severely reduce international trade and the demand for maritime logistics services. Depending on the scenario, port cargo is expected to decrease by 3.95 to 6.9 trillion tons, which can be half of the global cargo. Based on these estimates, this paper suggests that a catastrophe could occur in global trade order as well as global maritime logistics. Finally, underlining that the international trade order should not be severely damaged, this paper proposes that countries around the world should seriously discuss this issue at the 12th WTO Trade Ministers’ Meeting in Kazakhstan in June 2020.


2007 ◽  
Vol 200 ◽  
pp. 7-30 ◽  

The global economy expanded by 5.3 per cent in 2006, one of the fastest rates of growth in the past 35 years. We project further expansions of 5 per cent this year and 4¾ per cent in 2008. The key risks to the forecast that we highlight in this Review relate to global housing markets and the current stance of monetary policy. The US economy is restrained by the recent correction in its housing market, which is expected to continue to weigh on the economy through 2008. There is some concern that the housing investment downturn may spread to other economies, and in this report we explore the areas most at risk to such a contagion. We also consider the recent volatility in the oil price, which makes it difficult for monetary authorities to distinguish signal from noise. If too much emphasis is placed on what subsequently turns out to be noise, policy settings could turn out to be overly lax or stringent.


2018 ◽  
Vol 9 (1) ◽  
Author(s):  
Dong Phong Nguyen ◽  
Viet Tien Ho ◽  
Xuan Vinh Vo

Abstract Emerging and developing countries around the world are playing an increasingly important role in the global economy. They move up in the global value chain very quickly. However, these countries constantly facing a plethora of challenges covering a wide range of issues. This paper addresses some key challenges confronting Vietnam economy which potentially deteriorate its economic growth prospects. These include economic slowdown, credit booming, the rise of protectionism around the world, and risk from greater opening of the domestic markets. Addressing these challenges are important for Vietnam to maintain its comparative advantage and foundation for economic growth.


Author(s):  
Samuel Torvend

Luther not only wrote about charity and social ethics throughout much of his life; he also experienced the conditions that were the object of Christian generosity and ethical reflection. This essay suggests that his study of the Bible and Church Fathers was not the only source of Luther’s writings and revolutionary programs. His experience of deprivation as a child and a monk, his encounters with the homeless poor of Wittenberg, and his observation of corrupt business practices and failed political leadership played significant roles in his sensitivity to the scriptures and the history of ecclesial care for the poor. The rise of social history and the use of social scientific methods have drawn attention to the economic, political, and social context in which Luther lived and to which he responded throughout his life. The reformer’s works on charity and social ethics did not emerge in a vacuum. His initial public foray focused on the “spiritual economy” of the late medieval church, which discriminated against many of Luther’s poor parishioners. While the Ninety-Five Theses raised serious questions about the sacrament of penance, the role of indulgences, and the authority of the pope, the text also reveals Luther’s early concern for the poor, who were frightened into buying spiritual favors for themselves or their dead relatives. In addition to theological problems, Luther recognized the ethical dimension of this large-scale sales campaign that benefited archbishops and the Vatican treasury. Luther’s rediscovery of the Pauline teaching on justification by grace alone reoriented Christians toward life in this world. Rather than spend effort or money on spiritual exercises that might win one God’s favor in the afterlife, human energies could be directed toward alleviating present suffering. A dialectical thinker, Luther insisted on holding together two seemingly irreconcilable claims, two disparate texts, two discordant images in order to raise the question: How is one related to the other? His teaching on justification claims that God always advances toward a suffering humanity first and that this advance is revealed with utter clarity in the person and work of Jesus Christ, who incarnates God’s desire to free human beings from the deathly presence of anxious religion and give them “life, health, and salvation.” But such freedom must be used for the good of one’s neighbor who suffers within the economic, political, and social fabric of life. The advance of God, who is mercy and grace, continues into the world through Christ and his body. This essay suggests that while Luther animated significant contributions to biblical studies and theology, a body of ethical teaching has been harder to discern among his followers. Perhaps this hesitancy arose out of fear that an emphasis on ethics would be construed as a lapse into what Luther called “works righteousness.” This essay considers a number of the ethical questions and crises that faced Luther, which have not subsided and ask for contemporary investigation. A remarkable achievement of Luther’s reform was a revolutionary change in social assistance. The monastic communities of western Europe had long served as centers of hospitality and charity, and the order in which the young Luther made his vows was a reforming order committed to austerity of life and care for the urban poor. For theological reasons, Luther promoted the suppression of the monasteries and vilified the mendicant orders, but this left a gap in care for the growing population of homeless peasants seeking work in urban centers. The reform of social assistance undertaken in the small “Lutheran” town of Leisnig, Germany, in the early 16th century would become the model for many church orders throughout Germany and Scandinavia, influencing today’s state-run and tax-funded assistance to needy families. Recently, ethicists and Luther scholars have reassessed his reform of charity to ask how the reformer’s social teaching might support engagement with a wide range of present-day social movements. Increased study of Luther’s social writings and the study of evangelical “church orders,” previously marginalized in the academy, offers promising avenues for continued research. This essay also compares three forms of charity—Lutheran, Roman Catholic, and Reformed—illustrating the symbiotic relationship between social ethics and theology and underscoring the role of theological priorities in the conceptualization of social assistance. Finally, this essay considers Luther’s writings on social ethics. Frequently, interpreters of this focus on “faith active in love,” or the utility of his distinction between two kingdoms or governments. Such studies offer a biblical or theological grounding for Lutheran ethics yet frequently overlook the actual crises or practices he encountered. Luther was not a “systematic” theologian, and one must search through his many writings to discover his “ethical” teachings. Luther scholars and historians of social ethics are increasingly interested in the specific ethical questions he was asked to discuss by those who had accepted his reform. The growing popularity of his reform movement and the seismic shift in Christian thought and practice it animated left Luther little time to construct a well-ordered corpus of social teaching, yet many of his concerns are vitally alive in the world today albeit within a different context. Many of his concerns were enlightened by his study of scripture, in which he recognized a mirror of his own turbulent era.


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