Failures of globalization and anachronisms of governing

AuthorIon Bucur
PositionFaculty of Business and Administration University of Bucharest
Pages115-122

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The understanding of the forces that influence the worldwide economy destines must be grounded on the economic and political actual realities. Today's economy is considerably different from the one existing at the end of the previous century. The world has become more and more independent from an economic stand point, and the worldwide system is liberalizing everywhere. On a worldwide scale, the contrasts are becoming more and more obvious, which increase the economic insecurity feeling. The forces rapport is modified on an international level and the market democracy is generalized.

Globalization represents the key to a better understanding of the recent economy's history. Along with the occurrence of a genuine global economy a vast debate was initiated regarding the future of globalization and capitalism. Essentially, such debate is not a matter of anti or pro globalization, but is closely connected to researches over the economic theory and values. Globalization is potentially a carrier of huge benefits. The main issue is represented by concretizing such potential and comparing the benefits with the costs implied by globalization.

The successes arising partially from globalizations are obvious, but so are the effects generated by inappropriate management of such: crises and recessions due to world economy instability, environmental degradation consequent to growth without worldwide rules and so on.

The manifestation of reticence regarding the current globalization is also due to the unjust nature of the game's rules mostly established by the developed countries. The current globalization process determines disequilibrium between countries and within such, tending to become morally unacceptable and insupportable from a political stand point. There must be also taken into account the fact that the economy is not a null sum game, and that the emergent economies' situation contributes to establishing and securitizing the developed world. The possibility of restructuring the globalization for the benefit of all

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countries is closely conditioned by multiple improvements that are specific to its functioning and which could lead to sustainable, balanced and democratic development.

Concerns regarding the reconsideration of theoretical and ideological fundaments of the current globalizations, as well as of the mechanisms of putting such into functioning, are grounded on strong arguments. Economic globalization advanced to political globalization, and defying and failures confronted by such severely affect world's political and economical stability. An in depth critical analysis of the current globalization's status was made by the economy Nobel awarded American economist Joseph E. Stiglitz, reputed theoretician and excellent knower in this area.

In his papers, largely published on an international level, complex debates are launched on the issue of reorganizing globalization, reforming economic policies and restructuring of the international financial system, as well as on ensuing a correct equilibrium between the public and the private sector. The specific problems regarding world governing, and the way in which decisions are made on an international level benefit of increased attention.

A critical analysis of governing functioning in a world of complex interdependencies emphasizes its non-functional nature. The existent tension degree and the incapacity of the current governing of coping with defies of globalization are clear proves of the inadequate nature and of the crisis faced by the world economy governing.

The adepts of current economic governing system's reforming also invoke considerate such as legitimacy, transparency and liability in the activity of international economic and financial institutions. Under such circumstances, the profound legitimacy crisis is noticed of the institutional collective action both on the objectives setting up level and of the ways in which decisions are made and applied. One of the most severe objections against the international economic institutions' functioning refers to the promotion of the same set of economic policies. Such universality claim ignores on one hand choice as an essence of the economic science, and on the other hand, experience, options and concrete conditions of each of the world areas and countries. The features of the economic policies system as recommended by the IMF are determined by their theoretical and ideological fundaments, as well as by pursued interests.

IMF, the World Bank and the US Treasury have foreseen economic policies which are contrary to those used by the developed countries. The ideas of "market fanaticism" have influenced the fundamental strategy of development, as well as the crisis management and transition towards market economy as promoted ever since the 80s and sometimes referred to as "neo-liberalism" or the...

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