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Global capitalization
Part A
1) Colonization of the 18th and 19th had appalling effects on the global economy particularly countries which were colonized. This has continued to date where world superpowers control our economy via neocolonialism. Economic developments of such countries are lagging behind at the expense of their colonialists characterized with poverty, exploitation in market by cheap purchase of products and expensive imports’ prices. Rights to economic autonomy in market and trade have been sabotaged so that growth of economy is only prevalent in the superpowers. Food insecurity, poor infrastructure, increased diseases are prevalent with such colonized nations being regarded as underdeveloped and third world.
2) Bretton Woods’s systems of economic institutions are; the International Monetary fund (IMF) and World Bank which are meant to promote cooperation of world economy. These two institutions were formed during a meeting in Hampshire in the US in 1944 with about 43 member countries. Initially the Bretton Woods also incorporated the International Trade Organization (ITO) which remained latent not until its ratification as World Trade Organization (WTO) in the 90s. Their creation finalized at the end of the Second World War with the focus on postwar economic reconstruction and multilateral trade particularly among the Britons and US members. Their roles in controlling trade operations, peace and economic stability globally are still prevalent.
3) Bretton Wood institutions initial focus was to regain economic stability and cooperation in trade which had been lost as an aftermath of the Second World War. It encouraged policies against protectionism and recession of the world scale reducing themselves and other nations from begging so that world economic growth could be realized. They have however revolved to be centers of division due to lack of agreements concerning different forms of trade regulation, barriers and currency value. It now fosters underdeveloped countries’ growths though it directs control of their economy thus lack of autonomy. Due to this it has received much criticism as being detached, arrogant and vulnerable to kickbacks thus is becoming continually exploitative emphasizing on neo-liberalism.
Part B
- Neo-liberalism is a political perspective advocating for laissez-faire in governance and running of institutions and also advocates for economic growth in modern day. Though largely unexploited it has resulted to improved social economic, political and educational organizations. It stipulates its principles and policies as; differentiation in law establishments, power relations through legal means, institutionalization of power structures and also rationalization in dealing with political issues. It emphasizes on the market rule, reduced cost of social services. Privatization, deregulation and discouragement of concepts for communal benefits.
- Neo-liberalization is important in helping nations to be realistic in the decision they make and to gain freedom in the making of those decisions. It has also promoted nations that are strong and development focused other than using democracy which is very consultative and time wasting creating uniqueness in a nations economic achievements.
- In the US the advocacy of neo-liberalism has caused destruction of welfare programs causing the infringement of labor laws, the cut backing of social programs denying the observance of the rights of the minority causing a carefree attitude in the in trade and market, introduction of black market resulting to increased suffering and problems other than initial plan of economic development.
- Neo- liberalism is an ideological paradigm that shifts risks from federal institutions to individuals with the logic that this is going to enhance economic gains by improved market. It stresses the need for privatization of markets and enterprises making the private sector more domineering than the public. It emphasizes much on capitalism thus gauges societal developments with the outcomes other than consequences of actions taken.
- To supporters neo-liberalism has been seen to abridge drug smuggling and crime though it has caused many refugees lives as they seek for secure places to shelter. It has however augmented corruption in immigration in a sought for low wage paying jobs which are many in developed countries. Though meant to be effective in increasing a country wealth it has resulted violence and bewilderment other than encouraging organized social settings. This policy benefits the elites from world superpowers while the majority in underdeveloped and developing countries are tormented by the aftermaths of neo-liberalism.
Part C
1) The latest emergence of a chaotic world characterized by continued political turmoil and deaths due to war and egoism related issues have raised an alarm calling for anti-capitalist campaigns to restore world peace and order. Occurrences such as the Asian crisis, the Nazism in Germany and also dictatorship in Indonesia has called for change. Concerns of these campaigns are a continued trend of less global development since a few elites are sharing the global cake in terms of trade, political power and social-economic development. The world’s resources are only benefiting a minority few, social institutions have fallen and the dignity of life has not been observed.
2) Anti capitalists reason that even in absence of serfdom and exploitation economic imbalances will occur in terms of power and control. The anti capitalists have campaigned against neoclassical and Marxist theories of exploitation to prevent slavery of the minorities by the affluent accompanied with torture and non observance of human rights. Anti capitalists control in terms of political rule, power dissemination and aspects of religion are also being advocated for through continued calling on embracement of unity and order in our societies. However, this for pro capitalists poses a threat of loss of their authority and is often observed as impractical and a reason for other revolts to mount up.
3) Though these campaigns have not borne fruits in changing the opinion of the world on capitalism they have pushed for reforms particularly in the areas of social integration through the acceptance of multiculturalism and enhancement of new labor provisions prohibiting slavery unless. Policies of democracy have also been enhanced but unless the problem of poverty and distribution of resources equality are ironed out no outcome will be felt. Implementing these laws for powerful persons will be impractical and slow.
Part D
- The rules and norms of GATT were following liberal policies of trade, elimination of tariffs, no discrimination in trade conducts and the national rule of treatment. Its principles were reciprocity in lowering tariffs, transparency and non-discrimination in trade operations and a provision of lowering on novel tariffs imposed.
- Trade liberalization entails the allowing of traders to expand their trade beyond boundaries without respective government interferences. It expresses the need mutual gain between the parties involved. It is characterized by free market availability, liberal movement of labor and capital without taxation or interference by the trade deformation policies such as subsidies. This can cause public disquiet due to poor substandard goods, entrance of the black market such as that of drugs and biological weapons causing a breach of the privileges of this market. Communication barriers can encourage cheating and also the differences in value of currency can result to one party benefitting more.
- WTO was established to remedy the weaknesses of GATT and provides rules of trade among member countries since 1995. Its rules unlike those of GATT stipulate negotiations other than liberalism in trade. It advocates for reduced tariffs and reduced taxation and subsidies on goods traded but not their removal. This helps to safeguard the member countries from black market and also focuses on eminence of goods traded. It allows for dialogue and consensual agreement on the rules to be followed in trading with member countries.
- WTO faces the challenges of time wastage in bargaining and negotiations which at times may fail thus difficulty in implementing laws. Concerns about the stringency of their rules are raised since they apply to over 90% of international trade. As an unelected bureaucrat organization it has been not as a perfect replacement of GATT since it uses much powerful enforcement mechanisms thus hard to adopt and not the people’s favorite. Though this is the case it has been effective in reducing the trade of substandard unlawful goods and is focused on ensuring world trade is transparent and of high quality.
