Globalization: Quo Vadis?

Lecture 20

History of Globalization

• Globalized North Atlantic– North America-U.K. and others

• Immigration patterns• Movement of FDI• Currency Matters• Drop in transport costs

– Time Period: 1890’s to 1930– Why did it end: Depression and bad policy

• Halt Immigration, farm prices collapsed, Smoot Hawley tariff

– Can it collapse again?

Modern Globalization

• How does it differ?• Institutions– WTO, IMF, World Bank– Interdependence• Capital flight• Equalization of Wages• Environmental Impacts• Propriety Rights over Technologies

Evidence

• Pro-side– Poverty Incidence• 1978-2000

– China poverty fell from 30% to 10%– India poverty incidence fell from 51% to 26%

– Rise from Group of 8 to Group of 20• More power in IMF and World Bank

• Problems:– Child Labour, women, culture, wage and labour

standards,environment